Viaderma Inc (OTCMKTS:VDRM): What's Next?

Viaderma Inc (OTCMKTS:VDRM) is a runner this month, with the company trading from as low as $.0007 a share on Feb 1, and logging highs this week ahead of $0.04. A correction has brought the stock to trade at around $0.025 as things stand, meaning Viaderma is up more than 250%. The question now, is whether the run will continue. If there's further strength to come, this recent pullback could be a nice opportunity to pick up a discounted exposure to the upside momentum.In order to answer the question, let's take a look at what's driven the action to date, and try to extrapolate what's to come from that.So, by way of a quick introduction, Viaderma is a healthcare company that has developed and is now in the early stages of commercializing a product called Viabecline. It's designed to treat what are called diabetic ulcers, which are a really nasty side effect of late stage diabetes. Basically, nerve damage (generally in the legs and feet) leads to tissue necrosis, which in turn, leads to open wounds and sores – the ulcers in this condition. These are bad enough on their own (as they are very tough to make heal) but what is often worse that the sores themselves is the potential for infection. Current standard of care (SOC) in the space used to counter the potential for infection is a course of antibiotics, but it doesn’t work brilliantly, and many people get infections regardless of the course and the strength.Viabecline is a topical administration antibiotic that the company has designed to work in conjunction with the course of antibiotics. The theory is that by administering antibiotics direct to the wound, and then systemically through IV or oral admin, then the threat of infection reduces. Data collected by the company ahead of its commercialization run showed that this concurrent administration does improve the chances of the ulcers healing without infection, so there seems to be no reason that Viaderma won't have a successful commercialization run on the drug.And that's where things stand right now.Which brings us to the latest announcement.Viaderma just announced that it has placed the first order from their product manufacturer for Viabecline ahead of a rollout wider scale rollout, and also gave us some indication of what numbers it expects to hit this year on its sales from the product. During 2017, sales are expected to total somewhere in the region of 500,000 units, and the rollout should kick off in California over the next few weeks. This rollout is being carried out through online, through an online network of affiliates, and the products are anticipated to sell for approximately $125 per 5ml bottle, with a wholesale price to be established for the Clinics & Wound Care Centers. Exactly what this wholesale price will be remains to be seen, but its reasonable to assume that the centers will pick up a between 50-60% discount on the bottle price.So, what's next?Well, the near term potential for the company is very much tied to its ability to meet on its target rollout numbers. If the initial California efforts are successful, then there's no reason to suspect that the half a million-unit annual figure is beyond reach.Using this to answer our initial question then, there looks to definitely be some room for this one to run as it matures throughout 2017. Action to date has basically been speculative, rooted in the development success of the drug in question. With this development success now in the bag, however, investors can finally start looking to numbers (read: something quantifiably concrete) on which to base their longer term valuation.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.