Investing in the future of drug abuse deterrent technology
The abuse of pain medications and methamphetamines have increased in recent years, with no end in sight. This has governments and businesses scrambling to find an answer to this epidemic. One company that is working to decrease the likelihood of abusing pain medications is Acura Pharmaceuticals (NASDAQ:ACUR) with its two trademarked technologies: Aversion™ Technology and Impede™Technology. Each of these amazing technologies prevents abuse, both in over-the-counter drugs containing methamphetamines and those prescription drugs for pain management. This is a valuable technology both for medical providers and in the combat over drug abuse.
Acura Pharma will continue to benefit from this technology, especially considering the company's partnership with Pfizer (NYSE:PFE), which agrees to market its new FDA approved pain medication, Oxecta™-- an immediate release opioid analgesic tablet indicated for the management of acute and chronic to severe pain. Acura recently benefited from a $20 million milestone payment from Pfizer for this partnership, and will likely benefit from more milestone payments for this drug in the coming quarters.
During the second quarter ending June 30, 2011 the company reported net income of $17 million or .35/share compared to a net loss of $3.2 million or (.07)/share for the same quarter in 2010. The company also reported cash on hand and cash equivalents of $38.9 million and no debt (as of July 27, 2011).
A positive quarter, millions of dollars in cash on hand, no debt, FDA approved pain medication with abuse deterrent technology, and partnership with Pfizer. I have a hard time finding any negatives about this company.
Disclosure: I am long ACUR.