PetVivo: Innovation and Leverage Could Result in Huge New Market Opportunity

Investment and Company Research
Opportunity Research
RESEARCH NOTE
 

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PETVIVO HOLDINGS, INC.

New Market Opportunity Could Raise Future Valuation for PETV

Rob Goldman
[email protected]

October 22, 2020
 

PETVIVO HOLDINGS, INC. (OTC – PETV - $1.40)

Industry: Medical Technology Price Targets Under Review
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

PetVivo is an emerging biomedical device company focused on the licensing and commercialization of innovative medical devices for pets and pet therapeutics. PetVivo is leveraging investments made in the human medical device industry to commercialize therapeutics for pets. This approach accelerates the timeline to revenues for veterinary medical devices, which enter the market much earlier than the more stringently regulated pharmaceuticals. PETV recently exclusively licensed its mucoadhesive technology to a strategic partner, Emerald Organic Products, Inc., for use of CBD in the human nutraceutical market, and plans to license products in varying therapeutic categories.

 

KEY STATISTICS

 
Price as of 10/21/20 $1.40  
52 Wk High - Low $1.60 - $0.1222  
Est. Shares Outstanding 24.9M  
Market Capitalization $34.5M  
30-Day Average Volume 4,419  
Exchange: OTCQB  
 

COMPANY INFORMATION

5251 Edina Industrial Blvd
Edina MN 55439
Phone: 952.405.6216

Website: www.PetVivo.com
Email: [email protected]


 

Recent news suggests that PETV could emerge as a sought-after player in the fast-growing multi-billion-dollar biomaterials space, a new prospective opportunity for the Company. The global biomaterials market is forecast to grow at a CAGR of 16% from 2020 to 2027 with the total size expected to reach $348B by 2027, up from $106.5B in 2019.

nScrypt, a highly regarded player in biomanufacturing, 3D manufacturing, and microdispensing, announced that  it has successfully executed bioprinting of PETV’s biomaterial by using nScrypt’s technology. This event could be the precursor to the future incorporation of PETV’s biomaterial across veterinary and human orthopedics as a substitute or replacement for slower healing implants.  

Future steps likely include a series of animal studies to confirm that combining nScrypt’s 3D manufacturing capabilities with PETV’s biomaterial can initially lead to the production of on-site, biologically integrative offerings such as bone replacement for animals. We believe this type of procedure can help eliminate amputation or the use of other implants.

Since the July 2020 publication of our Sector Spotlight featuring PETV and other leading medtech firms in animal health, the stock has nearly doubled. While our target remains under review, the addition of this new market likely raises PETV’s future valuation, as the market becomes  more defined for the Company and milestones via studies/trials occur.

COMPANY OVERVIEW

Based on the nScrypt news, it appears that the PETV biomaterial, largely comprised of collagen, elastin and heparin, can be used to broadly create regenerative and/or biologically integrative medical devices and implants. On the heels of the announced event, nScript and PETV will likely work together to potentially create on-demand medical devices in a hospital setting and to recreate biological structures to optimize the healing process. The Company’s biomaterial mimics the living body’s extracellular matrix that all cells use as support to create tissue, such as with its core offering. Kush is an injected medical device particulate used to reinforce damaged joint cartilage tissue in osteoarthritic dogs and horses by mimicking cartilage components, structure and function.

In our view, the animal health market alone is huge and veterinarians would welcome the opportunity to offer an on-site, on-demand device that could replace a broken leg, for example. By printing the PETV biomaterial in combination with other materials in a surgical setting a veterinary clinic can provide great medical benefit by helping to promote neovascularization and could enhance tissue healing cells to mend the body. We believe the first animal studies could occur sometime in 2021, with a roadmap for potential testing in humans to follow the animal studies. While it is very early, the use of 3D manufacturing with PetVivo’s biomaterials and other components in surgical settings could serve as an improved, more efficient, and cost-effective method of regenerative medicine in the human orthopedic market. This product and IP leverage could thus provide the Company with new revenue or licensing opportunities than previously ascertained. As a result, it provides investors with a glimpse of future offerings, a potentially higher valuation, and demonstrates that PetVivo is no one trick pony. (Pun intended.)

RECENT TRADING HISTORY FOR PETV

(Source: www.StockTA.com)

Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report or article, accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

Disclaimer

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Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates, notes, and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro-cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile and may offer greater upside. Goldman Small Cap Research was not compensated for the production and distribution of this research note. From 2016-2019, GSCR’s principal was compensated by Marble Arch Research Inc. to produce reports and updates on PETV on behalf of Marble Arch Research Inc. and under its banner. In the future, GSCR may be compensated by the Company or a third party for research report and press release production and distribution. All information contained in this research note was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

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