LexaGene was featured on an episode of Innovations with Ed Begley Jr. which aired on Fox Business Network.
Watch the video:
The biotech sector is well known for delivering triple-digit, quadruple-digit and even quintuple-digit stock winners. It’s not uncommon for a biotech company to go from relative unknown status to billions of dollars in market value literally overnight. It’s the nature of the game for the industry and it holds true for our next feature company, LexaGene Holdings (OTCQB: LXXGF) (TSX.V: LXG).
LexaGene Holdings (OTCQB: LXXGF) (TSX.V: LXG) has its sights set on being first to market with a rapid pathogen detection technology capable of handling the complex needs of the commercial food and water industries. According to recent press, they are on the verge of a major breakthrough… and the timing couldn’t be better.
We’ve all seen the news lately, and demand for reliable food and water safety testing is at an all-time high. Reuters reports an alarming figure, “Roughly 48 million people, one in six U.S. residents, are sickened by tainted food each year and nearly 3,000 die.” Billions of dollars in lost revenue are at stake, as one food chain after another falls victim to outbreaks of E. Coli, Salmonella, and other harmful pathogens.
You’re certain to remember Chipotle’s (NYSE: CMG) catastrophic devaluation back in 2015.
At the height of its popularity, Chipotle lost $6 Billion in value in a matter of months, as dangerous food-borne pathogens left more than 500 patrons seriously ill. Chipotle’s stock dropped from over $750 to $420 as it reported Norovirus in California and Massachusetts, Salmonella in Minnesota, and E. Coli in a total of 9 different states.
A startling fact was brought into public light…
Traditional bacterial detection methods can take as much as 7 days by trained lab technicians to yield a reading. That means that potentially contaminated food is already in consumer’s hands before a company like Chipotle is even aware they have a problem.
The Next Generation for Quality Control: LX6 Microfluidic Technology
LexaGene Holdings (OTCQB: LXXGF) (TSX.V: LXG) is on the cusp of solving this problem with the development of an instrument that can identify as many as 22 harmful pathogens. And in contrast to older technologies, their LX6 prototype can yield results in 1 HOUR.
This fully automated equipment is designed for non-technical workers, making the LX6 economical to use in real-time production lines as often as needed. LexaGene Holdings (OTCQB: LXXGF)) (TSX.V: LXG) explains:
“End-users simply need to collect a sample, load it onto the instrument with a sample preparation cartridge, and press ‘go’. The instrument is expected to offer excellent sensitivity, specificity, and breadth of pathogen detection.”
If you would like to see a full list of the LX6’s potential advantages, click here.
Developed at one of the world’s most sophisticated science laboratories
If you know your way around the tech sector, you’re probably already familiar with the Lawrence Livermore National Laboratory. For more than 60 years, this federally funded laboratory has produced the most cutting-edge defense, security, science and energy technologies around. Every once in a while, a Lawrence Livermore funded prototype gets spun out of its laboratories and licensed into the private sector. It was under these circumstances that LexaGene’s founder and CEO, Dr. Jack Regan, developed and patented the LX6 prototype.
Dr. Jack Regan was no stranger to Lawrence Livermore, having completed his doctoral training there, where he developed instruments to detect respiratory pathogens and bio-threat agents.
Dr. Regan later played an instrumental role in building the value in QuantaLife that led to its $162 Million buyout by microbiology giant, Bio-Rad. Point being, this is a man who understands how to bring a concept to commercialization. And he’s using those skills to bring LXXGF/LXG first to market with a rapid pathogen detection system.
And that could happen much sooner than you’d expect…
LexaGene Holdings (OTCQB: LXXGF) (TSX.V: LXG) is on track for the alpha prototype to be released at the end of November. “The Company is following a phase-gate approach for product development. In Phase I, which was completed in 2016, we defined the instrument’s specifications. We are now near the end of Phase II, where each of the technical risks of the product are evaluated. We have conclusively retired the majority of these factors and are in the latter stages of evaluating each of the remaining tasks,” the release stated.
They aren’t wasting any time either. On July 6, LexaGene announced the technology for its automated pathogen detection instrument has been successfully de-risked through a series of tests that looked at each of the instrument’s critical functions. Even better, LexaGene unveiled this pre-alpha prototype on July 9, at this year’s International Association for Food Protection meeting in Tampa, FL to rave reviews. This is a HUGE development.
That means the LX6 is most likely poised to enter the market within a year, which spells cash flow for LexaGene and VERY HIGH potential returns for savvy shareholders.
Biotech stocks, like hi-tech stocks, tend to SOAR on news of a product release and with LexaGene Holdings (OTCQB: LXXGF) (TSX.V: LXG) trading under $2.00, the stock could easily become a huge multiplier! In the last 6 months alone, LXXGF has more than doubled its share price, and that is only the beginning. For early investors that could mean a 4 BAGGER – OR MORE!!!
We believe LexaGene is a walking takeover target at that point, as it will own the only game in town. Dr. Regan holds two patents, which gives LXXGF/LXG an assured stake for its pathogen identification technology. They will also have forward revenue from disposable testing cartridges (which LXXGF/LXG looks to a 97% margin on) that carries with it recurring revenue streams.
Are your juices flowing yet? They should be. Here’s why…
A Crucial Catalyst Is Fast Approaching
With an astounding 600+ food recalls each year in the U.S., it’s no surprise that the federal government is getting involved. The demand for a commercial pathogen identification system is so high that the DoE, DoD, NIH, and DHS have spent a combined $20M on developing predecessor technologies with Lawrence Livermore, as shown in the image below.
Then in 2011, the feds doubled down as former President Obama signed into effect the largest overhaul of food safety laws in 70 years, The Food Safety Modernization Act. This sweeping reform shifts the focus from a reactionary stance to a preventative one. A slew of regulations, slated for implementation by 2018, is rolling out as we speak.
Among the new rules is the intention to make testing for pathogens mandatory.
You can imagine the pressure the manufacturing industry is facing as thousands of companies could be FORCED to upgrade their detection practices. Overnight, the LX6 could become the standard for quality control. If that happens, it will launch shares of LXXGF/LXG into the stratosphere.
But here’s where it gets real…
The market for pathogen detection is HUGE: $17.8 billion across four different industries
By themselves, the food and water safety markets total over $8 billion yearly, but that is just the tip of the iceberg for LexaGene’s patented LX6 technology. They are also targeting veterinary testing and aquaculture pathogen testing, both multi-billion dollar markets in their own right.
What does that mean for investors? Once LexaGene gets rolling, it’ll move fast. If LexaGene can carve off even a sliver of the $17.8 billion swirling around these industries, shareholders will feel the impact.
You can see why we think there is potential for a FOUR-BAGGER OR MORE on the horizon for LexaGene Holdings – and our track record speaks for itself.
So, if you own any biotech stock, it should be LXXGF/LXG. Check out their site and see for yourself the massive opportunity that is emerging.