Today we would like to provide you with a newly listed NASDAQ trade alert that could present you with upside potential.
New Trade Alert: Hancock Jaffe Laboratories, Inc. (NASDAQ: HJLI)
HJLI is a newly listed NASDAQ healthcare company that began trading a little over a month ago.
On June 5th, HJLI “announced the closing of its previously announced initial public offering of 1,500,000 units, each unit consisting of one share of common stock and a warrant to purchase one share of common stock, at an initial public offering price of $5.00 per unit.”
“Gross proceeds from the IPO amount to $7,500,000 before underwriting discounts and commissions.”
HJLI specializes in “developing and manufacturing bioprosthetic medical devices to establish improved standards of care for treating cardiac and vascular diseases.”
HJLI currently has “three product candidates”:
- “the porcine tissue based VenoValve®, which is intended to be surgically implanted in the deep venous system of the leg to treat Chronic Venue Insufficiency”
- “the CoreoGraft®, a bovine tissue based off the shelf conduit intended to be used for coronary artery bypass surgery”
- the “porcine tissue based heart valve, which based upon its relatively small size and increased output, is an ideal candidate for pediatric aortic/mitral valve replacement.”
According to the company, “approximately 20 million people in the U.S. suffer from varicose veins,” a market which the VenoValve, one of the company’s three main products, addresses.
““Chronic venous insufficiency afflicts almost twice as many people as all cardiovascular diseases combined, and six times more than those with diabetes. It is one of our most prevalent diseases. However, CVD is significantly, underestimated, underdiagnosed and undertreated” Mary L. Yost, President, Sage Group Consulting”
In addition, CoreoGraft, one of the company’s products, is aiming to be utilized in “approximately 150,000 annual CABG procedures performed in the U.S.,” potentially reducing the complications associated with bypass graft harvesting which according to the company “remains the most invasive and complication prone aspect of minimally invasive bypass procedures.”
Moreover, “bypass graft failure rates” “at 10 years” are a remarkable approximate “50% fail”,according to the company.
Healthcare companies have been recently surging in 2018 with the Spider Trust Healthcare ETF, amongst others, reaching all-time highs earlier in 2018.
In addition, the S&P Biotech ETF, a subcomponent of the healthcare industry, reached all-time highs a few week ago.
Since its IPO, HJLI has experienced remarkable volatility, trading between a range of 5.64 and 3.05.
In the event that HJLI breaks out above its 20 day moving average, this could suggest increased further upside potential.
Since the IPO, HJLI released the following news on June 20th:
Hancock Jaffe Laboratories Selects Site for First-in-Human VenoValve Study
IRVINE, Calif., June 20, 2018 (GLOBE NEWSWIRE) — Hancock Jaffe Laboratories, Inc. (HJLI) (HJLIW), a company specializing in bioprosthetic medical devices to establish improved standards of care for treating cardiac and vascular diseases, today announced that it has selected Fundación Santa Fe de Bogotá (“FSFB”), in Bogota Columbia, as the site for first-in-human testing of its VenoValve(R) bioprosthetic medical device. FSFB owns the 205 bed University Hospital in Bogota, which was the first hospital in Columbia to receive the distinguished Joint Commission International accreditation, and which is a research collaboration partner with John’s Hopkins Medical International.
Hancock Jaffe will now begin the process of having the protocol for the VenoValve’s first-in-human testing approved by FSFB’s research and ethics committees. No specific time frame is being announced for the approvals, however the company expects to have all necessary approvals and paperwork in place well in advance of the first-in-human testing, which it hopes will begin by the fourth quarter of this year. As part of its ongoing VenoValve development work, the company is also preparing to begin a thirty (30) day biocompatibility study.
Hancock Jaffe is developing the VenoValve to treat severe cases of Chronic Venous Insufficiency (“CVI”). CVI occurs when the valves in the in the veins of deep venous system of the leg are injured or destroyed, causing blood to pool in the lower extremities, which leads to swelling, debilitating pain, and skin ulcerations. Practitioners rate the severity of CVI based upon a system known as CEAP, which stands for Clinical-Etiology-Anatomy-Pathophysiology, which has a rating system of C0 to C6, with C4, C5, and C6 being the most severe cases. Approximately 4.5 million people in the U.S. suffer from severe CVI and the condition results in over 700,000 hospitalizations per year. There are currently no FDA approved treatments for deep venous CVI.
HJLI presents a potentially compelling trade opportunity given that this is a newly listed NASDAQ company which could continue to attract increased interest from Wall Street as more investors become familiar with the company.
However, don’t take our word for it, make sure to do your own due diligence.
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