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A Penny Stock Way to Profit from the Pain Management Industry

No Pain… Big Gain(s)
By Jim Nelson
December 19, 2007


One-and-a-half billion people suffer from pain annually, according to Rodman & Renshaw. The global pain market is at $40 billion per year. In the U.S. alone, there are 40 million physician office visits and $65 billion worth of lost work productivity because of pain. The industry is huge. But those numbers are only going up. The U.S.’ slice of that pie, which is currently $19 billion a year, is growing at a 15% annual rate.

While there are hundreds of different kinds of pain and pain management therapies out there, only two will soon be revolutionized. The first hasn’t had a medical breakthrough in years, yet current products have many side effects. This is about to change…

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Intravenous (IV) therapy is one of the most common procedures performed in hospitals and clinics. Sometimes physicians even have to place a port inside a vein for those who require multiple IVs over a short amount of time. But as anyone who has had one of these can tell you, it hurts. Fortunately, it doesn’t have to.

In many cases, physicians will prenumb the area where one of these ports or IVs is going to go. Unfortunately, current anesthesias for this particular pain are insufficient and come with many side effects. That’s about to change…

You Be the Doctor

Imagine for a second that you are a doctor or nurse. A child at your hospital needs an IV. Even though you use a smaller needle, to a six-year-old, it’s still quite painful.

You have to see his or her face grimace in pain. Now picture you have to do that over and over again, every time you treat one of these children. Eighteen million pediatric IV procedures take place every year.

Now imagine someone comes to your hospital with a new type of powder that can numb the area where the needle will go in the child’s arm or hand. One to three minutes later, you can slide the IV or port in and the child feels nothing. Ten minutes later, the child has complete feeling back, as if nothing happened.

It’s pretty obvious you’d insist the hospital keep a steady supply of that product for the next time a child needs an IV. Well, soon they will…

Grandma’s New Knee Won’t Hurt Any Longer

The second area of the pain industry is postsurgical pain. There haven’t be any significant improvements for the pain people endure after major surgery.

There is one company that is developing a pain reliever to treat the pain associated with total knee replacement surgeries, bunionectomies, arthroscopic shoulder surgeries, tendonitis and inter-metatarsal neuroma.

The potential market for all of these different pains is at 8.4 million procedures per year. But it is growing exponentially…

Take total knee arthroplasty (TKA) procedures, for instance. There are currently 470,000 of these procedures every year. But by 2030, the American Academy of Orthopedic Surgeons expects about 3.5 million TKAs annually. Unfortunately, little has come along to help those who are suffering through all this pain. Until now…

As you probably know, there are already some drugs out there. But compared with its potential competition, a new drug has already proven that it performs far better. It is long lasting, which is extremely important for patients who have to go through physical therapy. It lasts about 8-12 weeks, compared with just a few days, or even hours, for current treatments.

And so far, the clinical trials have shown minimum side effects, unlike its competition. Others treatments cause problems like nausea, respiratory depression and degenerative effects on cartilage. This new one shows none of those effects.

Now, here’s the dilemma: My fellow Sleuth editor Greg Guenthner is recommending the company that owns both of these pain treatments to his Penny Stock Fortunes readers, in the next few days. I can’t give it away without risking huge backlash from him. (His desk is about four feet from mine and he’s loaded with thumbtacks.)

But, here’s what I can do: Take a look at this report. See if his newsletter appeals to you and sign up. That way you can be one of the first to find out about this company. It really does have the potential to be the biopharm breakthrough of 2008.

As for the overall pain industry, that will be something I keep my eye on very closely. So until I find something for you…

Sincerely,
Jim Nelson

P.S.: Time is running out for you to get in on one of the most all-inclusive products we offer, the Agora Financial Reserve. The Reserve includes just about all of our newsletters, exclusive trips around the world, guaranteed spots at our Agora Financial Investment Symposium in Vancouver, and much more.

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Jim Nelson is the managing editor of Penny Sleuth, a daily small-cap e-letter with more than 160,000 subscribers. Jim has been playing the stock market since he was 14, always with a preference toward smaller companies. He has honed his stock picking skills at Agora Financial since 2004, effectively combining a growth and value approach.

He holds a degree in Political Science with a minor in History from the University of Pittsburgh.

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