Easton Pharmaceuticals Inc (OTCMKTS:EAPH) is a micro-cap stock we have covered extensively in the past the 6 months. There are multiple catalysts in play and Easton stock has been a momentum favorite on the OTC since October, when shares were priced around a fifth of a penny each. The company’s most recent catalyst is its announcement of a successful product launch of “Gynofit” and a further announcement of the final-stage agreement with multinational Gedeon Richter for the distribution of Easton / BMV’s AL-Sense (AmnioSense) product.
According to the release, Easton and BMV representatives attended a product sales conference launch, held in mid-February by partner Gedeon Richter and Gedeon Richter Mexico S.A.P.I. de C.V. This product sales launch was for the recently signed distribution agreement of Easton / BMV’s Gynofit product for Mexico, which Gedeon is commencing. The product sales launch conference was attended by approximately 65 full time sales reps as Gedeon Richter “allocated considerable resources towards a very detailed and professional sales presentation, which included product packaging, videos, literature and educational material describing BV (Bacterial Vaginosis) and how Gynofit can not only treat the condition, but prevent and provide a healthy Vaginal Flora.”
Easton Pharmaceuticals Inc (OTCMKTS:EAPH) frames itself as a specialty pharmaceutical company, designs, develops, and markets various topically-delivered drugs and therapeutic health care products.
Its products include Nauseasol, a motion sickness gel; Skin Renou HA, an anti-aging wrinkle cream using hyaluronic acid, which keeps the skin smooth; Kenestrin Gel used for arthritis, knees, elbows, shoulders, wrist, and back pain; Viorra, a hormone free, non-toxic, and topical gel that improves sexual functioning of women; and female sexual arousal disorder drug.
The company is also developing XILIVE, an early stage cancer drug. In addition, it is involved in the medical marijuana business. The company was formerly known as LAM Industries, Inc. and changed its name to Easton Pharmaceuticals Inc. in March 2010. Easton Pharmaceuticals Inc. was founded in 1997 and is based in Toronto, Canada.
According to company materials, “Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries. The Company previously developed and owned an FDA-approved wound-healing medical device and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. Easton has partnered with BMV Medica and together, own the exclusive distribution rights in Mexico and Latin America for patented women’s diagnostic and preventative care products, along with two generic cancer drugs Paclitaxel and Docetaxel.”
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As noted above, the key catalyst right now for Easton stock was its product launch in for the recently signed distribution agreement of Easton / BMV’s Gynofit product for Mexico, that Gedeon is commencing.
According to the company, BV (Bacterial Vaginosis) is projected to affect almost all woman at least once in their lifetime, with many being treated for BV (Bacterial Vaginosis) several times as more awareness and education is gathered on the condition.
Apparently, an estimated 65 full time sales reps are being deployed to sell “Gynofit” throughout Mexico with other Latin American countries expected to soon be introduced. Easton / BMV has now delivered the first PO shipment of “Gynofit” to Gedeon for their product launch. That could be extremely important when it comes to nailing down the numbers.
As related in the latest press release, in the week prior to the “Gynofit” sales launch conference, Easton / BMV met with representatives of multi-national pharmaceutical company, Gedeon Richter, Mexico President in New York City, as part of negotiations to sign an additional exclusive distribution agreement, whereby Gedeon Richter, Mexico, would distribute Easton / BMV’s AL-Sense (AmnioSense) product which Easton / BMV hold licensing rights for in Mexico and many other parts of central and South America.
As we understand it, these negotiations continued in Puerto Vallarta this past week with an agreement expected to be finalized in the coming days. Gedeon Richter Plc and their Mexican / Latin American subsidiary Gedeon Richter Mexico S.A.P.I. de C.V. have provided a proposal to Easton / BMV for distribution of AmnioSense for Mexico.
“Pricing, packaging, logistics and an estimated launch date of AL-Sense were discussed and agreed to, which would result in an expected launch of AL-Sense for June / July of this year with an anticipated PO to be provided to Easton / BMV in March or April following the signing of the distribution agreement.”
Earning a current market cap value of $34.5M, EAPH has virtually no cash on the books, which is balanced by about $115K in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of Easton stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!