Wednesday Pharma Report: Pull Up ESAQ (Now)
The entire biopharma market as a whole is valued at a jawdropping $300Mil as of this year! Think about it…most industries plan for the kind of growth based on projections but this industry has the valuation TODAY! So why do I mention this? The long and short of it is that today’s pick, EastGate Acquisitions Corp (ESAQ) comes from the biopharmaceuticals industry and if you’ve been paying attention to the market lately, this is one sector that has seen its fair share of volatility and with that, many opportunities to capture phenomenal returns! So let’s get down to business…
What does EastGate Do?
ESAQ has developed ways for pharma and nutraceutical products to be more effective in treating a specific ailment. These include diabetes, epilepsy, and even body cleanses. Most recently the company has focused on different, non invasive ways to deliver medication for diabetes and epilepsy.
In fact just last week the company announced that it will be presenting its proprietary Lorazapam Spray at the American Association of Pharmaceutical Scientists (AAPS) Conference. There will be thousands in attendance and hundreds of other exhibitors walking the aisles. EastGate’s Lorazepam spray has been catching attention more recently and this could be a great opportunity for ESAQ to gain more exposure for potential customers and in becoming a possible acquisition or JV target (Click Here for more on the AAPS Conference).
This is incredibly important especially for a company like ESAQ. Not only could it open new doors for licensing its products to other companies for increased distribution but it could also act as a stage for ESAQ to present as a potential acquisition target…If you think this industry isn’t littered with Monster Sized M & A, think again. PDL BioPharma, Inc. for example acquired the rights to receive royalties and milestones payable on sales of Type 2 diabetes products licensed by Depomed in exchange for a $240.5 million cash payment. Big pharma juggernaut Johnson & Johnson agreed to acquire Inverness Medical Technology Inc. ‘s diabetes-care-products business for about $1.3 billion.
How about AstraZeneca will pay $2.7 billion upfront and as much as $1.4 billion more to Bristol-Myers Squibb Co. for its diabetes-treatment business depending on regulatory, commercial and sales goals….The Carlyle Group LP agreed to buy the Ortho Clinical unit of Johnson & Johnson for $4.15 billion, a deal that would shed the health-care products company’s only diagnostics division noting that the company’s diabetes business “may be the target of future strategic alternatives”…
…the list goes on and on. One thing’s for sure and that is EastGate has a very unique product mix that could set it head and shoulders above much of its competition.
Could There Be A Technical Play Here?
In my opinion? Yes… One thing I didn’t mention above is that of the 50,000,000 shares of common stock that are issued and outstanding the float is LESS THAN 3 MILLION shares. That’s super low in my opinion and the L2 is tight. This could bode incredibly well for early morning momentum hunters; a small spark at the open and (ESAQ) could be off to the races. A perfect formula for profit! Moreover, just this past summer (ESAQ) was trading at $0.50…even if it catches a glimpse of half of that pps, traders could still be looking at an eye popping 700+% breakout!
It’s time to get down to business and get ready for ESAQ. The opening bell is less than two hours away so get in some solid DD and stay tuned for more!