Goldman Small Cap Research says BioCorRx to Reap Major Profits in 2015

A recent stock market report from Goldman Small Cap Research said healthcare solutions company BioCorRx Inc. (BICX, http://finance.yahoo.com/q?s=BICX) is expected to generate increased profits next year as it continues to expand to other US states.

“We believe that the company's business model should result in major operating profits beginning next year as meaningful market penetration into a number of clinics occurs,” analyst Rob Goldman said in release.

“Our current projections call for $2.6 million in revenue this year, jumping to $10.5 million in 2015 and $22.8 million in 2016. Net profit should be recorded in 1H15, with EPS of $0.02 for the year.  We note that these projections assume limited market penetration of just 30 clinics in the next 2 ½ years; the greater the penetration the greater the profits, and thus the valuation,” the full report said.

Goldman said the low overhead model of BioCorRx, where revenue is taken from program sales on a per-patient basis, “benefits from clinics' advertising and marketing campaigns."

He said they believe that “BioCorRx may have developed the holy grail of alcohol treatment” since it addresses the primary issue of patient non-compliance when it comes to anti-addiction medication.

“As the number of success stories grows, BioCorRx's Start Fresh Program could become the go-to addiction treatment program of choice,” he added.

“We feel that we will look back at 2014 as a pivotal year for our company and for the treatment of addiction,” said Brady Granier, COO of BioCorRx.

BioCorRx has increasingly becoming popular among clinics and patients of alcohol and opioid addiction. Its Start Fresh Program, which is being used by many clinics in the U.S., utilizes the dual approach of medication and life coaching.

Before attending life coaching sessions, which help the people plan an addiction-free future, the patient undergoes an outpatient implant procedure. The procedure, which lasts less than an hour, allows a naltrexone pellet to be implanted under the skin, near the lower abdomen. Naltrexone is a Food and Drug Administration-approved medication used for the treatment of opioid and alcohol addiction. It significantly reduces cravings for the said substances.

The implant helps the patient curb cravings for several months since the pellet allows the slow release of naltrexone into the body. This is as opposed to naltrexone pills that need to be taken daily.

“In our view, the BICX model is compelling given the top-line growth opportunities and its high operating margins. Our 6-12 month target of $0.40 is based upon a very reasonable 20x our 2015 EPS forecast of $0.02. We rate these shares Speculative Buy,” Goldman said.