Very well written piece
Predictive Technology Group Inc. (PRED)
Data analytics has the potential to solve some of the greatest challenges facing the world.
Chances are you’ve heard of or even used services like 23 & Me and Ancestry DNA.
There is an incredible demand for services like these; not only from consumers, but from the entire healthcare industry.
However, this is bigger than understanding which part of the world your ancestors are from.
This is about your future health.
Understanding, identifying and treating diseases before they become problems is the next frontier in the healthcare industry.
But that’s not all…
What if you could get medication and healthcare services that are specially designed for your unique genetics?
These new approaches are helping biotech companies develop therapies that were thought to have been incurable just a few years ago.
U.S. dominated the genetic testing market in 2017 with the “world genetic testing market” “projected to surpass USD 22 billion by 2024”.
But that’s just part of the story.
According to the “latest research study”, “the global big data analytics in healthcare market was valued at $16.87 billion in 2017, and is projected to reach $67.82 billion by 2025, growing at a CAGR of 19.1% from 2018 to 2025.”
This new frontier in the healthcare industry is wide-open, creating what could be one of the biggest opportunities for companies that provide genetic diagnostics and data analytics in healthcare.
PRED could be one of the most overlooked opportunities we have seen in this sector.
PRED “is a leader in the use of data analytics for disease identification and subsequent therapeutic intervention.”
PRED “has developed and/or acquired a number of proprietary technologies that open a window into the origin of human disease and the role that genes and their related proteins play in the disease’s onset and progression.”
PRED “uses this information as the cornerstone in the development of new diagnostics that assess a person’s risk of disease and therapeutic products designed to effectively prevent and/or treat the disease.”
Operationally, PRED’s combination of “proprietary gene-based companion diagnostics” and “data analytics” expertise gives the company a potentially massive competitive advantage in the industry.
PRED demonstrated in its most recent earnings filing the phenomenal growth rate of the company:
“Predictive Technology Group Reports Third Quarter Fiscal 2019 Financial Results”
“Nine-month revenue increased 217% to $30 million with $3.1 million in positive cash flow from operations”
Here are the CEO’s comments from this press release:
“I’m pleased to report our 10th consecutive quarter of sequential growth in revenue.”
“Third quarter fiscal 2019 revenue of $11.3 million was up 167% over the third quarter of fiscal 2018”.
Moreover, the company has been expanding in recent months and “has completed the integration of two acquired DNA laboratories into the Predictive subsidiary, Predicative Laboratories.”
PRED “announced the acquisitions of CLIA-approved Taueret Laboratories in March 2019 and Inception Dx in September 2018.”
In addition, PRED has been recruiting industry veterans to lead its expansion.
As part of its commitment to strong stewardship, just a few weeks ago PRED named a 25-year veteran of the women’s health field, as detailed in this company statement:
“Douglas S. Rabin, MD, has joined Predictive Laboratories as Vice President of Medical Affairs, Women’s Health. In this newly created position, he will provide critical medical affairs support for the women’s health clinical franchise. Dr. Rabin has more than 25 years of experience in women’s healthcare, including both clinical reproductive endocrinology, and obstetrics and gynecology.”
Not only that, but PRED has recently taken steps to put its biotech treatments through clinical trials, in a major step towards potential mass-market adoption.
PRED recently signed a “letter of intent with IQVIA” “to guide the regulatory strategy for its wholly owned subsidiary Predictive Biotech,” as detailed in this statement from the company:
“Specifically, IQVIA will guide Predictive Biotech in its U.S. Food and Drug Administration (FDA) Investigational New Drug (IND) application and subsequent clinical trial for osteoarthritis (OA) of the knee.”
“The Company expects to meet with the FDA during the third quarter of 2019 to discuss the submission of the IND with the objective of determining the safety and effectiveness of CoreCyte™ compared to a placebo control for [the] treatment of OA of the knee.”
“The Company will work with the FDA to determine if the FDA will accept the current safety data from over 75,000 patients previously treated with CoreCyte™.”
But why now? Why should you care?
As the company stated in it’s recent press release, “CoreCyte™ has the opportunity to address a significant unmet clinical need by providing an alternative to opioids, cortisone and/or hyaluronic injections for treating OA knee pain.”
In addition, the company recently announced that it “has reached an enrollment milestone of 200 participants in its ongoing Institutional Review Board (IRB)-approved study of spine and joint disease leading to chronic pain.”
According to the National Institute on Drug Abuse, “every day, more than 130 people in the United States die after overdosing on opioids” while “roughly 21 to 29 percent of patients prescribed opioids for chronic pain misuse them.”
“The Centers for Disease Control and Prevention estimates that the total "economic burden" of prescription opioid misuse alone in the United States is $78.5 billion a year”.
This problem has created a new demand for non-opioid treatments for chronic pain and PRED could be one of the companies with the solution.
In addition to all of the above accomplishments, PRED has announced multiple breaking developments in the past few days.
Last week the company announced:
“Thermo Fisher Scientific and Predictive Laboratories Announce Global Infertility Research Collaboration”
“Thermo Fisher Scientific Inc. is the world leader in serving science, with revenues of more than $24 billion and approximately 70,000 employees globally.”
This “global research collaboration” with Thermo Fisher Scientific is “focused on studying the genetic factors underlying infertility in women.”
“Worldwide, around 70 to 80 million couples currently experience infertility”.
PRED CEO Bradley Robinson stated the following regarding this breakthrough collaboration:
“Infertility among women who seek to conceive has become an increasingly common condition, which leads to much frustration and financial burden as they seek alternative solutions. Our collaboration with Thermo Fisher brings together our innovative research and development capabilities with market-leading next-generation sequencing technology to better understand the genetics of infertility for future development of a diagnostic solution.”
On Thursday, the company announced:
“Predictive Technology Group Announces the Presentation of New Genetic Findings in Endometriosis at the 35th Annual Meeting of the European Society of Human Reproduction and Embryology”
“SALT LAKE CITY, June 20, 2019 (GLOBE NEWSWIRE) -- Predictive Laboratories, a wholly owned subsidiary of Predictive Technology Group, Inc. (OTC PINK: PRED), a leader in the use of data analytics for disease identification and subsequent clinical intervention through precision therapeutic treatments, announces that Kenneth Ward, M.D. will present new genetic findings in endometriosis at the 2019 European Society of Human Reproduction and Embryology (ESHRE) meeting on Monday, June 24 in Vienna, Austria.”
This presentation, which occurred today, could be another positive catalyst for PRED as more investors discover this opportunity.
But, that’s not all…
Just last month, PRED “completed the application and submitted the request to list Predictive on The NASDAQ Exchange.”
“The listing of the Company’s common shares remains subject to the approval of NASDAQ and the satisfaction of all applicable listing standards,” but it’s a sign of the company’s commitment to continued growth.
In the event that PRED can successfully accomplish this, they could position themselves in front of mainstream investors on Wall Street.
If all of the above wasn’t enough, PRED has a potentially remarkable chart setup and a history of experiencing massive gains.
PRED has seen a remarkable 2019, starting the year at 0.93 and rallying to a high of 6.91, upside of more than 643%.
Since this incredible rally, PRED has consolidated near its 20 day moving average (DMA) and could be positioned for another breakout higher.
PRED is an overlooked opportunity that has been growing at a remarkable pace and could be the solution for multiple high growth sectors within healthcare.
Make sure to do your own due diligence.
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