Regulatory approval marks a major milestone for investors exploring the business environment for exceptional stock opportunities in the healthcare sector. Individuals and teams get brilliant ideas all the time, but only a tiny fraction of them make it past the eagle eyes of the US Food and Drug Administration (FDA). Here is a loss-making company with a novel technology that has passed all the stringent and exhaustive steps towards FDA approval.
The FDA does not consider economics, so investors must normally contend with the risk of infeasible selling prices or inadequate margins when buying stock on the basis of regulatory clearances alone. However, this is not a significant investment hazard in the case of the company under review here. The reason lies in a universal phobia from which we all suffer: it is normal to joke about being injected, but the stark business truth is that even hardened medical professionals quail when syringes armed with needles are turned on their arms.
This company has FDA approval for substituting painful needles with ultra-sound waves to transmit drugs across skin barriers. It makes losses as it expands this technological platform, and applies it to a wide range of drugs in common use. However, investors have bright prospects of gains, whether the company brings its technology to market alone, or whether the stock is acquired by a larger peer from the sector. A therapeutic area such as diabetes, in which more than one injection may be required daily for life, is so large and relatively price insensitive that this company’s core strength is a bright indicator of high future stock value.
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