Forget Pot? This $3 Medical Device Stock Could Be Worth $9 With Right Execution

Marijuana de-regulation in Canada, and parts of the U.S., has given rise to the marijuana industry, and many of these publicly traded companies have performed well as a result.
A comparable regulatory change in the U.S. with remote patient monitoring has been mostly off the radar of investors. Two early entrants in this market have generated big returns for investors. IRTC traded from $17 to $80/share and BEAT from $2 to $40/share.
New entrant Biotricity (BTCY) is jumping into the same market with a potentially superior technology and an under-appreciated market valuation. They received FDA clearance at the end of 2017, and their upcoming sales figures, even conservatively, could send this $3 stock to $9 or more in due time.

NEW YORK, NY / ACCESSWIRE / June 27, 2018 / Canadian law-makers have put out the “open” sign for marijuana sales in the country, and the companies that service this growing industry are booming as a result.

CV Sciences Inc. (OTCQB: CVSI) has risen from $0.50 to $2.50 in the last few months, and Aurora Cannabis Inc. (OTCQX: ACBFF) from $1.50 to $8.00.

Interestingly, American lawmakers have done something similar in another market, and it’s just beginning to be recognized by investors.

The Centers for Medicare and Medicaid Services (CMS) are the biggest single “insurance” company in the United States, covering 130 million Americans’ healthcare in some form or another, or almost 40% of the population.

Last year, they made major changes to the way they pay for “remote healthcare services” and “remote patient monitoring.” In essence, by using monitoring devices that track a patient’s well-being remotely, doctors may actually be able to make MORE money than ever before with this tech.

Like cannabis in Canada, this is a huge boon to remote monitoring device companies. You can see it in the stock charts for iRhythym (IRTC) and Biotelemetry (BEAT), both up 100s of percentage points in the last few years as investors piled in. One overlooked little company, however, could be coming up on their heels with a superior newly FDA cleared device, and the unknown Biotricity (BTCY) could have 200% of upside, or more, with proper execution.

Remote Monitoring Solutions Creating New Demand in the $28B Cardiac Industry

According to the Centers for Disease Control and Prevention, 11 million patients in the United States have a heart rhythm disorder or arrhythmia. Diagnosis relies on tests such as ECGs (electrocardiograms) to determine the severity of the disorder.

The most recent advancement in cardiac monitoring is continual Mobile Cardiac Telemetry, or MCT, consisting of around-the-clock patient heart monitoring through a small device and small leads on a patient’s chest. In the case of iRhythm’s Zio device, this is a small wearable patch that gets mailed to an analysis center every two weeks.

The MCT space has grown with improved technology, similar to wearables, and doctors are increasingly turning to simple, small devices like Zio. The global cardiac monitoring market is projected to reach $28.0 billion by 2021, according to Markets and Markets, and over time more and more of this market to move towards remote, software-driven products as the evidence builds that they can improve outcomes for patients. For the companies – and investors – operating in this industry, that could be and has been huge.

How Regulators Have Made Big Changes and Investors Could Benefit

CMS had classified remote patient monitoring devices under “miscellaneous services” for years. The technology could be grouped with other services that had established payment processes, called reimbursement code. But, these didn’t have their own codes to indicate proper reimbursement processes or prices. That meant getting paid wasn’t always easy for doctors.

But last year, the CMS made some big changes.They UN-bundled CPT code 99091, for instance, meaning that in 2018 providers will be able to get reimbursed separately for time spent on collection and interpretation of health data that is generated by a patient remotely and then digitally stored and transmitted to the provider. Seema Verma, the current Administrator of CMS, said, “These rules move the agency in a new direction and begin to ease [the] burden by strengthening the patient-doctor relationship, empowering patients to realize the value of their care over volume of tests, and encouraging innovation and competition within the American healthcare system.”

The government is streamlining and improving reimbursement for advanced medical devices, and it’s beginning to have an impact on cardio monitoring companies like IRTC and BEAT already.

Biotricity Device Launch Underway, Could Explode Higher in 2018

You can see that the change is happening already in the performance of iRhythym (IRTC) and Biotelemetry (BEAT), both of which sell remote EKG devices, as they’re known, in the U.S. Sales have seen steadily increasing in the last three years, and shares of both companies have appreciated as well: BEAT has gone from $2.15 in 2013 to as high as $41 this year; IRTC from $17 to $80 in the three years that it has been public. Investors who saw the trend have done well. Amazingly, iRhythm generated $98.5 million in revenue last year with their ONLY product, the Zio Device, just two years after their IPO.

Wall Street is all over IRTC, but they have yet to pick up on the newest entrant into this closely held field of devices. Biotricity (BTCY) just received FDA clearance for their own product, called Bioflux, in December and is now in the midst of expanding their sales team and pilot sites for the device launch.

Biotricity’s solution is elegant and potentially transformative. Their Bioflux is a small, phone-like device with cables leading to electrodes on the patient’s chest, exactly like an in-hospital ECG. The device is small enough that the patient can go home and about their normal life. Meanwhile, Bioflux records and transmits their ECG data to a remote monitoring facility where it can be accessed in real-time by the patient’s doctor. Ultimately, this streamlines the diagnosis process – possibly even more-so than the ZIO device, which requires being mailed in to the service center.

Biotricity expects their first revenue to emerge in the coming months, a major catalyst for any new medical device company, and BTCY doesn’t need much to justify a significantly higher stock price from today.

Biotricity Worth $9+ With Even Conservative Sales?

Biotricity is a small-cap company and thus carries risks. The company will need to raise additional capital in order to finance its business, and Bioflux is entering a market where larger companies are already established. Health care investing is a volatile space, and device companies are known for either being multi-bagger winners or complete zeroes; you could lose all of an investment in BTCY.

Based on how IRTC is received by investors, and the fact the BTCY is still an undiscovered company, this small company’s upcoming revenue stream could quickly rationalize a stock price even 3 or 4X higher in the coming years.

IRhythm is a $1.5 billion company, with just $99 million in sales last year. This implies a 15X Price-To-Sales multiple, one metric from which investors determine fair value for publicly traded companies. Even $20-30 million in sales in the coming years and 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.

With launch efforts underway and big health institutions already signing on, BTCY is about to begin generating revenue in an immense market, and this could be the catalyst to take this $3 stock on its next move higher.

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