Why is Adamis Pharmaceuticals Corporation (Nasdaq: ADMP) so hot right now? There are several reasons. Insider Monkey readers are very familiar with Adamis Pharmaceuticals Corporation since August 2014 when we issued a buy recommendation at $4.02 in our premium monthly newsletter. Nine months after that we published a free report reiterating our buy recommendation when ADMP’s shares were trading at $4.88. That was about a year ago.
Biotech stocks lost around 30% of their value since we published our report. Even Adamis Pharmaceuticals Corporation shares lost more than 30% of their value at one point in August. However, it was our highest conviction idea, so we kept our buy recommendation over the last 12 months. Adamis was our top idea because it is working to get an extremely simple drug application accepted by the FDA. The stock started to deliver strong gains in December when it resubmitted its “New Drug Application” for its Epinephrine Pre-filled Syringe (“PFS”) product candidate.
Adamis’ acquisition of US Compounding was also viewed favorably by the market and the shares closed April at $8.29, a gain of 70% since our recommendation in April 2015. On April 30th, I published an article on Insider Monkey with the title “My #1 Best Idea In the World With a 10% Guaranteed Return in One Month“. In the article I explained why I believe Adamis is one of the best stocks to buy until June 6th and I guaranteed a 10% return if readers decide to subscribe to our healthcare newsletter. On Tuesday, we emailed this article to our more than 100 thousand email subscribers.
Later that week we shared an update from Sio Capital regarding ADMP. Here is the quote from Sio Capital’s Michael Castor that was shared in our newsletter:
“Adamis at the end of last month acquired a compounding pharmacy. It is a state of the art facility that should be immediately financially accretive and produce cash flows and in looking at the transactions that company paid by five times EBITDA. It’s a tremendously savvy transaction and this is really the hallmark of how Dr. Dennis Carlo the CEO has really run the company. This transaction alone in my estimation is worth about $4 per share for Adamis. The company was trading at about $6 per share.
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