A Potential "10-Bagger" in Biotech

By Lou Basenese, on Tuesday, December 3, 2019

One of the hottest fields in biotech right now is drug development for NASH.

NASH is a type of liver disease which impacts an estimated 60 million people. Currently, no approved drug exists to treat it. This is creating a big opportunity for pharma companies.

How big? Estimates range from $18 billion to $61 billion.

To put that in perspective, the top-selling cancer drug in the world generated $19 billion last year.

No wonder pharma heavyweights like Novartis (NVS), Gilead (GILD), Novo Nordisk (NVO), and Allergan (AGN) are all feverishly working on a cure.

But as I’ll show you today, investing in these companies would be a sucker’s bet in the NASH space.

Instead, the best way to profit from this emerging field is through something else: hardware.

The Only Path to Progress

Last week, I shared why quantum leaps in technology require major hardware breakthroughs.

And as you're about to learn, this reality also holds true in biotechnology.

Take the NASH market, for example.

NASH is characterized by increasing levels of fat in the liver, which can lead to cancer.

Because of obesity trends, every region of the world is expected to see a major increase in the prevalence of this disease. In fact, according to a recent study in the New England Journal of Medicine, researchers expect NASH to become the leading cause of liver transplants.

In a few years, epidemiologists predict over 65 million people will suffer from the disease.

Why is this disease so hard to treat?

The Newest Silent Killer

Simple: in medicine, you can’t treat a condition unless you know the condition exists.

And when it comes to NASH, its early stages are undetectable.

As Jacob Bell of Biopharma Dive explains, “Patients often go for decades without knowing they have [it].”

That is, until now.

Introducing: ENDRA Life Sciences

ENDRA Life Sciences (NDRA) is a medical device company (i.e., this is a hardware company) that’s developed a technology that can diagnose fatty liver at the earliest stages.

Known as Thermo-Acoustic Enhanced UltraSound (TAEUS), the hardware is a plug-and-play solution to diagnose NASH.

It allows doctors to visualize human tissue composition, function, and temperatures at the point of care.

Best of all, Endra’s technology works by simply adding an accessory to existing ultrasound machines. So it promises to be a seamless addition to the doctor’s office.

All the more so because of the company’s partnership with the ultrasound market share leader, General Electric (GE).

GE has an exclusive deal to sell Endra’s first generation ultrasound device, which is expected to hit the market in the coming year.

When you’re trying to generate sales, it doesn’t get any better than having GE usher you into its existing customer base and recommend the benefits of your technology.

But as investors, here’s where things get really interesting…

A Potential “10-Bagger”

As I explained last week, when new hardware products are launched, temporary disconnects in stock prices correct very quickly.

It happened when Apple rolled out its newest smartphone hardware in 2014, including a fingerprint reader, which sparked a 258% rally (and counting).

It happened with Applied Optoelectronics (AAOI) in 2017, when it rolled out the next generation of optical switches for networking, which kicked off an 881% increase in its share price.

And I’m convinced it’s about to happen with Endra.

Before the end of the year, the company is expected to submit its application for approval for TAEUS in Europe, which means it should officially be on the market in the first half of 2020.

At that time, it would be the only way to diagnose patients in a $61 billion market. And yet the company is trading for a measly $6 million market cap.

With deep pocketed pharma companies clamoring to dominate the NASH space, Endra could be acquired on the cheap — and still hand savvy investors a ten-bagger.

So don’t miss out!

Ahead of the tape,
Lou Basenese
Lou Basenese


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