Gediminas Jasionis

Hard To Treat Diseases (PinkSheets: HTDS) - Finally Makes It To Chile

by Gediminas Jasionis November 17, 2009
HTDS.jpgHard To Treat Diseases (PinkSheets: HTDS or HTDS.PK) share price jumped up upon news announcement published at the end of Monday trading session. The stock has tried to pull 5% another shortly into Tuesday's trading but was stopped by general market weakness, also showing the press release didn't convince investors the company is now good to buy.

HTDS announced their subsidiary, Mellow Hope, has acquired the necessary certificate to start selling swine flu vaccines in Chile. The first shipments are expected to be seen in a time of couple weeks. Management has also stated this is the first H1N1 Influenza A vaccine in Chile to be sold by a foreign company.

For sales in Chile, the certificate guaranties advantage against possible foreign competitors but grants no benefit in competing against domestic companies. The company will still have to overcome the usual market entry barriers and gradually work their way to gaining some share.

Further, we're still waiting for the management to post numbers on initial vaccine order. Promised to be a significant amount it might push the stock somewhat up, but the continuity of significant revenues from this is currently still questionable.

The thing is, the company might be too late to jump the train altogether. Despite Chile considered one of the South American countries most affected by the disease, the pandemic was already partly controlled back in July 2009 when the rate of infections was reported to fall.

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