CASI Pharmaceuticals Inc. (CASI) was up 4.24% up at ring of the bell last day. The company revised its business strategy it shared at the end of last month.
The drugmaking company adopted the changed strategy to better focus on its other business efforts. Those include putting its emphasis down on ANDA portfolio and expanding its hematology franchise. The new strategy will be reducing company’s previously set targets. Becoming leader in increasingly growing Chinese market by providing high quality, licensed and ANDA pharmaceuticals were the main objectives of those targets.
China has recently decided to lessen number of generic drug suppliers in the country. In face of this policy by the Chinese government, CASI has to review its business strategy in the country. CASI leaves its competitors behind in adapting to the Chinese market by quickly grabbing opportunities. The company knows well how to reduce the effects of any headwinds in that economy. Such hurdles especially create issues for companies that are listed in the United States. With current strategy, CASI is seeing its business prospect to last for long. To increase its revenue and make its profitability stronger, moderating capital needs for a while is likely to be the best decision.
ANDA portfolio was the main reason behind that decision. The company was hoping that it will continue making deals even in these rough times. It also designed a plan to generate revenue of $500 million by 2045. There is lot of competition in non-proprietary drug market in China. But products manufactured by local vendors usually lack quality.
CASI lowered its ANDA sales expectations to $185 million by 2045 and also lessened its valuation to $163 million. The changes in the business strategy are of important nature, but company was still hopeful to have a place to grow in moving forward. CASI’s hematology plans are soon to be commercialized which are licensed and proprietary as well.
CASI was down -6.41% at last check today. Though stock’s performance is not encouraging at the moment but it might do well in days to come by materializing its new strategy.