Healthcare Companies Capitalizing on a Resurgent Biotech Industry
10:45 am ET March 20, 2018 (PR Newswire) Print
FN Media Group Presents Microcapspeculators.com News Commentary
The healthcare sector has always been one of the best performing industries in the stock market over the last several decades. In fact, since 1963 the healthcare sector has generated an annualized rate of return of 11 percent. Included in today's commentary: Endonovo Therapeutics, Inc. (OTC: ENDV), Athersys, Inc. (NASDAQ: ATHX), Caladrius Biosciences (NASDAQ: CLBS), ARCA Biopharma, Inc. (NASDAQ: ABIO), Geron Corporation (NASDAQ: GERN).
Over the last decade, the S&P 500 biotechnology sub-industry index has risen 344%, compared to a 102% increase for the overall index as of this month, according to an article on Morningstar.
However, over the past three years, the sector has taken a big hit due in part to the extraordinary returns the sector generated over the last few years leading to high valuations and profit-taking from some investors. Conversely, two factors probably had an even bigger impact on the sector: politics and drug development cycles.
With a more business-friendly administration in office, the fear of drug prices being capped and significant changes occurring to the healthcare system has largely waned. At the same time, the drug cycle that fuel biotech stocks to new heights over the last few years ended. According to Eddie Yoon, manager of Fidelity Select Health Care, new medicines were only beginning to materialize in 2012 and 2013, and only began generating revenues in 2015 and 2016. Simply put, the biotech sector tends to move in cycles and is fueled by new medicines hitting the market and then generating significant revenues, i.e. the hepatitis C medicines and immunotherapies.
Over the last couple of years, the sector has had to reignite its fire and begin to gain momentum as new promising therapies approach the market. These new revolutionary medicines include cell therapies, where living cells, such as stem cells, are injected into patients to treat diseases like heart failure. In one case a completely new field of medicine has emerged, called bioelectronic medicine, which seeks to treat diseases by stimulating nerves and tissues to using electrical signals to reduce inflammation and promote healing.
A few biotech companies in the news that could benefit from a resurgent biotech sector include: Endonovo Therapeutics, Inc. (OTCQB: ENDV), Athersys, Inc. (NASDAQ: ATHX), Caladrius Biosciences (NASDAQ: CLBS), ARCA Biopharma, Inc. (NASDAQ: ABIO), Geron Corporation (NASDAQ: GERN).
Endonovo Therapeutics, Inc. (OTCQB: ENDV)
Market Cap: $11.4M, current share price: $0.037
ENDV, a commercial-stage developer of Electroceutical(TM) Therapies targeting inflammatory conditions, cardiovascular diseases and neurological disorders recently announced that it has begun commercial sales of its FDA-Cleared Electroceutical(TM) Therapy for the palliative treatment of pain and post-surgical edema (swelling). Endonovo is seeking to expand the use of its Electroceutical(TM) Therapy to treat cardiovascular diseases such as end-stage ischemic heart disease and neurological disorders, such as traumatic brain injury, multiple sclerosis and stroke. ENDV's Electroceutical(TM) Therapy works by increasing the production of endothelial nitric oxide. Nitric Oxide (NO) acts as a messenger in diverse functions, such as vasodilatation, neurotransmission, and anti-pathogenic activities. Sufficient levels of NO production are necessary in protecting an organ such as the heart, brain, or liver from ischemic damage. NO dilates blood vessels, raising blood supply and lowering blood pressure. In 1992, for its importance in neuroscience, physiology, and immunology, nitric oxide was proclaimed the "Molecule of the Year". The 1998 Nobel Prize in Physiology or Medicine was awarded for discovering nitric oxide's role as a cardiovascular signaling molecule. ENDV's Electroceutical(TM) Therapy has demonstrated extremely promising clinical data in "no option" patients with end-stage ischemic heart disease, and Endonovo is now seeking to start a much larger clinical trial to demonstrate efficacy and file for FDA Approval. A truly innovative, non-invasive platform technology for treating cardiovascular and neurological diseases and market-ready products makes ENDV a huge bargain at its current price.
10:45 am ET March 20, 2018 (PR Newswire) Print
FN Media Group Presents Microcapspeculators.com News Commentary
The healthcare sector has always been one of the best performing industries in the stock market over the last several decades. In fact, since 1963 the healthcare sector has generated an annualized rate of return of 11 percent. Included in today's commentary: Endonovo Therapeutics, Inc. (OTC: ENDV), Athersys, Inc. (NASDAQ: ATHX), Caladrius Biosciences (NASDAQ: CLBS), ARCA Biopharma, Inc. (NASDAQ: ABIO), Geron Corporation (NASDAQ: GERN).
Over the last decade, the S&P 500 biotechnology sub-industry index has risen 344%, compared to a 102% increase for the overall index as of this month, according to an article on Morningstar.
However, over the past three years, the sector has taken a big hit due in part to the extraordinary returns the sector generated over the last few years leading to high valuations and profit-taking from some investors. Conversely, two factors probably had an even bigger impact on the sector: politics and drug development cycles.
With a more business-friendly administration in office, the fear of drug prices being capped and significant changes occurring to the healthcare system has largely waned. At the same time, the drug cycle that fuel biotech stocks to new heights over the last few years ended. According to Eddie Yoon, manager of Fidelity Select Health Care, new medicines were only beginning to materialize in 2012 and 2013, and only began generating revenues in 2015 and 2016. Simply put, the biotech sector tends to move in cycles and is fueled by new medicines hitting the market and then generating significant revenues, i.e. the hepatitis C medicines and immunotherapies.
Over the last couple of years, the sector has had to reignite its fire and begin to gain momentum as new promising therapies approach the market. These new revolutionary medicines include cell therapies, where living cells, such as stem cells, are injected into patients to treat diseases like heart failure. In one case a completely new field of medicine has emerged, called bioelectronic medicine, which seeks to treat diseases by stimulating nerves and tissues to using electrical signals to reduce inflammation and promote healing.
A few biotech companies in the news that could benefit from a resurgent biotech sector include: Endonovo Therapeutics, Inc. (OTCQB: ENDV), Athersys, Inc. (NASDAQ: ATHX), Caladrius Biosciences (NASDAQ: CLBS), ARCA Biopharma, Inc. (NASDAQ: ABIO), Geron Corporation (NASDAQ: GERN).
Endonovo Therapeutics, Inc. (OTCQB: ENDV)
Market Cap: $11.4M, current share price: $0.037
ENDV, a commercial-stage developer of Electroceutical(TM) Therapies targeting inflammatory conditions, cardiovascular diseases and neurological disorders recently announced that it has begun commercial sales of its FDA-Cleared Electroceutical(TM) Therapy for the palliative treatment of pain and post-surgical edema (swelling). Endonovo is seeking to expand the use of its Electroceutical(TM) Therapy to treat cardiovascular diseases such as end-stage ischemic heart disease and neurological disorders, such as traumatic brain injury, multiple sclerosis and stroke. ENDV's Electroceutical(TM) Therapy works by increasing the production of endothelial nitric oxide. Nitric Oxide (NO) acts as a messenger in diverse functions, such as vasodilatation, neurotransmission, and anti-pathogenic activities. Sufficient levels of NO production are necessary in protecting an organ such as the heart, brain, or liver from ischemic damage. NO dilates blood vessels, raising blood supply and lowering blood pressure. In 1992, for its importance in neuroscience, physiology, and immunology, nitric oxide was proclaimed the "Molecule of the Year". The 1998 Nobel Prize in Physiology or Medicine was awarded for discovering nitric oxide's role as a cardiovascular signaling molecule. ENDV's Electroceutical(TM) Therapy has demonstrated extremely promising clinical data in "no option" patients with end-stage ischemic heart disease, and Endonovo is now seeking to start a much larger clinical trial to demonstrate efficacy and file for FDA Approval. A truly innovative, non-invasive platform technology for treating cardiovascular and neurological diseases and market-ready products makes ENDV a huge bargain at its current price.
