How one disruptive diagnostic imaging company could transform a multi-billion dollar industry
Investors on the hunt for early growth opportunities know that the fast-paced medical sector rarely disappoints. 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, Imagin Medical (OTCQB: IMEXF) (CSE: IME).
Precision Diagnostics At The Physician’s Fingertips
Imagin Medical knows that when it comes to cancer, timing is crucial. That’s why this innovative company has its sights set on being first to market with a rapid cancer diagnostic technology that could dramatically improve physician’s ability to visualize, identify, and remove cancerous cells.
The revolutionary i/Blue Imaging System uses an advanced optical and light sensor technology, in conjunction with white light and near-infrared fluorescence, to deliver superior images in less than 15 minutes vs. the full hour required by conventional systems.
Current endoscopes use “white light” that has been the standard for years and encompasses more than 90% of the market. But the results are far from accurate using this method – tumors that are flat may look the same as normal tissue and thus increase the risk of not catching the cancer in time. Imagin’s i/Blue Imaging System “sees” the cancer in less than 15 minutes with optics that are 100 times more sensitive.
This could drastically change the landscape for medical imaging in the near term, increasing the efficiency of the operating room and reducing healthcare costs by enabling procedures to be performed in the less expensive physician’s office.
Imagin has already completed development of its Alpha Prototype, and according to recent press, they are on the verge of another major breakthrough…
Just last month, they announced positive progress in a research study evaluating five separate subjects. And they already have plans in place for the next round of testing, having received a windfall $3.5 million in further funding. Improvements are being made to the hardware (lenses and filters) as well as to the software, with further subjects scheduled for the near term.
At the moment, Imagin’s primary focus is on bladder cancer, the sixth most prevalent cancer in the U.S. and the most costly cancer to treat due to a greater than 50% recurrence rate.
As the i/Blue Imaging System becomes established in the urology market, Imagin plans to complete development of the i/Vision Imaging System technology which combines multiple illumination sources into one system. The i/Vision will accommodate the most commonly used fluorescing contrast agents and will potentially enable the company to expand into additional surgical specialties.
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. It was at the prestigious LLNL that Dr. Stavros Demos, Ph.D., developed the i/Blue Imaging System.
Dr. Demos worked in collaboration with the UC Davis Comprehensive Cancer Center and Dr. Ralph deVere White, one of the world’s leading authorities on bladder cancer, for more than five years to determine feasibility.
Imagin has since licensed the technology from LLNL and moved the final stages of development to the University of Rochester’s Laboratory for Laser Energetics (LLE), where Dr. Demos, in the position of Senior Scientist, will continue to support the company through final product development, clinical evaluations and FDA submission.
What does that mean for investors? Once Imagin gets rolling, it’ll move fast.
The medical device sector has outperformed the S&P 500 by 138% in the last year.
The MedTech sector has recently seen rapid growth as major players in the space continue to undertake larger and larger deals for mergers and acquisitions. Changing regulations have also allowed many companies to become more nimble when it comes to navigating the research and development of novel therapies and game changing technologies.
With many governments instituting budgetary cuts to contain the spiraling costs of healthcare, reports are citing that the market for medical device technologies could reach an astounding $674.5 billion by 2022.
JPMorgan’s Michael Weinstein recently stated, the industry-wide fundamentals “are strong, and sector revenue growth could re-accelerate from 4.4 percent last year to 5.1 percent in the new year.”
The Market Ahead
Historically, investing in healthcare and medical technology has seen a focus on Big Pharma. This has left many smaller companies under the radar. This blind spot has become a strong opportunity for some investors who seek the “ahead of the pack” approach to trading. Companies like Theralase® Technologies Inc. (OTC: TLTFF / TSXV: TLT) and LexaGene (OTC: LXXGF / TSXV: LXG) are also looking to take advantage of this era of innovation.
LexaGene, for instance, recently announced that it has gotten into collaboration with Ethos Veterinary Health, a veterinary health company with hospitals across the U.S. This partnership will provide canine urine samples to LexaGene for testing on the Company’s LX6 prototype for more effective, rapid and on-site pathogen detection. LexaGene is a biotechnology company developing a fully automated pathogen detection platform that is open-access. The open-access feature essentially allows end-users to target any pathogen of interest and they can load their own real-time PCR (Polymerase chain reaction) assays onto the instrument for customized pathogen detection.
LexaGene’s patented microfluidic system was invented by company founder and CEO, Dr. Jack Regan. Dr. Regan was a lead scientist in developing a predecessor instrument designed for bio-warfare surveillance that was adopted by the Department of Homeland Security for the BioWatch Program. The development of these instruments was previously funded by $20 million in government funding according to the company.
On the other end of the spectrum, Theralase targets patented laser technology platforms used in a wide range of bio-stimulative and bio-destructive clinical applications in patients. The Therapeutic Laser Technology division is focused on the development and commercialization of laser-based non-invasive therapeutic devices to eliminate pain, reduce inflammation, and accelerate tissue healing.
In fact, Theralase® has been issued 13 patents for cancer and therapeutic applications, and has an additional 24 patents currently pending. Clinical trials for non-muscle invasive bladder cancer are progressing, and we are investigating commencing another Stage 1b clinical trial for an additional cancer indication.
But we think the greatest upside for investors is with Imagin.
Imagin Medical (OTCQB: IMEXF) (CSE: IME) should be at the top of your watch list right now if you want to ride the stock market’s hot med-tech sector with the company most likely to break out of the pack. If Imagin can carve off even a sliver of the billions swirling around this industry, shareholders will feel the impact.
Check out their corporate presentation and see for yourself the massive opportunity that is emerging.