Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) Enters The Erectile Dysfunction Market

Innovus Pharmaceuticals Inc. (OTCMKTS:INNV) exploded more than 50% up the charts yesterday, after making two terrific announcements.

According to the company’s PR, the clinical tests that the company has been running over the past 16 weeks have now shown definitive results – and the results are good. Apparently, the nitric oxide based drug treatment that the 72 patients subject to the trials received has had a positive effect in nearly 50% of the tested cases. As a result, the company’s partner Khandelwal Laboratories has gone through with applying for product licensing for the tested products with what the company described as “the Indian FDA” – The Drugs Controller General (India) and the Directorate General of Health Services.

So, things are once more looking up for INNV – it has set its eyes on yet another multi-billion dollar market. Judging by its recent announced successes on the science front, we may actually be looking at a company who might be able to capitalize on multiple pharmaceutical markets in the distant future.

Unfortunately, nothing in the company’s most recent filings suggests that it will be able to do so any time soon:

  • cash – $32 thousand
  • total current assets – $378 thousand
  • total current liabilities – $3.56 million
  • Q1 2016 net revenues – $224 thousand
  • Q1 2016 net loss – $1.55 million

One thing is certain – that balance sheet will need a lot of improvement, if INNV is to have even a shred of a chance to continue on the road to financial success. Does this mean that the company will need to issue even MORE convertible notes?

Mind you, INNV already has $1.32 million worth of convertible notes issued and outstanding, and all of that debt can be transformed into shares of the company’s common stock at prices of $0.15 per share. Meanwhile, its current price per share is climbing closer and closer to a quarter.

So what does this mean for investors? Well, it means that they need to tread lightly indeed, because although the news INNV puts out is good, and judging by its PR it is making real progress, its shortcomings are certainly noteworthy as well. Naturally, it is up to the investor to be the judge of whether the obvious risks are worth the potential rewards, and caution and diligence is advised.

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