At a $15mm market cap, MYOS is a bargain on human capital
Scroll to the bottom for my conclusion
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| Myostatin Inhibition |
Role Call!
Chairman of the Advisory Board, Dr. Sol Barer
- CEO of Celgene
- MYOS has the top two players at Celgene onboard.... for those that dont know, Celgene is one of the largest, most successful public biotech stocks with a current market cap north of $50billion
- CEO of Celgene Therapeutics
- This guy is a legend in the biotech space with an outstanding network, connected to talent, cash, you name it .... if MYOS does anything remotely exciting, you can bet every major player in biotech will know about it because of Bob. Check out his TED talks, he is a very interesting man.
Independent Director, Dr. Peter Diamandis
- Chairman/CEO of X Prize Foundation
- Talk about forward thinkers - Dr. Diamandis has a broad resume, but is best known for sending 4 private citizens to space
Independent Director, Dr. Buzz Aldrin
- Second Man on the Moon
- enough said
Independent Director, Dr. Sapna Srivastava
- Head Biotech Equity Analyst at Goldman Sachs
There are plenty of other names worth mentioning... and I dont want to belittle or discredit the other dozen or so PhD's/MDs/brilliant people involved, but the list above should give a glimpse into just how stacked MYOS is with talent
What do they do?
MYOS currently sells nutriceutical (think GNC supplements) and is pursuing clinical developement of drugs related to myostatin inhibition
Myostatin is a protein in your body that breaks down muscle - it keeps you from looking like Arnold Schwarzenegger. Why? its calorically inefficient to be overly muscular and evolution has responded with Myostatin.... back in our hunter-gatherer/monkey days, calorie conservation was much more important than in today's world of big Macs and buffets .... just in the same way its inefficient and a waste of horsepower to have a Ferrari in New York City, rarely are Arnold sized muscles useful in the natural world. Myostatin trims your Ferrari body back down to an ergonomic Prius.
You know whipets? Those little skinny greyhound dogs? This is what happens when you inhibit myostatin
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| Do you even lift? |
Market/Products
nutriceutical
Right now MYOS sells a nutriceutical (primarily to body builders) called MYO-X
The products sells for about $100/month and has generally favorable reviews
Company made about $900k last year on sales and is on pace to do $1.1 so far this year ...
Clinical
Here is where the story picks up again - the nutriceuticals provide some cash while the company targets clinical developement... but for what?
Notice the space guys? Astronauts run into health problem upon returning to earth because of muscular atrophy (breakdown of muscles), which removes pressure from cardiovascular systems and bones, resulting in a whole host of issues ....
These same problems are shared by bed-ridden patients.... from surgeries, comas, broken legs, the list goes on .... not to mention, when you lose muscle mass, you lower your base metabolic rate... aka you burn fewer calories while resting... this results in fat gain and more health problems
Muscular atrophy is a fact of life for the 40+ crowd ... MYOS is big on becoming a regular supplement for all active 40+ adults
The markets here are broad as muscular atrophy ties into a whole host of medical complications.
So far, the company has only run trials demonstrating the efficacy of their MYOX supplement, proving inhibition of myostatin uptake
The talent on the board will have no problem navigating any further FDA trials - success is another matter, but logistically, they will have everything lined up
Financials
really not too much to write about - the company has a bit over $3mm cash in the bank with no debt and maybe 250k in liabilities
They have about 1mm a year in revenue
Operational loss of about $4mm last year
They will likely have to raise $ again .... i dont see this as a problem given the people on the board
Muscular atrophy is a fact of life for the 40+ crowd ... MYOS is big on becoming a regular supplement for all active 40+ adults
The markets here are broad as muscular atrophy ties into a whole host of medical complications.
So far, the company has only run trials demonstrating the efficacy of their MYOX supplement, proving inhibition of myostatin uptake
The talent on the board will have no problem navigating any further FDA trials - success is another matter, but logistically, they will have everything lined up
Financials
really not too much to write about - the company has a bit over $3mm cash in the bank with no debt and maybe 250k in liabilities
They have about 1mm a year in revenue
Operational loss of about $4mm last year
They will likely have to raise $ again .... i dont see this as a problem given the people on the board
Conclusion
Too much talent for me to ignore - let the nutriceutical aspect slow the burn rate while the company pursues further brand development and clinical developement
Given the people involved, this is a great "lotto" ticket stock for me - I picked up some shares at $.08ish a few months ago and will just let it sit ... come back to it every couple months, but really taking a gamble that in 2-5 years this stock will be valued in dollars
Watch out for resistance in the mid $.20s... I believe its around $.25 where they did their last raise, meaning there is an overhang of PIPE investors at that price ....
Shouldnt be a problem scooping up shares in the low-mid teens, but if you find the story compelling, scoop a couple up now!
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