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NEWS....(hot damn- time to recoup losses?)..........
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2011) - ALDA Pharmaceuticals Corp. (TSX VENTURE:APH - News; OTCQB:APCSF) (the "Company" or "ALDA") announces the signing of a non-binding term sheet (the "Term Sheet") to purchase substantially all of the assets and undertakings of Seavan Health & Beauty Partnership ("SHBP") which is operating a manufacturing facility in Vancouver, British Columbia with approvals to sell pharmaceutical, nutritional and personal care products in Canada and the USA. The proposed acquisition provides ALDA with the direct ability to manufacture its own T(3)6® products, to continue the manufacture of SHBP's own related product lines, which it will retain, and the capacity for future expansion.
Pursuant to the Term Sheet , ALDA will pay $1 Million in cash and, subject to applicable securities laws and the policies of the TSX Venture Exchange, issue 3,000,000 common shares (subject to adjustment based on the average trading price of ALDA's shares prior to closing).
Dr. Terrance Owen, President & CEO states, "On completion of this acquisition, the Company attains a long-standing goal of controlling the manufacturing of T(3)6® products, increases its revenue stream and allows management to focus its energies on the therapeutic applications of the T(3)6® technology. It will also be beneficial for ALDA to have its own approved facility for manufacturing products required for anticipated clinical trials of T(3)6® infection-control therapeutics".
The Term Sheet is non-binding and contains a list of key terms and conditions precedent for the establishment of commercial arrangements between the parties. Definitive agreements will be negotiated and prepared after further due diligence, anticipated to be completed by March 11, 2011, is conducted by the Company. Completion may occur any time up August 8, 2011 and is subject to a number of conditions, including but not limited to, execution and delivery of all requisite definitive agreements by the respective parties thereto; applicable regulatory approvals and/or acceptance; and, if applicable, requisite director and shareholder approval. There can be no assurance that the proposed acquisition will be completed as proposed or at all.
About ALDA Pharmaceuticals Corp.
"IT'S ALIVE"........... 900,000 bought at .09- .10...... what up dog..?
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 13, 2011) - ALDA Pharmaceuticals Corp. (TSX VENTURE:APH - News; OTCQB:APCSF) (the "Company") is pleased to announce that it has closed the private placement announced December 8th, 2010. The Company has issued a total of 2,000,000 Units at a price of $0.10 per Unit for gross proceeds of $200,000. Each Unit consists of one common share of ALDA and one non-transferable share purchase warrant entitling the holder to acquire one additional common share of ALDA at a price of $0.20 per common share until January 12, 2013 subject to a forced exercise provision attached to each warrant commencing on the day following the expiry of any applicable hold period on the underlying Common Shares, stating that if, for ten consecutive trading days, the closing price of the listed shares of the Company exceeds $0.40 then the exercise period of the warrants will be reduced to a period of 10 days following such trading days.
Insiders of ALDA subscribed for 1,670,000 Units on the same terms as arm's length investors, constituting a related party transaction pursuant to Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9. Such Insider participation was exempt from the requirement to obtain an independent valuation pursuant to Section 5.5(b) of MI 61-101 and the requirement to obtain minority shareholder approval pursuant to Section 5.7(1)(b) of MI 61-101.
All securities issued with respect to the private placement are subject to a hold period expiring on May 13, 2011 in accordance with the policies of the TSX Venture Exchange and applicable Canadian securities laws.
Surf, this is from the same guy on Stockhouse.
Open letter to Dr. Brian Conway, world renown HIV/AIDS expert, and scientific advisor to Alda.
Hi, got a question for you. I understand that you are, or were a scientific advisor to Alda Pharma. I also know that you are a recognized expert regarding HIV/AIDS.
Bear with me here, but you must be aware of the world conference on HIV/AIDS that took place in South Africa last summer. And you must also be aware that the Canadian government was in attendence,
I heard that a novel new product idea was presented by an American company I believe. This was in the form of a vaginal gel, brilliant idea. What I found intereesting was that Terry Owen had floated the potential of such a product a few years ago. Of course it would contain Alda's T36 formula which has been proven to kill the virus in 15 seconds in labratory tests.
Now here's the stumper. I have heard that Mr. Owen was not even aware of the South African Conference. Since you are an adviser to Alda for which I'm sure you receive compensation, how could it be possible that not only was someone from Alda not there, as part of the Canadian delagation for instance, but this extremely important event was not even on the radar screen. Yes I'm 1 of many frustrated Alda investors, and it's these kinds of situations that explain the pitiful state of the company as far as I'm concerned.
I'd love to hear your comments.
Wow Surf, sounds exactly what I've been saying for a l;ong time. TO & co. are either out of their league, or they couldn't care less. True they.ve blown every single opportunity. Can only hope for new blood to step forward. A monkey couldn't screw things up more.
from stockhouse:
"Sounds like you made the same mistake as me. We should never get attached to a company. I fell for Alda over 3 years ago, believing in the product, and not understanding that just, if not more important is the management team behind that product, especially with small companies. I started to suspect that things were not quite what they seemed after the ATH in March/08. I thought at the time it wouldn't be long before they'd be back on track. I got myself into a huge hole. i only blame myself for my ignorance. As we see now even they're most loyal supporters are gone, or see this for what it is. I still remember the bashers back then referring to the previous company that TO took into the ground. Seems like he's done a repeat performance with Alda. I'm sure he's laughing all the way to the bank with our $$$ that we invested in good faith. At the same time the 1 thing we know is that they've got the intellectual property in the form of patents, FDA approval, and a list of some of the most serious iinfections that T36 has been proven to kill. We can therefore only hope that in 2011 we'll see Alda get back in the game. After watching how TO and team have blown every opportunity that's come their way so far, we must have fundamental changes in this useless leadership. I cannot believe that there isn't a lineup of potential suiters that could turn things around, and get these great products out there, and available to consumers around the world, or am I just continuing to be naive?"
emailed Scott... 1st time not returned... maybe he's away on a ski holiday?
I pray for a buy-out.
from Agoracom- Very good summary:
Just a short year ago, we were riding the high with what TO had expressed as "the perfect storm" with the H1N1 threat and the Olympic sponsorship. O how things have changed with Alda closing below a dime today, or about 50 cents shy of where it was trading around the same time last year. I remember TO being arrogant then saying that we'll look back at 50 cents and think it was cheap. Now, all we hear are excuses on why things didn't pan out. From market conditions in Europe to whatever you like; the finger-pointing is endless.
What irritates me to no end is the Olympic opportunity squandered by Alda. Seeing first hand how invisible and uncommitted they were to making the most of the expensive undertaking was unbelievable. I am convinced that management just thought, well we'll throw a bunch of money on marketing and as sales were improving, we'll sit back and just have investors and sales chase us for a change." Meanwhile, all this accounted for was a few bus stop signs and mostly empty T36 dispensers at a few venues. Retail Store owners were frustrated by the poor distribution and communication by Alda, and some have refused to carry their products.
I believe that TO has lost his focus and motivation with Alda. I mean, he makes a good income from the company so why should he bother. The gross profit of $18k from all sales in the last quarter doesn't even cover what he collects in a salary. Now they're scrambling to fund the company's activities by doing PP's and with management taking the lead.
Who are they kidding? It's not a sign of confidence because not only are they selling shares to participate in the PP, but in essence money received from the PP is just siphoned back into their personal coffers from the salaries "earned." I cannot believe shareholders just sat back and didn't rattle the cage in the recent AGM. I put my votes in to shake things up, but it seems like TO & Co. got their way. If management really wants to show us their committment, take $1 as a salary in 2011, and buy shares with their own money and not someone elses.
I am seriously concerned about this company and as a shareholder I truly wonder how they are going to stay afloat this year.
By the way, will still monitor ALDA board.... set up new board to talk freely about other stock plays.....
OT.... Surfin-Janet Board: http://investorshub.advfn.com/boards/board.aspx?board_id=19604
A warm welcome to all to join Surfin NEW Board
http://investorshub.advfn.com/boards/board.aspx?board_id=19604
Janet
When he used to answer mail, I did, many times. Anyway, here's a stock that I've been making money on. It's in a consolodation mode now, so good time to get in. It sort of offsets my aph disaster... WLOC, take a look.
Are you capable of thinking that the Co. might have others priority and what you judge important it is not for them at this time ??? The Co. must have had good reasons....
You seems to know better, why no offer your expertise to Dr.Owen ????
Well I guess that's all we can hope for. You don't seem to appreciate the significance of the Aids conference, and how that opportunity was missed. just considering the intellectual property, there must be so many ways that Alda could be making new alliances etc. Partnerships, what have you.
With IF and Maybe you do not go far.....Co. needs money!!!
Beside what do you know ..... The CO. might have plans for the future, keeping quite about until ready....
Where does any company get the money? Maybe if TO had of made his way to South Africa last summer, he could have got some interest.
Below an old post from Surfin....
how many offer Dr. Owen received for his T36 ???? Why the product is not so popular ????.....Why every where you see PURELL ????
I am sure Dr. Owen would have loved someone making an offer....
-------------------------------------------------------------
SurfinNj Share Saturday, November 24, 2007 5:00:48 PM
Re: janetcanada post# 240 Post # of 3907
Janet..............I know that Terrance Owens was involved with a couple of companies previously. ...I understand he took one of them from .10 to $8.00/share....I think it was HBP(Helix Biopharma), but I have to do more dd on it...
You say:<<Dispite market conditions there is so much potential>>
Where is Alda going to get the necessary money to promote their products????-
Relax !
Happy Holidays
janet
So you think TO is really trying to do his best. OK, then explain this 1. Earlier this year there was a world wide AIDS/HIV conference in South Africa. The Canadian government was there. Alda had a product idea a few years ago, a vaginal gel loaded with T-36. A new product was presented at this conference, which I understand is still in the development phase. A vaginal gel/lubricant. This was not from Alda of course. Bear in mind Alda had an internationally recognized Aids specialist on their board of directors. From what I've heard TO didn't even know about this fantastic opportunity to promote the wonders of T-36. I think that this is not an isolated incident, but speaks volumes of the leadership's real interest in taking things forward. As far as I'm concerneed the only thing they're interested in is flipping their own shares. The situation would be quite different if leadership was actually commited to growing Alda. Dispite market conditions there is so much potential. It's all very sad.
When the shares price was doing well the CEO was "Super" now that the shares price is down the CEO is "good for nothing", guess what ???? it is the same person !!! All Co.'s and in particular the small ones, have been affected by the adverse Economics Conditions. Nowdays, it seems to be the law of the jungle..... the Stock market did not recover yet and we see everydays what is going on.....
I am sure Dr. Owen did is best to try to turnaround the Co. it is unfortunate he could not succed the way I am sure he was hoping to. Easy for us sitting in front of our computer to judge and critisize..... maybe we should be thinking how he feel....
I am sure he would have wanted his Co. to be succesful is it really is fault, do you know everythings ????....
Happy holidays to all,
janet
I was never trying to be a sooth-sayer. Believe me, I would have much rather see Alda have exceded the most optomistic predictions. but alas, it wasn't to be. Is Alda in the death throws now... I don't know, but my gut tells me it is. I've lost a small fortune here, but I also learned. i won't bother to hural insults at the management anymore. We all know what we're dealing with here. That's why sp sits at .095 today.
Well, I can't say I agree with everything you said, as it seemed you were bashing consistantly, even when there were positive developments with the company(you did have the occassional positive, or "fair" post).... Right now, I am disappointed that we haven't heard anything from the company(positive or negative)... I don't think I was unrealistic in my position that the company has great products, and the economic climate was, and is terrible to raise money... I am disappointed that they haven't
been able to find some way to do that(raise money), with their supposed contacts, etc)...but it may still be possible.... Do I agree that you were some great soothsayer on ALDA's future success... In a word, no....
so now you agree with what I've been saying for a long time.
you're right about that...em
Bizz. as usual (unfortunatly)
Annual meeting.... (Yawn)..
ALDA AGM Held on December 10, 2010
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2010) - ALDA Pharmaceuticals Corp. (TSX VENTURE:APH - News; OTCQB:APCSF) (the "Company" or "ALDA") announces that its Annual General Meeting of shareholders was held in Vancouver, British Columbia on December 10, 2010 at which:
-- the incumbent directors of the Company, being Terrance Owen, Peter Chen, Linda Allison, Ronald Zokol, Eugene Hodgson and William F. McCoy were re-elected as directors of ALDA for the coming year; -- Meyers Norris Penny LLP, Chartered Accountants, formed by way of a merger involving HLB Cinnamon Jang Willoughby during the financial year ending June 30, 2010, were appointed as new auditors of ALDA for the coming year; and -- in accordance with the policies of the TSX Venture Exchange, the Company's rolling 2003 Incentive Stock Option Plan, as amended, was ratified for the coming year.
About ALDA Pharmaceuticals Corp.
ALDA is focused on the development of infection-control therapeutics derived from its patented T36® technology. The company trades on the TSX Venture Exchange under the symbol APH and on the OTCQB under the symbol APCSF. The Company was the Official Supplier to the Vancouver 2010 Olympic Winter Games and the Vancouver 2010 Paralympic Winter Games and is the Official Supplier to the Canadian Olympic Committee, the 2010 Canadian Olympic Team and the 2012 Canadian Olympic Team for antiseptic hand sanitizer, disinfectant and disinfectant cleaning products. The Company was also selected as one of the TSX Venture 50 companies in the Technology and Life Sciences sector for 2010.
OT...........woodstock, hope you took some profit before the fall.....
OT: SAEI on another big run on news! :)
gut feeling- with recent insider selling(or transfer of shares), and pp announced today, 2 days before annual meeting, leads me to believe that their could be a change in management in the works...
whatever, hopefully it will be good for the company, and ultimtely for shareholders(those that are left!)...
news: (another pp- maybe market conditions are better now?)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2010) - ALDA Pharmaceuticals Corp. (TSX VENTURE:APH - News; OTCQB:APCSF) (the "Company" or "ALDA") announces that it is undertaking a non-brokered private placement of up 2,000,000 units of the Company (the "Units") at a price of $0.10 per Unit for proceeds to the Company of up to $200,000. Each Unit will consist of one common share of ALDA and one non-transferable share purchase warrant entitling the holder to acquire one additional common share of ALDA at a price of $0.20 per common share for a period of 24 months from the date of the issuance of the purchase warrant with a forced exercise provision attached to each warrant commencing on the day following the expiry of any applicable hold period on the underlying Common Share, stating that if, for ten consecutive trading days, the closing price of the listed shares of the Company exceeds $0.40 then the exercise period of the warrants will be reduced to a period of 10 days following such trading days.
Certain insiders of the Company have been selling common shares of ALDA through the facilities of the TSX Venture Exchange in connection with this private placement and will reinvest up to $175,000 of the proceeds in the private placement. Accordingly, insiders of ALDA will be subscribing for over 25% of the offering, constituting a related party transaction pursuant to Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9 which is exempt from the requirement to obtain an independent valuation pursuant to Section 5.5(b) of MI 61-101 and the requirement to obtain minority shareholder approval pursuant to Section 5.7(1)(b) of MI 61-101.
The offering is being made on a private placement basis pursuant to registration and prospectus exemptions of applicable securities laws and is subject to acceptance by the TSX Venture Exchange. All securities issued will be subject to a four month restricted period and will bear a restrictive legend accordingly. Net proceeds from the offering will be used for working capital purposes.
Well, if an insider does have to sell(maybe needs cash, or is just moving on), it makes sense to wait for NR, so the share price won't get hammered(especially at these low volumes).... It doesn't necessarily mean that they are jumping ship... Let's hope not anyway!
Guess we find out next week if there will be any transition within management....
ALDA sucked today, with nice volume, but no increase in pps... it was selling 2-1.... some of it may have been insiders, but that may prove to be a plus for the company....(if someone is getting out, then someone else may be getting in) have to wait and see... This is all just speculation, fueled by early Friday evening alcohol...
janet.... Getting back her mojo....
The weekend is looking better by the minute and thank you for the tip! So far the risk has been worth it. Only time will tell if we can retire to the Riviera on this one! :) Ok 0.67, so do I hear 0.75! :)
ot..... Woodstock... .65 Keep going, really nice run on that stock........ (chart is begging for a pullback, very overbought, but seems to be ignoring that!)
lololol.....I am just being silly....
Wishing you a very happy week end
janet
I know I do!!!! :)
OT: 0.60 it is! Do I hear 0.65! :)
Do you love me ????
ot.........woodstock, you got your .06...good call!...
OT...........just keep a close eye on it.......
OT. Still remaining strong ......The day is not finish????
OT: It's early yet, back up over 0.06! :)
break-thru quickly extinguished- 500,000 sell... could be insider action there...
ot..........saei - upward momentum is slowing...
over 400,000.... getting ready to break thru...
now 297,000 shares, with(possibly) an indication that the pps could move up a bit....(let's hope so)
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INVESTMENT SUMMARY
- Received a Drug Establishment License ("DEL") and approvals from Health Canada for 30 of its 49 prescription generics products; already has manufacturing approved, labeling and packing secured, and is establishing a sales force 1Q15 salesforc
- Simple business model: Vanc sources drugs that have already obtained FDA equivalent approvals through affiliated companies in China and India, in exchange for manufacturing rights when the drugs are approved by Health Canada
- Potential to scale quickly, comparable to another Canadian company, Paladin Labs, that got bought out for $1.6 billion in 2013 by Endo Health (NASDAQ:ENDP)
- CEO, Arun Nayyar has an extensive track record in the industry - specifically generics - having held executive positions with pharma companies in Latin America, Asia, and Canada and played an instrumental role opening up new markets abroad
- Pre-revenue, albeit with all of the components in place to immediately impact the generics market in Western Canada, and unlock shareholder value through a number of visible, value-unlocking events throughout 2015
Between 2010 and August 2013, brand-name drugs with sales totaling $6 billion a year in Canada lost their patent protection - opening the door to far cheaper generic copies, according to the IMS Brogan market-research company.
Compounding the so-called "patent cliff," a growing list of insurance companies that manage private, workplace drug plans have recently made substituting generics for brands a mandatory policy - a step that most government plans took years ago. The result: more then two thirds of prescriptions in Canada are now filled with generics, while some brand manufacturers lack new drugs in the pipeline to take up the slack.
COMPANY OVERVIEW
Vanc Pharmaceuticals Inc. ("Vancpharma") (OTCQB: NUVPF) is a Canadian company (TSX-V: NPH) focused on providing Canadian health care professionals and consumers with high quality, affordable generics and over-the-counter ("OTC") healthcare products. They are the first Canadian generics company in Western Canada.
GENERICS PORTFOLIO
The company's currently approved in-licensed generics portfolio consists of 30 molecules, comprising of 67 dosage forms across various therapeutic categories: including both chronic (long-term) therapy and acute (short-term) therapy. Management estimates that the aggregate annual Canadian sales of its 30 approved products represents "a $1-billion market opportunity". Furthermore, the company plans to launch "with additional products and we will provide further updates in the coming months," said Arun.
The generics division of the company was only launched last Spring, since then the new management team has reached a number of significant milestones including:
On April 15th, 2014 Vancpharma announced that it had signed Cross Referencing Agreements ("CRA") "for prescription generic products for Canadian markets. These agreements are with three large pharmaceutical companies and cover 48 prescription generic products. The suppliers will handle manufacturing, and Vancpharma will market and sell these new product lines under its own label.
On November 18th, 2014 the company received approval via a Notice of Compliance ("NOC") from Health Canada for 22 generic molecules, comprising 51 dosage forms.
On December 10th, 2014 the company announced that it had been issued a drug establishment licence ("DEL") (licence No. 102220-A) by Health Canada. "The issuance of a drug establishment licence, along with the approval of our partner's GMP manufacturing site, is a key step towards the commercialization of our generic drug portfolio," said Arun Nayyar, CEO. The licence allows Vancpharma to import pharmaceutical products and distribute them within Canada.
This news was particularly important for the company and shareholders because: it positioned Vancpharma to become one of the only 40 companies in Canada that are licensed to manufacture current and future drugs at its GMP facility; allows Vancpharma to import from other manufacturers across the world and faces less barriers to entry; allows for importing both generic and non-generic drugs thus allowing the company to compete with other companies in branded drugs as well as their core generics business; and adds major clout when negotiating for exclusivity rights across Canada. Previously, manufacturers wouldn't commit their exclusively to Vancpharma as they were unsure if it could make good on importing and selling their products.
On December 15th, 2014 the company received an NOC from Health Canada for 7 additional generic molecules, comprising 15 dosage forms.
Lastly, on January 14th, 2015 Vancpharma placed inventory purchase orders for 30 generic molecules and expects to deliver these products 2Q 2015. "We are excited to take this important step towards commercialization and look forward to launching sales in Q2 2015. These 30 molecules represent best-selling generics in the Canadian market and our aim to provide Canadians with quality and cost-effective products is well served by them," said Arun. "Our initial marketing and outreach activities with select pharmacy customers in Western Canada have been positive and we look forward to working with our partners."
Figure 1: Generics Portfolio
Source: Press Release/Company Website
*Note: I'm aware that's only 29, however the 30th hasn't been updated on the website although it's been mentioned as approved (new approvals could come at any time)
Here are the next steps with the generics portfolio:
Figure 2: Generics Through Global Partnership
For those wondering what Vancpharma's margins are, the company has not made that public yet. As you can imagine, they don't want to expose their margins for specific drugs too early. Investors will be able to see them in the financial statements at a later date. However, generics are quite lucrative. Vancpharma will be taking on the risk of inventory, licensing, approvals, sales and marketing, whereas the manufacturer takes and fills an order from Vancpharma as necessary and collects payment. Accordingly, the reward follows the risk and in this case, Vancpharma would pay a fixed price to the manufacturer depending on the size of the manufacturing run. If you look at the financials of another generics company, Biosyent (TSX-V: RX) you will see margins typically ~70%-75%.
The margins generated from strategic cross-reference partnerships, while very enticing, pale in comparison to the financial opportunities presented by exclusive or co-development partnerships which management has indicated they want to pursue in the future.
OTC PRODUCTS
The OTC Products Division is focused on the marketing and sales of novel and proprietary healthcare products and consists of four (4) such products, all of which now have a Natural Product Number.
Figure 3: Vancpharma Pharmaceuticals OTC Products
It can't and won't be the cash cow for Vancpharma like its generics portfolio - the Canadian market for these OTC products is only ~$60-70 million - but it should actually start generating revenue sooner. Manufacturing should commence in January, with the first sales hopefully starting to come sometime during March.
Looking ahead at the future pipeline of OTC products, they include nutraceuticals, vitamin supplements, and skin care products.
MANAGEMENT
The team has extensive experience and expertise that spans across various functions such as research, development, manufacturing, and marketing of generics and OTC health care products in the global pharmaceuticals industry. This understanding of industry best practices and strong insight allows the company to identify emerging trends in medicine and the marketplace.
The secret to being able to license so many drugs within such a short period of time, less than a year after being restructured is CEO, Arun Nayyar.
Arun only joined the company November 25th, 2013, but came with an extensive track record in the industry - specifically generics - having held executive positions with pharmaceutical companies in Latin America, Asia, and Canada. He has been instrumental in opening up new markets abroad, and domestically his accomplishments include Director, Business Development and International Sales for Shoppers Drug Mart ("SDM"), and consulting for Sanis Healthcare, George Weston Ltd. (Loblaws group), and SDM. To have a more extensive look at Arun's resume and job history, you can view his LinkedIn here.
Some information that you won't find on LinkedIn is that he's an owner of a few Shoppers Drug stores in the Vancpharmaouver area, and also has deep-ties, and solid connections in India. This helps to secure licensing of the generics in exchange for manufacturing rights when Health Canada approves the products.
The newest hire, replacing Jamie Lewin as director and CFO and announced December 3rd, 2014 was Aman Parmar. "I look forward to working with the team at Vancpharma Pharmaceuticals and am impressed by how far they have progressed with limited capital," said Mr. Parmar. "Capital efficiency and creating shareholder value will be my primary focus at Vancpharma." Since joining Vancpharma, Aman has purchased 135,000 shares on the open market ranging from 19 to 24 cents - clearly indicative that he believes the company is undervalued at these levels.
Given the fact that the company is ramping up its business, they've already started putting together a sales and marketing team, it wouldn't surprise me if another executive was brought in to help.
You can read more about the entire Vancpharma team by clicking this link (note, this page needs to be updated with Jamie/Aman).
FINANCIALS
Although Vancpharma is a pre-revenue company, I see a multiple number of visible, value-unlocking events through 2015 that can meaningfully impact stock performance.
Figure 4: Summary of Quarterly Results
The company closed an oversubscribed, non-brokered private placement for gross proceeds of $1,141,000 by issuing 7,607,332 units at $0.15/unit on December 11th, 2014. "This round of funding enables us to move our portfolio of generic drugs and OTC products into commercialization," said Arun Nayyar. "Specifically we will be acquiring generic drug inventory and building our sales team to target pharmacy customers."
The company is financed for the time being, but may have to do another round in March depending on how the roll-outs are going, and for general working capital purposes. If so, I'm sure that it would be strategic - I would think at least >$0.20, comprised primarily by sophisticated retailers and brokers, and it would not be a raise of much more than $1 million. Management only wants to raise whatever money they believe is necessary right now because they know as soon as the company starts generating revenue that its valuation has easily be many multiples of where it sits today.
SHARE STRUCTURE
Shares outstanding: 44,374,407
Stock Options: 3,975,000
Warrants: 16,212,252
Fully Diluted: 64,561,659
Major shareholders of the company, and percentage owned include:
It's a tight share structure, the 'effective' float is ~9 million shares - much less than what's been traded the past few months - 42,798,548 shares at an average price of $0.194:
Figure 5: House Positions
Source: Stockwatch
Figure 6: Management Insider Filings
REVENUE RAMP/VALUATION
It's a little early for me to try and assign a valuation, or forecast revenue and earnings for the company, however I anticipate doing so before year-end. The company hasn't informed investors of the specific margins and obviously we don't know the adoption rate because we don't know how good the sales team will be. Take a look at this article though, "The Top 11 Fastest-Growing Generis Companies", when compared some of the other generics companies, Vancpharma looks very undervalued based solely off of its standing drug portfolio.
The two best examples that come to my mind are: Paladin Labs and BioSyent (OTCPK:BIOYF).
Former pharma sales rep., and Cantech Letter contributor Hogan Mullally wrote that Paladin "became the poster child for Canadian specialty pharma. They built a remarkably successful business by acquiring the Canadian rights to a wide variety of drugs. These drugs were either too small for medium/big pharma, or were developed by a company without a Canadian commercial footprint, whatever the reason, Paladin was able to amass an eclectic and diverse portfolio of prescription and OTC drugs for the Canadian market. Through their "sum of the parts" strategy, Paladin grew to over $200 million in annual sales and in 2013 was acquired by Endo Pharmaceuticals for approximately $1.6 billion.
BioSyent is in between Vancpharma and Paladin, as it has already amassed an impressive portfolio by searching the globe to in-license or acquire innovative pharmaceutical products for the Canadian market. It too focuses on products that are too small for medium/big pharma, and have a competitive angle that can be exploited by a modest sales force. BioSyent's business model is structured to minimize risk, and to produce high growth. For the four years ended December 31, 2013 the company experienced a CAGR of 67% while consistently growing profits:
Figure 7: BioSyent Financials at a Glance
Source: Fact Sheet
There is an exit strategy for the company and shareholders - take-out target for an M&A transaction. It might take getting into a few hundred pharmacies, but the precedent has already been set. The initial adoption rate risk is reduced from the outset because between members of the management team, they own a little more than a dozen pharmacies. Not to mention now that Health Canada has granted the company a Drug Establish License it can pursue additional revenue opportunities and further de-risked the investment.
RISKS
Vancpharma is still considered an early stage company, as such there are a number of risks associated with making an investment at this point in time, including but not limited to:
(1) The company just hired a new CFO, and has a management team has dozens of years of business experience, most dealing with generic pharmaceuticals.
(2) The company plans to manufacture its products at four certified GMP pharmaceuticals factories in Canada, India and China. These U.S. FDA approved plants are capable of manufacturing a wide range of Generic Pharmaceuticals and OTC Health care products at these facilities, under the VANCPHARM label.
(3) Like I mentioned before, management controls a number of pharmacies which will de-risk the rollout process and immediately start generating revenue form the company's generics portfolio.
(4) Arun has built deep, extensive relationships in India and China, and has a lot of ideas to add more products to the portfolio (not to mention the future potential to co-development or development exclusively).
(5) The company sources its products from big products that are already approved by either the U.S. FDA or UPHRA, and also approved by Health Canada. As long as the company is in compliance with Health Canada guidelines then the ANDS application gets expedited, updated and faster tracked. The company hasn't had so much of a hiccup yet, because of the experienced team in place filing all of the paperwork.
(6) The company hasn't had an issue raising money despite the poor market for companies trading on the TSX Venture. The last PP was oversubscribed, and the shares were spread around to strong, strategic hands. Presuming management continues to achieve its milestones, I anticipate lots of eagerness for the next round.
CONCLUSION
Vancpharma set forth some ambitious goals, but has already accomplished so much in such a short amount of time that I really have large aspirations for it (and shareholders).
The company has a tried and tested business model which is simple to understand. Vancpharma enters into Cross-Referencing agreements with affiliated companies whom source products from China and India which are already approved, in exchange for manufacturing rights when the drugs are approved by Health Canada. This is very economical as there is a minimal cross-referencing fee paid to Health Canada, and a very large market opportunity (>$1 billion for current generics portfolio), with margins typically ~70%-75%.
Source: StockCharts.com
Taking a look at recent trading, there has been some healthy consolidation after the initial big run-up, ~33% off its 52-week high. MACD and RSI indicators are now in 'oversold' territory, and the stock is approaching its 200-day moving average. Up until a few months ago this stock traded 'by appointment only'. Since the middle of October, 42,798,548 shares at an average price of $0.194 have traded.
Now that the company has received 30 of its 49 Health Canada approvals (with the rest to be submitted shortly), there is a bit of work that needs to be done in order advance it from being a purely speculative growth biotech with Health Canada approvals, to one that's one being noticed by institutions and an American audience.
In the meantime, investors have two options: (1) buy now, taking the risk knowing that the company may need to finance further, but is extremely close to generating revenue; or (2) sit on the sidelines and wait until the second quarter financials are released, and make a decision then.
The latter is much less risky, however if management successfully executes on its business plan and stays on track with milestones, then I'm sure its share price will reflect it this, and it will be at a significant premium.
Bottom line, I think that there is a very compelling opportunity to invest right now given: (1) the recent pullback in share price; (2) the significance of forthcoming news releases to act as catalysts to unlock shareholder value; (3) management's achievements to date and their track record to deliver results; (4) market opportunity (>$1 billion on current portfolio) and attractive valuations of sector peers; and (5) lack of competition in the Western Canadian generics market and the opportunity to generate imminent revenue.
(For additional liquidity, NUVPF. trades in Canada on the TSX Venture as "NPH". 3-month average volume 637,531 shares/day.)
Please feel free to comment below or send me an inbox message if you have any questions or comments about this article.
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