BioSpecifics Technologies Corp., a biopharmaceutical company, engages in the development of an injectable collagenase clostridium histolyticum for multiple indications in the United States. The company offers injectable collagenase for the treatment of Dupuytren's contracture and Peyronie's disease under the XIAFLEX brand in Canada and Australia, as well as under XIAPEX brand name in Europe. It also provides injectable collagenase to treat frozen shoulder, cellulite, canine lipoma, lateral hip fat, and plantar fibromatosis, as well as for the treatment of human lipoma and uterine fibroids. The company is also involved in the development of other clinical indications for which collagenase injection has been tested, such as keloids, hypertrophic scars, scarred tendons, glaucoma, herniated intervertebral discs, and as an adjunct to vitrectomy. It has a development and license agreement with Endo Global Ventures. BioSpecifics Technologies Corp. was founded in 1957 and is headquartered in Lynbrook, New York.
(Summary) (Company) (Chart)
23 July 2017
1yr Target $72.00
Payout Ratio ---
1yr Cap Gain 40.21%
1yr Tot Return 40.21%
EPS (ttm) $1.63
EPS next yr $1.93
Forward P/E 26.61
EPS next 5yr 22.00%
1yr Price Support $42.46
Market Cap $373.31 Mil
Revenues $27.40 Mil
Earnings $11.90 Mil
Profit Margin 43.43%
Quick Ratio 21.20
Current Ratio 21.20
1yr RevGR 15.38%
3yr RevGR 22.68%
5yr RevGR 18.16%
1yr EarnGR 18.18%
3yr EarnGR 26.78%
5yr EarnGR 10.42%
1yr DivGR ---
3yr DivGR ---
5yr DivGR ---
BioSpecifics Technologies Corp. is a profitable, biopharmaceutical company that has been involved in the development of injectable collagenase for multiple indications. Injectable collagenase is marketed as XIAFLEX® in the U.S. for the treatment of adult Dupuytren's contracture and Peyronie's disease by BioSpecifics' partner, Endo International plc (Endo). XIAFLEX® is also commercialized in Japan, Europe, Canada and Australia for Dupuytren's contracture and also for Peyronie's disease in Europe and Australia.
In addition to Dupuytren's contracture and Peyronie's disease, Endo is managing the research and development of XIAFLEX® for their six licensed clinical-stage indications, which include adhesive cabsulitis, cellulite, lateral hip fat, plantar fibromatosis and human and canine lipomas, all of which are currently undergoing a commercial assessment and analysis by Endo. BioSpecifics is currently managing the development of XIAFLEX® for uterine fibroids and initiated a Phase 1 clinical trial in the second quarter of 2017 following promising preclinical data from a collaborative study with Duke Medicine. BioSpecifics also initiates the development of XIAFLEX® in new potential indications. Endo has the right to opt in to new indications.
Collagen comes from a Greek word meaning “glue producing” and can be thought of as the glue that holds the body together. Collagen is the major component of the extracellular matrix (ECM), or connective tissue which supports, connects or separates tissue. Collagen is the most abundant protein in mammals, comprising approximately 1/3 of the total protein in each mammalian organism and is the main constituent of skin, tendon and cartilage, as well as the organic component of teeth and bone. The basic structural unit of collagen is a triple-stranded helical molecule which has a greater tensile strength than steel. Biosynthesis and regulation of collagen is a complex biochemical and molecular process and it is the subject of considerable current scientific research.
The body normally responds to injury or certain diseases by forming scar tissue, the major component of which is collagen. The collagen observed in scar tissue is typically denser and less elastic than normal tissue and proliferation of this highly cross-linked collagen-abundant scar tissue often results in diminished physiological function, decreased range of motion in orthopedic conditions and obstructions in internal adhesions.
Excess formation of scar tissue is evident in many fibroproliferative medical conditions and it may be life threatening in cases where it affects the heart, lung, peritoneum and kidney.
Collagenase is an enzyme that breaks down collagen and is the only protease that can hydrolyze the triple helical region of collagen under physiological conditions.
Endogenous collagenase production is an essential biological mechanism that regulates matrix remodeling and encourages normal turnover of tissue as well as the removal of dead tissue. Once the collagen is cleaved into smaller units, the endogenous enzymes further assist in breaking down the fibrous material. Because collagenase does not damage the cell membrane, it has been widely used for cell dispersion for tissue disassociation and cell culture for many years.
The Clostridial collagenase produced by BioSpecifics has a broad specificity towards all types of collagen. It is acknowledged to be much more efficient than mammalian collagenases as Clostridial collagenase cleaves the collagen molecule at multiple sites along the triple helix, whereas the mammalian collagenase is only able to cleave the molecule at a single site along the triple helix.
There is vast therapeutic potential for injectable collagenase for many medical conditions caused by excess collagen accumulation.
Excess collagen causes many medical conditions, and consequently BioSpecifics believes that minimally invasive collagenase therapy has wide potential therapeutic applications. BioSpecifics has explored the use of collagenase in a multitude of medical conditions and in both topical and injectable forms. BioSpecifics developed, marketed, and later sold to another company a topical product, Santyl®, for wound treatment which has been very successful and used in millions of patients. The Company now focuses on injectable collagenase which is marketed as XIAFLEX® (collagenase clostridium histolyticum or CCH) in the U.S. and XIAPEX® in the EU and is in clinical development for several other promising indications.
Therapeutic Use of Collagenase
There are many potential advantages to the clinical use of XIAFLEX. The therapeutic activity of XIAFLEX is minimally invasive and it can be administered in an office setting. XIAFLEX holds considerable therapeutic potential to change the way patients are treated for a range of diseases and indications where surgery is currently the only proven option for removal of the scar tissue. New clinical indications involving the therapeutic application of Clostridial collagenase to supplement the body’s own natural enzymes are continuously being proposed by specialists in the medical community.
My Path Forward
The old adage that all boats float in a rising tide is applicable here. The pharmaceutical and biotechnology sectors of the economy have been moving higher and that bodes well for companies like BioSpecifics Technologies. But more than that, I think the fundamentals for this company are moving higher too. Add in the fact that the chart looks good for starting a position and I think I've got a new addition for my portfolio.
The stock has been moving up and down between $48 and $58 all year. At $51 per share there's potential for a $3 pullback and a $7 move higher. That's a 2/1 profit to loss scenario and that's the kind of numbers I like to see. Patient investors might even wait for a slight pullback to get an even better ratio. But when you realize that the is $72 per share, then the ratio expands greatly. In this case there's the potential of a $3 loss and a potential gain of $21 for a 7/1 ratio. Now that's a fantastic ratio by any standard.
I intend to start a postion in this company in the very near future and before the stock moves any higher. I want to capture this profit/loss ratio as it currently sits. This could turn out to be a very sweet deal.