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Biotricity: A Little Known Stock That Could Be The Next AXGN or EXAS

  • Axogen and Exact Sciences have been big winners in the healthcare sector as they've launched new and attractive products into big addressable markets. Many investors overlooked these opportunities because they seemed like difficult endeavors. Both stocks are at or near all-time highs.

  • Cardio monitoring is similarly ripe for disruption, and Biotricity's (BTCY) Bioflux meets the same criteria as EXAS and AXGN: a large addressable market and what looks like a rock star sales plan. Overlooked BTCY could be the next surprise winner as their FDA cleared Bioflux launch gets underway, with 3-500% of possible upside.

NEW YORK, NY / ACCESSWIRE / March 23, 2018 / Two of the biggest winners among healthcare stocks in the last few years stand out for one reason - their stellar product launches.

Axogen, Inc (AXGN) has been a non-stop winner, climbing from $2.45 in 2012 to over $35.00 today as their nerve repair products have been well-received by doctors and hospitals.

Likewise Exact Sciences (EXAS) has put naysayers to bed with the stellar launch of their colon-cancer screening test, ColoGuard. Three years after its FDA clearance, the test generated $266 million in 2017 sales; an amazing launch and an equally amazing ride for the company's stock. From lows in 2015, the stock has climbed 7-fold.

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Investors who missed the run are obviously kicking themselves, especially those who kept these stocks at arms length specifically because they're launching products. Healthcare product launches can take time, but those on the sidelines missed two crucial facets of these companies: large addressable markets and wicked smart marketing plans. Little-known Biotricity (BTCY) has the same recipe right now, and it could be set up for a big move as a result.

Big Returns Step One: Get Into Multi-Billion Dollar Industries With Improved Technology

One common thread between Axogen and Exact Sciences is huge addressable markets. According to the U.S. Preventive Services Task Force (USPSTF), every American over the age of 50 is recommended to have regular colonoscopies to screen for colon cancer. That's over 100 million Americans, according to the AARP, who are NOT looking forward to the very uncomfortable and invasive colonoscopy process. ColoGuard, a fecal colon cancer screening kit, meets them halfway, allowing them to do regular screening from the comfort of their own home, and without any invasive procedures.

It didn't take much market penetration for Exact Sciences' revenue figures to hockey stick in a few years, despite naysayers saying the company's product wasn't differentiated enough.

Similarly, Axogen's nerve repair and protection products face few competitors in what the company believes is a $2.2 billion addressable market. With improved outcomes for patients and a focused sales force, selling to doctors and hospitals has been no issue for the company. AXGN reported record full year revenue of $60 million last year, and the stock is at all-time highs.

The cardiology market is similarly primed for disruption, and overlooked Biotricity (BTCY) is in the same boat as AXGN and EXAS just a few years ago: launching a disruptive product into a huge addressable market with what appears to be a rock star team. The U.S. spends over $200 BILLION yearly on managing and treating heart disease, and heart rhythm disorders affect up to 11 million people according to the Centers for Disease Control and Prevention. Individuals with these disorders are 5 times more likely to have a stroke, and most are preventable with early intervention.

Biotricity's Cardio Monitoring Solution Could Solve Lots Of Problems

The problem lies in detecting and treating these patients. Patients who go to the doctor or hospital with signs of heart failure or arrhythmia must sometimes stay in the hospital for days at a time while doctors collect heart rhythm data through an EKG, looking for the cause of the malfunction. Getting quality EKG data is paramount.

But many patients go untreated, or poorly treated, because the arrhythmia is never pinpointed.

Biotricity's solution is elegant and potentially transformative. Their recently FDA cleared Bioflux is a small, phone-like device with small cables leading to electrodes on the patient's chest, exactly like an in-hospital EKG. The device is small enough that the patient can go home and about their normal life. Meanwhile, Bioflux records and transmits their EKG data to a remote monitoring facility where it can be accessed in real-time by the patient's doctor. Ultimately, this streamlines and simplifies the diagnosis process.

It's a rapidly growing industry as more hospitals and physicians move away from older technology and get patients out of the hospital quicker. Already the cardiac monitoring market is estimated at 4.6 million diagnostic tests annually in the United States, with older bulky technology that does not transmit remotely. The opportunity to penetrate and transform the process for patients is immense.

Big Returns Step Two: Rock star Sales Team And Plan

Biotricity received FDA clearance for Bioflux just a few months ago in December of 2017, a major hurdle that the company has now passed with flying colors. The product launch is underway, and Biotricity is hiring a rock star team for the endeavor.

The company brought on Casey Shattuck to serve as their Vice President of Sales, initializing and spearheading the Bioflux launch this year. His background at startup cardiology focused companies speaks volumes. NASDAQ-listed CardioThoracic Systems, Inc. was acquired for $380 million in 1999, and FoxHollow Technologies for about $780 million in cash and stock in 2007. Shattuck's experience in these start-up environments, and their subsequent long-term success, should portend good things for the Bioflux launch.

Furthermore, Biotricity plans to improve the product-physician relationship by giving physicians improved economics when using Bioflux. With older technology, doctors make very little money as they either invest heavily in owning the technology themselves, or outsource the entire process to third-party providers. Biotricity plans to give doctors the ability to bill insurance companies themselves and avoid the capital expenditures of owning their own technology, a unique business model that will stand out to hospitals and doctors.

Launch Underway, Could BTCY Be 2018's Dark Horse?

With the Bioflux launch underway, BTCY could be one of 2018's dark horse healthcare stocks, with few investors paying attention to this huge opportunity.

As the company ramps their sales efforts, a little revenue can go a long way. Healthcare companies often trade at high multiples of their revenue, like AXGN which now has a market capitalization of $1.2 billion based on just $60 million in 2017 sales – a 20X Price-to-Sales Ratio.

At that rate, with even $10-20 million in sales in the coming years, BTCY could be worth $200 to $400 million. That's $9 to $18 for the stock, 3 to 5X of upside with even this minimal market penetration. Time will tell, but BTCY is a compelling dark horse contender for 2018.

Small Cap Risk Disclosure: Although small cap stocks sometimes present big upside, they are risky from an investment standpoint. The company may need substantially more capital to market effectively, meaning that a financing could be necessary. And they're up against larger companies selling remote monitoring devices of their own.

About One Equity Stocks

One Equity Stocks is a leading provider of research on publicly traded emerging growth companies. Our team is comprised of sophisticated financial professionals that strive to find the companies and management teams that will outperform the market and deliver investment returns to our subscribers. We are not a licensed broker-dealer and do not publish investment advice and remind readers that investing involves considerable risk. One Equity Stocks encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. One Equity Stocks is a for-profit business and is usually compensated for coverage of issuers. In the case of BTCY, we are reimbursed for actual costs of this distribution and have received 120,000 shares of restricted stock for Business Development, Capital Markets and Research Services. We may receive additional compensation in the future. Please contact us at info@investorclick.net for additional information or to subscribe to our intelligence service.

SOURCE: One Equity Stocks