Cyclo Therapeutics Inc (CYTH)

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Lately, there has been concerns over a potential bubble in the biotechnology sector. The sector has been one of the biggest beneficiaries of the six-year bull market in the U.S. Recently, though, analysts at Credit Suisse said that the biotech sector is far from being overbought.

According to MarketWatch, Credit Suisse analyst Ravi Mehrotra said in a research note to investors last week that there are some optics suggesting that we are in a biotech bubble, however, a multi-year rally does not make a bubble. Mehrotra believes that the industry has evolved over the past three years and there is a potential now for companies to bring blockbuster drugs to market.

Mehrotra does have a valid point. There are many companies in the biotech sector that have the potential to bring blockbuster drugs to the market and create significant value for shareholders. The question is whether investors can find the winners among the vast biotechnology sector.

For finding gems in the biotechnology sector, investors need to focus on emerging companies that have significant potential and are trading at reasonable levels. One such company is Alachua, Florida-based CTD Holdings Inc. (OTCQB:CTDH), which is a family of biotechnology growth companies based on cyclodextrin chemistry.

CTDH’s divisions distribute and manufacture the trademarked Trappsol® and Aquaplex® cyclodextrins, cyclodextrin derivatives, and cyclodextrin complexes for biotechnology and life science companies involved in research, pharmaceutical, medical device, cosmetics and nutrition markets.

On Thursday, CTDH announced that it has amended its agreement with Medical Need Europe (MNE). Under the altered agreement, MNE will be the exclusive distributor in Europe of Trappsol® CycloTM and any new cyclodextrin-based Orphan Drug Designated treatments developed by CTDH.

MNE is based on Stockholm, Sweden. It already has an exclusive distributorship of Trappsol® CycloTM for the treatment of Niemann-Pick Type C, which is a rare and fatal disease found mainly in children.

Back in March, CTDH had also selected Accenture (NYSE:ACN) to provide it with data-driven clinical trial strategy and design through its Accelerated R&D Services. Dr. Tate noted that Accenture is working with CTDH at a time when the company is devising its clinical development program that will establish the safety and efficacy of Trappsol® CycloTM for the treatment of Niemann-Pick Type C disease.

http://www.baystreet.ca/articles/stockstowatch.aspx?id=928