Many stock investors worry about the Biotechnology & Drugs Industry. Scientists start companies and spend years in cash-loss research. Clinical trials seem to take forever, and that is without marketing investments to get doctors to prescribe. Profits are rare in this part of the otherwise rich Healthcare Sector. High risks and long gestation periods appear to be downsides of an otherwise interesting industry.
Here is a stock with a difference. It has a Net Profit Margin on a Trailing Twelve Months basis of more than 200%. Return on Average Assets has topped 80% during this period. What can account for such spectacular business results? Can the stock maintain such trends?
Intellectual property is at the core of the Biotechnology & Drugs Industry. This company has won significant litigation against a Healthcare Sector large capital stock. The business has a clear focus on neurology. The company specializes in monoclonal antibodies. It has an engaging blend of commercial products and others in advanced stages of development. The company operates through a world-wide network of resellers. This keeps fixed costs down, and allows for rapid market penetration at the same time. The company owns a number of valuable intellectual properties. GE Healthcare figures amongst its list of resellers.
The stock price has been very close to the 52-week high during the first half of April 2008. The Price to Earnings Ratio has continued to be below five during this period. Clearly, this is a small capital stock that no investor in search of growth can ignore.
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