ANI Pharmaceuticals (ANIP)

[auh2oman]

Strike While the Iron's Hot ...

I'm totally behind management's decision to doing the offering. The commercial launch is quickly arriving and they want to purchase large quantities of material for this momentous event. No better time than with current stock price. It will be interesting to see what the offer price is. For accounting purposes they will be able to book as inventory as opposed to previously having to record them as expenses:



Prior to the third quarter 2019, all purchases of material, including pig pituitary glands and API, related to the re-commercialization efforts were consumed in research and development activities and recognized as research and development expense in the period in which they were incurred. In the third quarter of 2019, we began purchasing materials that are intended to be used commercially in anticipation of FDA approval of Cortrophin Gel and the resultant product launch. The FDA granted approval of the sNDA of this product on October 29, 2021. Prior to FDA approval, under U.S. GAAP, we were prohibited from capitalizing these pre-launch purchases of materials as inventory, and accordingly, they were incurred. Subsequent to approval, these
purchases will be recorded as inventory at net realizable value.



With the approval, they will aggressively purchase what they need for a successful sales & marketing campaign! Furthermore, they said as much in the 10-Q :

During 2021, we have begun to invest in leadership, expertise and infrastructure in the areas of commercialization of rare disease therapies and have developed a launch strategy and commercial plan for this product. We anticipate that our expenditures in support of these efforts will materially increase in the fourth quarter of 2021 and in 2022.

This is a positive short term, and more importantly, for the long term with the Four Pillar's strategy well under way!


https://www.sec.gov/ix?doc=/Archives/edgar/data/0001023024/000102302421000021/anip-20210930x10q.htm