RE:RE:RE:RE:RE:RE:RE:Evolving businessClongobongo wrote:
The adressable market for medipharm is close or near that 200M as Brazilian pharmacy market is mostly composed of tinctures. There is limited flower from information I gathered.
Also, the way medipharms revenue will evolve in that market is 100% dependent on Teutos strategy (look towards STADA for previous experience with pharma). Given Teuto is a low cost/ affordable drug provider, I would assume they need volume to make those margins make sense business wise.
As Brazil mj market is in a high growth phase, Teuto has a decent distribution network, there is limited competition from flower and tinctures have longer shelf life than flower, this could be an opportunity to take a stance and really fill up shelves.
I agree there is alot of uncertainty and ups and downs to come while they dial in demand.
I take your word for the market composition although even if it is the majority tincture, that still doesn't help Medipharm given, you have to expect, that the other 40-odd other approved products then address the same market. If Medipharm is in a regulated yet commodity-ish market segment, having Teuto obviously helps, but $200M isn't a lot of market to share with a bunch of others.
Teuto is the low cost and generic kid on the block certainly and one could conclude that is a positive here, but I still can't get to significant volumes in Brazil on the back of simply 2 approved products, in a market where 40 others exist to supply a $200M total market.
All that said, something is better than nothing and more is better than less. So let's hope that Teuto does a better business than Stada has.