I believe that just sales of the sublingual tablet in time will have the potential to take the stock that high, or much higher.
Think about it, that tablet provides the same effect as smoking, if that's what the user is looking for, without potential risk to the lungs. I'm uncertain of how many different formulations of the tablet they'll have, but testing will determine what formulation is best for autism, PTSD, etc. as it will eventually be demonstrated to benefit patients with all sorts of diseases. For cancer patients who're losing weight uncontrollably, it will work to regain their appetites. Even if it isn't in any way curative for cancer, it can still benefit patients tremendously by improving their quality of life, and their are indications that for certain cancers it has properties that benefit treatment.
It's far from OWCP's only product, the psoriasis cream is in a multi-billion dollar market annually, but I believe the sublingual tablet has far greater potential.
OWCP is not intending to sell their products directly, so for them it will be about money paid up front for partnership, achieving milestones that have payments tied to them, and royalty income from sales which probably will grow from mid single digit to low double digits as sales volume increases.
In that I believe that the combined sales of all their products can easily reach tens of billions, and potentially go into hundreds, seeing the company earn billions annually is not a big stretch. They certainly may be developing new products, and will have the funding needed to fully support them, but even if the share count doubles from where it is today, say to 300 million shares, they could easily eventually be earning $7 to $10 a share, roughly $2 to $3 billion annually. A P/E of
10 would mean share prices of $70 to $100 but nothing says the P/E shouldn't be 30 or more, especially if new products in development are exciting investors.
I cannot say with certainty that this will happen, but I don't believe that you can say with certainty that it cannot.
Gary
