Positive News Ahead for Oculus Innovative Sciences

I wanted to give our readers at BiomedReports and beyond a heads up about some news that may move Oculus' (OCLS) stock upward in the next day or so.

This is a company that recently announced financial and operating results for the first quarter of fiscal year 2010, ended June 30 and is starting to pick up some momentum in their profitability model. On June 4th, the company announced that it received an expanded 510(k) label clearance from the U.S. Food and Drug Administration (FDA) to market its Microcyn® Skin and Wound Cleanser with preservatives as both a prescription and over-the-counter formulation.

According to my sources, within the next day or so, the company will be announcing some news in regards to marketing efforts related to this new Rx product which is indicated for use by health care professionals to manage the debridement of wounds such as stage I-IV pressure ulcers, diabetic foot ulcers, post-surgical wounds, first- and second-degree wounds, grafted and donor sites.

One can never predict how the market will react to such news, but this is definitely good news for the company, who continues to grow and expand their product line. In addition, the company's two main objectives are to achieve cash breakeven by first quarter of 2010 and to achieve annual revenue of $45 to $60 million by fiscal year 2013. This news will certainly help propel it in that direction and may bring attention to the stock again after some of their recent low volume activity.

The company is Oculus Innovative Sciences, and some of you may recall that I interviewed Hoji Alimi, the CEO of the Petaluma California based company last June. I have a call in for another interview now and I will report as soon as I can about the impact of these developments.

For more about the product whose marketing efforts will commence in the coming days, please refer to the news release linked here.

Comments

[Penn Bioinv...:]

FYI, from thestreet.com which I think has better credibility:

Surprise, surprise! Oculus CEO Hoji Alimi didn't make any medical or drug-like claims about the company's wound cleaning product Microcyn on the second-quarter conference call last Thursday night.
Microcyn is a liquid- and gel-based antiseptic made from a form of diluted bleach that is sold over the counter for $20 a bottle. The U.S. Food and Drug Administration allows Oculus to market Microcyn as a wound cleaner under the agency's regulation of simple medical devices known as 510(k) approvals.
Yet, as I reported recently, Oculus has been marketing Microcyn as a drug with specific medical claims that the product cures infections, accelerates wound healing and reduces inflammation in patients with serious diabetic ulcers, according to comments made by Alimi and his CFO Bob Miller on the company's last quarterly conference call held June 11.

All these medical claims run afoul of FDA rules, of course.

Perhaps someone at the agency sent a letter to Oculus or the company's lawyers stepped in with a warning, because on Thursday night Alimi and Miller were back to describing Microcyn as just a "wound cleaner" and "protector."

Meantime, watch for the possibility that channel stuffing is at least partly responsible for Microcyn's sales growth reported in the quarter.

Accounts receivable grew 40% quarter over quarter, while Microcyn sales grew 31% quarter over quarter.

The company is still losing money, burning cash and heavily dependent on Mexico, which accounts for almost 80% of Microcyn sales of $1.56 million in the quarter. U.S. sales, by comparison, totaled just $131,000.

Aug 17 07:49 PM

[M. E. Garza:]

I know that the writer at Thestreet.com has an axe to grind against these guys, so I 'd take anything he says with a grain of salt the size of Maine. ans as far as his credibility.. well. I'll let hsi record speak for itself.

See my interview about that here- it's titled: "Wall Street reporter’s inaccurate reports are becoming patient safety issue claims biomedical company CEO"

biomedreports.com/arti...

Aug 17 08:58 PM

[hoopdreamer...:]

Your patient safety issue article was absurd. Oculus made it out like it was some public safety crisis. Microcyn sells less than $1M/quarter in the US. I do happen to think AF is wrong and its not just bleach, he should try pouring bleach into an open wound and see how it feels, but others among his comments are fair.

So who are "your sources"? Is that Oculus management? They shouldn't be handing out insider information and you're a silly fool to publish that.

Aug 18 08:36 AM

[M. E. Garza:]

Sounds like you missed the run up.
Oh well.
No one at the company provides us with either inside info, payments or any other kind of "pump" mechanisms. I will tell you that this stock is far from rising. See the new analyst coverage for more proof of that.

Aug 18 03:04 PM

[M. E. Garza:]

Oops... what I meant to say was "This stock is far from done."

Aug 18 03:05 PM

[hoopdreamer...:]

Garza, I guess we ought to invest all our money into ocls and wait for 10 more biomedreport pumps and exclusive ceo interview before selling. Make sure to give us the wink nod for when.

Aug 19 02:20 PM

[hoopdreamer...:]

Hey Garza, explain why the CEO Hoji Alimi sold 315,000 shares last week and registers another 165,000 shares to sell yesterday, the day before he does his silly interview with you? Very shady Garza. How much do you get paid for these sham promotional interviews?

Aug 20 10:23 AM

[Capt Lake:]

OK,
This is my first loser since March 09 and I am not happy.
1. Dawson James does private sale of stock in July
2. August Alimi CEO does option buy of 315,000 shares @ .15-.22 cents per share
3. then sells the 315,000@ $2.22-1.97 per share
4. you send out report of big news
5 Dawson James rates stock as BUY releases Big nation wide press release Claiming its a 4.50 stock
6. Stock goes to $2.67 (I buy at 2.30) then everyone and their brother, sister, aunt and uncle dumps the stock. this dump comes close to equaling the private sale
I have not read anything from Thestreet.com but this whole thing stinks as a stock scam
Capt Lake
PS I am also a biomedreports subscriber and I think you got played

Aug 20 10:24 AM

[Capt Lake:]

OK,
This is my first loser since March 09 and I am not happy.
1. Dawson James does private sale of stock in July
2. August Alimi CEO does option buy of 315,000 shares @ .15-.22 cents per share
3. then sells the 315,000@ $2.22-1.97 per share
4. you send out report of big news
5 Dawson James rates stock as BUY releases Big nation wide press release Claiming its a 4.50 stock
6. Stock goes to $2.67 (I buy at 2.30) then everyone and their brother, sister, aunt and uncle dumps the stock. this dump comes close to equaling the private sale
I have not read anything from Thestreet.com but this whole thing stinks as a stock scam
Capt Lake
PS I am also a biomedreports subscriber and I think you got played

Aug 20 10:24 AM

[Capt Lake:]

The Only trick this Dog knows is how to lay down and DIE

Aug 20 10:33 AM

[hoopdreamer...:]

Captain Lake, biomedreports didn't get played, they and OCLS and Halimi played you and other investors who chased ocls up on their promotional PR's and articles.

Aug 20 11:32 AM