How One Tiny Drug Developer Could Take Down Pfizer and Co.

Feb 20th, 2009 | By Jim Nelson | Category: Featured, Investing Strategies
leadimage

Pharmaceutical behemoth Pfizer currently sports a market cap of $102 billion and annual revenue of $48 billion. Merck, another mammoth drug maker, has a $65 billion market cap and annual revenue of $24 billion. GlaxoSmithKline, with a market cap of $95 billion, generated $22.7 billion in revenue over the past year…

Obviously, these industry leaders know how to make money. Pfizer’s annual revenue works out to 47% of its total market cap. The annual revenues for Merck and GSK come out to 36.9% and 23.9% of their market caps, respectively…

But believe it or not, there’s a much smaller company that can top the numbers of even the biggest drug giant. It’s a penny stock pharma play with a market cap that doesn’t even approach $100 million. We don’t think it’ll stay this way for long, considering the company just signed a commercialization agreement worth more than its entire market capitalization.

You simply won’t come across a deeply discounted pharma stock such as this very often. The market has managed to overlook quite a gift…

In 2007, the value of the global pharmaceutical pain relief market was approximately $31 billion. In the United States, two-thirds of the dollar volume of the prescription pain medication market is for drugs used to treat chronic pain, with the remainder going toward drugs used for acute pain.

The company designs products to fulfill unmet and underserved medical needs in the pain-management niche. The company is particularly focused on breakthrough cancer, post-operative, back, orthopedic injury and burn pains. Despite the advances in medicine, the company insists treatments for these types of pain continue to be an underserved medical need.

But that’s not even the main reason we think you should be excited about this company… You see, The company penned an agreement in January worth up to $71 million that includes double-digit royalties on future sales of its new pain drug once it wins approval.

Out of the $71 million, the company collects $12 million in upfront cash payments from a European pharmaceutical developer for the commercialization rights to its flagship product.

A company like this is precisely what you should look for when dealing with small pharma and biotechnology firms. In this case, we have a leading drug candidate in Phase 3 clinical development here in the U.S. The drug has been proven to work better and faster than its main competitor.

These are several strong indications that we’re dealing with a company with a huge potential for success this year– no matter what the markets do.

Sincerely,
Jim Nelson

February 20, 2009


Author Image for Jim Nelson

Jim Nelson

Jim Nelson is the managing editor of Penny Sleuth. He has been playing the stock market since he was 14, always with a preference toward smaller companies. He has honed his stock picking skills at Agora Financial since 2004, effectively combining a growth and value approach. Like Greg Guenthner, Jim also contributes to Penny Stock Fortunes on top of bringing you the Penny Sleuth every weekday.

Special Report: Imagine Getting Rich as Ignored Stocks Soar- How you could turn $200 into $1.2 million!

The Penny Sleuth, presented by Agora Financial, features articles on
penny stocks, options, small-cap stocks, pink sheet stocks and OTCBB coverage.

Sign-up for the FREE Penny Sleuth e-letter to get small-cap stock analysis and options
strategies sent straight to your email inbox every trading day.

  

We Will Not Share Your Email Address
We Value Your Privacy

Random Posts


Tags: , ,
Print This Post Print This Post

17 comments
Leave a comment »

  1. What is the name of company? Have to read too much to get pithy information

  2. So, what is the company name?

  3. I am a receiver of Penny Sleuth, but I cannot find the meat of your news letter.

    I would like to find the name of the pharmaseutical company, that could over take Pfiser.
    Can you tell me where to find that name, or do I have to pay another fee to get it?
    Thank you
    Jorjia Jacques

  4. How does one learn the name of the firm that will slay Pfizer?

  5. Do I need to pay another fee to get stock tips for e.g the name of the drug company? Joan Yim

  6. cut through the crape (mumbo jumbo) and make this site worth your while give us some real info. and maybe I will forward it around but righr now you have said nothing about nothing.

  7. These postings continue to be of no use. Many times the data has long since gone stale or in this case non-exsistent. You’ll have to do better to keep your clients from feeling duped.

  8. you know there is alot of companies out there that is nothing more than one big rip off after another ,give me a reasen why i should spend 1000 $$$ with you guys. i dont want here how you guys in the past predicted big stock earners. i can do that all day long, hind sight is 20/20 after all. is there more hidden fees after the $ 1000 $$$ ???? you guys say that we can turn $ 200 $$ into $ 1,000,000,000 $$$ GIVE me one good future stock pick that i can make a $ 1000 $$$ to pay you guys for the fee that you guys want

  9. why do you leave your customers hanging? Jim Nelson’s article on the small cap pharma is a grabber, but sure leaves your clients with no good or useful info. this will turn people away from your services!!!

  10. if you guys are a ligit company , give us the info on the stock pick that will take down phizer.

  11. Print the stock or you are wasting my time!

  12. So, nice article…what is the name….as usual…who do you trust?

  13. It doesn’t sound like it to me these jokers are going to give you any info about this company. If they were, you would have it already. Sounds like a scam to me!!

  14. It is getting old having to pay for a tidbit of info after you ready through every article. I am really starting to wonder if this is a legite company or not. What is the name of the company being discussed in the article above. Step up to the plate and produce a name, or are you afraid to do so?

  15. I WOULD ALSO LIKE THE NAME OF THE COMPANY. YOU TEASE US WITH ALL THIS READING AND TELL US NOTHING.
    i JOINED THE PENNY SLEUTH AND INVESTED IN THE SHARES YOU RECOMMENDED. (10000.00). THE STOCKS ARE NOW WORTH ABOUT 5500.
    GIVE ME SOMETHING THAT I CAN USE TO MAKE BACK MY LOSSES
    MARION BURNS

  16. JAV !

  17. JAV, sorry that i posted this in the early morning of your US time coz i from Malaysia.
    I sure the stock name mention above is JAV, currently still running loss but have sign an agreement with europe market. Now is waiting approval from US government …i guess,,,,

    Just go to yahoo finance…..Javelin Pharmaceuticals, Inc., Q4 2008 Earnings Call Transcript
    there are some information written there.

    Becarefull as the stock lowers is 0.40….cureently 1.00, highly will going back down …..as 4th quater loss….
    But analyst recomendation on Strong Buy……
    As for me…i will wait a while,,,and see,,,,see,,,,,

Leave Comment

By submitting your comment you agree to adhere to our comment policy.