Jim Oberweis, Jr., money manager and editor of The Oberweis Report, is a long-standing expert in small cap, high growth growth stocks, and focused on those issues trading a reasonable valuations relative to their growth rates.
Here, the advisors looks at a trio of specialty healthcare companies involved in niche markets such as women's health, autoimmune disease and vaccines.
"The Female Health Company (NYSE: FHC) manufactures and markets the female condom. This product currently is the only medical device approved by the FDA under a woman’s control intended to prevent unintended pregnancies and the spread of sexually-transmitted diseases.
"The rise of the global HIV/AIDS pandemic, especially in emerging countries, has increased the need for women to have their own means of disease prevention products. Approximately 80% of the company’s customers are public sector agencies including USAID, which distribute the products to areas in need.
"Near-term drivers include pending FDA approval of its second generation female condom and the recent reauthorization of the Emergency Plan for AIDS Relief (PEPFAR) which will allocate $48 billion for AIDS prevention and treatment over the next 5 years.
"In the company’s latest reported fourth quarter, sales increased approximately 52% to $7.8 million from $5.2 million in the fourth quarter of last year. The Female Health Co. reported earnings per share of $.08 in the latest reported fourth quarter versus $.04 in the same quarter of last year.
"Alexion Pharmaceuticals (NASDAQ: ALXN) is a biopharmaceutical company focused on the development of therapeutic products for the treatment of severe diseases including cardiovascular and autoimmune disorders and cancer.
"The majority of the company’s current sales come from their Soliris product used to treat a rare blood disorder referred to as PNH (paroxysmal nocturnal hemoglobinuria). PNH is a rare, acquired (not inherited) blood disorder.
"PNH causes an individual’s immune system to destroy its own red blood cells (called hemolysis), resulting in life-threatening thrombosis, recurrent pain, kidney disease, disabling fatigue, and impaired quality of life.
"Soliris is the only available therapy to block hemolysis in patients with PNH.
