The Next Big Time In Drug Delivery Technology

| January 24, 2011 | 0 Comments

A number of biotech stocks are gearing up for big moves in 2011.  Several have potential blockbuster drugs in mid- to late- stage clinical trials.  And good results could mean potential revenues of a billion dollars or more per year.

But the biotech industry is about more than just finding cures for disease.

In fact, one of the hottest areas right now is drug delivery.

Drug delivery is the process of administering a pharmaceutical compound to achieve a therapeutic effect.  Drug delivery technologies are patent protected formulation technologies that modify the way a drug is administered.

In other words, how you deliver a drug (orally, by injection, or by skin absorption to name a few) can have a big impact on the drug's effectiveness and/or safety.

The most prevalent and preferred form of drug delivery is oral administration.  This is the process by which pharmaceutically-active materials formulated as liquids, tablets, or capsules are taken by mouth.

If you've ever taken an aspirin tablet, you know what I'm talking about.

However, not all drugs can be taken orally.

Successful implementation requires the active ingredient remain unaltered as it passes through the gastrointestinal tract.  What's more, the drug must be able to pass readily across the wall of the intestine and be delivered into the bloodstream.

Several different oral drug delivery technologies are currently in use today.

Protection systems (like enteric coatings) prevent a drug from being dissolved by the acidic juices of the digestive system.  Release modification systems control the site and/or rate of drug release.  And muco-adhesives slow a drug's passage through the intestines to facilitate release.

Nevertheless, despite their wide success, these drug delivery technologies don't work for all medications.

For many active materials, particularly peptides and proteins, oral administration is currently not an option.  You see, the level of uptake for these materials is less than one percent of the administered dose.

But that could be about to change…

One tiny biotech is on the verge of developing the world's first successful absorption enhancement technology.  Until now, nobody has been able to incorporate an absorption enhancement technology into any approved product.

This amazing biotech could be the first.

The company's groundbreaking technology addresses the problem of poor intestinal absorption head on.  It utilizes the body's natural transport system for vitamin B-12 to deliver medications from the gut directly to the bloodstream.

Here's how this fascinating technology works in a nutshell…

The company has created a synthetic version of vitamin B-12.  When drugs are attached to it, they can be co-absorbed from the intestines into the bloodstream as part of the body's natural uptake process.  This natural process bypasses the stomach and gastrointestinal tract altogether.

Sounds simple right?

Don't let that fool you into thinking this is some minor breakthrough.

This simple technology could revolutionize the way a number of widely used drugs are administered.  And it could mean billions of dollars a year in sales for this tiny company.

For example, preclinical studies have shown this technology could be used to develop the first oral formulation of insulin.  Diabetics use insulin to regulate their blood glucose levels.  This usually requires taking several injections of insulin every day.

In fact, diabetics spend over $7 billion a year on insulin injections.

But I bet they'd prefer an oral formulation over injection any day.

As great as this sounds, oral insulin is just the tip of the iceberg.  The company is also working with a leading biotech on developing an oral formulation of their prostate cancer drug.

Here's the key…

Any successful formulation will be jointly owned by both companies.  This is a prime example of how the company can use this technology to become a development partner on all kinds of potential blockbuster drugs.

What's more, this drug delivery technology could also play a significant role in helping extend the patents on approved drugs.

Many major pharmaceutical companies are seeing their blockbuster drugs come off patent protection in the next few years.  By using this drug delivery technology to create an oral formulation, they may be able to extend the patent.

Word is, several Big Pharma companies are seriously evaluating this ground breaking drug delivery technology.  These budding relationships could evolve into extremely lucrative licensing deals for our little biotech.

Now, you're probably wondering just who this biotech is.

I'd love to tell you, but it just wouldn't be fair to subscribers of my Biotech Supertrader advisory service.  You see, this company is an open position in the portfolio.

However, if you sign up now, you can read my full report on this exciting biotech (and many others as well).

But don't wait too long.

After surging 93% from late August through early September, the stock has pulled back a bit on profit taking.  The shares are now back within our buy range, but they probably won't stay there for long.



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Category: Stocks

About the Author ()

Robert Morris is the editor of Penny Stock All-Stars, an investment advisory focused on discovering small-cap and micro-cap stocks that are destined to become the market’s next Blue Chips. The Wall Street veteran and small-cap stock specialist is also a regular contributor to Penny Stock Research. Every week, Robert shares his thoughts with our readers on a variety of penny stock-related topics. In addition to Penny Stock Research, Robert also writes frequently for two other free financial e-letters, ETF Trading Research and the Dynamic Wealth Report. He’s also the editor of two highly successful and popular investment advisories, Biotech SuperTrader and China Stock Insider.

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