Have you seen what has been happening to LEXINGTON BIOSCIEN(OTCMKTS:LXGTF) share price?Any player in the biosciences sector must know by now that the company is currently one of the most bullish stocks in the biosciences sector.The company, which began trading on the OTC Market back in August, is seeing its hay days with its share price having risen from $0.25 at the end of September to $0.45 just recently as October closed. LXGTF Daily ChartThis 80% rise has gotten the market in a frenzy and necessitated our interest in the company. As such, we will take time to look at the driving force behind such a high change in valuation and whether this change is warranted.Our approach will be to first analyze the company and its products, then touch on its industry then finally on their historical financial performance. By doing this, we trust the reader will have sufficient knowledge on the company to make information-backed decisions.However, for the sake of readers new to this sector, let us first have an introduction to the company.LXGTF: The Rise and RiseFounded in 2016 and registered in Vancouver, Canada, Lexington Biosciences had one main objective for the sector and world, to ensure that the number of deaths in the world due to heart disease reduces. Their founders comprised a research team that had some proprietary research on human arteries and how studying them can reduce heart attacks deaths globally with the number currently standing at about 17.3 million annually.The company has since then developed a new device, HeartSentry which is used to measure the functions of cells protecting us from heart disease. This device is not only going to be usable in major hospitals but also in homes all around the world. This puts the company at a great position to grow once they commercially roll-out this product.On this backdrop, LXGTF is on the verge of a take-off and the market seems to know this quite well given their share price rally. Growth seems imminent for them.HeartSentryThe HeartSentry is a personal cardiovascular health monitor. The machine is based on proprietary blood pressure cuff (similar to a normal blood pressure measurement machine) that uses specialized algorithms to interpret changes in the arm’s blood volume.The device is not only fully automated but also compact and inexpensive thus ensuring that it can be used for home care as well as primary care physician offices. Moreover, its built-in Bluetooth faculties enable results from the machine to be accessed through mobile devices. The latter is meant to ensure that this machine can penetrate into the retail market quite quickly given the penetration of mobile devices in the retail market.With the global blood pressure monitoring market value estimates standing at $3.8 billion in 2023, the company has made long strides towards ensuring that they are the go-to company for any such help.This has been achieved through achieving a 500% improved sensitivity on their device with consistently higher accuracy and much lower variability. As such, the company is not only expecting to deliver value for money but also ensure they meet their initial goal that is lower deaths from heart conditions for all: a win-win.This being the case is not the main driver of their current price surge.On October 23rd, LXGTF received their HeartSentry trial units. The trial units are meant to ensure that they can begin clinical trials in the near term and receive FDA approval in the long term. With the company targeting the next 24 months for their commercial roll-out, such results go a long way in proving their will to meet their objectives and true to it, the market is noticing.Their President Eric Willis commented:
"We are delighted to take delivery of these first HeartSentry human-use units from our manufacturer. The design and production team have worked for nine months to perfect the HeartSentry technology and device design, and we have achieved a significant milestone by moving the HeartSentry out of the lab and into a hand-held mobile unit ready for clinical trials. We look forward to being able to commence study enrollment in our upcoming HeartSentry clinical study in order to gather the foundational dataset aimed at supporting FDA clearance.”
Source:Their traded volumes throughout October have been a mirror of market expectations and these have skyrocketed over the past month. The market seems to be in agreement that LXGTF has a strong value proposition and is operating in a solid and growing market. The future seems bright for them.FinancialsGiven that the company was formed in 2016, only a few quarters worth of information has been obtained. However, the information tells their story nonetheless.The company made a net loss of $279,000 in its most recent quarter courtesy of both their inability to generate revenues as yet coupled with their research and development cost which stood at $192,000. This being its research phase, such a cost is both expected and quite welcome.The following was, however, overcome by the fact that their working capital base stood at $346,000 over the same quarter. The company is to use this money to further their research as well as fund other operational activities such as marketing upon nearing the FDA approval.Finally, over the past 12 months have issued shares, having issued 6.25 million units at $0.2 per unit and 2.53 million units at $0.25 per unit. This has enabled them raise the necessary amounts for them to run while proving the market’s perspective on the company: one they are willing to make a bet on.The above tell to a strong financial base that, despite hiccups, is bound to get even stronger as time moves on. Their strengths are soon to be realized and investors would do themselves a huge favor by getting on this bandwagon.ConclusionLXGTF represents one of the success stories in the market. Their new technology is bound to take the market by storm. This coupled with their strong vision and objective, curing the world one heart at a time, will pivot them to the next level and ensure that they don’t miss out on the perks the market has to offer in rewarding sound research and development.We will be updating our subscribers as soon as we know more. For the latest updates on LXGTF, sign up below!Disclosure: We have no position in LXGTF and have not been compensated for this article.
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