Generex Biotechnology Corporation (OTCMKTS:GNBT) Is Niche Stock


Dallas, Texas 12/03/2013 (Financialstrend) – Many argue that Generex Biotechnology Corporation (OTCMKTS:GNBT) is quite an exclusive stock which is best only for company insiders or of the likes of Carl Ichan. Such as view is definitely not surprising, considering the fact that, the company has always had an issue with leadership. Though, the Canada-based Company, with a strangle-hold on the diabetic therapeutics has always lacked good management and control.

The technology and the market it has for the limited number of products it has is good, it has never been a runaway success, like other companies with less quality products.  Generex winner has been the innovative technology it offers for the delivery of drugs- it delivers directly into the oral cavity.  It also has aspray-based insulin called the Generex Oral-lyn. This drug is yet in the Phase III trail stage for clinical tests, on a global patient profile as well.  It also has a good line up of injection drugs which increasingly efficient and allow the absorption directly by the inner lining of the mouth. This drug marketed using the a proprietary RapidMist device.

Experts argue that the company despite receiving high funds to the tune of $350 million continues to have a very low market capitalization as it currently stands at $17.5million. The company ails from a lack of good CEO who could bring greater expertise to the board. Currently the management is in charge of the company operations, leaving the company vulnerable to stock market slips and falls.

The company has continued to flounder due to repeated mismanagement and non-strategic decisions analyse experts in the field. The company lacks a good financial management team as well as it is not invested in different financial instruments such as debt or stock combinations either.

Though, it has the right technology and a good pipeline it continues to be troubled by poor leadership.