Shares of biotech company Oxygen Biotherapeutics have recorded a week-long trading frenzy, Wednesday surging to a six-month high of $11.21, today up 12% at $6.70 as of 11 a.m. ET, and notching a gain of 175% over the past week on huge volumes.
Oxygen Biotherapeutics develops medical products designed to deliver oxygen to tissues throughout the body, as well as similar products for personal care, topical wound healing and more. The trading activity comes after the company said it signed a licensing agreement, expanding its product lines.
As a recent article on Marketwatch points out, coverage of the company’s products and operations have shed light on other players in the oxygen business, including OxySure Systems, Inc., a medical technology company focused on the design, manufacture and distribution of specialty medical and respiratory solutions.
While OxySure shares movement doesn’t parallel the gains of Oxygen Biotherapeutics, shares jumped $0.05 following the release of the article, which details OySure system’s FDA-approved power-to-oxygen process as well as the company’s potential investment opportunity.
OxySure’s proprietary process produces medical-pure oxygen from dry, inert powders for use in emergency and short-duration situations. The device is simple enough that it can be used by any layperson.
As the article states, “With the potential to become the equivalent of the next AED in the medium term and the equivalent of a fire extinguisher in the long term, OxySure’s Model 615, already FDA approved for over the counter sale (no prescription required), has a significantly larger end market than Oxygen Biotherapeutics PFC-based drugs. The installed base for AEDs exceeds two million units, while fire extinguishers exceed 100 million units in the U.S. alone. Capturing just a fraction of this market with its unique emergency oxygen solution could represent a multi-billion dollar opportunity that could unlock significant long-term shareholder value. It is more likely than not that OxySure will capture a significant share of the market because it is the only player that has this product and technology. OxySure pioneered this technology, and owns numerous patents and patents pending around it, and has first mover advantage.”
The article also recaps the company’s financial position, noting that second-quarter revenues surged a whopping 650% to $476,071; SG&A expenses down 18% to $194,803; interest expenses 60% at $23,254; and a net loss narrowed by 11.8%. Also notable, Sterling Investments analysts issued a Buy rating on the stock with a $1.90 per share 12-month price target.
In conclusion, the author writes, “The positive financial momentum has been followed by a number of promising recent developments. In July, the company launched an AED/OxySure double wall cabinet to house its product next to the ubiquitous AED. In October, the firm announced a partnership that lets dozens of banks compete for leases on OxySure’s products with a simple 2-minute application. Creating the ability for customers to lease OxySure’s products significantly expands the market. Combined, these two developments could significant expand its market moving forward.”
For more information, visit www.oxysure.com
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