Thoughts after earnings, con call and recent qip.
Seems orders and flows have stabilized and production vs. demand mismatch seems to be alleviated (took 2q as indicated by mgt).
New plant acquisition has begun production on day 100 and will help integrate backward, lowering rm cost and adding to margins. Should help margins as raw materials costs have been trending up along with lower orders. They expect RM prices to stay elevated and complete mitigation of RM cost increases in one full year.
Prime products performed better than expected. Could this be trend reversal in demand?
Crams portfolio growing… Long gestation continues.
Approval for generic saltmetrol from Mylan expected by July… Positive trigger?
Tie up with Japanese firm Jitsubo could be interesting. Expands ability to manufacture pepetides on a mass scale in liquid & solid combination forms. Lots of research needed to see if it works, but if it does for even some of their molecules, then what’s the impact? https://www.businesswire.com/news/home/20141211006618/en/Sosei-Acquires-Jitsubo-Leading-Japanese-Peptide-Technology
Dilution though painful has likely allowed weak hands to be shaken. Largest acquirer in qip steadview cap.
Disc. Invested… Looking to add.