By Jim Schutz
Last week, we released our earnings for the quarter ending June 30, 2010 and have received lots of feedback from our shareholders and analysts. Several highlights:
- We hit our numbers for the 6th quarter in a row on both revenue and operating expenses,
- Our cash position is healthy, and
- We’ve converted from a one compound company into a commercial stage enterprise with more than 20 products in the market, just in the US.
My wife, Cindy, and I are so bullish on the OCLS opportunity that we purchased more OCLS stock on the open market the very day our management team’s trading window opened (August 9, 2010). As Warren Buffett once said, “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.” We agree – Cindy and I are highly interested and hope that we are ahead of the stampede that sees the oil under our feet.
During our earnings call, we announced that our revenue split with our animal healthcare partner would begin on July 1, 2011. This is an important relationship for us so bear with me for several highlights:
- In March of 2010, we disclosed that sales of the Vetericyn (www.vetericyn.com) products, after only nine months of operation by our partner, had achieved an annualized run rate of $6 million. This is very impressive – at day one, Vetericyn had no infrastructure, no distribution, no sales team, no marketing materials and no market awareness. In other words, Vetericyn went from zero to $6M in less than 9 months.
- Vetericyn is a subsidiary of Innovacyn, the parent company that will also be marketing our Microcyn-based OTC human wound care products (www.puracyn.com) in the United States.
- On July 1, 2011, we start sharing gross profits with Innovacyn for both Vetericyn and Puracyn products.
- Our CFO, Bob Miller, expects us to book profits of anywhere from 30 to 40 cents on each dollar of revenue Innovacyn generates, assuming current pricing. In other words, for every $1M that Innovacyn generates in annual sales, Oculus will receive $300 to $400K that goes straight to our bottom line.
To say the least, we’re most excited about this important partnership and corresponding timelines. We believe these dates are potential game-changers and will keep you up to date.
We also announced on our earnings call that we are dipping our OCLS toes into the acne market. As you may know, our dermatology product line is growing leaps and bounds and acne is the largest dermatology Rx ad OTC market segment. We are launching our first acne product in September in Mexico.
Our team in Mexico is preparing marketing materials and a promotional campaign for the expected September 2010 regulatory approval from the Mexican Ministry of Health. Immediately after the approval, we’ll launch to dermatologist in the big markets of MX City, Guadalajara and then roll out nationwide.
Our team in Mexico has demonstrated what happens when you combine an outstanding product and a solid plan = in the antiseptic market in Mexico, we have a 40+% market share for our prescription Microcyn. We hope to repeat our results in the dermatology market in MX and beyond.
OCLS colleagues and partners around the world are anxiously looking forward to their pace setting performance in this large acne market.
As always, thank you for the continued support.