In the last week, the Healthcare industry is up 9.0%, with UnitedHealth Group leading the way up 12%. This is a big reversal for an industry that has lost 10% in the last 12 months. Fundamentally, this industry should continue to grow.
- The earnings for companies in the Healthcare industry have grown 20% per year over the last three years.
- Revenues for these companies have grown 6.0% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
(Market Stats courtesy of Simply Wall St.)
There are several plays making news in the healthcare industry. A few medical device stocks are gaining traction, and several biotechs as well.
Wearable Health Solutions, Inc. (OTCMKTS: WHSI) is an established manufacturer of Personal Emergency Response Systems (“PERS”) devices in the rapidly expanding medical alarm device and eHealth sector. It provides innovative wearable healthcare products and services to dealers and distributors across the globe. Its management team has over 30 years of experience in the health care sector beginning with the launch of the MediPendant™, the first medical alarm device that enabled the user to speak and listen to the emergency response operator directly through the pendant.
The medical device stock, Wearable Health Solutions, Inc. (WHSI) has received a 20-cent price target from Litchfield Hills Research analyst, Theodore O’Neill. Currently, under 2 cents a share, this would represent an over 1,000% price increase.
O’Neill references several factors justifying his price target:
WHSI’s Market Opportunity- The market, which includes not only personal emergency services but also, remote patient monitoring, GEO fencing and medical regime adherence is worth between $8.5B and $9B.
Seniors’ Growing Reliance on Technology- Access to medical care through remote patient interaction is growing significantly, driven by both COVID and acceptance by patients and their medical teams.
WHSI’s Technology Advantage- WHSI’s iHelp™ Max is being introduced and appears to us to be one of, if not the most, advanced medical monitoring system on the market. It connects through WiFi, Bluetooth and 4G and can be used from nearly anywhere. WHSI offers a cloud-based, web-enabled portal where dealers can optimize the device for the customers as well as add features. It is a highly competitive market where we believe that features and ease of use are key to growth.
Attractive valuation- Litchfield’s analyst concludes shares are undervalued relative to the discounted value of its future earnings.
Read Litchfield’s Report Here: http://www.hillsresearch.com/wp-content/uploads/2022/06/WHSI-Initiation-2.pdf
WHSI is expected to launch its latest PERS device, the iHelp Max 4G™ in the summer of 2022. The device is a 4G cellular PERS unit with advanced features such as; fall detection, geo-fencing, AI utilizing Google Assistant and Alexa, notifications, daily check-ins, medication reminders and Remote Patient Monitoring (RPM).
Kraig Biocraft Laboratories, Inc. (OTCMKTS: KBLB) a fully reporting biotechnology company, is a developer of genetically engineered spider silk-based fiber technologies. KBLB announced this week, in collaboration with its joint venture partner, Kings Group, the Company has selected a high-quality garment manufacturer to produce Spydasilk’sTM first apparel line.
Over the course of multiple meetings between Kraig Labs, Kings Group, and the garment manufacturer, conducted while the Company’s COO was in Vietnam this month, the Company finalized its manufacturer choice for the first apparel launch under the SpydasilkTM brand.
Another popular bio play, Propanc Biopharma, Inc. (OTCMKTS: PPCB), a biopharmaceutical company developing novel cancer treatments for patients suffering from recurring and metastatic cancer, announced that the Company filed a Definitive Information Statement under Section 14C of the Exchange Act on June 9, 2022, to increase the authorized shares of common stock and the option to effectuate a reverse split of common stock at the discretion of the Board. Mr. James Nathanielsz, BAS, MEI, CEO and Chairman at Propanc, believes the increase in authorized shares is necessary for the Company as a result of recent volatile market conditions, which have been broad and far-reaching for microcap companies. Regarding the option for a reverse split of common stock, Mr. Nathanielsz does not foresee the Board proceeding in the near future due to a number of factors. Investors will hope for PPCB to avoid a reverse split which is generally bad for long-term equity value.
Propanc Biopharma, Inc. (OTCMKTS: PPCB) is developing a novel approach to preventing recurrence and metastasis of solid tumors by using pancreatic proenzymes that target and eradicate cancer stem cells in patients suffering from pancreatic, ovarian and cancers.
Artelo Biosciences, Inc. (Nasdaq: ARTL), a clinical-stage pharmaceutical company focused on modulating lipid-signaling pathways to develop treatments for people living with cancer, pain, and neurological conditions, announced that Professor Saoirse O’Sullivan, Vice President of Translational Sciences at Artelo Biosciences, presented new research results entitled, “Discovery and Preclinical Evaluation of a Novel Inhibitor of FABP5, ART26.12, Effective In Chemotherapy-Induced Pain,” during the opening oral session of the International Cannabinoid Research Society (ICRS) Symposium.
“Our pre-clinical research showed that chronic, oral treatment with ART26.12, our lead FABP5 inhibitor, was effective at both preventing and treating both oxaliplatin and paclitaxel-induced pain sensitivity without any sedating effects,” said Professor Saoirse O’Sullivan. “In the prevention studies, ART26.12 also minimized the acute weight loss caused by oxaliplatin. These results support further development of ART26.12 in neuropathy associated with chemotherapy and other neuropathies,” continued Professor O’Sullivan.
Artelo Biosciences, Inc. is a clinical-stage pharmaceutical company dedicated to the development and commercialization of proprietary therapeutics that modulate lipid-signaling pathways including the endocannabinoid system.
Another medical device company like Wearable Health (OTCMKTS: WHSI), Eargo, Inc. (Nasdaq: EAR) announced it has signed a definitive agreement with Patient Square Capital to raise $100 million through the sale of senior secured convertible notes, with an additional $25 million future investment subject to certain conditions. The Company intends to use the net proceeds of Patient Square’s investment for working capital purposes, to fund the Company’s omni-channel growth strategy and to repay all of the Company’s approximately $15 million in existing third-party debt as well as related pay-off expenses.
Under the agreement, the Company will issue $100 million aggregate principal amount of senior secured convertible notes to Patient Square upon closing.
Within 180 days of the issuance of the First Tranche Investment, the Company expects to undertake a rights offering that will be registered under the Securities Act of 1933, as amended, pursuant to which its stockholders as of a record date to be determined will have the right to purchase their pro rata share of 375 million shares of newly issued common stock at a purchase price of $0.50 per share.
Eargo is a medical device company focused on products intended to aid with hearing loss. The company’s hearing aids are the first virtually invisible, rechargeable, completely-in-canal, FDA regulated, exempt Class I or Class II devices indicated to compensate for mild to moderate hearing loss. Consumers can purchase online or over the phone and get personalized and convenient consultation and support from hearing professionals via phone, text, email or video chat. The Eargo device is offered to consumers at approximately half the cost of competing hearing aids purchased through traditional channels in the United States.
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