Advanced Medical Isotope Corporation (ADMD) has - through key partnerships, expanding distribution channels and the acquisition of a license to a novel cancer-fighting technology - well positioned itself to become a growth player in the field of nuclear medicine, specifically in the field of the production and distribution of medical isotopes. Medical isotopes are used in molecular imaging, therapy, and nuclear medicine to diagnose, manage and treat diseases and are deemed a hot item whenever discussed because of the geopolitical implications of non-nuclear nations attempt to enrich uranium for - ahem - solely medical purposes.
Advanced Medical is one of only a few companies in the United States manufacturing and distributing such isotopes and it's likely that business could quickly hit a growth spurt - not only through the company's own indigenous expansion and distribution efforts, but also because of the growing desire of the medical community in the US to use 'home grown' nuclear materials, not to mention increasing regulation that may force the community to do so anyway.
AMIC already offers a broad variety of isotopes and, as outlined in a recent quarterly report, is looking to expand its 'pipeline' of product offerings for its distribution network of customers that include - but is not limited to - national laboratories, hospitals, research facilities and universities.
Many of the company's isotopes are put to use through molecular imaging, or Positron Emission Tomography (PET), which enables Doctors and medical professionals to identify cancerous condictions well before detection means that search for tumor mass. Some of the radiopharmaceutical products based on the medical isotopes are also used in the early detection of certain cardiovascular indications and, as mentioned above, the demand for such products is growing, not shrinking. According to numbers identified in a recent company presentation and credited to the World Nuclear Association, the use of medical isotopes is growing at an annual rate of 10%.
That places AMIC right in the middle of a potential growth boom.
While production and distribution may encompass the company's core business model, AMIC is moving heavily into the field of treatment, too. The process of placing radioactive "seeds" in or near a cancerous tumor is known as brachytherapy, and AMIC is developing a pipeline based on such technology to augment the already-growing core business plan.
In April, the company acquired a license and numerous relating patents to an injectible radiogel technology that could have a significant impact on the next generation of fighting cancer. Using the radiogel technology doctors could deliver Yttrium-90 "microspheres" directly into cancerous tissue. Because the injectible polymer turns solid and holds the microspheres in place, there is little to no threat of any radiation escaping and damaging surrounding tissue. As described by Dr. Alan Walter, Chair of the AMIC Scientific Committee, in a presentation available on the company's home page, such a technology could be termed as using "smart bullets" to target cancerous cells.
Yttrium-90, in the form of Polymer seeds, is an already-established medical isotope with numerous applications in existing cancer treatment and has demonstrated effectiveness in combating head, neck, liver and prostate cancers, according to an above-linked company presentation. The radiogel application of Yttrium-90 could potentially 'storm the scene' in treating numerous cancer types with the intent of targeting those tumors in the hard-to-get to areas of the body that eliminates surgery as an option.
Both the Polymer seeds and the acquired the radiogel technology significantly boost the diversity of AMIC, offering a targeted path to enter the realm of caner treatment to augment the production, sales and distribution channels of its isotopes.
It's possible, based on previous expectations, that the Brachytherapy pipeline could hit market within a couple of years. At that point AMIC could either move forward with commercialization on its own or out-license the technology to someone else and use that revenue stream of royalties to fund the expansion of the core business.
Shares were up by eight percent on Wednesday, although volume was very light. That said, volume has been picking up significantly over the past few months and has tripled already once this year. Volume has also stormed in after the company's more relevant press releases, indicating that there are investors on the sidelines who either wait to play a quick trade or may be taking a 'wait and see' approach to playing this still-speculative stock.
Should the potential of the AMIC distribution network continue to expand and meet the growing demand for nuclear medicine - and should the polymer seeds and radiogel technology also hit market with momentum - then it's likely that the current ADMD share price could start to move. Currently, shares consistently trade for a few pennies above the twenty cents mark, give or take.
Based on the potential of the developing technology, already-available products and future product offerings, the current ADMD trading levels could serve as an opportune accumulation period to those looking at the risk/reward profile for the future. The current market cap of still under twenty million indicates that many investors are still unconvinced, but when searching for potential payoff picks on the bulletin board stocks, it pays off to be in while the stock is still moving along relatively unnoticed, as the best percentage gains to be had in any run start with being in place before the run starts.
That said, the stock market is risky business and there are no sure things, that's why it's up to each investor to conduct his or her own DD and invest accordingly.
Still a developing story worth monitoring.
Disclosure: No position.
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