Zyla Life Sciences (fka ZCOR)

[Tekterra]

The idea is that if you get a label, the product can sell itself as a new ADF morphine sulfate. Without the label, it's up to the small sales force to sell it. How effective is the sales force to sell ARYMO ER is questionable. So the expected revenue is likely delayed until end of next year where they can properly label ARYMO ER.

If they launch in Q1 17 which is ending soon, they can potentially generate a small revenue to start for Q2, but who knows how much more the revenue on ARYMO will increase for the rest of this year based on a sales team of under 100 people? That depend on establishing relationships with distributors and doctors. Good thing is that the media is making the opioid drug abuse issue big time news which might help the sales.

Imagine making a commercial. If you had the label, you could simply try to sell the fact that ARYMO ER is FDA approved with such and such abuse deterrent properties.

Without the label you sort of lose some credibility and it depend on gaining market acceptance to show that ARYMO indeed does come with these deterrent properties.