Medifocus: A Promising Biotechnology Stock With Multi-Bagger Potential
Biotechnology stocks have been on a massive run lately thanks to innovative, breakthrough treatments that can alleviate the suffering of millions. Due to this trend, investors have been scouring the markets looking for an undiscovered biotech gem. One stock that appears to have been overlooked by investors is Medifocus (MDFZF.PK). After a blowout earnings report, investors should take a strong look at the company as it appears to have multi-bagger potential.
Medifocus is a revenue-generating therapeutic medical device company that is focused on commercializing and developing minimally invasive treatment systems. The systems use proprietary focused microwave technology to shrink and kill cancerous and benign tumors. Medifocus currently has two major platforms in development:
- Prolieve Thermodilatation System: Used to treat Benign Prostatic Hyperplasia, a non-cancerous urological disease in which the prostate enlarges and constricts the urethra.
- APA 1000 Breast Cancer Treatment System: Used to treat locally advanced breast cancer, which involve large tumors that are generally treated with chemotherapy and if unsuccessful, surgery.
Shares of Medifocus have risen by nearly 40 percent over the past 3 months in anticipation of what the future may hold. Last week, the company rewarded the early investors with a fantastic second quarter earnings report. For the second-quarter, Medifocus generated total revenue of CN$1.23 million, a year-over-year increase of 294 percent. The huge rise in sales can be attributed to the continuing success of the Prolieve Thermodilatation System. The market has been extremely accepting of the system and its unique approach to the treatment of Benign Prostatic Hyperplasia. In addition to substantial revenue growth, the company has done an excellent job of increasing operating efficiency and maximizing gross margin. The year-over-year increase in gross margin was 263 percent. For investors to truly understand the growth potential, it is important to look at the company’s track record in increasing sales over the past six quarters:
- Fiscal 2014 Second-Quarter: CN$1.23 million
- Fiscal 2014 First-Quarter: CN$1.31 million
- Fiscal 2013 Fourth-Quarter: CN$862,538
- Fiscal 2013 Third-Quarter: CN$630,150
- Fiscal 2013 Second-Quarter: CN$313,281
That revenue growth trend is extremely encouraging, especially since Medifocus is still in its infancy. The company has already surpassed its total 2013 Fiscal Year earnings despite the fact that it is only halfway through its fiscal year. Medifocus is on track to generate at least CN$5 million for the 2014 fiscal year (CN$5 million is from the Prolieve System only).