In our last review of LEXINGTON BIOSCIEN (OTCMKTS:LXGTF), we brought readers to the know on their novel product, HeartSentry, a product which has come as a revolution in the medical space as well as positioned LXGTF for growth.
In that piece, which can be obtained here, we also alluded to the fact that LXGTF would do all it took to ensure that the commercialization of this product took effect within the period ended 2018.
Since then, steps have been taken to ensure that their plans come to fruition. As will be seen later in this piece, the company’s management is toiling day and night to ensure investors within the company reap the benefits of a high valuation from the market.
Currently, the company is trading at $0.438, a high from the $0.25 they were trading at only in October. Moreover, their volumes have skyrocketed since October to end at over 0.25 million on most days. This price action can be seen in the chart below:
This being said, we found it important to have a look at the recent developments that have influenced the company’s share price. Finally, we will give our opinion on the company’s future prospects courtesy of the same.
LXGTF: Who Are They?
Before then, however, lets have an over view of LXGTF.
Lexington Biosciences is a medical device company developing the HeartSentry, a new diagnostic device to measure and monitor cardiovascular health by assessing the function of a person’s vascular, a function currently performed using expensive external ultrasound by a highly trained technician.
The company was formed in 2016 and registered in Vancouver, Canada, however, the HeartSentry core technology was developed at the University of California Berkeley over a fifteen-year R&D period. Their goal is to make a cost-effective, accurate and efficient system which can be the standard care among cardiologists, general practitioners, and ultimately patients for evaluation of cardiovascular health.
Lexington is currently engaged with the US FDA and other regulatory agencies on the required product approvals for the HeartSentry.
Lexington Biosciences is finally making real their first promise to get to the clinical trial round of the study. Their most recent press release entailed the engagement of San Francisco Bay Area-based Diablo Clinical Research to conduct its upcoming HeartSentry pilot clinical studies.
This goes in line with the promise the management made to the market to ensure that they would have their products through the commercialization phase by the ned of 2018. As such, they have sought the best in their field.
Diablo Clinical Research was founded in 1955 and has had over 22 years of specialization in clinical research. Their staff are specialized in different medical facets but one stands out for them in this case, cardiology.
So far, they have a database comprising of over 15,000 patients after carrying out over 600 clinical studies during the 22-year period. As such, the decision to contract Diablo as their preferred choice for this journey seems warranted and backed by years of success.
During the announcement, the president of LXGTF stood by the latter and made the following remarks:
“…the arrival of our first human-use HeartSentry devices allows us to accelerate our plans to move ahead with our pilot study. Diablo Clinical Research is a proven and respected establishment with the capability to launch our research program efficiently and cost-effectively. They have been extremely helpful in the determination process which has led to today’s announcement. We are excited to begin this next step of our development phase, and look forward to sharing quantifiable results in the near future.”
The above has not only boosted the value addition expected from HeartSentry but also ensured that they benefit from the high valuation they have obtained from the market.
The New Space
HeartSentry has come to rock a new and growing space and this could send them either skyrocketing upwards or see them ultimately get acquired by one of these firms.
The integration of the health kit into smartwatches is a revolution on its own and is currently being explored by large companies such as Apple and Samsung. The introduction of the HeartSentry product is therefore bound to rattle this market.
HeartSentry is a cost-effective and easy was of assessing cardiovascular risk. This, coupled with the fact that the method has been quite accurate courtesy of novel algorithms, has sent shockwaves to the market. The shockwaves have not only been felt by their immediate competitors, Ultrasound, but also by such companies which are working at development of smart gadgets that could enable tracking of health for their large client base.
This is closely tied to the words of Dr. Geoff Tison, Cardiologist and Assistant Professor in the Division of Cardiology at the University of California San Francisco who said:
“With the recent publication of the more stringent American Heart Association hypertension management guidelines, there is increased awareness of the need to more closely monitor patients for cardiovascular risk factors, which HeartSentry is well positioned to do.”
Given the above, we believe that LXGTF is poised for entry into a much larger space than they can imagine, be it through development of the product and commercialization directly from them or through a buyout of their technology from such a Fortune 500 company as they work to consolidate their strengths and harness the synergies from different success stories worldwide.
Whichever the case, the value addition from HeartSentry is ever-increasing.
The company has so far been unable to generate revenues courtesy of their product having no approval by the FDA.
However, the $192,000 in research and development coupled with the $346,000 in working capital both send signals of investment in the future as well as their ability to handle short term financial needs.
With the above in play, we believe that upon approval and henceforth, LXGTF will be a company many investors will love to have invested in.
LXGTF represents one of the success stories in the market. The entity has invested heavily in a lucrative sector and is poised for success. Investment in the firm would be a step into future growth of the investor’s portfolio.
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Disclosure: We have no position in LXGTF and have not been compensated for this article.