Nutra Pharma Corp. (OTCMKTS:NPHC) Making A Comeback

The management and the stockholders of Nutra Pharma Corp. (OTCMKTS:NPHC) should be appreciating the new year 2018.The company's stock returns have been extraordinary in January. From $0.0006, the share price has increased to hit six-month highs of $0.0024. For those who need a calculator, it represents 300% returns in less than one-month period.Have a look at the following stock chart before we provide our opinion on the stock: The 1-year chart for NPHCCompany ProfileNutra Pharma Corp. was established in 2000 and is headquartered in Coral Springs, Florida. It is a biotechnology company owning a line of revenue-producing OTC pain drugs, which helps pay the expenses of clinical studies intended to obtain FDA approval for the treatment of multiple sclerosis and HIV.The research and development efforts target a market of more than $10 billion, while the OTC products have a market of $200 million to $500 million. We believe that it is an exciting business strategy. NPHC secures cash flow selling an already acquired portfolio of OTC pain drugs while financing revolutionary treatments. Shareholders can profit from an already established business model, and also have chances of making significant returns if the FDA approves the new therapies.OTC pain drugsAccording to the American Pain Foundation, each year, more than 25 million people in the U.S. suffer from acute pain after being injured or receiving surgery. Also, more than 50 million people in the U.S. suffer from ongoing chronic pain. With these stats in mind, it makes sense what we found in the materials given by NPHC; "pain is single most common reason patients seek medical care and accounts for half of all physician office visits in the United States."Is the market for pain products large?Yes, it is said to represent $2 billion in annual sales only in the United States.NPHC intends to target this opportunity with Nyloxin, an OTC pain reliever for the treatment of moderate to severe chronic pain. It is formulated to treat back pain, neck pain, headaches, joint pain, migraines besides other types of pain. Nyloxin - Nutra Pharma Corp. OTCMKTS:NPHCWe checked out the information about this product, and believe that the Nyloxin's business strategy is smart. Nyloxin is intended for people without healthcare insurance, which is not a small number of individuals (42 million). Also, it is non-opiate and non-narcotic. Thus doctors should not be afraid of opiate side effects. The product targets those patients who cannot be treated with other products in the market.For those interested in the treatment, the company has already 3,000 active distributors; a commercial campaign commenced in June 2014.Regarding other products, the company began shipping Pet Pain-Away in December 2014. It consists of a natural, non-addictive, non-opiate, NSAID-free, and made in a hypoallergenic chicken flavor for dogs and cats. With approximately 95 million cats and 83 million dogs living in the US, the company is targeting a market making more than two hundred million dollars annually.For those who only care about the revenues, the company made more than $0.16 million for the fiscal year 2016. But, we have seen better periods. In 2015, for example, the total revenues were equal to $0.59 million.Research and DevelopmentBefore we talk about the drug candidates, we need to remark the vast amount of know-how and patents owned by NPHC. It holds 21 patents and six published studies and review articles, and 12 Registered OTC products with the U.S.-FDA.Among the drug candidates, we need to note three; RPI-78M, RPI-MN, and RPO-78. The following image shows an excellent resume of the current situation. Please remark that at least five diseases were said to be in Phase II or III of research. The commercialization process and the revenue collection will start once the company has passed Phase III. Thus, we believe that the company may offer exciting news in the year 2018 about its conversations with the FDA. They may move the share price up, so we will need to be alert. Candidates - Nutra Pharma Corp. OTCMKTS:NPHCNew Markets and New Product LineThe company remained quite calm for the last five months. Not many news hit the market in the last part of 2017. The most significant was that the company had been featured in an interview aired on the Univision network's Spanish-language news show; Primer Impacto. We believe that the initiative is very positive. It should have generated brand awareness, which usually pays off in the long term. Additionally, it was interesting that NPHC mentioned that it is expanding in Spain and Mexico. New efforts in a new market many times are followed by increases in revenues. Thus we will need to check the next quarterly reports to be released in 2018. They may surprise.Also, on June 21, 2017, the market noted the release of Luxury Feet; a new over-the-counter pain reliever and anti-inflammatory product that is designed for women experiencing pain or discomfort due to high heels and stilettos.The market being targeted by this new product line is substantial. The American Podiatric Medical Association says that 72% of women wear high-heeled shoes and 59% report toe pain as a result of wearing uncomfortable shoes, while 54% report pain in the ball of the foot.Our regular readers are aware that the launch of new products is usually followed by an increase in revenues. This is another excellent reason for checking the revenues in 2018. Pet Pain-Away™ was featured in Multimodal Management of Canine OsteoarthritisOn August 3, 2017, we got to know that the company's solution for treating pain in dogs, Pet Pain-Away, was featured in the standard text for training new veterinarians called Multimodal Management of Canine Osteoarthritis, Second Edition. We believe that the news is very positive for two reasons. First of all, the product will be noticed by practitioners, which could increase revenues. Also, it shows the recognition of the company in the industry. Dale Vander Putten, Ph.D., Chief Scientific Officer of Nutra Pharma, talked about it in the press release:

"The inclusion of our cobra venom-based medicines in a standard text for training new veterinarians validates our belief in targeting acetylcholine signaling for controlling pain," Source

What happened in July 2017? - A Short SqueezeWe need to explain what happened in July 2017. The readers could see a large share price spike. The most interesting is that the company did not send any relevant information around the jump. We needed to check the number of short sellers to understand what happened. Please note in the following table that the short interest went from 2,850,293 to 12,049 in a very short period:DateShort Interest% ChangeAvg. Daily Share VolumeDays to CoverSplitNew IssueDec 15, 201713,000100.0060,548,5731.00NoNoNov 15, 201728,909100.0096,384,2821.00NoNoOct 13, 201729,82586.0396,201,1961.00NoNoSept 29, 201716,032-81.1458,368,5491.00NoNoSept 15, 201785,000605.4586,684,1771.00NoNoAug 31, 201712,049100.00116,962,1321.00NoNoJul 31, 20172,850,293233.53235,170,3731.00NoNoJul 14, 2017854,5881,385.26397,176,1701.00NoNoWe believe that short sellers tried to close their positions too quickly and created the strong share price move seen in the chart. We need to learn from this event. It usually does not happen once.What's going on in January?On January 18, 2018, the company released that it has partnered with EuroAmerican IP, LLC, to distribute its Over-the-Counter pain reliever, Nyloxin Topical Gel, through the Federal Supply Schedule (FSS). If the collaboration is successful, the company will be able to sell this particular product through the US - General Services Administration website at www.gsaadvantage.gov. It was a significant announcement, which made the market react. What's next?The company will not stop here. According to the new information, NPHC is planning to contact other governmental agencies, such as Department of Veterans Affairs, and EuroAmerican’s Federal Supply Schedule. News about contracts with these institutions could make the share price run.Please note that the press release was not correctly shown on the OTC Markets website. Thus, the whole market may not be aware of this opportunity, and the upward trend in the share price may continue for some more time.ConclusionCurrently trading with a market cap of $4.47 million, NPHC is an exciting story among small caps. With $0.03 million in cash, $0.214 million in total assets and $4.6 million in total liabilities, the market will be expecting announcements regarding the recapitalization of the balance sheet. We believe that it could be very positive and will help sustain growth.We will be updating our subscribers as soon as we know more. For the latest updates on NPHC, sign up below!Disclosure: We have no position in NPHC and have not been compensated for this article.Image courtesy of Steve Smith via Flickr