Viaderma Inc (OTCMKTS:VDRM) Is A Big Near Term Runner With Long Term Potential

Take a look at Tuesday's biggest movers, and Viaderma Inc (OTCMKTS:VDRM) is near enough top of the bunch. The company gained close to 500% on its latest release, and in doing so has become one to watch in the cannabis space. Viaderma's technology is pretty revolutionary, and if the company can carry it through to commercialization in any number of potential indications, there's an opportunity for substantial revenues.Coming off the back of such substantial gains, the question is whether there's any more run room based on the latest development, or whether we're going to have to wait for some fundamental advance to compound the latest action.Let's take a look.Many might not be familiar with this one yet, as it's flown pretty under the radar to date, so here's a bit of background.The company bills itself as follows: bringing new products to the pharmaceutical industry through research and development, ViaDerma licenses and sells products in fields of medicine ranging from infectious diseases to stem-cell therapy.That's pretty vague, but there is a degree of focus not addressed in the above description – ViaDerma's proprietary technology is a transdermal delivery mechanism, which has the ability to convert (pretty much) any type of medication into a format that can be delivered through the skin.It allows transfer of chemicals through what's called the stratum corneum (the scientific name for the outer layer of skin) with a diffusion constant which is 10,000 times higher than the diffusion constant that characterizes water movement through the outer layer.This increased diffusion constant allows the company to pair almost any active ingredient with the technology and provide rapid transport of the medicine right to the site of action.The tech is called TetraStem and it's patent pending in a whole range of different target application types. As validation, it's won a bunch of awards, having been used n a product which received the Bronze Award for “2012 Best New Pharmaceutical Product” at the 25th Annual Edison Awards in New York City, and the tech itself was named the winner of the “Drug Store News Best New Product” as voted by key pharmacy industry decision makers at the ECRM Marketgate 2012 meetings held in Charlotte, NC.The Edison awards are one of the top, if not the top, new product and invention awards in the US, so to win Best New Pharma Product is a pretty big deal.That's what readers need to know as far as getting up to date is concerned – what's happened with the latest news?Well, the company announced it has a patent pending (submitted a couple of years ago) for the application of the technology to cannabis based medication – specifically, the introduction CBD and THC through the skin for the treatment of several diseases. We don't yet know what the company is targeting as a primary indication, but there's a vast scope of potential applications in pain, inflammation, neurological conditions, and more, all of which could be potential blockbuster targets, if the company can carry the system through to a commercialization green light with the FDA.There's precedent for this sort of technology to drive upside momentum, as well. OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) went from as little as $0.0045 to $0.2 between late September and late October. That's a 10X multiple of the gains we've just seen in ViaDerma, on a very similar technology (topical administration and sublingual CBD). It seems markets are bullish on this sort of administration taking a big chunk of the future healthcare space, and even more so when it comes to CBD target indications.So that's the upside, what’s the risk?Well, as usual at this end of the market, the risk is very much capital rooted, although things aren’t quite as bad as can be said for some industry peers. Cash isn’t great, coming in at just $14K at June 30, but total assets reach just shy of $200K, and market cap is – even with the latest gains taken into account – a little over $1.2 million.We're going to see some dilution near term, that's for sure, but the degree to which this dilution hits shareholders is up for debate. If the company can pick up a partnership on its product, near term impact might be a little lighter. If it doesn’t, near term impacts probably going to be a little more severe, but the long term benefit of carrying through to commercialization with 100% ownership is substantial from a revenue perspective.We will be updating our subscribers as soon as we know more. For the latest updates on VDRM, sign up below!Disclosure: We have no position in VDRM and have not been compensated for this article.