Imprimis Pharmaceuticals, Inc. (NASDAQ:IMMY)
Imprimis Pharmaceuticals, Inc. (NASDAQ:IMMY) shares were trading below $2.50 last week. Today IMMY shares are trading above $3.80 on exceptionally heavy volumes – over thirty times their daily average. Yesterday Imprimis closed on a direct share placement with two accredited investors for 1.312 million shares at a share price of $2.40 for an aggregate figure of $3.1488 million.
San Diego, CA-based Imprimis Pharmaceuticals, Inc. (NASDAQ:IMMY) is a pharmaceutical company dedicated to producing and dispensing high quality innovative medications in all 50 states. The company’s unique business model increases patient access and affordability to many critical medicines. Imprimis operates three production and dispensing facilities located in California, New Jersey and Pennsylvania. Imprimis develops proprietary therapeutics for health practitioners in the areas of ophthalmology, urology, and dermatology as well as treatments outside of their core therapeutic areas including sinus therapy and integrative medications.
In its latest financial reporting, Imprimis Pharmaceuticals, Inc. (NASDAQ:IMMY) missed analyst expectations on earnings but that was due to an early retirement of some debt. Consequently, analysts have taken another look at IMMY shares and some have raised their price target.
Some analysts are pointing to an increase in revenue expectations due to several factors. Imprimus began dispensing core sterile ophthalmic formulations from its New Jersey FDA-registered 503B outsourcing facility. Moreover, the company said doctors have been ordering its products in larger quantities since shipment began under 503B. As such, the company’s revenue could continue growing and the analyst is projecting 2017’s revenue to be $30.9 million. In addition, the customer base for its Dropless and LessDrops products now totals 1,500 ophthalmologists, with a growing library of published clinical data. These two products are also the primary products being dispensed from the company’s 503B outsourcing facility compliant with good manufacturing practices, which doesn’t require doctors’ prescriptions for individual patients.
The new price target for Imprimis Pharmaceuticals, Inc. (NASDAQ:IMMY) now stands at $5. That is slightly above its 52-week high of $4.47 but well above its 52-week low of $1.65. However technical could provide a near-term headwind. The Relative Strength Index currently stands above 82. Most traders believe that a figure above 80 is well into “overbought” territory. It should be noted that insiders have recently increased their holdings by 22.5% – certainly a vote of confidence in the company’s future prospects.
|Last Price a/o 3:38 PM EST||$ 8.36|
|Market Cap (mlns)||$ 56.80|
|Shares Outstanding (mlns)||18.09|
|Share Float (mlns)||15.48|
|Short Interest Ratio||4.55|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.