The global medical technology industry’s market size is currently about USD $400 billion and is forecast grow to USD $495 billion over the next three years, according to a PwC report. The term “medical technology” covers a broad range of products, from drugs to software. Advancements to medical technology are crucial step to improve the accuracy of diagnoses, advancing treatments, and improving the overall quality of medical care.
As the demand for healthcare rises, investors turn to healthcare companies working to discover novel treatments and innovative technology. With this comes the incentive of owning a stock that could potentially discover the next blockbuster drug, treatment, device or technology. From data-based approaches to drug developments, advancements in sector may catalyze potential opportunities investors looking to healthcare stocks.
Premier Health Group, Inc. (PHGRF) (PHGI) announced it has acquired all of the outstanding securities of Cloud Practice Inc., a medical software company. Cloud Practice will join the Premier Health team to offer tools and resources providing for better efficiency on a day-to-day basis for both physicians and customers. The combined Premier and Cloud Practice ecosystem consists of over 3,000,000 patients.
“We are very excited to have completed this acquisition and to have the experienced team at Cloud Practice join the team at Premier Health. With this acquisition, we now have a medical software company with national reach. Thus, enabling us to build on our patient-centric technology platform that will integrate telemedicine, online booking and other premium services with our electronic medical records (EMR) system,” said Dr. Essam Hamza, CEO.
Premier Health is moving forward with a binding Letter of Intent to acquire two cash flow positive Metro Vancouver-based pharmacies with a combined annual revenue of over $6 million for the fiscal year and expects the acquisition to close in or about Q2 2019. The company also recently entered into a strategic partnership with China’s 360 Health, a healthcare subsidiary of 360 Security Technology. The two companies will implement an infrastructure whereby Premier will be providing second opinion services by connecting 360 Health’s patients in China with doctors in Canada both remotely and in person.
Novelion Therapeutics, Inc. (NVLN) announced that its subsidiary, Aegerion Pharmaceuticals, Inc., has entered into an exclusive licensing agreement with Recordati Rare Diseases Inc. for the commercialization of JUXTAPID® in Japan. The agreement includes exclusive rights in Japan for Recordati to commercialize JUXTAPID for the current approved indication and negotiation for product commercialization in Japan of any potential new indications that may be developed by Aegerion.
The agreement entails that Aegerion will receive a $25 million upfront payment and an additional $5 million upon transfer of the JUXTAPID marketing authorization. The company is also eligible to receive commercial milestone payments up to an additional $80 million based on cumulative net sales and will be paid on a quarterly basis a 22.5% royalty on net sales.
“The licensing agreement for JUXTAPID in Japan is a positive step forward as we work to improve our near-term liquidity, reduce our operating expenses, and focus our efforts and resources with the goal of completing a comprehensive capital restructuring and creating a sustainable, cash-generating business,” said Ben Harshbarger, interim CEO. “We believe Japan is an important market for JUXTAPID with meaningful potential for growth. Recordati has proven commercial capabilities and we are confident in their ability to deliver JUXTAPID to HoFH patients in need.”
MacroGenics (MGNX) announced positive results from its Phase 3 clinical study, SOPHIA, of margetuximab in HER2-positive metastatic breast cancer patients. Margetuximab is an investigational immune-enhancing monoclonal antibody derived from the Company’s proprietary Fc Optimization technology platform.
The trial met the primary endpoint of prolongation of progression-free survival (PFS) in patients treated with the combination of margetuximab plus chemotherapy compared to trastuzumab plus chemotherapy. MacroGenics said patients in the margetuximab arm experienced a 24% risk reduction in progression-free survival compared to patients in the Herceptin arm and demonstrated acceptable safety and tolerability, comparable overall to that of Herceptin and chemotherapy. MacroGenics anticipates submitting a Biologics License Application (BLA) to the U.S. Food and Drug Administration in the second half of 2019.
“We are pleased with the SOPHIA clinical results and are especially grateful to the patients, their caregivers, trial investigators and site personnel who participated in the study. I would also like to thank the entire MacroGenics team and our business partners who worked diligently to bring margetuximab to the clinic and execute the SOPHIA study,” said Scott Koenig, M.D., Ph.D., President and CEO. “Our Fc-engineered, immune-enhanced molecule has demonstrated a superior outcome in a head-to-head study against HERCEPTIN. We look forward to additional opportunities to develop margetuximab in other HER2-positive breast and gastric cancer populations.”
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