Recent Sell-off for Adamis (ADMP) Overdone!

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Pipeline pic Focus on new product pipeline for an outstanding “Buying Opportunity.” As I mentioned in a recent readership alert…and it bears repeating… Adamis Pharmaceuticals is a San Diego-based specialty pharma company that is the “real deal.”

Here’s why I think you should consider adding ADMP to your small-cap portfolio today:

Adamis has approximately $6-$7 million in the bank and no long-term debt. The Company looks to have enough cash to fund its first submission to the FDA (an epinephrine pre-filled syringe) and its clinical trial plans for 2014.

Adamis – a Short-term revenue potential

Following early ’15 approval, which appears very likely, Adamis could be into production and distribution by mid-year… therefore, there is short-term revenue potential and a possible $30 – $50 million business over the next 2-3 years by supplying institutional customers with a “no frills” epinephrine pre-filled syringe priced at roughly 50% of existing auto-injectors’ wholesale acquisition costs (WACs).

Adamis also is focused on the near-term development of two additional products for the treatment of allergies and respiratory diseases utilizing the 505(b)2 regulatory pathway which could cut down on development costs and shorten the time to market. Each one could eventually add another $30 million or more to annual revenues, but it will take several years to reach this point.

Long-term “Blockbuster” revenue potential

Adamis secured the exclusive rights to a potentially market-disruptive technology from 3M (MMM – NYSE). 3M’s Taper Dry Powder Inhaler (DPI) is a very efficient drug delivery device that, if approved by the FDA, could compete directly with the Advair Diskus, owned and marketed by Glaxo-SmithKline (GSK – NYSE). Advair is the industry standard treatment for severe asthma and late-stage COPD with nearly 90% global market share and ~$7.7 billion in 2012 revenues.

Adamis plans to initially market its APC-5000 product (utilizing the Taper DPI device) as a branded generic drug option in the US, once it has FDA approval. As was further reported in a recent research report from Harbinger Research, Brian Connell, CFA…

“Given the FDA’s 2013 guidance for Advair generics and the fact that Adamis’ planned offering uses the same drug mix contained in the Advair Diskus, we believe FDA approval is a probability by 2017. Given the size of this market and the efficiency of the Taper DPI, gaining even a small percentage of this market would be a huge win for Adamis.

$250 million in sales and a takeover candidate

“We believe that the 3M device has the potential to eventually generate $250 million or more in global sales; if this is correct, it will eventually make Adamis a “Big Pharma” takeover candidate, which is clearly not reflected in Adamis’ current market valuation.”

Adamis logo Investment highlights for your consideration:

Here’s the Bottom Line… if you’re in the market for an under-valued, high growth specialty pharma company to add to your small-cap portfolio, Adamis Pharmaceuticals (ADMP) is the real deal and is the one you’ll want to own… NOW.

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Mike Casson
Executive Editor
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P.S. We believe ADMP shares are extremely undervalued at this time… potential upside of 257% to 309%.*

For additional information about Adamis Pharmaceuticals please visit their website: http://www.adamispharmaceuticals.com/

To read the full Harbinger Research report, visit: http://microcapmarketplace.com/docs/ADMP_Research_Report.pdf

*Based on closing price 4/10/2014 and $15 – $18 price target.

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