MediFocus (TSX: V.MFS, Stock Forum) announced more analyst accolades today as it continued to build the necessary foundations to become a major figure in the development and commercializing of minimally invasive drug therapy systems in the treatment of cancerous and benign tumors across North America.
SeeThruEquity, an equity research company practiced in the analysis of smallcap and microcap companies shouted the company's praises today noting that MediFocus had already demonstrated the potential for success following its acquisition of Prolieve in Q3 2012, revenues from which grew at a healthy Compound Annual Growth Rate (“CAGR”) of 221% through Q4 2013.
As a treatment for Benign Prostatic Hyperplasia (“BPH”), Prolieve provides long-lasting and immediate relief from BPH symptoms, guaranteed to drive revenues and market share putting the company in perfect position to penetrate the ~$8.0 billion BPH drug market.
In its drive to solidify its share of the international market, MediFocus has already inked two key strategic agreements in the Asia-Pacific region to secure CFDA (China FDA) approval and distribute Prolieve in China and other Asian countries.
This isn't the only front of progress as the company has initiated pivotal Phase III clinical trials for commercialization of its second offering, the APA 1000 Breast Cancer Treatment System. The Phase III study has been approved by the US FDA and Canadian Bureau of Medical Devices (“BMD”). The company is confident of successfully completing Phase III as it believes the trial will be no more stringent than Phase II.
The company intends to accelerate the aforementioned study in an effort to gain early approval in late 2016 or early 2017 and a possible licensing deal with results from just 50% of the patients.
SeeThruEquity is of the strong opinion that APA 1000 could significantly drive valuation of the company due to the current interest and valuations on the street.
Management played it smart creating a highly profitable business model that continually generated a solid revenue stream for its Prolieve treatment system with gross margins of 68% from urologists with installed Prolieve system and gross margins of 76% from mobile services.
MediFocus is poised for success and smart traders should move to take advantage of this company's tremendous upside.
Shares gained 12.50% on the news to $0.135 per share.
Currently there are 117.3m outstanding shares with a market cap of $15.8 million.
FULL DISCLOSURE: MediFocus is a Stockhouse Publishing client.