- Remote monitoring devices are an emerging and rapidly growing healthcare support system for doctors, and they're already generating hundreds of millions in sales yearly for the company's that develop them.
- Biotricity just launched their first device, a remote EKG monitor that sends data directly to a monitoring center and to a patient's doctor to expedite heart disorder diagnosis. Company is ahead of schedule with first major cardiovascular center launching device last month, and sales to follow in coming months.
- Company will expand product portfolio with new device announcement in third quarter, another potential value driver in 2018 that could send stock higher. Comparisons to other companies suggest stock could be worth $9 to $14 in coming years as sales emerge.
The average investor probably isn't aware of this under-the-radar company, but Biotricity (OTCMKTS:BTCY) is making a big splash in cardiology as they launch their newly approved remote EKG monitor, called Bioflux. This small company received their first FDA clearance in December of last year for Bioflux, and they've just signed their first major client ahead of schedule, the prestigious San Antonio Endovascular & Heart Institute. This is a major milestone, and BTCY shares still don't reflect the market potential here - BTCY is still way off most investors' radars.
BTCY could be set up for an explosive 2018 and 2019 as their first sales roll in. Similar companies are valued at 15 times their revenue, and even $20 million in sales at Biotricity could be momentous and justify 100 to 300% of upside.
Biotricity’s Big Product Launch Happening Faster Than Imagined
Biotricity is a medical device maker focused on remote patient monitoring products. This booming industry is seeing rapid adoption by care providers as technology gets cheaper, more efficient, and better at predicting health outcomes.
In December, the company received their first US FDA clearance for their first product, the Bioflux MCT (mobile cardiac telemetry) device, which takes EKG measurements and transmits the results remotely to a monitoring center and a patient’s physician. Bioflux and the few similar devices also on the market are rapidly taking over from more cumbersome older technology, which may only collect data for 24-48 hours. Bioflux can monitor patients for weeks at a time with thousands of heart beat measurements and nearly realtime communication with a data center.
Biotricity is streamlining diagnostic efficiency for physicians who suspect a patient may have atrial fibrillation or a similar cardiac irregularity. The global cardiac monitoring market is projected to reach $28.0 Billion by 2021, according to Markets and Markets, and over time we expect more and more of this industry to move towards remote, software-driven products like Bioflux as costs of the technology become come down.
Biotricity is now in the midst of expanding their sales team and pilot sites. The company announced their first major collaboration last week: the San Antonio Endovascular & Heart Institute, a practice specializing in diagnosing, treating, managing, and researching diseases and disorders of the heart and vascular system. This prestigious center's CEO Dr. R. Stefan Kiesz articulated the Bioflux value proposition well, saying, “I love the simplicity the Bioflux technology provides for my patients, which should encourage greater compliance and improved data collection. The device fit seamlessly with our practice and didn’t interrupt our workflow whatsoever, in fact, it streamlined it.”
This major milestone is well ahead of schedule for their first commercial roll-out, and their first sales report is coming in a few months which could catalyze a move higher for little BTCY.
2018 and 2019 Could See Major Product Portfolio Expansion, Announcements Coming Soon
Bioflux is the first of many planned devices for Biotricity, and the next two years are also about expanding the company's remote monitoring product portfolio, which is one reason to know this little company NOW.
If the company can capture even $10-30 million in sales from 2-4 remote patient monitoring sectors, like cardio and diabetes for instance, this lean company could be on the way to significant cash flows quickly. Medical device introduction takes a fraction of the time required for drug development - measured in months, not years - and Biotricity should be introducing their next device during the third quarter. This is another major event for the company and stock, as it will pinpoint exactly what market they'll be going after, and how big the opportunity could be.
BTCY appreciated a whopping 3X in 2017 based on the impending introduction of Bioflux, and the next two years could bring similar success with new products.
How Much Could It Be Worth?
Bioflux is one of the first products like this on the market, and the company plans to establish itself as a major player in remote monitoring technology, starting with cardiac care. In this market, companies like iRythym (IRTC) and Biotelemetry (BEAT) are generating millions of dollars in annual sales, and growing rapidly, with similar devices.
IRTC is a good example of the valuations that investors are willing to give rapidly growing products with blockbuster possibilities. Their product is called Zio, an ultra-portable EKG monitor that must be mailed in after use - unlike Bioflux's constant remote monitoring capabilities. IRhythm is a $1.45 billion company, with just $99 million in sales last year. This indicates a 15X Price-To-Sales multiple, one metric from which investors determine fair value for publicly traded companies.
With even $20-30 million in sales in the coming years, a similar 15X Price-to-Sales ratio for BTCY would indicated a market value of $300 to $450 million, or a stock price of $9 to $14!
Companies like Apple (AAPL) and FitBit (FIT) had even made initial forays into healthcare, but none have had success with products that are sold to healthcare providers, like Bioflux. Consumer-focused products just haven't caught on beyond fitness, as experts like BTCY lock down the market.
Biotricity is a micro-cap company and as such carries particular risks. The company will likely need to raise additional capital in order to finance its business, and Bioflux is entering a market where larger companies are already established. Healthcare investing is a volatile space, and drug/device companies are known for either being multi-bagger winners or complete zeroes; you could lose all of an investment in BTCY.
BTCY is a stock to know in 2018. The company's upcoming earnings could generate interest from revenue-only healthcare funds, and the announcement of an additional product in the coming months should draw more eyes as well. Based on a look at peers, this could be worth 2X rapidly.
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