Emergent Health: A Growth Story

From patent cliffs to the implementation of Obamacare, many investors are naturally wondering how they can play the healthcare market. While device makers are going to be hit with a 2.3% excise tax and drug manufacturers will face several non-tax deductible fees, there are still industries of the sector that are relatively unaffected - and in a good way if affected.

One industry worth investing in is regenerative medicine sector. With the increased number of insured individuals and an aging population, more demand will be placed on measures to improve quality and length of life. There is little competition in this industry but high inelastic demand for a variety of products.

Emergent Health Crop (EMGE.PK) is specialized in the field and has seen substantial momentum through the positive secular trends. Preliminarily unaudited revenues have surged while distributor retainment leads many peers. Fortunately, they have targeted several markets that have gotten meaningful traction of late: weight loss, sexual dysfunction, and energy.

Vita-Stim Stem Cell helps increase the release of progenitor cells. Scientific research has shown that adult stem cells repair organs and may counter the natural aging process. Infinity Anti-Aging plus has a similar effect by activating SIRT-1 anti-aging genes that engorge the production of cells with longer telomeres. Biologists have found that telomeres decrease with age - reversing this process is thus thought to extend life.

Hungarest Diet and Energy helps to curb the desire for eating by dually controlling brain and stomach mechanisms. This product is timed perfectly as a low cost alternative to Arena and VIVUS's recently FDA-approved drugs. Finally, Emergent 02 Water Oxygenator helps to oxygenate blood cells to detoxify wastes, which, in turn, improves energy and the immune system.

With the Department of Health and Human Services forecasting strengthening demand for regenerative medicine, it is noteworthy that JDI International has reportedly seen double-digit growth. Belviq and Qnexa have demonstrated to market watchers the substantial returns that can be generated from targeting unmet needs. After decades of hopelessness and product scandals with anti-obesity drugs, Americans finally have what appears to be an answer.

The only problem is that there is a large majority of overweight individuals who would not feel comfortable taking prescription drugs to lose weights but would like to conveniently buy something more accessible. 43% of Americans are expected to be classified as obese by 2030, so the demand is high. And Hungarest is distributed through Health Food Stores, which helps to de-stigmatize the condition. As greater attention is given to the recently FDA-approved prescription drugs, it should be expected that a wave of Americans will start purchasing in health-oriented retailers. In this way, and many more, Emergent is well positioned for the future.

Disclaimer: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. We are a consultant to Emergent Health and have been contracted ten thousand dollars. Investors are cautioned to perform their own due diligence as information contained within this report has been derived from public sources and cannot be guaranteed by us to be fully accurate. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often “forward-looking statements” as defined under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.