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Apricus Biosciences, Inc. Note | USA | Heath Care Sept-2011 Apricus Bio achieves another U.S. product approval! : DIPHENHYDRAMINE-D
NexMed USA, a wholly-owned subsidiary of Apricus Bio, received US marketing approval for its over-the-counter (OTC) Diphenhydramine-D product. This approval follows on the heels of two additional OTC products, Hydrocortisone-D (August 23, 2011) and Tolnaftate-D (August 18, 2011). We expect that these three products will be only a few of NexMed USA's OTC Consumer Healthcare Division's products. Diphenhydramine-D treats itching and oozing/weeping of the skin caused by common skin ailments, such as insect bites, minor irritations and poison ivy. The active ingredients in this product are the topical analgesic, diphenhydramine hydrochloride and the skin protectorant, zinc acetate. NexACT technology (DDAIP*) is utilized in Diphenhydramine-D to briefly loosen the tight connections between skin cells. This action provides the product's active ingredients with Stock Information
These three recent product approvals give us further confidence in Apricus Bio management's capability to set and achieve corporate goals. We continue to strongly believe that one of NexACT technology's main strengths is its potential to extend the patent life of numerous drugs. Diphenhydramine-D approval strengthens our belief in the monograph listing of Apricus Bio's NexACT technology (DDAIP) as an excipient for approved OTC products. This listing should be continually beneficial in paving the way for future approvals of NexACT combination Until we have additional clarity on the launch of NexMed USA's OTC Consumer Healthcare Division's product line, we are not adjusting our current estimates. This postponement in the possible adjustment of our revenue expectations is not a reflection of our enthusiasm for this corporate milestone and NexACT's future potential. We also remain focused on Apricus Bio's abilities to increase revenues through partnering both its drug pipeline and the NexACT technology. Specialty pharmaceutical companies, such as Depomed (Nasdaq. DEPO. Not Rated), Antares(ASE.AIS.Not Rated) and BioSante (Nasdaq.BPAX.Not Rated) have stock has a full pipeline that includes a topical prices reflecting revenue multiples of 6-40X. Due to Apricus Bio progress during 2010-2011, we believe that a 10X revenue multiple is appropriate. By using our 2013 revenue estimate, we believe that Apricus Bio will have the appropriate time to meet its corporate goals, but we also apply a 15% discount due to its evolving corporate We maintain our coverage of Apricus Bio with a BUY recommendation and a price target of $ millions
5,957,491
2,845,353
1,030,026
15,487,624
20,887,624
Operating income
(5,173,854)
(3,819,842)
(21,400,977)
(1,963,235)
6,281,035
Net Income
(5,171,198)
(32,042,562)
(29,508,346)
(1,963,235)
1,450,223
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Apricus Biosciences, Inc. Note | USA | Heath Care Sept-2011 MEANING OF RATINGS

Buy
We believe the company is undervalued relative to its market and peers. We believe its risk reward
ratio strongly advocates purchase of the stock relative to other stocks in the marketplace. Remember,
with all equities there is always downside risk.

Speculative Buy
We believe that the long run prospects of the company are positive. We believe its risk reward ratio
advocates purchase of the stock. We feel the investment risk is higher than our typical “buy”
recommendation. In the short run, the stock may be subject to high volatility and continue to trade at
a discount to its market.
Neutral
We will remain neutral pending certain developments.

Underperform
We believe that the company may be fairly valued based on its current status. Upside potential is
limited relative to investment risk.

Sell
We believe that the company is significantly overvalued based on its current status. The future of the
company's operations may be questionable and there is an extreme level of investment risk relative to
reward.
Some notable Risks within the Microcap Market
Stocks in the Microcap segment of the market have many risks that are not as prevalent in Large-cap,
Blue Chips or even Small-cap stocks. Often it is these risks that cause Microcap stocks to trade at
discounts to their peers. The most common of these risks is liquidity risk, which is typically caused
by small trading floats and very low trading volume which can lead to large spreads and high
volatility in stock price. In addition, Microcaps tend to have significant company specific risks that
contribute to lower valuations.
Investors need to be aware of the higher probability of financial default and higher degree of
financial distress inherent in the microcap segment of the market.
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Apricus Biosciences, Inc. Note | USA | Heath Care Sept-2011 DISCLAIMER Opinions, information or ratings contained in this report are suggested solely for information purposes by qualified professional analysts. The opinions expressed in this research report are analyst’s personal views about the company. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Opus Group Financial, publisher, editor and their associates are not responsible for errors and omissions. Information on companies is provided sometime by the companies themselves, or is available from public sources or may be the opinion of the writer and Opus Group Financial makes no representations, warranties or guarantees as to the accuracy or completeness of the reported company. Any usage of the word “recommendation,” if any is to be defined as a “rating” only. 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