Next Generation of Pre-Screening Technology for the Multi-Billion Dollar Cancer Detection Market

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There have been tremendous medical advancements in the multi-billion dollar cancer screening market. Our new featured company, Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00 website) whose patented 510(K) approved medical device is taking on the 3rd most common (and 2nd deadliest) type of cancer head-on by making the pre-screen process more effective for patients, potential better outcomes for physicians, and more cost effective for hospitals and insurance companies.

This is the trifecta “Win-Win-Win” scenario that doesn’t happen often, but when it does, whereby all of the stakeholders are aligned, it’s MAGIC because of the BIG IMPACT the Win-Win-Win has on the adoption and usage of the company’s products and services in the industry, and thus, GROWING REVENUES.

CANCER… SUCKS

Cancer affects tens of millions of people.

It’s likely that we know someone who has cancer.

And unfortunately, some of us will personally battle it in our lifetime.

… CANCER is a nasty disease that AFFECTS ALL OF US.

And a well known non-profit has aptly put it… F*CK cancer.

However, there’s HOPE.

On-going medical advancements in technologies and innovations, new medical devices, testing standards, and overall physician, consumer, and patient education on the benefits of various cancer pre-screenings are helping to turn the tide and saving lives.

That’s why we love what Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00). It’s products are making pre-screening more effective for colorectal cancer. Colorectal happens to be the 3rd most common form of cancer (excluding skin).

So, What is Colorectal Cancer?

Colorectal cancer is a cancer that starts in the colon or the rectum. Depending on where it starts, colorectal cancer is also referred to as “colon cancer” or “rectal cancer.” Colon cancer and rectal cancer are typically grouped together because they have many of the same common traits.

colon-cancer

According to the American Cancer Society, the lifetime risk of developing colorectal cancer is about 1 in 22 (4.49%) for men and 1 in 24 (4.15%) for women. The stats show that there the risk is slightly lower in women than in men but not by a significant margin.

Aside from gender, risk factors that influence the risk of getting colorectal cancer include:

  • Smoking

  • Family history

  • Being overweight

  • Being physically inactive

  • Having a diet high in red and processed meats and…

  • Age

Click here to a read a more detailed summary of the risk factors.

Excluding skin cancers, colorectal cancer is the third most common cancer diagnosed in both men and women in the United States. And according to the CDC, colorectal cancer is the 2nd deadliest cancer killer.

Globally, colorectal cancer represents 9.7% of total cancer cases. It’s treatable when localized to the bowel but when colorectal cancer spreads to other parts of the body, it becomes a formidable enemy.

How Big is the Colorectal Cancer Market?

In a research report by Global Data, the colorectal cancer market across eight major markets of the US, France, Germany, Italy, Spain, the United Kingdom, Japan, and China, is set to rise from $8.15 billion in 2015 to almost $11 billion by 2025.

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As previously mentioned, aging populations are identified as one of the major drivers attributed to the growth of the colorectal cancer market. Given the fact that the colorectal cancer starts in the intestine, once can imagine all of the food that’s been consumed and processed in our bodies through the years, so it doesn’t surprise us that age plays a big factor in getting colorectal cancer.

To combat colorectal cancer, screenings and early detection via a medical procedure called “a colonoscopy” is the most effective to detect, fight and reduce deaths by catching the cancer early.

During a colonoscopy procedure, a patient is put to sleep under general anesthesia and a physician uses a probe to search the colon and rectum for abnormal growths (precancerous polyps) and cancer.

Once colorectal polyps found, they can be removed before they can develop into cancers or are being found earlier when the cancer is easier to treat.

Treatment for colorectal cancer has improved over the last few decades. According to statistics from the American Cancer Society, there are now more than 1 million survivors of colorectal cancer in the United States.

The KEY to this is EARLY DETECTION.

According to the most recent report by the Centers for Disease Control and Prevention (CDC), about 15 million colonoscopies were done in the United States in 2012.

Despite the increase in colonoscopies, still only about 58% of adults in the 50 to 75-age range are up-to-date on screening. There is a desire to increase the percentage of people screened for colorectal cancer to 80% of the desired 50 to 75 age group by 2018.

The National Colorectal Cancer Roundtable commissioned a study that included a mathematical model to estimate how many colonoscopies would be needed to screen 80% of the eligible population over a 10-year period.

The study found that a colonoscopy program would need to perform about 16 million colonoscopies in the first year and 12 to 13 million each year afterward to meet the goal of screening 80% of the eligible population over the 10-year period.

Additionally, it is estimated that in its current state, the U.S. health care system could perform enough colonoscopies to screen 80% of all adults between the ages of 50 and 75 for colorectal cancer by 2024.

People Do NOT Like Colonoscopy Procedures

Unfortunately, colonoscopy procedures are very difficult to get right due to the bowel region. Patients have to be an active participant and ensure that they adequately follow a pre-procedure prep before their colonoscopy procedure.

Unfortunately, this does not always happen because of poor palatability and/or intolerance of prep volume.

colyte

And when patients do not successfully follow the required pre-procedure prep, it results in many issues that include:

  • Lowers effectiveness of the colonoscopy procedure

  • Colonoscopy procedure without adequate bowel prep may require additional hospital costs due to lengthening procedure time

  • Potential for repeat procedures

  • Potential increase of adverse events that puts patient at a higher risk

As a result, colonoscopy procedures either fail or have to be done again. Patients feel embarrassed and frustrated that they have to do the procedure again and there is also a burden on the health system because of the costs incurred during a more lengthy colonoscopy procedure or even worse, getting charged twice to re-do the procedure.

Motus GI Has a Game-Changing Solution to Make Colonoscopy Procedures Easier

Founded in 2010, Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00) is a medical device technology company focused on developing technologies to enhance the colonoscopy procedure and target early detection and prevention of colorectal cancer and other diseases of the rectum and colon.

The company has developed and is bringing to market Pure-Vu® System, a 510(K) approved medical device that aids in the cleaning of a poorly prepped colon, which can have adverse affects to a colonoscopy procedure.

Pure-Vu actually decreases the dependency of a patient to successfully follow a pre-procedure prep. The Pure-Vu system can actually be used during a colonoscopy procedure to help clean out residue in the colon.

According to the Company, the Pure-Vu “device fits over most standard colonoscopies, allowing the physician to clean poorly prepped colons in a safe and effective manner to gain clear visualization of the colon mucosa.”

pure-vu

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Thus, the Pure-Vu system can help increase the efficacy and success rates of colonoscopies. It also puts less emphasis and alleviates the fears of patients who are required to follow an often-difficult pre-procedural prep regimen.

In our research and analysis, we identified key reasons on why we believe that Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00) is a compelling investment opportunity for consideration:

  • 1. Experienced Management Team & Independent Board
  • 2. Win-Win-Win business model
  • 3. Razor/razor blade product offering
  • 4. Huge market size
  • 5. Strong balance sheet

Experienced Management Team & Independent Board

Led by CEO Mark Pomeranz, the Company has assembled a group of seasoned executives that possess broad executive leadership, financial and operations, medical device and regulatory affairs, and product development and go-to-market commercialization roles at both large corporate and start-up environments with the likes of Johnson and Johnson, Baxter, Boston Scientific and EndoChoice.

baxster

Click here to read more about Motus’ Management Team.

We are also impressed with both the Company’s Board and Medical Advisory Board.

6 out of 7 of the Board Members are independent. The only Board Member who has a connection to the Company is Mr. Pomeranz. The Board Members are comprised of medical device, financial industry, and operational professionals that lend their knowledge, expertise and network to assist Motus’ management team. Notable board member relationships include Anthem, Blackstone, Novartis, and Wellpoint.

MOTS-Med.Board-Logos_03

Click here to read more about Motus’ Board of Directors.

The Company has also assembled a world-class Medical Advisory Board with broad medical and academic knowledge in the gastroenterology, endoscopic and oncology sectors at the likes of Boston Medical, NYU School of Medicine, and Clalit.

boston

Click here to read more about Motus’ Medical Advisory Board.

Motus has a “Win-Win-Win” Business Model

We believe that Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00) possesses a “WIN-WIN-WIN” value proposition to the market.

Patients win because even if they aren’t successful in following the pre-procedural prep, Motus’ Pure-Vu system can positively affect their colonoscopy procedure. There is a less likelihood of associated risks and costs of an extended procedure, or worse, having to do it again.

Physicians win because they can Pure-Vu system during a colonoscopy procedure to clean out the bowel. This saves time and effort, and increases the changes of a successful colonoscopy procedure that highlights any polyps or potential cancer.

Insurance companies win because they stand to not incur additional medical fees for repeat procedures or extended hospital stays due to a lengthy procedure.

Motus wins because its Pure-Vu system has a POSITIVE IMPACT across the health continuum – from patient to physician to insurance.

Motus Has a “Razor/ Razor Blade” Product Offering That Creates Long-Time Customer Value

The Pure-Vu Sleeve is a single-use, disposable product that connects to the Pure-Vu Controller.The Pure-Vu Sleeve fits over most standard colonoscopies. Once used, physicians just dispose the used Sleeve.In a nutshell, Motus has developed a razor/ razorblade model that should provide the Company with an embedded customer base with on-going revenue generating activities… WE ABSOLUTELY LOVE THIS!And did we mention that there are INTELLECTUAL PROPERTY patents surrounding Pure-Vu?
pure_uv_disposal

Motus recently announced that it was granted a Chinese-patent.

The Chinese patent compliments the March 2018 announcements of the awarding of U.S. patent #9,895,483 and European patent # 3079556.

Huge Market Size

Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00) Pure-Vu System is a medical device product that falls into the Endoscopy Market.

According to a Recent and Markets study, “the Global Endoscopy Market is poised to grow at a CAGR of around 6.9% over the 7 years to reach approximately $47.6 billion by 2025.”

That is a HUGE MULTI-BILLION DOLLAR MARKET.

Because the market is so large, there is ample room for up-and-coming companies that can bring innovation to market that disrupts and enhances legacy processes and procedures.

Thus, it is not out of the question to speculate that as the Company continues to gain traction and success in the commercialization of its Pure-Vu System, management would then focus its efforts and resources to develop and commercialize additional medical devices to build out additional market share the multi-billion Endoscopy Market.

Strong Balance Sheet

Through a public offering in February 2018, the Company was able to raise capital to fund its commercialization of Pure-Vu. The public offering raised gross proceeds of $17.5 Million.

The Company announced that “the net proceeds from the offering will be used towards commercialization activities related to the Company’s Pure-Vu® System, research and development activities, including clinical and regulatory development and the continued development and enhancement of the Company’s Pure-Vu® System, and for working capital and other general corporate purposes.”

Click here to read the announcement of the offering in its entirety.

Key Companies in Motus GI’s Industry

We’ve identified several companies who we believe are interesting in Motus’ industry. At first blush, they could be viewed as direct competitors.

However, the medical device industry has historically shown that what may initially be competitors can many times turn into suitors and willing buyers.

Thus, we believe that these companies could theoretically identify Motus as an attractive acquisition target… but we are just speculating :)

1

cantel

Cantel Medical Corp. (NYSE: CMD)
Market Cap: $4.1B

Cantel Medical Corp. is a leading provider of infection prevention products and services in the healthcare market, specializing in the following operating units – Endoscopy; Water Purification and Filtration; and Healthcare Disposables. Cantel’s Endoscopy Unit markets products that include: procedure disposables that include single-use valves and irrigation tubing; medical device reprocessing systems; and disinfectants, detergents and other supplies that are used to disinfect high-level endoscopes.

2

boston

Boston Scientific Corporation. (NYSE: BSX)
Market Cap: $47.35B

By combining a relentless dedication to developing less-invasive endoscopy technologies with a spirit of collaboration with healthcare professionals, we’re reducing the total cost of patient care and making a meaningful and lasting impact in patients’ lives.

3

medtronic

Medtronic PLC (NYSE: MDT)
Market Cap: $117.26B

To meet the needs of patients and healthcare professionals around the globe, Medtronic operates from more than 370 locations in approx. 160 countries. Around 33% of the company’s revenue comes from its Minimally Invasive Therapies Group (formerly Covidien Group), which reached $9.9B in 2017. The company has 84,000+ employees and 4,600+ patents.

4

olympus

Olympus Corp (OCPNY: US OTC US)
Market Cap: $12.77B

Tokyo Stock Quote
Olympus Corp. (7733:JP)
Market Cap: $1.376T

Established 1919, Olympus Corporation is a Japanese manufacturer of optics and reprography products. The Company’s segments include Medical Business, Scientific Solutions Business, Imaging Business and Others. The Medical Business segment manufactures and sells medical endoscopes, surgical endoscopes, endotherapy devices and other products. The Scientific Solutions Business segment manufactures and sells biological microscopes, industrial microscopes, industrial endoscopes, non-destructive testing equipment and other products. The Imaging Business segment manufactures and sells digital cameras, voice recorders and other products.With global headquarters located in Shinjuku, Tokyo, Japan, Olympus holds roughly a 70% share of the global endoscope market.

The Momentum Is With Motus

Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00) is in a unique position in its business growth cycle. We believe that the current momentum it has generated has positioned the company on the cusp of massive uplift.

Why do we believe this?

Here is a summary of recent developments over the last 5 months that have given us great confidence for 2018 and beyond:

  • 1. 3 Analysts have initiated coverage with all 3 issuing “Buy” ratings, with one of the three analysts issued an “Outperform” rating
  • 2. Recent announcement of findings from a cost analysis study using its Pure-Vu System that included:
    • a. Reduce CRC (new colorectal cancer) incidence by an estimated 36% by improving the quality of the exam;
    • b. Minimize overall per-patient costs by up to $3,400 for private payer patients and up to $1,600 for Medicare patients; and
    • c. Reduce direct costs of repeated procedures due to inadequate prep by $804/$951 for Medicare/private payer patients, respectively.
  • 3. Enrollment of first patient in the Company’s new REDUCE Study targeting hospital patients – This represents a significant step in Motus’ strategic approach to to build a robust set of clinical and health economic data to support the commercial launch and drive adoption of the Pure-Vu® System in the key segment of inpatient colonoscopy
  • 4. Awarding of Chinese patent that adds to US and European patents for Pure-Vu
  • 5. Brought in $17.2 Million in cash from recent public offering

Thus, we believe that these recent developments have built momentum for Motus going into the remainder of 2018.

Given the timing and flurry of recent announcements, we believe that the TIME IS NOW to get in.

DO NOT DELAY in getting your research done on Motus GI Holdings, Inc., (Nasdaq: MOTS $0.00).

As we always say, “you can’t play if you aren’t in the game.”

Given the recent “buy” ratings by the analysts that just initiated coverage, we can envision the current share appreciating as their reports gets in the hands of other investors.

Hurry up, research and INVEST BEFORE It’s TOO LATE.

We suggest that you add this to your portfolio today as a long-term addition. Remember, as with any stock situation, it is crucial that you follow our stated mantra of protecting partial gains on your way up, up, … and away!

Be wise… Be Money Street Wise!

- The Money Street Health Care Trends Team

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