Value Microcaps Motherboard

[zenvesting]

UGNE: While $4M of their $11.7M revenue was from the final milestone payment from USL, I was encouraged that the $2M in royalties was from just the first 15 days after the FDA approved Fortical (from the middle to the end of August). The next quarter will reflect a full 90 days of Fortical royalties (from September through November). While I realize those first 15 days may reflect initial stocking, I would expect some more of the same in the next 90 day period......so far CVS is the only drugstore website I see that has Fortical listed (not on Walgreen’s or Eckerd):
http://www.cvs.com/CVSApp/cvs/gateway/rxmonograph?ndcvalue=00245000835&pageFrom=rxsublisting&...

While I wouldn't guess that Fortical royalties alone will be enough to show a sequential increase in revenues next quarter, I would bet they will be at least enough for the company to post a small profit next quarter.....and will show a steady growth trend for the foreseeable future because as an osteoporosis drug it is being prescribed for long-term treatment. That kind of potential steady growth.......and the bumps in revenue one might anticipate from their $10.7M in remaining milestone payments from Novartis and $140M in remaining milestone payments from gsk.....I don't know if UGNE will ever be closer to being considered a "value" than it is now at $3.50....at least it qualifies for the Pick Six Lotto :)

More information on Fortical:

Fortical was FDA approved as a "biogeneric" equivalent to Novartis' Miacalcin synthetic Calcatonin Salmon nasal spray that sold $377M in 2004. Fortical is about 10-20% cheaper and doesn't contain a nasally irritating preservative Miacalcin contains. Novartis has since licensed UGNE's recombinant manufacturing technology to utilize in their future products utilizing Calcatonin Salmon.

http://www.drugdeliverytech.com/cgi-bin/articles.cgi?idArticle=385