Adamis Pharmaceuticals Corp (NASDAQ:ADMP)
Adamis Pharmaceuticals Corp (NASDAQ:ADMP) shares have come to life in recent trading sessions as investors take note of its Epinephrine Pre-filled syringe that is on the brink of U.S. Food & Drug Administration (FDA) approval. The drug is designed as an alternative treatment to patients suffering from anaphylactic reactions and would place the drug maker in direct competition with the likes of Mylan’s EpiPen.
Epinephrine PFS Regulatory Approval
The FDA will issue a decision on the drug on June 15, 2017. This decision is seen as a major threshold for Adamis Pharmaceuticals Corp (NASDAQ:ADMP) to enter the multibillion space. The company did receive a Complete Response Letter from the regulator about the treatment last year over certain concerns. The drug maker has since addressed all the questions raised.
Maxim analyst, Jason Kolbert, believes Epinephrine Pre-File Syringe has passed all the major hurdles and should be able to generate a substantial amount of value for Adamis in the long term.
“We see a billion dollar market, and in Adamis PFS a superior product […] If Adamis can acquire just 10% market share and generate sales approaching $100M (which we believe is the low end), it suggests shares are undervalued,” said Mr. Kolbert.
Separately, Adamis Pharmaceuticals Corp (NASDAQ:ADMP) recently closed a public offering of its common stock. The specialty biopharmaceutical company had offered 4,285,715 shares of its common stock at a price of $3.50 a share. The company now expects net proceeds from the offering to total $17,250,000 before deduction of underwriting discounts, commissions, and other expenses.
Adamis intends to use net proceeds from the offering for general corporate purposes which include research and development. The amount raised should also go a long way in financing ongoing clinical trials. There are also plans to hire new personnel, and acquire new products and technologies.
Adamis Pharmaceuticals Corp (NASDAQ:ADMP)’s stock has been on an impressive run over the last few weeks as investors await the FDA decision for its anaphylactic treatment next month. The stock has risen by more than 20% on the news.
There is no guarantee that the FDA will approve the treatment. However, if approved, the stock could surge even higher on a number of revenues that Adamis stands to generate from the sales of the treatment.
Adamis Pharmaceuticals Corp (NASDAQ:ADMP)’s stock was down by 1.32% in Friday trading session ending the week at $3.75 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.