Specialty generic pharmaceutical manufacturer IGI Laboratories has been quite the winning stock recently. While the company has been publicly traded for years, the stock really came alive in 2012 after a talented CEO named Jason Grenfell-Gardner took the top chair. Since then, the stock has been a rocket ship, up more than 650% in the past three years.
What is this small-cap biotech doing so right recently that has caused its stock to go gangbusters? Can investors expect more of the same in the future?
The TICO strategy
While the company currently generates revenue in a few different ways, IGI's long-term strategy hinges on selling a large portfolio of specialty generic pharmaceutical products. Specifically, the company is focused on creating products for the "topical, injectable, complex, and ophthalmic" markets, or, to use the company's own language, the "TICO" markets.
While I have a hard time calling a stock trading at roughly 14 times sales cheap, given this company's growth prospects and the near-term catalyst of reaching breakeven, the price may not be outrageously expensive, either.
The Foolish bottom line
If the company can continue to win approvals from its many ANDA filings, the odds are good that it will have years of strong growth ahead. IGI has captured my attention, and if the company continues to execute against its plan, I may just be willing to add a few shares to my portfolio.
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The article Why This Small-Cap Healthcare Stock Can Continue to Win originally appeared on Fool.com.
Brian Feroldi has no position in any stocks mentioned. The Motley Fool owns and recommends Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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