Lexington Biosciences Inc. (LXGTF)

[77Port]

iRhythm, a smallish, heart-tech company which LEX often gets compared to, had a bad news article out today which might cause bad wind to float toward LEX.

First few lines: "Summary:
iRhythm Technologies is a one-trick pony that is near the peak of its revenue growth trajectory.
Devices with extensive processing times like the Zio XT will be obsolete as soon as 2020 depending on how quickly the market develops.
Net losses have grown nearly linearly with revenues, indicating that management is destroying value as the company grows."

iRhythm went public in 2016 and the growth went fast and up: $5-$85: everything we want from LEX. But as the cliche goes, what goes up must come down. Two years is not a good run.

I'm assuming LEX is trying to game out all their possibilities. I also assume the monsters--Apple, Google, MicSoft and Amazon--have ways of putting pressure on small miracle companies like LEX. I don't doubt they play big stock games, as well, trying to scare LEX into selling themselves cheap. The monster's goal: buy cheap or get LEX to fold, go bankrupt, etc., in hopes of picking the tech up cheap and keeping all the gold and glory. To the heartless monsters, LEX is just a tasty minnow. Stay strong, LEX.

While LEX is, literally, nothing like iRhythm, to the non-researcher, both companies "seem" similar since both make gadgets measuring heart output. What iRhythm and LEX actually does is not at all similar.

LEX also has a strong patent which can be licensed to others. Question becomes, can LEX prevent others from tapping into the Endothilial layer and developing their own way of measuring? This, in my opinion, is the one legit fear as bioengineers and patent attorneys are good at identifying, then changing small details which allows them to develop their own new product. All the more reason for LEX to get a move on and strike while their moment is ripe. Too much time passing will not be their/our friend.

We all know the monsters are coming and they could all benefit by licensing Heart Sentry. Imagine multiple partnerships selling to every corner of the globe as LEX's 17-year patent runs its course? Or maybe they choose to auction themselves off to the highest bidder, starting at 2B and--dream on--reaching double or triple that amount.

One goal is for LEX to figure out how not to be the next iRhythm, another one trick pony running out of hay. It's unclear if iRhythm will recover.

Link to article: Seeking Alpha iRhythm article