Suda Ltd (ASX: SUD) Continues Being A Magnet for Investors

KEY TAKEAWAYS:

• Suda’s strong Q1 performance can be attributed to the combined factors of its subsidiary performing well on one hand and its licensing agreement with Teva bearing fruit on the other.
• Currently, the company is engaged in transforming prescription pills into a spray so as to render the medication not just more effective but also easier to use, particularly in case of children.
• Owing to its quality-conscious approach, licensing policy and close nexus with the manufacturing sector, Suda is likely to remain a magnet for investors over the forthcoming quarters.

With its Q1 results, Suda Ltd (ASX: SUD) has proved yet again why it continues to attract investors despite not getting involved in aggressive sales and adopting hard-core marketing strategies. Revenue earned from customers over this quarter amounted to US$2.1 million, which is a whopping 35% higher than the corresponding quarter the previous year. Much of the spike was attributed to the licensing agreement with Teva Pharmaceuticals wherein Suda received $0.4 million as part of the deal for ZolpiMist.

Increase in revenue was also reported by a subsidiary of Suda named Westcoast courtesy of several new contracts pertaining to medical products having been awarded to oil rigs, custom vessels, ships and so on.  The total increase in receipts was estimated as being 14% with the cash-flow amounting to $1.8 million. Earnings worth $0.2 million also poured in due to the company’s decision of issuing Convertible Notes in response to the over subscription during the IPO.

SUDA intends to maintain its dominant position in this sector through proactive research involving usage of medications. It is currently engaged in testing the feasibility of transforming a prescription drug into a mouth-spray so that not only is it more effective, but the dosage is also comparatively much lower and chances of side effects are minimal. Currently, the focus of research is on an epilepsy-related drug named Midazolam but the plan involves moving on to conditions like malaria and insomnia.

By relying on a business model that relies primarily on the provision of licenses to sell its sprays, Suda is confident in being able to maintain the steady rate of growth over the upcoming quarters and boost shareholders’ confidence.

About SUDA Pharmaceuticals Ltd (ASX: SUD)

SUDA Pharmaceuticals Ltd (ASX: SUD) is a drug delivery company focused on oro-mucosal administration, headquartered in Perth, Western Australia.

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