Posted by DTRAIN on Yahoo - posted here with his permission...
This guy really, really knows whats going on. I'd like to buy him dinn er and have some beers when I'm a millionairre. This would be when teh stock is at $1.57.
Yes, it is amazing. The current market cap is only ~$15MM even though hundreds of millions in annual revenues is very realistic. With those kind of revenues and their minimal overhead, a $2 billion mkt cap is very achieveable. That would put the stock at almost $20.
For those that are not familiar with biologics, the are exponentially more complex than the more common small molecule chemical compounds. Because of this, they are almost impossible to replicate without vpro's technology.
Replicating a small molecule generics such as a high blood pressure pill is as easy as making chocalate chip cookies. Replicating a biologic would be like trying to build a space shuttle in your garage. These Biologics are finally losing patent. It is a whole new world and vpro is poised to lead the way.
==================================================================
Exactly. This first deal is complete confirmation of the technology. Sppi is not dumb, they are developing a Bladder cancer drug, Eoquin which could be a blockbuster. The know what they are doing and they have great technology themselves, but they obviously didn't have what vpro has, thus the deal.
This will open the floodgates as other companies race to get in on the huge opportunity Biosimilars present.
==================================================================
The Blockbusters that I mentioned will be coming off US patent beginning next year.
However this deal with Spectrum is just icing on the cake. They already have a deal with company in India, where they don't recognize US patents, so that could heat up immediately.
This is from their website:
Viropro’s business model relies on acquiring exclusive technological licenses and establishing strong partnerships with key local pharmaceutical partners through technological transfers of biogeneric therapeutic products. The local manufacturing and marketing capabilities of its partners allow Viropro to reinforce its position in these emerging markets, namely South America, Africa, Asia and Eastern Europe.
Viropro aims at providing its pharmaceutical partners access to state-of-the-art therapies with integrated turn-key solutions through comprehensive technological transfer programs going from development of industrial bioprocesses to complete training of technical teams. Our approach will allow these partners to produce therapeutic products on an industrial scale and at affordable prices, in conformity with “current good manufacturing practices” (cGMP). Through this unique business model, the company reinforces its strategic position in those emerging areas.
Further to minimising risks by sharing resources and common goals, Viropro generates revenues at each step of the technological transfer through fees and royalties, while securing a long-term stable business relationship with its partners.
This is what I LOVE about it:
1. They are facilitating the manufacture of these drugs for these local companies as opposed to manufacturing the drugs themselves. Because the already own the intellectual property, there is no significant further investment required. Their revenues will largely be from royalties on drugs sales which means long term revenues with NO future variable costs.
2. They are focused only on multi-billion dollar Biologic drugs such as Rituxan for NHL, Enbrel and Remicade for RA, Neupogen for CIN (Chemotherapy Induced Neutropenia) as well as many others. Combined, biologics currently have revenues in the 10s of billions worldwide. I know of no other company with this focus. Most generic companies such as TEVA are focused only on oral chemically oriented drugs because they are very easy to replicate. Viropro will help these local companies manufacture these Biologics which is a far more complex process.
3. By focusing on these developing countries, they are not only engaging in parts of the world where there is a huge unmet need for relatively inexpensive modern medications but they are completely avoiding the inevitable patent lawsuits that will plague generic companies focusing on the US and Europe. These developing companies don’t care about US patents, they just want high quality drugs for their people and Viropro is perfectly poised to take advantage of this.
