Ventrus Biosciences (NASDAQ:VTUS) is moving forward in clinical research towards this day which for the greater majority of companies recently has resulted in a sharp incline in share price. The Company is seated firmly as a leader in gastrointestinal products in areas of unmet need, specifically hemorrhoids, anal fissures, and fecal incontinence. While many other companies are focused on highly-competitive areas, Ventrus has specialized its direction and is prepared to capitalize on the 12.5 million Americans that suffer from hemorrhoids; 7 million affected by fecal incontinence; and more than 4 million that must cope with anal fissures. There are currently no FDA-approved therapies for these debilitating conditions, yet an exorbitant amount of money spent yearly by the population in attempts to remedy the situations.
As an unapproved solution, over 4 million prescriptions are written annually in the States for therapies to treat hemorrhoids alone with more than 22 million over the counter units sold. Ventrus estimates to sell their hemorrhoid therapy for $350 per unit. Without ever making the grand assumptions that 100 percent of market share would be captured, the scenario represents a value of $7.7 billion based on current figures. That goes without mentioning the potential revenue that can be derived from fecal incontinence and anal fissure patients which could push the total considerably higher.
With a total debt of less than $3 million, three drugs in late-stage clinical development and only 9.3 million fully-diluted shares, Ventrus is already starting to capture the attention of the investment community. While it may be true for a biotechnology company that “He conquers who endures,” in the world of biotech investing the phrase “the early bird catches the worm” may be more appropriate.
