Here's How Our Readers Gained 60% On Adamis Pharmaceuticals Corp (NASDAQ:ADMP)

Back on May 30, and as part of our Biotech Catalyst Plays series, we highlighted Adamis Pharmaceuticals Corp (NASDAQ:ADMP) as being a company to watch in this piece. Our thesis was as follows: that the company had a major FDA decision day approaching and that if the outcome hit press as positive, we'd be looking at a considerable upside run on the news.At the time of our highlighting this one, Adamis went for $3.60 a share.We suggested that taking a position ahead of the release could be a smart move. While the asset in question has had a real rough ride across its development pathway, with multiple FDA knockbacks by way of two Complete Response Letters (CRLs), we suggested there was a good chance of approval, somewhat against general market sentiment (as indicated by the April selloff).Turns out we were spot on.Adamis picked up an FDA green light on Thursday, almost three years to the day after first submitting its New Drug Application (NDA) for the asset in question. The company gained 53% during the session on Thursday and – pre-market on Friday – is up a further 11%.That's a 60%+ run for our readers.So, what's next?Well, for those who missed our coverage, the asset in question is a generic version of Mylan Pharmaceuticals Inc.'s EpiPen, which is the emergency Adrenalin (epinephrine) injectable used all over the world as a first rescue device in patients suffering allergic responses to various allergens (most prominently, peanuts). What really attracted us to this as an inflection point for Adamis, was what was going on in the background. Mylan has taken a lot of stick over the past six months for repeatedly increasing the price of the EpiPen, fro around $100 for a two-pack back in 2009 to $600 in 2017. This is a life-saving device and to limit access to it through price hikes is a PR nightmare if t hits press. It did and it was. The latest twist is that Mylan CEO, Heather Bresch, picked up a $98 million bonus in 2016, against a backdrop of the above-discussed price hikes' most prolific period. This noted, we're not here to discuss the rights and wrongs of that situation.What we are interested in, however, is the fact that all this sparked a number of companies to try and cash in on the opportunity to bring a generic EpiPen to market and undercut Mylan.And Adamis has become the first to do exactly that.This is a billion-dollar market at Mylan's current pricing. We expect Adamis to price its pens at around half price (perhaps a little less) than Mylan's. Mylan is also set to bring out a cheaper alternative, pitched at half the price of its current offering. In a normal situation, we'd say the two companies will have to share the market (based on similar price points) and that Mylan would have the edge because of the brand name asset.This isn’t a normal situation, however. This is a very informed patient population and one that has had to live with Mylan's repeated price hikes over the last half decade with no other option. These savvy biotech consumers (well, a large portion of them, at least) will almost certainly favor Adamis if given the choice between the two company's assets, even at similar price points, purely because Mylan has treated them so badly.That's what's really important here and it's why this company is running up as it is. Well, that, and the fact that even at a cut price this is still a $500 million market and Adamis holds a current market cap, even after the latest run, of a little over $150 million.Missed this one? Don't miss out on our next Biotech Catalyst Play. Subscribe below and we'll let you know what's up next!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.