IFRX was once a high-flying medical stock, where investors were happy, stocks were regularly traded with potential for profits, and no one looked at what the company was actually doing.  But when things go sideways, news goes bad, and trials fail, what then? 

Budgetary concerns drive business decisions.  How a company manages their income, how they use, report, earn, and distribute those dollars is what drives faith in the organization.  Over the course of Chapter 10, the idea of vertical integration, and the drawbacks or benefits to that system is referenced repeatedly, from market governance, opportunism, and even managerial fiat; but nothing supercedes these without budget.  IFRX has repeatedly returned negative financial returns.  Because IFRX is unable to return profits, they have been constrained in how their practices are conducted, what actions they are able to take, and what future decisions will be made available.  It is my opinion that until IFRX posts a positive return to their shareholders, IFRX will never leave the penny stocks pages.    

Today’s topic is something that has high levels of attention on national and international levels, but only when some politician wants to get elected.  It seems that every person running for office talks about uplifting the poor, helping the less fortunate, making everyone equal, making America Great.  But the real detriment to society, is the constriction and over regulation of manufacturers, to workers, to entrepreneurs to develop products.  IFRX is one of the most highly regulated industries in the world, where getting authorization to produce chemicals, to make and sell drugs, to cure illness and pain, requires millions of dollars of investment just to prove the item works.  The item for today’s discussion is Entry Barriers. 

Now, while the section in Chapter 9 that covers Entry Barriers is more focused on the impact that tacit and explicit collusion plays upon competitors within industry, however, the collusion or corruption that occurs with IFRX is with politics.  Major medical companies and corporations have the ability to pay and fund research because they have been around for so long.  By continuing to work with governments to maintain the status quo, the level of collusion (not between competitors, but between regulators and industry leaders) keeps IFRX from reaching success.  Additionally, if IFRX was able to release products, to work with greater freedom of movement with patients, IFRX may never have experienced such a drastic price drop of stock, due to one poorly constructed testing scenario.  

The last response that we discussed was the concept of differentiation as outlined in Chapter 7.  For this week, we will be discussing the idea of flexibility.  Once again, something that IFRX has yet to understand.  It seems that every week, the potential to release news, to make a statement, to do something to expand the company, IFRX goes the other way.  And as such we will discuss Flexibility in this week’s installment (something the company isnt capable of apparently)

The idea of flexibility is defined in the textbook as “the ability to change direction quickly and at low cost, given unanticipated changes in the competitive situation within which a firm is operating. ”  The problem that IFRX faces is an inability to maintain flexibility within their prescribed industry.  Biotech is an industry that proves difficult for even the largest of firms, however the small market cap afforded to IFRX, has them chasing one or two potentials for successful drug innovation, unlike claxo smith kline, or other major drug makers.   As highlighted by their most recent collapse, it appears that they need to start looking at flexibility among their research and product lines.  The inability for this company to provide variance across their research limits potential; by simply allowing researchers to utilize some time and resources to examine other chemical variation may increase the functionality, and overall return of IFRX.    

 I once thought that writing my own blog would have been a great idea, as I’ve heard of plenty of stories where people started a blog, that eventually grew into a business.  I now know that I will never be one of those people, because I have just way too many things going on in my life these days to be able to tell you play by play how bad of a stock selection IFRX has been because of the one thing that is drastically evident with IFRX; they are the epitome of a one trick pony.  

For Chapter 7, we discuss the concept of diversification; producing multiple products, in multiple locations, in various settings in order to target multiple sectors of the market to avoid a failure of the company because the one product was no longer profitable or effective.  In the case of IFRX, their stock dropped 90% because their product failed testing.  If IFRX had multiple products, multiple researching arms, and multiple studies or income producing ventures, the stock would not have done what it did.  While it is understandable that a company such as this will be constrained in its pursuit for a single success, they should have diversified sectors within the company to ensure that complete market price failure does not occur simply from one bad result.  Multiple other biotech companies have researching departments that help alleviate this potential, but so goes the rise and falls in the penny stock industry… the make or break as they keep living on a prayer.  

Ok, since I’m at the computer a lot today, as I slowly come to the realization that I have to work, I’m just going to keep typing about the abomination that is IFRX.  Why exactly did IFRX get in their business? What inspired them to research this specific affliction?  While there may be more than 3Million affected on a yearly basis, the fact that there are no known cures in todays modern level of medical care calls to question the motivations.

In Chapter 6, we cover cost leadership and environmental threats.  Did IFRX enter this field because there were no known threats? there were no rivals?  Was this a purely monetary decision?  Was there something else?  Entering the biotech industry takes millions and a lot of time.  Researchers need the proper equipment, the proper facilities, and the right mix of fellow researchers to make the process flow freely and correct.  Maybe the original founders identified weakness in the industry and capitalized their timing to enter the field at this specific point.  By being the first entrant, they immediately increased the cost bar for following entrants before they even started their first day.  As more entrants join a market, the cost to enter is exponentially increased as the technology, time, and resources that have been utilized thus far demonstrates that less resources remain, with less options available for success.  IFRX has this market closed at this time, unless they continue to fail in research, and financial incentives are moved elsewhere.  

I’ve got to say, the past week has been nice, but its disappeared in the blink of an eye.  It seems like just yesterday I was ‘welcoming’ Monday at the office, and now, after a long weekend, I’m looking down the barrel of another horrible Monday.  But, all is not lost, because I’ve got a great run planned for the morning, and I’m not going in until lunch, because, why not.  It really gets down to utilizing my spendable days when available for leave accrued at work, so when I decide to make a move, my leadership traditionally approves of my actions because they are so rare 

And so, today we are going to discuss rarity; our Chapter 5 topic in relation to IFRX.   In the world of business, Rarity does not equate to valuable.  Just because you are unique, does not make you special.  (**insert insensitive joke here**).  But in all honesty, our company has spent the past several years attempting to cure a common ailment (Hidradenitis Suppurativa) that no one has yet discover a cure for.  Companies such as IFRX are numerous, as the Biotech industry is a long history of build and bust type stories.  A few doctors and researchers go off on their own, find some investors, and attempt to solve a few illnesses and make millions in the process.  So when IFRX was on the verge of solving this condition, and being the only known cure, everyone was ready to pounce on the investment (cause its rare…hello!!)  But it was not meant to be, IFRX was not the rare exception to the industry with a proven winner, and instead, they are now just a piece of the mechanism, with a highly deflated stock price (highly un-rare like all the other bio companies)

Ok, so I’m going to start by apologizing for my recent absence, but I promise that I had good reason.  I have a normal day job.  I have to work.  I have expenses.  I have to pay the bills…. because lets be honest, IFRX isn’t.  

As we get into Chapter 4, we discuss valuable assets, and the differences, advantages and disadvantages of being first and second movers.  In the world of Biotech, industries continually strive to be a first mover, and utilize the 20 years of patent protection covered by the United States.  Millions upon millions are spent every year to develop these new medications because the payout over those two decades more than reimburses the initial investors.  That is, if they develop the next best thing.  The problem being, is that these wins don’t happen every year.  They are not given, they are not guaranteed. 

First movers are the companies that make the initial product, develop the technology, the ingredients.  Second movers, are the ones that are able to produce this great product, for upwards of half-off, as they try to take advantage of the now-known market.  In the industry, Advil, Tylenol, Aleve are the first movers.  Generic medications are the second movers.  Those that quickly make the product, try to steal profits, while making a suitable product that customers will buy.  I personally, am a second mover buyer when it comes to the industry.  What are you???

IFRX has information throughout their website over their commitment to expansion, development, and leading the industry.  While this is great when attempting to identify investors, and maybe some potentially great employee talent, when numerous pages overnight are drastically removed, altered, deleted, or simply emptied, investors are quick to ask questions.  Today, that is exactly what IFRX did, but why?

As we begin looking at Chapter 3, we are immediately hit with the Structure-Conduct-Performance (SCP) Concept.  While the SCP is more of a large-scale economies approach to understanding an organizations activities.  Now, Biotech is far from ever being called ‘small,’ however IFRX is focusing on a very small segment of the industry.  Have they found some backers to reinvest? are they looking at a change in philosophy? are they having fiscal difficulties?  I predict major changes within the next month, as it is only a matter of time before they go after a PR move; as long as they don’t do PTN’s method, then all will be good in the end (I have faith you can look up what PTN did today that interfered with their 300% stock price potential).  Good luck!    

So today will be a day of firsts, as I’m about to go and talk about another stock, because I wish that IFRX would do what this one did.  Now, it is never kind to discuss kindly of one, when you are married to another, as with our case, but in the world of penny stocks, good news sends a stock rocketing; great news sends it into orbit.  While I may be premature, as I hope that this stock will continue its upward projection, all signs point to yes.  

On Friday, post market close, the stock world went crazy over PTN and AMAG.  FDA approved a new drug, and within minutes, 250K shares drove PRT from $1.32, to $2.20, before settling in for the night, at $2.12.  Whats amazing over this, is the traditional investor realm went home by the time the news dropped, so if tomorrow is anything like the evening hours of Friday, then we are in for a wild ride (some are projecting the $5-$6 zone) 

Now, I’m not discussing PTN just because I don’t want to talk IFRX, the complete opposite to be honest.  I would love to be able to give play by play operations of IFRX, its just that the company refuses to address what some have called a deafening silence.  From a company that once prided itself on results and profits, they have gone into hiding.  Major industry leaders these days, need to address their constituents, they need to discuss problems, and they need to offer solutions.  It appears that this company is not what they thought they were 

I’ve always been told that no news is good news, especially when things are rather risky or potentially dangerous.  And while I’m sure you’re bored of reading the same old same old every day when I write on this losing stock, no news is bad news for us.   After reading time and time again that IFRX is undervalued.  That now is the best time to begin buying, to begin investing, that this is the next millionaire maker.  The question that must be asked though, is how often do ‘buy’ stocks actually turn out to be amazing opportunities.  

Investing is a patience game for the vast majority of stock market junkies.  Its something that requires time, funding, and continually letting the market have control, that is, unless you’re like me, who likes to see a quick, lucrative, return.  IFRX has not afforded me the luxury of quick, easy, or lucrative return I’m accustomed to.  What it does remind us though, is that business is fickle, its emotional, but its also cold and relentless.  By not adequately examining what a business is, what it offers the investors, potential losses, small and devastating, could occur.  Lets hope this is not that type!