ORLANDO, Fla., Oct. 28, 2008 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies Inc., has issued a first quarter fiscal 2009 research report update for GeoPharma, Inc. (Nasdaq:GORX), a company specializing in the manufacture and distribution of over-the-counter, nutritional, generic drug and functional food products.
Richa Kalia, MA, RedChip Research Analyst, reported:
"GORX is awaiting Food and Drug Administration (FDA) approval of a fully staffed Beta-Lactam facility and Cephalosporin facility, which will transform GORX's pharmaceutical segment from a significant cash user to a cash generator. In the absence of any clear visibility regarding FDA approval for the two manufacturing facilities, we have pushed forward our estimated revenues from these facilities. At the same time, the Company continues to incur operating costs at these facilities coupled with increased research and development expenses on its ovarian cancer diagnostic technology and other drug formulations. This will impact GORX's margins and earnings, and accordingly we have lowered our FY10E earnings forecast."
"We reiterate our 'Speculative Buy' recommendation for GORX and have revised our price target to $3.20 per share as we wait and watch GORX's financial performance and developments over the next couple of quarters. We believe there is substantial upside potential for GORX and its business and revenues could catapult with the start of its two antibiotic facilities and the launch of 12 ANDAs, once they are approved by the FDA. In addition, its current work on an ovarian cancer diagnostic technology could lead to another valuable product offering with large market potential ensuring long-term revenue visibility," she concluded.
To receive a complimentary copy of the RedChip Visibility Fourth Quarter Research Report for GeoPharma, Inc., please visit: http://www.redchip.com/visibility/about.asp?page=vreport&reportid=144&from=10282008pr
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Disclosure
None of the profiles issued by RedChip Companies Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. GeoPharma, Inc. paid RedChip Visibility $49,000 for 12 months of the RedChip Visibility Research Program services, which includes the preparation of this equity research report. RedChip Companies Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. To the fullest extent permissible under applicable law, RedChip Companies Inc., will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information.