For the past month, Life Sciences (+12.38%) and Medical Equipment (+8.84%) have been the leading subindustries in the Healthcare sector. There are several companies in these subindustries with upcoming catalysts investors should start researching and with earnings season upon us several are becoming volatile as investors react to filings creating profit opportunities.
HEALTHCARE CATALYSTS CAPTURE INVESTOR ATTENTION
One medical equipment play, Wearable Health Solutions (OTCMKTS: WHSI) has a huge catalyst on the near-term horizon. WHSI is set to release its next-generation iHelp MAX™ 4G device. The device will do more than transmit an emergency alarm for the user and be able to send medical personnel vital signs, such as heart rate. The upgraded iHelp MAX™ 4G features Wi-Fi, NFC (wireless data transfer) technology and Bluetooth 4.0 Low Energy features. It also offers “telehealth-ready” advantages such as remote monitoring and transmission of the user’s health vitals to emergency personnel and caregivers.
Now is the time to start research on WHSI, there are several factors making this an intriguing option for Healthcare and Medical Equipment investors:
- Unique OpportunityOnly Publicly Traded Small Cap Stock in the $7.4 Billion PERS Market–Wall Street Research predicts the total addressable opportunity in this market to reach 19-24% by 2030
- iHelp Max 4G ReleaseWHSI’s iHelp MAX™ 4G device is reportedly launching this year. The device will do more than transmit an emergency alarm for the user. It will also send medical personnel vital signs, such as heart rate. This next-generation release would be huge for WHSI stock.
- WHSI Up ListingWHSI’s Mark Cayle recently commented after releasing its Form 10, “Once our Form 10 Registration Statement is effective, we will consider an up listing to a broader stock exchange which could expand our exposure to institutional investors, money managers, family office funds, broker dealers, and other investors which is an important milestone in our corporate progression,” he concluded. An uplisting would be a major catalytic event. This can translate to:
- Lower Cost of Capital–that can in turn accelerate the company’s growth and increase margins.
- Analyst Coverage– uplisting allows analysts to cover the stock and this is important because analyst coverage can lead to:
- Institutional Investment
- High-Net-Worth Individual Investors
- Increased Liquidity and Valuation– all of the above factors can lead to increased interest in the stock on all levels, and this influx of interest can be a force multiplier.
The launch would be another catalyst for share valuation.
For the fiscal year ending June 30th, 2021, WHSI reported some 8,000 end users plus an order book of about 2,000+ potential activations, which earned the company record revenues ($1.3 million) in 2021.
Launching this new device could lead to a consecutive year of record sales. Start your research on WHSI here:
From a company with a catalyst on the horizon, to one that just announced a market moving event; iBio, Inc. (NYSE: IBIO) announced and update on IBIO-202, its multi-variant COVID-19 vaccine candidate. IBIO recently completed its first manufacturing run of its proprietary nucleocapsid antigen under cGMP conditions using its FastPharming System. Unlike commercially available first-generation COVID vaccines that seek to provide immunity by presenting an antigen based on the frequently mutating spike protein - which results in waning periods of immunity and the spread of new variants, IBIO-202 uses a portion of the nucleocapsid protein, which is more highly conserved. The recently produced N antigen is currently undergoing release testing and, if it clears, is intended for use in IBIO-202 clinical studies.
Chembio Diagnostics Inc (NASDAQ: CEMI) is evaluating the potential to develop a monkeypox rapid point-of-care (POC) test. Chembio is exploring the technical requirements for test development leveraging its multiple technology platforms, DPP, SURE CHECK, and STAT PAK, along with funding partners and the broader market opportunity.
"We are in dialogue with leading health organizations at the federal and state level to evaluate the need for a rapid test to detect and diagnose monkeypox. We are assessing the market needs, timing, regulatory pathway, and investment required to develop a test," said Richard Eberly, President & CEO.
Chembio's proprietary DPP technology platform provides high-quality, rapid diagnostic results in 15 - 20 minutes using a small drop of blood from the fingertip or alternative samples. The DPP platform can detect up to eight test results from a single patient sample through advanced multiplexing.
Q2 EARNINGS NEWS MOVES THESE COMPANIES
Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) announced impressive Q2 numbers this week:
- $145 million of Total revenue in Q2 2022, representing 231% growth over Q2 2021
- 13 new Cell Programs added in Q2 2022, representing 86% growth over Q2 2021
- Pending acquisitions of Zymergen and Bayer's West Sacramento agricultural biologicals capabilities expected to enable new growth opportunities in the coming years
- Approximately $1.4 billion cash balance provides continued multi-year runway as Ginkgo drives towards profitability
Another company reporting Q2 results is T2 Biosystems Inc's (NASDAQ: TTOO) Q2 revenue reached $5.9 million, including product revenue of $2.6 million, representing decreases of 12% Y/Y and 30%, respectively, driven by lower sales of T2SARS-CoV-2 tests. The sales came in at the lower end of the interim sales, missing the consensus of $6.13 million.
This resulted in a net loss of $(0.10) per share, compared to $(0.08) per share a year ago. However, T2 finished Q2 with $14.3 million in cash and cash equivalents and announced it recently implemented expense reductions, reducing the workforce and operating expenses by approximately 20%.
T2’s guidance for FY22 revenue remains between $28-$31 million, which analysts tend to agree with as the consensus is at $28.6 million.
Investors should start researching these healthcare stocks as catalysts continue to come into focus.
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