The crowning achievement for any pharmaceutical company is to bring a newly approved drug to market.

It’s a monumental achievement — and a very difficult one.

Not only is it a logistical and regulatory nightmare, it’s also incredibly time consuming. In some cases it can take a decade or more for a new drug to move from the drawing board to a fully approved and marketable medication.

It’s also incredibly expensive to bring a new drug to the Food and Drug Administration for approval. In fact, pharmaceutical spending in 2007 was an incredible $45 billion, according to Tuft’s Center for the Study of Drug Development.

Where there’s the potential for great reward when a new drug hits the market, there is also great risk. Failure to secure marketing partnerships, funding and other serious problems can decimate a biotech’s stock.

Don’t get me wrong; there are some great biotech and emerging pharmaceutical plays out there. Obviously, biotechs continue to be some of the most exciting investments on the market. These tiny companies offer potential treatments and cures to some of the most devastating diseases imaginable. They also offer early investors the chance to make incredible gains… even if they do have to navigate a murky regulatory environment.

But what if there were a way to invest in the biotech sector without the added risk? Imagine a small biotech — a profitable one, at that — that doesn’t rely on the whim of the Food and Drug Administration… or pivotal clinical trials. That would be an attractive investment — a lower-risk player in a popular, high-risk, high-reward sector.

I’m talking about the clinical testing sector. Companies in this industry oversee and reviews tests performed by the big pharmaceutical corporations, as well as biotechs. Usually, these firms offer full regulatory compliance, as well as laboratory services for a variety of clinical tests.

Thanks to a regulatory environment that’s becoming increasingly difficult to navigate, drug companies large and small are outsourcing research and development spending more often. In fact, R&D outsourcing is increasing 17% per year. This puts clinical testing firms in prime position for tremendous growth…

That’s why we’re looking at a virtually unknown clinical testing industry leader right now. It’s been in business for two decades, and it’s about to kick its business into high gear. It’s taking its newfound cash flow and investing it back in its business. Management has also laid out an aggressive plan, which includes the company completely paying off its long- and short-term debt by the end of the fiscal year, as well as growing its biomarker services division to meet growing needs in the industry.

The company is showing us fantastic numbers across the board, with greatly improved profitability, margins and return on equity. And the company is spending its cash wisely, using its money to bolster competitive advantages in business divisions that are in high demand. That’s a recipe for smart growth — and a great reason to own shares

My readers got a chance to invest in this company’s stock when I sent my alert out to them last week. Since then, the share price is already beginning to take off.

If you want to get a shot at this stock and other under-the-radar micro-cap plays, now’s your chance to join the ranks of my exclusive service.

Sincerely,
Greg Guenthner

July 20, 2009

Greg Guenthner

Greg Guenthner heads up Agora Financial’s small-cap division and is the founder of one of the only independent OTC research advisories in the industry. A graduate of George Mason University, Guenthner joined Agora in 2005 after several years as a journalist. He is managing editor of Penny Stock Fortunes and Bulletin Board Elite.

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