Easton Pharmaceuticals Inc (OTCMKTS:EAPH) shares were up 20.58% on Tuesday and an additional 4.42% to $0.0175 in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.02. The company has a market cap of $13.51 million at 932.73 million shares outstanding.
Easton Pharmaceuticals Inc is a development-stage company engaged in various pharmaceutical sectors and others industries. It has a transdermal delivery technology called Viorra Delivery Matrix, which is incorporated in a line of therapeutic over-the-counter products. The company owns topically-delivered drugs and therapeutic/cosmetic healthcare products focused on cancer and other health problems geared towards female sexual dysfunction, wound healing, pain, motion sickness and other conditions.
Currently, its products are still in various stages of commercialization. These are Nauseasol, which is a motion sickness gel, Skin Renou HA, which is an anti-aging wrinkle cream, Kenestrin Gel, which is a is a pain relief gel, Viorra, which serves as an aid to the relief of female sexual arousal disorder, XILIVE, which is an early-stage cancer drug that includes a water-based complex polymer matrix.
Early this week, Easton Pharmaceuticals Inc and partner BMV Medica SA have received a preliminary proposal from a major multi-national pharmaceutical company for its regulatory approved, patented VagiSan in Mexico and Ecuador. This is a woman’s diagnostic test Bacterial Vaginosis also known as VS-Sense. This is the same product Bayer Pharmaceuticals had licensed and launched in late 2015 in Europe under its brand, Canestest. This product is also being sold by Prestige Distribution in the US under its brand, Monistat, raking in millions of dollars in sales.
This proposal comes after months of negotiations and contains an upfront financial consideration for the Mexican Marketing Authorization. This major pharmaceutical company has products and sales in over 90% of the markets throughout the world, thereby providing a huge opportunity for Easton Pharmaceuticals Inc to sell its products globally. In particular, the multi-national pharmaceutical company understands the sales growth opportunities in Mexico and other parts of Latin America, which are some of the fastest growing territories in the world.
Prior to this, Easton Pharmaceuticals recently announced distribution agreement with Windsor Pharmaceuticals. This means that the company can match and possibly exceed current sales in Europe and North America with its target market in Mexico and other Latin American countries. For now, the company has refrained from disclosing the name of the multi-national pharmaceutical company while it is reviewing the proposal. Still, an approval would lend more upside for the stock possibly before the end of the year or early next year.
The company is also poised to benefit from the likely boom in the medical marijuana industry in the US. It has made investments through AMFIL Technologies, which is a company involved in medical marijuana and other industries as well as advancing funds towards another Canadian medical marijuana initiative. In particular, the gel formulation of Easton Pharmaceuticals Inc is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of other drugs and Cannabidiol extracts.
Looking at the long-term chart of the stock shows that it had just broken above a downtrend in late September, likely due to its delving into the marijuana industry. Price is stalling below $0.02 for now but a break above this resistance could leave the path open for a move up to $0.035 next.
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