Adamis Pharmaceuticals Corp (NASDAQ: ADMP) is screaming for the top in the market this morning, after the company announced that its epinephrine injection product is now available to members of the Walgreens Prescription Savings Club. Here’s what’s going on:
Skip to What You Want to Read
- SYMJEPI Is Now Available to Walgreens Prescription Savings Club Members
- Management Commentary
- Why This News Is Exciting
- What Analysts Think About ADMP Stock
- Risks to Consider Before Buying ADMP Stock
- Final Thoughts
SYMJEPI Is Now Available to Walgreens Prescription Savings Club Members
In the press release, Adamis Pharmaceuticals said that its epinephrine injection products, known as SYMJEPI, are now available to members of the Walgreens Prescription Savings Club Program. Members of the club will receive a discounted price of $99.99 per two-pack.
That price makes SYMJEPI the lowest priced epinephrine product available through the Walgreens Prescription Savings Club and the lowest priced epinephrine devices on the market today.
ADMP went on to explain that both its 0.3mg and 0.15mg injection products are available to members of the club, which offers paid members significant savings on retail prices of thousands of medications.
In a statement, Dr. Dennis J. Carlo, President and Chief Executive Officer of ADMP, had the following to offer:
We are very excited Walgreens has added SYMJEPI through its Prescription Savings Club and feel this program will avail this potentially life-saving medication to the patients that need it most. Adamis remains committed to making SYMJEPI the most affordable epinephrine product available to patients.
Why This News Is Exciting
This is overwhelmingly exciting news for ADMP and its investors. Keep in mind that the epinephrine market is expected to grow to be worth more than $3.9 billion by the year 2025, and Adamis Pharmaceuticals has the lowest-cost option on the market.
At the same time, the products will be overwhelmingly appealing to those who pay to be part of the Walgreens Prescription Savings Club. After all, not only is SYMJEPI the lowest cost epinephrine product on the market today, the cost is even lower for members of the Savings Club.
With this news in mind, I’m expecting to see dramatic gains in sales as the word gets out. After all, the EpiPen, the leading epinephrine injection product comes with a price in the hundreds of dollars for a two pack. Knowing that both of these products do the same thing, what price would you be more willing to pay? Hundreds of dollars, or $99 dollars. The bottom line is that with this pricing, market penetration is likely to be a simple process, leading to significant gains in sales and a push to profitability that’s likely ahead.
What Analysts Think About ADMP Stock
According to TipRanks, there are currently two analysts that are weighing in on ADMP stock. Both of the analysts rate the stock a Hold, with no analysts rating it a Buy or a Sell. Moreover, the analysts on the stock declined to provide a price target.
While the lack of positive analyst coverage may turn you off, it’s important to keep in mind that the coverage the stock does have is months old. With today’s news, there’s a strong chance that upon review, these analysts will upgrade the stock based on the company’s potential to take the multi-billion dollar epinephrine market by storm.
It’s also important to keep in mind that blindly following the opinions of experts, including analysts, is a dangerous concept. Always do your own research and use analyst opinions as nothing more than a source of validation for your own.
Risks to Consider Before Buying ADMP Stock
Investing comes with risk, that’s true regardless of whether you’re investing in ADMP stock or municipal bonds, there’s always the risk of loss. Nonetheless, before diving into to Adamis Pharmaceuticals stock, you should consider the following risks:
- SYMJEPI Is New. SYMJEPI is relatively new to the market, and while it does the same thing the EpiPen does, and at a lower cost, there’s never a guarantee that sales will be strong. If the company is unable to push the product to become a major sales provider, significant declines could be ahead.
- The Company Doesn’t Make Money. Sure, Adamis Pharmaceuticals is generating revenue through the sale of its products, but as a newly commercial-stage biotech company, sales are nowhere near enough to reach profitability. If the company is unable to reach profitability before its funding dries up, it will likely look to the sale of newly-issued shares to raise funds, which would result in dilution and could result in significant declines.
- Penny Stock Risks. Finally, ADMP is a penny stock. As a result, it comes with increased risk. In particular, the stock experiences high levels of volatility, making entrance and exit decisions difficult and the business model is largely unproven, meaning that the investment is a relatively speculative one.
All in all, ADMP stock is one that’s well worth watching. Sure, it comes with risks, but name an investment that doesn’t and I’ll be ready to dive in.
Regardless of the risks, the fact that SYMJEPI is the lowest cost epinephrine shot on the market today will likely lead to tremendous sales. I personally have a bee allergy, and before my business grew enough to provide me and my employees with insurance, I paid hundreds of dollars for a product that could save my life should I get stung. If there was an option for $99, or even $199 back then, I would have jumped all over it.
As a result, I’m expecting that sales will see dramatic growth, potentially pushing the company to profitability and making ADMP stock one that’s well worth looking into.