Buy Genmed Holding Corp

In: Tips

20 Jan 2011

Hello All,

This alert has us excited.  The company is well positioned in a global market valued at $84 Billion annually and increasing by 11.9% annually.

The best part about the alert is the company has enormous potential and is still relatively unknown.

Our new alert is Genmed Holding Corp., GENM, and the stock closed today at 43 cents.

Here are a few facts to get you started.

GENM is a United States and Dutch based company focusing on the delivery of low cost generic pharmaceutical drugs directly to distribution channels throughout the world.

GENM began its generic drug business in 2008 and today operates primarily through its 100% owned subsidiary Genmed B.V., which is registered in the Netherlands.

GENM is led by an experienced management team and board who have considerable and highly relevant experience in product development, registration, sales, marketing, distribution, operations, and financial administration.

Generic medicine is a good industry, it is recession proof and profitable.

GENM has a license to market and distribute Acetaminophen, which is
the scientific name for Tylenol.   They didn’t just obtain this
license for one country, they got it for SEVEN countries.
Netherlands, Belgium, Luxemburg, Ireland, United Kingdom, Germany, and France.

Do you know how much Acetaminophen is consumed worldwide? Over 120,000 TONS per year!  A pill weighs virtually nothing. 120,000 tons is a lot of pills, and a lot of potential profits for the drug companies.

25% of this Acetaminophen consumption is from Europe.  It’s a two year application process and GENM has finally successfully completed the grueling process.

GENM also has their eyeballs open for other potential big markets to enter, especially those with less strict application processes.
However with Europe being such a big market and GENM already having the license in seven European countries, this seems to be a massive enough area to tackle.  Successfully infiltrating the market could earn GENM huge revenues.

GENM can distribute their own drugs, and also private label drugs for other people.  So a company can use GENM’s Acetaminophen but put their own label on it…which makes the potential market for GENM even larger.

Just to give you an idea of how large GENM’s potential market is, here are some statistics:

In 2009 the global generics market generated approximately $84 billion in sales, according to US market data provider BCC Research, which is an increase of 7.7% from 2008.  That’s a compound annual growth rate of 11.9% from 2004-2009.

There is a lot of mounting pressure from governments, insurance providers, etc…for the increasing use of lower cost generic medications and you can see the impact of this in the growth numbers.  While numbers like 11.9% might not sound impressive to traders like us, when it comes to large scale global trends, it is a huge number.

Generics now account for 72% of the total US pharmaceutical market volume alone, reaching an all-time high in 2009. Projections estimate that sales of generic products could exceed $100 billion worldwide in 2011.

The top ten global manufacturers and distributors of generic drugs only account for 66% of the market.  This means there are a ton of small players out there, which could be acquisition targets.
According to the news release I read, a guy named Doug Long the VP of a health company (IMS Health) claims that it’s expected there will be a lot of consolidation and mergers within the generic drugs industry.

Overall the generics drug industry looks extremely attractive right now.  The large growth numbers are nice.  The open market condition of the industry not being locked down by a few mega-corporations leaves room for GENM to both grow into the gap in the market, as well as become a potential acquisition target.

Get ready to book your profits with GENM.

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