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Zosano Pharma Corp's big IPO

By PennyChats

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IPO's can bring rewarding returns that us penny stock traders love. This is a brief research write-up from a retail investor point of view. With limited information available to the public, we use various resources to determine if this company is worth a trade or investment for Zosano Pharma upcoming IPO. In this analysis we will list  advantages and disadvantages (if any) of Zosano Pharma.

Do you have needlephobia? If so, companies like Zosano Corp are coming to your rescue. Needle-less devices and applications are not new, so why Zosano? That's what we are trying to dig up. PennyChats relishes being in ground floor on big reward stocks. Our last IPO gave us a 250% return in one-day and that is what we're use to. If this can be a lifetime rewarding investment, we are all for it as well.

This article is intended for not so savy investors and we are going to do a step by step walkthrough of how we would do due diligence on when it's time to invest or trade with the big boys. Zosano Pharma begins trading on the NASDAQ Jan 28, 2015.

About Zosano Pharma Corp:

Zosano Pharma is a privately held company, soon to become public to us retail traders. This is the time most of the initial investors in the private sector are looking to exit, or make colossal returns on their investments. Zosano Pharma Corporation has a propietary needleless application in the medical industry.

PennyChat's first question is: Are needleless injections a big deal ? Sounds silly, but hey, we are not doctors and had no idea millions of people are frightened by needles. Studies show 20% of the world population have what you call "needlephobia" This immediately surged a huge spark of interest to ensue countless hours of research on this needlephobia and what are known treatments for it. PennyChat's even found other public traded companies that are penny stocks manufacturing such devices for people with needlephobia. Log-in for the list of penny stocks developing similar devices. Healthcare and medicine are taking on rapid innovation, not as fast as the IOT (internet of things) movement, but it's coming along. We expect quadruple-gain movements in the bio-sector over the next few years. The bio sector stocks requires patience as regulations and clinical trials are approved. History shows as these phases are successful, investors and of course patients, are generously rewarded. 

Zosano has developed a proprietary ZP Patch Technology as a transdermal application which allows medicine to be transferred through the skin using a microneedle patch system. The patch would only have to be on for a few minutes and then removed causing no pain. To accelerate the companies growth, Zosano Pharma Corporation will focus it's technology with companies who may choose to license and use their technology, thus reducing ZP's regulatory risks and developmental costs. They have already signed deals with mammoth company names Eli Lilly and Novo Nordisk. These two deals put $ZSAN on a fast-track; having two multi-million dollar contracts is a shooting star for potential investors. 

Eli Lilly is listed on the New York Stock Exchange and trades at $70 a share. They produce medicines for several diseases that attack humans of our world by the minute. Eli Lilly, a leader in osteoporosis medicine and research will work alongside Zosano, who holds their own proprietary formula for treatment. Eli Lilly plans to make a $15 million dollar equity investment concurrent with the ipo and addition the agreement can close up to $425 million dollars for Zosano Pharma Corp.

Novo Nordisk ($NVO) currently trades at $40.00 a share on the NYSE and has signed an agreement with ZP to deliver their semaglutide using the ZP Patch. Semaglutide is a treatment for type II diabetes, the most common form of diabetes. Payments to Zosano under the agreement will include upfront payments and total  $50 million for first product and $60 million future sales. 

Time-Frame:

For any potential investors worried of how trials operate and the time-length you are looking at before cashing out on your investment, we researched an example for you.

PharmaJet a privately held company that produces needleless devices has just been approved by FDA for its needle-less flu shot. In Nov of 2012, Pharmajet entered into a collaboration with CSL (maker of Afluria vaccine) and by August 2014 the FDA approved the vaccine with Pharmajet's Needle-free injector. Afluria was not in clinical trial stages at this time, but it is a good observation in regards to industry demand and FDA approval time-frame although results will vary.

Competitors:

We have found most companies developing these needle-less applications, pills and devices are not public-traded. The extent of research was minimal, so to what degree of success achieved is undetermined. There are various forms of medicines and vaccines that do not include needles already on the market, but the denominator will be the producers.  Zosano is partnering with leading companies in medicine, the future can only tell who is next to partner along side this... Login To Read More

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