Pharmaceutical Investing

As NanoSphere Health celebrates a recently secured patent, investors are showing interest as the company’s share price rises.

One of the most beneficial methods for a company to secure its product—aside from US Food and Drug Administration (FDA) regulatory approvals—is through patents.

On Tuesday (March 27), NanoSphere Health Sciences (CSE:NSHS) announced that it had secured a patent for one of the most important advancements for its non-invasive delivery system to cover the core technology the company has worked over two decades to advance.

This patent gives NanoSphere the opportunity to bring NanoSphere Delivery System through multiple product lines and platforms to the market, such as the company’s pharmaceutical NanoSphere NSAIDS as the first of numerous products in the pipeline.

This is a game changer for the delivery of at least 16 different of liquid nanoparticles as well as a validation for our core technology to produce nanoparticle system to develop products within our different divisions,” Dr. Richard Clark Kaufman, chief science officer and inventor of the NanoSphere Delivery System told the he Investing News Network in a telephone interview. Kaufman added those divisions range from pharmaceutical, cannabinoid, nutraceutical and cosmeceutical.

In the case of pharmaceuticals, the technology will work by reducing the amount of adverse effects by delivering a more targeted delivery so a higher degree can be delivered. Kaufman said one of the first applications will be to reduce gastrointestinal upset, which is caused from drugs being absorbed through the stomach and intestines.

Kaufman said in the past companies producing particles would use an array of techniques in the laboratory which are “prohibitively expensive” but the NanoSphere Delivery System will streamline the process for commercial applications—while adhering to FDA guidelines.

Investor takeaway

The company’s share price spiked Tuesday morning following the announcement,increasing by  30 percent from $0.50 to $0.65 before closing at $0.57. By Wednesday (March 28), NanoSphere’s share price dipped slightly from its open of $0.58 to $0.54 at the close. The company’s share price reached an all-time high on January 22, 2018 at $1.04 before subsequently dropping around the time the company released a licensing agreement in California.

However, a MorningStar equity report published on Wednesday says the company is significantly undervalued and recommends a fair market value of $0.76.

“I think investors should realize that this [patent] represents a new chapter in targeted, superior drug delivery and we want to be on the forefront of this in the applications,” Kaufman said

While NanoSphere intends to license the delivery system to research institutions and pharmaceutical companies, among others, it will also have its own branded product line. In short, this means the company is taking advantage of different pathways to strategically build a steady revenue stream.

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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: NanoSphere Health Sciences is a client of the Investing News Network. This article is not paid-for content.


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