Why APRI Stock Is Flying Right Now
Apricus Biosciences Inc (NASDAQ:APRI) saw its APRI stock soar over 140% by early afternoon trading on Wednesday as Mexico gave market approval for an erectile dysfunction (ED) treatment.
Move over, “Cialis,” there’s a new treatment in town for ED. Or, at least, that’s the news out of Mexico.
APRI stock catapulted upward on the back of news that Apricus Biosciences Inc’s commercialization partner, Ferring Pharmaceuticals Inc., gained market approval for an on-demand topical cream used in the treatment of people experiencing erectile dysfunction. The cream is called “Vitaros” and, while I can’t speak to its medical efficacy, it has certainly gone a long way in stimulating APRI stock. (Source: “Apricus Biosciences, Inc. (NASDAQ: APRI) Partner Gains Mexico Approval,” Stock News Union, January 18, 2017.)
“We are very pleased that Ferring has received its second approval for Vitaros in Latin America,” said Richard Pascoe, Chief Executive Officer of Apricus. (Source: “Apricus Biosciences Announces Approval of Vitaros for the Treatment of Erectile Dysfunction in Mexico,” Apricus, January 18, 2017.)
Pascoe added: “Moreover, we look forward to Ferring’s launches of Vitaros in Latin America throughout the year, in addition to the portfolio of countries across the EU they have the rights to as well. Again, congratulations to the Ferring team for their continued commitment to building the Vitaros global brand.”
Mexico marks the 26th country to approve the treatment. Apricus received $4.5 million in upfront payments from Ferring Pharmaceuticals. On top of that decent payday, the company garnered another $1.6 million from a regulatory milestone payment. There’s an additional $28.0 million at play that Apricus can receive from regulatory, launch, and sales milestones, in addition to royalties on future net sales.
This is some much-needed good news for APRI stock. The company suffered through a rough 2016, dropping by just about 88% over the year. The stock declined sharply from a 2016 peak of around $13.50 to the current price of $3.61 per share.
APRI stock is looking for more big wins like this. I mean, who doesn’t love a 140%-plus increase? While it marks a bit of good news in terms of deviating from the otherwise precipitous decline over the past few years, the question is whether Apricus Biosciences will able to amass more gains like the ones seen on Wednesday in order to put the stock back on a winning path.