Having a “white knight” hanging around to give your company a nice infusion of cash is always a nice incentive to taking a bit of a risk. New market entry is always a bit of a risk, even if you have an established product to enter that market with. Not being 100% sure of how that new market will react – socially and financially – to a new product is always the risk. But if the “white knight” is willing to support in more than just a monetary way, the chances of sizable profit can be increased considerably.
Unigene Labs Inc., a biopharmaceutical company, works to develop and market peptide and other related pharmaceuticals. The company currently has an estimated 55% market share of the prescription nasal congestion marketplace and is entering Phase III trials with a new calcintonin product.
The company has been having moderate successes with its Fortical product, although it does appear that the royalty system put in place with corporate partners is not as consistent or stable as one might suspect. Sales are significant but are having a difficult time meeting a consistent revenue level for the company.
One area that will most certainly offer consistent revenue growth, for the near and far term, is the company’s partnering with a Chinese company interested in selling into the Chinese pharmaceutical marketplace. This venture involves: a joint venture to be called Unigene Biotechnology Co. Ltd.; a stock purchase of over $1 million; and an expectation that peptide work, along with a few other new opportunities, will serve the Chinese market as a result of the venture.
The company is a small one on the brink of making it to the “big-show” of the pharmaceutical world. They have a solid structure in place and appear ready to make a move into one of the world’s unknown pharmaceutical markets. In most instances, Chinese pharmaceuticals are associated with black market knock-offs, so a true understanding of the Chinese legitimate market is less clear. If Unigene Labs, and its associated affiliates, can make their plan work, the profits could be substantial.
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