Aytu BioScience Inc (NASDAQ:AYTU) is continuing its upward trajectory, adding to its already impressive 36% gain since Monday as the company secures an uplisting to the NASDAQ Capital market and will also be the honorary NASDAQ closing bell ringer this Friday, October 20th.
Beyond the uplist, however, recent company accomplishments make AYTU deserved of the share price increase, with its lead product, Natesto®, AYTU's testosterone replacement therapy, enjoying significant and sequential gains in new prescription rates. Beyond Natesto®'s impressive growth, AYTU may be penetrating the market with one less potential competitor, with Xyosted®, Antares Pharma's lead testosterone replacement drug expected to get rejected by the FDA, based on a statement made by ATRS last Friday. Looking at the manner in which investors are responding to Xyosted®'s likely demise, Antares loss will likely be AYTU's gain.
AYTU Has Room To Grow
Investors need to acknowledge that AYTU is well positioned to enjoy substantial gains in the near term, benefiting from its respectable product portfolio, its product's market penetrating traction, and the company's cash-rich balance sheet.
Strengthened by its recent $11.8 million private placement, AYTU management guided investors that they believe the company is financially positioned to reach cash-flow break even or EPS status within the next twelve to eighteen months. The optimistic outlook gets fueled by Natesto®'s more than 300% sequential growth in new prescription rates during the past nine months. Also, AYTU has a sales force in place that is working strategically to expand its testosterone replacement treatment in regional markets, enjoying increasing reimbursement coverage from major insurers that gets further supported by AYTU's patient incentive plan that subsidizes the out-of-pocket patient cost. In a cost comparison, Natesto®, which is clinically proven to provide similar or better therapeutic value to users, offers value savings of more than 200% per month against competitive products.
Not only is Natesto® less expensive, but the treatment also offers the first and only nasally administered dosing, significantly reduces the potential for accidental transference of testosterone, and most importantly, does not require an FDA mandated Black Box warning. In fact, Natesto® is the ONLY testosterone replacement therapy product on the market that does not have the most severe of warning labels associated with its product.
More To AYTU
The recent run has recouped some of the prior month's weakness. However, based on its pre-consolidation levels, the technical read shows that AYTU may be well situated to recover all of its early 2017 value, which may improve share price values to more than $17.00 per share.
Beyond Natesto®, investors are focused on AYTU's additional promising and already approved for sale products, inclusive of Fiera®, ProstaScint®, and MiOXSYS®, each of which provides a significant market opportunity that is expected to get considerable marketing attention in 2018. The catalyst driven opportunities are lined up on multiple fronts and investors have a prime chance to take a position in AYTU at prices that significantly discount the value in Natesto® alone. And, when considering the additional revenue expected to get generated in 2018 from AYTU's other portfolio products, the market cap at current levels is believed to be considerably undervalued based on numerous technical and intrinsic metrics.
Looking For Growth? Consider AYTU
Investors that are searching for a compelling investment opportunity, substantiated by proven pipeline products and multi-billion dollar market potential, should not overlook AYTU for growth oriented consideration.
Although AYTU announced several milestone events in the past sixty days, investors that follow the company expect that the remaining months in the fourth quarter will deliver even more value-adding achievements. Couple that with the growth of Natesto® and the overall trajectory that is expected to continue into 2018, AYTU may be a compelling value opportunity for investors that want exposure to the $2 billion TRT market.
Unlike competitive peer companies that are in pre-clinical studies, AYTU is well beyond the early stages of product development and is relatively clear of regulatory pressure from the FDA and other drug monitoring agencies. The value in approved for market drugs, on its own, is worthy of a higher company market cap valuation, and considering the multiple shots on goal with products that are demonstrating best-in-class potential, AYTU should not get underestimated regarding both near and long-term growth potential.
This article was originally featured at CNA Finance!