"The Most Profitable New Medical Device Investment in the World"

Rob Fannon and Dr. George Huang are analysts for a newsletter called The Medical Investor, and their publisher, George Rayburn, has a deal for you … sign up for a subscription, and you’ll get their new report, “The Most Profitable New Medical Device Investment in the World Right Now.”

Or of course, since you’re a friend of the Stock Gumshoe … you can just read the rest of this post to see what the company’s name is.

What’s the product? It’s a medical device, some sort of imaging product, and they give a few clues about the company:

“It’s safer than X-Rays, MRIs, or CAT Scans, and is already approved by the FDA. So far, this new technology has been used on 450,000 patients worldwide, with amazing results for certain cancers and many gastrointestinal problems.”

43 patents in many of the big industrialized countries.

Shares up 25% since last summer.

Mentioned in several volumes of Nature.

Has a $50 million marketing deal with Johnson $ Johnson.

So we put all that together, and what do we find?

Just a sec’ while I fire up the informatibilization device …

Ah, here we go!

This company is …

Given Imaging (GIVN)

This is a smallish Israeli firm, and their key product is the Pill Cam — which is just what it sounds like, a tiny wireless camera in a capsule that’s small enough to swallow (though just barely — it doesn’t look like a fun mouthful to me).

They use this and the associated products — receivers that you wear on your body, computers to quickly download and interpret the images — to help diagnose problems with the whole gastrointestinal tract. I’m guessing that’s things like stomach cancer, colon cancer, etc., but didn’t read too much about it.

The Nature articles on this, by the way (and I did read parts of them — that’s how much your Gumshoe cares!), were largely about the lead this little company had in this area of imaging as of a couple years ago — and how the big leader in endoscopes, the wired camera’s that you swallow or (picture discomfort), Olympus, with 70% market share, was caught a bit flat footed by the pillcam technology and is trying to catch up in that niche. Don’t know if they have yet or not, but certainly any competitor with Canon’s size and reach would be worth investigating if you’re tempted by this company. In related news, GIVN announced an agreement yesterday to collaborate with Fujinon, one of Olympus’ major endoscope competitors, so maybe that will help them as well.

Analysts have them becoming profitable this year, though they weren’t last year. Don’t know much else about the company, but if you do please share with your collegial Gumshoe readers with a comment here. I do know that I’d rather swallow a pill than a tube, for what it’s worth. Happy researching. And if you want to know what another investment advisor, Peter Stansberry, thinks is the hottest new medical device investment (it’s different than this one), that post from last month is here.

The author will always disclose any direct long or short equity, debt or option position in any stocks written about as of the day of publication, and will not trade in any stocks mentioned for three days (72 hours) after publication. Full disclaimer is at the bottom of the page.

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1. One of my employees just used this. The harness is a bit bulky but the results were good. I believe it will fly but will take some time to build a following. Then again, we live in a town of only 52,000 and the nearset city of any size is 2 1/2 hours away so if we have it…..

   [Reply]

   Posted by Lee Kuper | March 12, 2008, 10:09 pm

2. Keep it up Gumshoe. You are the Best!!

   [Reply]

   Posted by Ben | April 7, 2008, 8:06 pm

3. Since you have offered me much good information on your site, I thought I’d weigh in on this issue. I am a physician and here’s a bit more on the pill cam: the pill is not in competition with the “wired” camera (”endoscope” a fiberoptic camera that you insert into the site of interest). The pill is passively carried through the GI tract and takes pictures along the way. An endosope is actively driven by the operator and can image an part of the stomach or large intestine. An analogy: Imagine sending a video camera through the Grand Canyon by floating it down the Colorado in a barrel with a small hole in it (the pill) – then compare that to watching a video of the grand canyon made by National Geographic (the scope). 2 very different views. The big advantage of the “pill” is that it can get to places that the scopes can’t, namely the small intestine. But small intestine problems are fairly rare, so there will never be a big market for the pill until they make one that you can “drive” to focus on a site of interest. Then it will rapidly crush the endoscope market.

   [Reply]

   Posted by Doug | December 21, 2008, 9:57 pm