New Position Open- ADMP
Shares 89 @ 5.58 = 496.62
Friday I opened a (very) long position in the biotech company Adamis (ADMP)
If your familiar with The EpiPen then you know the price has reached ridiculous highs. In 2007, Mylan Pharmaceuticals acquired the rights to the EpiPen and immediately started raising the price. After Heather Bresch, its former top lobbyist, successfully pushed for legislation in Congress that required all public schools to carry EpiPens for children with food allergies, its price hikes became more frequent and more severe, raising by at least 10 percent every other quarter from the fourth quarter of 2013 to the second quarter of 2016. A score of U.S. Senators are calling for an investigation into the price hikes.
Adamis (ADMP) set out to make a cheaper version of the same remedy. Thursday was truly a day for shareholders to celebrate as Adamis received the green light from the FDA for the drug Symjepi, which provides two single dose syringes is expected to hit the market in the second half of 2017.
It is against my nature to chase a rising stock but I plan to sit on this one so I can wait it out. This stock reached a high of $6.33 on announcement but has since retraced a little and defiantly has the potential for continual pullback as more take profit but this is an investment that I’d like to just forget about for a while. I may add to my position over the next week if it falls further and I really feel this will be well worth it in a few years when they are really in production. You never know, maybe someday every school in America could use this version instead of the EpiRipoff…….. JMHO
Adamis Gets FDA Nod for Generic Version of Mylan’s EpiPen
Shares of Adamis Pharmaceuticals Corporation ADMP soared more than 50% on Thursday after the FDA approved the company’s Epinephrine injection, USP, 1:1000 (0.3 mg Pre-filled single dose syringe) (PFS) which is the generic version of Mylan N.V.’s MYL EpiPen- the best-selling but high-cost treatment for life-threatening allergies. Shares of Adamis were up on the news while the news was a blow for the shares of Mylan which went down about 2.38%.
Adamis Pharmaceuticals’ share price shows that the company has outperformed the Zacks classified Medical-Drugs industry year to date. The stock has surged 99.7% compared with the industry’s gain of 16.8%.
The FDA approved the trade name Symjepi for the pre filled syringe which will treat allergic reactions. Symjepi provides two single dose syringes. It is expected to hit the market in the second half of 2017.
Symjepi will be available at lower cost and will be available in smaller size when compared with EpiPen. EpiPen has been facing concerns over pricing in the past. Mylan has been under immense pressure since Aug 2016 when the company came under the spotlight for price increase of EpiPen since its acquisition of the drug in 2007, drawing immense flak from lawmakers, consumers and the common people alike.
As a result of the increased prices of EpiPen, Mylan launched the first authorized generic for EpiPen Auto-Injector in Dec 2016 at a wholesale acquisition cost (WAC) of $300 per epinephrine injection USP two-pack, which is more than 50% lower than the WAC of EpiPen 2-Pak Auto-Injectors.
Another leading drug store chain CVS Health Corp. CVS announced in January this year that that it is now selling a cheaper alternative to EpiPen. The authorized generic treatment is called Adrenaclick, and is made by Impax Laboratories Inc. IPXL, and is priced at $109.99 for a two-pack.
Coming back to the release, Adamis is in discussions with potential partners in order to facilitate access of the PFS to a broader patient group.