Replies to post #20860 on CV Sciences Inc (CVSI)

[CashMoneyCarl]

..they will begin to take on debt, issue new stock for a capital raise and a whole lot of things may go wrong.

I was thinking about this last night. Earlier this week CVSI paid off its balance of $850,000 in debt to become debt free. That was good news. Then I started thinking down the road about future clinical trials, etc.. and just as you said, that will require a lot of money. Money that will likely come from issuing new stock, acquiring more debt, etc.

That's the only negative thing I see about paying off the current debt. Imagine how stockholders will react having to go from being debt free to taking on say, $5 million in debt or so. The stock price is not going to react well. I don't think the perception will be an easy pill to swallow even though the trials are potentially worth the risk. But as the old adage goes, you have to spend money to make money.

[mc73]

Excellent commentary and I didnt even think of the post approval issues with pricing!

I will re-iterate my idea that CVSI, after patent approval, offer a significant % of the rights to the patent (however such deals are structured) to a big pharma co in exchange for that company to pay all expenses for the trials. Even if we give that company 50%(or more) of the profits if approved by FDA we lose nothing if the drug isnt successfull in clinical trials and we reap millions in net profits of approved and successful.

I hope they go this route with their pharma side.

Agree 100% on the CBD direct to consumer side.

[badluckornoneatall]

A voice of reason.

As a clinician I can tell you the clinical side is a long and hard one. Had 2 reps from well establish Pharm in just this AM trying to push their products. FDA approval by no means is a guarantee of success.

An example is the drug Vivitrol. Now gaining popular for opiate cravings. This medication is nothing butlong acting Nalrexone. Naltrexone has been around for decades (literally). The point is that is in most cases this is the very long game that involves racking up huge debt along the way.

Also,if you not in a Tier level good luck with getting insurance to ever pay for. If they do it will be after 3 fail trials of other peoples product.

Right now the consumer market is were it needs to focus. That is were CBD best bet is. Success in the clinical market is far out (like 10-15 years...no joke)