Viaderma Inc (OTCMKTS:VDRM) Just Reached An Inflection Point

It has been around five months since we last looked at Viaderma Inc (OTCMKTS:VDRM), with our previous coverage from back in May available here.Back then, the company had taken a bit of a hit on news that some of its patents were being disputed and, in response to this, we took a look at the patent in question and decided that it shouldn't really be a concern for shareholders or anybody looking to pick up an exposure ahead of some 2017 catalysts. VDRM Daily ChartDuring the months subsequent to the situation unfolding, the company has had a bit of a wild ride. It was trading in and around $0.02 a share back in May and dipped to as low as $0.07 per share mid-August, before running to around $0.03 before the close of that month.Price dipped again heading into October, bottoming out at around $0.014, but action over the last 24 hours has seen the company run around 25% and Viaderma will open the session on Friday at $0.017.With all this roller coaster action, figuring out an optimal entry point can be tough.With that said, however, this is a company that has been on our radar for at least the last 12 months and, across this period, it's been one that we have suggested on numerous occasions is undervalued from a long-term perspective. As such, even though things are volatile right now and have been for the last few months, any entry point is likely to be rewarded as this company matures into 2018 and beyond.For those new to Viaderma, the company has developed a topical administration antibiotic that is a reformulation of an already established and approved medication called viabecline. It has taken viabecline and combined it with a proprietary administration technology that's designed to increase absorption and, in turn, enhance efficacy.Topical administration antibiotics are useful for a whole range of different infection-related conditions but one that we have repeatedly highlighted as potentially being key to long-term growth for Viaderma is diabetic foot ulcers. These are incredibly hard to treat with the current standard of care therapies and they can be extremely nasty for sufferers. They are basically open wounds that get infected and, in more cases than not, result in amputation.Anyway, earlier this year, Viaderma reported that it had some data in place that showed that its topical viabecline is 96% more effective in treating diabetic foot ulcers than the current standard of care treatments across a four-week period and that, further, it is especially effective in the most severe cases.There is a massive unmet need in this space right now and if Viaderma is able to fill it with viabecline, the company could be in line for a considerable ramping up of its top line.So why hasn’t the company appreciated in line with this potential?Well, over the last couple of months, there have been numerous delays in getting this asset to market in terms of distribution networks and this has weighed on sentiment somewhat. Just this week, however, we've learned that these delays are now in the rearview mirror and that the company has a distribution partner in place (starting with a focus on Asia, specifically Japan).Additionally, we know that Viaderma has presales in place via a website set up to launch the product and that its manufacturing partner, a company called Biogenx, has completed the first production run of 15,000 units.Finally, then, the drug is at market and Viaderma can start generating revenues on its distribution.This is why the company has run over the last 24 hours or so – the first sales are an inflection point for Viaderma and, for us, indicate the start of a longer-term turnaround for the stock.Cash on hand at June 30, 2017, came in at a little over $10 million, meaning we may see a raise near term as the company ramps up production. Any dip that this raise precedes might be a nice entry point ahead of a longer-term recovery.Check out our previous coverage of this company here. We will be updating our subscribers as soon as we know more. For the latest updates on VDRM, sign up below!Image courtesy of NIAID via FlickrDisclosure: We have no position in VDRM and have not been compensated for this article.