Flamel Technologies S.A. (ADR) (NASDAQ:FLML)
A biopharmaceutical company principally engaged in the development of two unique polymer-based drug delivery technologies for the improvement of medical applications.
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Recs
Their approach to the delivery of drugs has been vindicated by their first FDA approval. In another year or so they will have a number of drug companies negotiating with them.
Recs
with Coreg already okayed by the FDA, more pharmacutical companys will look to upgrade their drugs' delivery systems. Flamel is well positioned to give them what they want.
Recs
The chart for the last year says that this may be a mistake for the time ahead... but my ear that listens to people who supposedly know more than me (like Gardner and his friends...) says I should be bullish on these folks for a long time. So, here begins my long time hold on this one.
Recs
FInally an application that will make it some money. I spoke with a Coreg rep the other day who's been selling it for 4 years and has no intention of leaving GSK. Coreg is a drug that "sells itself" in her words. It is widely prescribed and will help make Flamel a pile of money. With heart patients taking 10-20 medications daily, going from 2 doses to 1 dose of any medication is a good thing.
Recs
Profit and cash flow about to increase tremendously with expected approval of GSK product.
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This is a tough sell. I believe they'll develop something that will get the interest of a major (Glaxo) and they'll be acquired. I see the stock languishing until then.
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Coreg will prove to be the revenue stream and bring this company back to respect in the investment community.
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I believe it will outperform over the next year simply because of Coreg CR... Not much faith in it other than that. Hopefully that will change, but as of now this company has been saying the same thing for the past 2+ years... working on partnerships, blah, blah, blah. As negative as I am on management (past and present), I believe Coreg CR will give it a pretty significant boost over the next year... ($20M first year royalties are assumed) Hopefully between now and then more partnerships will develop. If not, then I'll sell.
Recs
Expect this company to grow and expand. It may be accumulated by another rival.
Recs
Summary:
On the surface, the company hasn?t changed much in the 1+ years since Soula was ousted. I have always liked Willard as a leader, but I fear now that the change in management may have done more to hurt this company than to help it. I guess we will never know.
Flamel should be a fairly reasonable investment for at least the next 6-12 months, based purely on Coreg-CR hitting the market in that timeframe. Although Flamel should see a steady revenue stream from Coreg-CR, it isn?t yet clear that it will bring the company to profitability given its heavy R&D spending. Regardless, royalties from CoregCR should at least slow the cash hemorrhage and secure the company financially for the short term.
The company continues to sink lots of money into R&D, and it isn?t clear yet that such money is being well-invested for shareholder value. Ultimately, the value from that R&D spending will be realized if it leads to partnerships. But Flamel seems to be in a partnership drought at the moment. Overall, my strategy with this pick is to hold through the first year of Coreg-CR royalties and if no new partnerships emerge I?ll probably sell.
Pros:
Strong technology and good science that controls pharmacokinetics and improves safety profile of bioactive compounds. Dome folks believe that big pharma is moving away from life cycle management of products. Even if this proves to be true, Flamel?s technology can still profit shareholders by improving safety profile of otherwise to
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