If you followed my previous blog with regard to HTDS you would have found a piece that was focused on the bullish proposition for the company.  For those that don't know Hard To Treat Diseases or HTDS is the parent holding company of  Mellow Hope of China and Slavic Bio Chemical.  Several days ago there was an annoucment by Novartis than again today by HTDS that Novartis will buy 85% of Zhejiang Tianyuan Bio-Pharmaceutical.  This is important to HTDS because Mellow Hope is the exlusive international marketer and distributor for this privately held company.  Novartis has made it very clear that they want to dramatically increase their footprint in the Chinese market with regard to vaccinations were they have little to no presence.  Most importantly with the international short commings for the H1N1 vaccine Mellow Hope is one of only 2 Chinese companies with such vaccine available. 

Novartis is beginning to consider what many bio investors have known for a long time. Exposure to China is an area of exponential importance to any pharma company. With regard to strick Chinese guidelines sometimes it is very difficult for foreign company's to gain a foothold in their perspective areas. Buy purchasing this company Novartis immediately gives itself a large distribution channel in a country where it's presence has been completely lacking. Furthermore as you do more research with HTDS and Mellow Hope you find that they have been aggressively seeking and obtaining approval in many third world countries including many pacific rim and South American areas. This is important because in general you will find that these markets are largely more affected than their 1st world counterparts and equally as un-attended to.

 You may say to yourself they aren't buying HTDS so what gives?  Well Mellow Hope is the exclusive business partner and distributor for Zhejiang Tianyuan Bio-Pharmaceutical worldwide.  In other words Novartis may hold the company but HTDS and Mellow Hope hold the channels.  Well you may say can't Novartis just take that over?  The answer is no.  Because Mellow Hope has obtained the licensing in these countries to conduct business it would benefit Novartis to have HTDS and Mellow Hope to continue their work.  Why would a 40 billion dollar company want to go through all the required work for market penetration and licensing when it has already been done? 

 This is groundbreaking for HTDS!!  Novartis has pledged 1 billion in funds to China over 5 years for now and who knows what other under served countries they may still want to reach.  Because Mellow Hope has already done the work to obtain the necessary licensing and credentials for many third world countries it could provide an immediate opening for Novartis.  This really could just be the tip of the iceberg so to speak.  Now I have read all the eutopia on the Internet about this being a 1 to 2 dollar stock.  Please remember your fundamentals when talking about this.  Don't forget this is still a penny stock with 2.5 billion outstanding shares.  My previous target was .07 to .10 but I believe that with the Novartis deal it could provide a catalyst into the teens.  To expect any further anytime soon is very short sighted.  It would require exponential sales from where they are now and buy backs on the stock.  Until these types of things materialize we have to work with what we got.  It is important for me to share my stock pics and thoughts.  HTDS hit a high of .022 today.  Following my previous blog had you bought you would have yielded a 57% return.  Had you bought the low you could have turned 100%.  I am no genius I just look for small niche stocks that seem to fill a void where others do not.  As always happy stock hunting and I am still long HTDS..No I didn't sell today..I've got bigger thoughts in mind for this one..