Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
C/W report includes EMIS, Money-Doubler #1

ChangeWave free report included, "Taking Your Medicine"

Emisphere Technologies (EMIS)

..."The diabetes epidemic rages on. It's a sad fact of life that the way we live today is bringing this largely preventable disease to more and more people.

Fortunately for those suffering from the disease -- and smart investors like us -- there are companies that continue to search for drugs to make it more manageable.

One of our favorites in this sector is the leading candidate to bring out insulin in pill form -- a multi-billion-dollar breakthrough -- Emisphere Technologies (EMIS).

The holy grail of drug delivery systems is converting hard-to-administer drugs -- like insulin, which requires multiple injections -- to pill form. The leader in this game for insulin is Emisphere, which recently signed a delivery agreement with drug giant Roche to conduct feasibility studies using Emisphere's Eligen technology for new oral formulations of a number of Roche molecules.

Eligen technology uses synthetic chemical compounds to deliver normally injected drugs to a patient orally. They have an oral insulin deal with Ely Lilly that is quite far down the FDA trial gauntlet and we have excellent research on their oral insulin trials.

This technology enables oral delivery of large macromolecules and delivers these molecules without changing their biological integrity. Using Eligen technology, Emisphere has created a library of more than 4,000 delivery agents. Emisphere is working with the FDA to create a different, abbreviated approval process for its new delivery method based on old, oral drugs.

EMIS has more than 80 patents, including 50 in the U.S. -- all developed over an extended period of time to support its business model and it does a great job at protecting them. It's not above slapping one of the bigger pharmas with a suit when they catch it stepping on one of its patents.

The company is also developing or in trials at various states with oral Heparin to prevent blood clots, oral insulin for diabetes, an oral form of a human parathyroid hormone for osteoporosis and oral human growth hormone.

The big hope for the stock is still oral insulin (in Phase II trial in India), but do not expect news until November at the earliest. It's an aggressive growth play and it doesn't trade a lot of shares compared to many of our recommendations, so be disciplined when establishing a position. (See our advice below and consider buying with limit orders, not market orders.)

Buy EMIS under $8.50 with a $24 target on approval for oral insulin."....
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.