Right now, it’s easier to land a man on the moon than to cure cancer.
In many respects getting to the moon was easy. There are lots of things leading medical experts still don’t understand about the human body. It’s one of the reasons the medical research industry is such a robust market.
The other reason… the numbers.
According to the American Cancer Association, 569,490 people in the United States died because of Cancer in 2010. They estimate there are around 1.53 million new cases of cancer every year.
Cancer has touched everyone’s life in one way or another. Maybe you’ve had a close family member die of cancer… or a friend diagnosed with the horrible disease. You may have sidestepped the big “C” however you probably know someone doing battle right now.
Remember, the 1.53 million unlucky souls diagnosed last year are people. They need our love and support. And most importantly, they need treatment. Bottom line, cancer is put into remission by pricey hardware, expensive surgical treatments, and powerful drugs.
BSDM received FDA clearance to market the microthermx in august 2010. They also received clearance from EU regulators to market the new product line in Europe. This is a huge milestone as management estimates the potential world market for ablation devices to be around $2.3 billion.
Companies bringing powerful treatment to the frontlines of this disease are poised to reap not only huge financial rewards, but emotional rewards too!
Just take a look at BSD Medical (BSDM).
BSD MEDICAL’S BUSINESS
BSD Medical makes its money off some pretty advanced cancer fighting medical equipment.
They specialize in Hyperthermia therapy devices. Hyperthermia therapies entail superheating cancer cells with radiofrequency and microwave energy to damage or destroy them. Weakened tumor cells might suffer apoptosis, which is a certain type of cell death. If the cancer cells don’t die they at least become more susceptible to traditional treatments.
Right now BSDM produces superficial, deep, and internal hyperthermia therapy devices.
The various devices all target cancer cells in different ways. For example, superficial hyperthermia is noninvasive and used for tumors within centimeters of the skin’s surface. This is effective for treating cancers like melanoma and breast cancer.
Other products like the internal/intestinal device are used inside the body. An antenna is threaded into various parts of the body to deliver hyperthermic microwave energy. This technology can be used on prostate cancer, breast cancer, and head and neck cancer.
The company is working on even more powerful versions of these devices.
WHY BSDM? WHY NOW?
BSDM received FDA clearance to market the MicroThermX in August 2010. They also received clearance from EU regulators to market the new product line in Europe. This is a huge milestone as management estimates the potential world market for ablation devices to be around $2.3 billion.
With FDA clearance comes an ability to sell their equipment.
In early May 2011 the company announced a distribution agreement with CoMedical who specializes in selling noninvasive or minimally invasive medical equipment. BSDM’s hyperthermia ablation device is right up their alley.
The latest news indicates the company has since signed up two additional distributors. The company is continuing to work on additional distribution networks for the US, Europe, and other international markets.
BSD MEDICAL’S FINANCIALS
BSD announced earnings on January 9 2012. Now, keep in mind for whatever reason the company doesn’t use a traditional year-end… this reporting quarter ended in November 30, 2011.
The key to understanding their financials is that the business is still in development. Remember the ink is still drying on the new distribution deals. BSDM won’t magically see a huge influx of revenue overnight.
Keep an eye on their revenue over the next couple of quarters.
The key at this point is the balance sheet…the sales revenue will come in time. For now, we want to focus on cash and debt levels. And I like what I see.
The company reported just under $15.7 million in cash and no debt.
The company lost just over $5.3 million in 2011 and at that rate, they’ll be in business for at least 3 years before running out of money. But I don’t think that will be a problem. Once the company starts seeing sales from their distribution network, the losses should dwindle.