Easton Pharmaceuticals Inc (OTCMKTS:EAPH) Is A Runner On Positive Developments

It's all happening at Easton Pharmaceuticals Inc (OTCMKTS:EAPH). The company just announced a fresh distribution agreement, and alongside it, updated markets as to a flurry of other developments, and its market cap is trading just shy of the highs recorded late October and early November. We said when we last covered this company that the November highs, and likely the October highs to boot, derived from hype surrounding the recreational marijuana legalization ballots. In turn, we noted that hype aside, there was some real potential for gains if the company could execute on its development strategy – a strategy we highlighted in the coverage in question – and that the dip that would inevitably come post ballot might be a nice opportunity to pick up a discounted exposure to these gains.Well, this has – so far – proven a valid thesis.The company dipped considerably post November 9, but ran up considerably throughout late November, and early December. At November 16, Easton shares went for $0.008 a piece. By December 13, this had risen to $0.0185 – a 131% gain across the period.So let's catch up with the most recent developments, and put together a forward bias.For those not familiar with the company, it's a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other industries. The company previously developed and owned an FDA-approved wound-healing drug and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. One of its lead product suites, and the focus of one of its most recent developments, is a suite of women's wellness products – specifically, a bacterial vaginosis (BV) product called Gynofit, and a couple of proprietary diagnostic products, VagiSan (VS-Sense) & AmnioSense (AL-Sense).The Gynofit product is the product in focus for development number one. Easton just announced that its partner, a company called BMV Medica SA de C.V. (a subsidiary of host company Ackerman Pharma) has signed an agreement with an entity called Gedeon Richter Mexico S.A.P.I. de C.V. for sales and marketing of Gynofit in Mexico. Mexico accounts for 40% of the the Latin American pharmaceutical market.The shift into Mexico is a big opportunity to expand on the current revenue base, and we think it's going to drive top line increases throughout the coming twelve months.On top of this, Easton is currently in late stage negotiations that should see it acquire the above mentioned BMV in its entirety, shifting the relationship to one of parent child, as opposed to partners.There's one more. The company is (reportedly) about to acquire a profitable and steadily growing Vaporizer company. The as yet unnamed acquisition reportedly has its own line of manufactured and proprietary e-liquids and accessories, and possesses growing international sales.In our previous coverage, we pointed to the Windsor related expansion of Gynofit into Guatemala, El Salvador, Honduras, Panama, Costa Rica, Nicaragua, the Dominican Republic and Caribbean Islands. We can now add Mexico to this list, and we expect further expansion near term.Yes, it's an aggressive strategy, and there's going to be some serious dilution if these acquisitions go through by way of equity issue (as we expect they might). For us, however, that's not a major problem. It reduces the attractiveness of the company as an exposure near term, but there's potential for some real top line growth on the listed and planned acquisitions. Give this, we think that long term, there's a strong bull thesis for a growth rooted exposure.A steady stream of news over the last few months has given markets plenty to discuss, and we think this stream should continue going forward.We will be updating our subscribers as soon as we know more. For the latest updates on EAPH, sign up below!Disclosure: We have no position in EAPH and have not been compensated for this article.