If you know me or follow me on social media you might be aware that I am a big-time dog lover. Aside from stocks and investing I am most passionate about my dogs. Buddy my 8yr. old rescued Doberman has recently been having difficulty getting up and he is struggling on our morning walks. So much so that I have been brought to tears knowing that age is catching up with him and it is impossible to think of my morning walks without him. Anyone that owns a pet has had to deal with these same emotions.
I am enthusiastic over a product that was introduced to me recently. My friend has been using a supplement for his aging dog and raved about the results. The product is made by a company called Myosrens Technology Inc (MYOS is the ticker symbol) which is a bionutrition company and owner of Fortetropin®, a proprietary ingredient that helps build lean muscle in conjunction with resistance training.
During our conversation he also let me know he is using the human formulation to help him overcome the aches and pains that come from his training as a second-degree black belt. He is in his early 70's and he told me that he used to have trouble getting out of bed the morning after his training regimen. After taking the MYOS product he now jumps out of bed without the soreness and discomfort he had.
This led me to research the company and the products. I obtained the product for Buddy to see if it would help my four-legged best friend. This is the second week of giving Buddy this supplement and I am very encouraged by the results. He has more energy, he looks leaner, and his limp doesn't appear to be as dramatic as it was and another plus he loves it. I am so impressed that I decided to order the human formulation for myself as age appears to be catching up with me as well. I plan to take the product for two months and monitor the changes to my physical appearance which at the moment is not at all appealing to my eye.
Before contacting the CEO Mr. Manello I read his comments from their 2017 operational results and there were a couple of things that really stood out for me. Anyone that follows me for stocks knows that I like to see the executive team with skin in the game and with open market purchases not just options and grants. Mr. Manello and one other director have been active in buying shares recently as you can see here http://www.openinsider.com/search?q=myos
Comments from the 2017 Operational results below
"I want to start by saying a few words about our financial results for 2017. We were able to get our cash burn rate down through some smart cost cutting measures, while utilizing our resources in sales and marketing in a more focused manner. The idea of continually losing money, even in what is essentially a biotech company, is an anathema to me, and I am committed to changing this over the next 12 months. I will continue to look at our costs and make cuts where needed. I believe that the best way to get our burn rate down is through cost-effective methods of revenue generation.
"I am often asked why I took on the CEO position on a permanent basis last September, giving up my salary, in exchange for $4 stock options, while taking on a two-year commitment; at the same time, I've also purchased more stock on the open market during the fourth quarter of last year. The answer is simple– I did it because I truly see the tremendous potential for this company.
"I invested in MYOS because I believed in Dr. Bob Hariri's idea that if you could find a product to improve muscle health, a great benefit and a great opportunity existed. Bob convinced me that the product to accomplish this is Fortetropin®, and I believe he is right. Fortetropin® is a disruptive and beneficial product that improves muscle health. There is truly nothing like it that I can find in the market. It is exclusively available from MYOS– we own it and it is protected by a patent.
MYOS proved Fortetropin®'s value in a University of Tampa study back in August of 2014. Subjects in the study taking Fortetropin® increased their lean muscle mass nearly 3x more than the placebo subjects. When that was announced, the market cap of the Company rose up to $50mm, much higher than it is today. I believe that to realize the full potential for Fortetropin®, we need to expand on examining its scientific potential– the original intent of the company– building value through science.
Clinical research studies are ongoing for several potential use cases.
Source most recent Myosrens investor presentation
Fortetropin® and what it does
Source Myosrens fact sheet from June 27 2018
I reached out to the CEO Joseph Mannello wanting to learn a bit more about the product and the direction of the company. Mr Manello was extremely open to speaking with me. During my conversation with Mr Manello he let me know that the true potential results for Buddy and myself will likely be more noticeable after two months of using the product. I will give everyone an update after the two months of use and I am looking forward to seeing what the results are.
Mr Manello admits he inherited a branding of the MYOS human formula that he is not fond of but that is about to change and could be a catalyst moving forward. You can find the current brand here https://qurr.com/ and if you are interested in trying the product for yourself now is a great time to do so since they are eliminating the brand and replacing it with something much more appealing from a marketing perspective. Everything is 50% off and once the inventory is gone the new product will be found here https://www.yolked.com/.
Ask any gym rat what yolked means to them.
It means jacked, ripped, swole and that is what you want form your workout program. A supplement the is all natural and can help you achieve those results would likely become extremely popular. The new Yolked™ branding is perfect for a company that has a fertilized egg yolk product to help build lean muscle mass. The personal fitness sports nutrition market is expected to reach 45 billion by 2022. Yolked™ muscle health powders, marketed to D1 schools, received Certified for Sport® certification from NSF International in April 2018. With this certification they are able to work with IMG collegiate sports through university athletic departments, faculty and alumni. There could be opportunity with other professional sports leagues and programs like UFC. They already have an NFL Alumni partnership as you can see from the slide below.
*Source slide from MYOS Investor presentation *
It is my opinion that with the new branding and collegiate programs that MYOS is establishing provide the potential for a dramatic increase in revenue that could be just around the corner.
Pet Product Potential
NUMBER OF U.S. HOUSEHOLDS THAT OWN A PET, BY TYPE OF ANIMAL
(millions)
Pet Number
Dog 60.2 (That is a lot of dogs)
Cat 47.1
Freshwater fish 12.5
Bird 7.9
Small animal 6.7
Reptile 4.7
Horse 2.6
Saltwater fish 2.5
Source: American Pet Products Association's 2017-2018 National Pet Owners Survey.
The market opportunity for the veterinary supplement market reached $580 million in 2016 and is growing on average of 3.5 percent a year. I believe most pet owners would do everything they can to keep their dog healthier longer. MYOS has the only pet health supplement product that addresses muscle atrophy, supports muscle health in dogs featuring Fortetropin® as the active ingredient.
The product comes in powder form and is formulated to mix well with and fortify a dog’s existing food of choice. Buddy loves the product and eats his food with real enthusiasm now that I am adding the Fortetropin®. How do I know he loves it? Because his little stub tail is going crazy when I start sprinkling it on and he is foaming at the mouth when I set his bowl down.
The pet product can be found here
https://www.myospet.com/ If you have an aging dog and are looking for something that may help make their life a little easier consider trying the product for yourself and you be the judge of how well it works.
Some Reasons to Give Fortetropin® to Your Dog
- Research – Fortetropin®, a fertilized egg yolk-derived powder that undergoes processing using patented technology in order to better retain its bioactivity has been studied extensively in both humans and rodents. In humans, Fortetropin® has been shown to lead to increases in muscle mass in 18-21 year old males over the course of 12 weeks while performing moderate resistance training in a randomized, double blind, placebo-controlled human clinical study [1]. In order to understand how Fortetropin® helps to increase muscle mass, a study was performed in rodents. In this study, it was shown that Fortetropin® leads to increased activity of biological processes that are important for building muscle (mTor pathway), decreased activity of biological processes that lead to muscle tissue destruction (ubiquitin proteasome pathway) and that Fortetropin® led to decreases in a protein known as myostatin that “puts the brakes” on the development of new muscle tissue [1].
- Patented Manufacturing Process – Unlike other egg yolk powders that you can purchase to give to your dog, Fortetropin® is manufactured using a patented process that helps to better retain the natural bioactivity of egg yolk. Only fertilized egg yolk is used in the manufacturing process. Rather than pasteurizing the egg yolk using heat, a technology known as high pressure pasteurization (HPP) is used to pasteurize the fertilized, liquid egg yolk that is used to manufacture Fortetropin®. Liquid egg yolk is placed inside sealed bags and these sealed bags are placed inside a chamber that is filled with water. The water pressure inside the chamber becomes so high that it actually exceeds the pressure that one would experience if they were standing at the bottom of the deepest part of the Pacific Ocean, the Mariana Trench [2]. This process is very effective in terms of destroying harmful pathogens but helps to retain many of the beneficial nutrients that are found within egg yolk. The next step of the manufacturing process involves a low temperature drying step known as freeze drying.
- Safety and Quality – We have consulted with leading veterinarians in the United States, affiliated with major Veterinary Colleges and they have assured us that Fortetropin® is very safe to give to dogs. Many of these veterinarians have even conducted small-scale observational studies. Based on encouraging results that they observed, they encouraged us to perform a clinical study involving 100 dogs at Kansas State University (discussed in #1). At each step of the manufacturing process (i.e. before and after HPP, before and after freeze drying), comprehensive microbiological testing is performed to ensure that the product is free of harmful pathogens that could harm your dog.
- Rich Source of Vitamins and Minerals – Research has shown that the egg yolk that is used to manufacture Fortetropin® (fertilized egg yolk) is biochemically distinct from conventional fertilized egg yolk [3]. Egg yolk is a rich source of Vitamin A, D, E, K and B6 along with choline, biotin, iron, zinc and many essential fatty acids. Further egg yolk provides calcium, phosphorus, folate, pantothenic acid, selenium and riboflavin.
- Protein – Fortetropin® does provide essential protein that dogs need to build and repair tissue including muscle tissue. More importantly, our research in rodents has demonstrated that Fortetropin® increases the activity of pathways that are important for building muscle (mTor pathway). Hence, many of our colleagues refer to Fortetropin® as “protein’s perfect partner.”
- Eye Health – Fortetropin® is made from fertilized egg yolk and egg yolk is a rich source of carotenoids such as lutein and zeaxanthin. Lutein and zeaxanthin are anti-oxidants that help protect both humans and dogs from age-related macular degeneration (AMD), a leading cause of blindness during old age.
- Skin and Coat Health – Fortetropin is a rich source of biotin and a clinical study performed by small-animal veterinary surgeons has shown that biotin has beneficial effects for treating a number of skin and fur conditions in dogs [3]. References:
- Sharp, Matthew H., et al. "The Effects of Fortetropin Supplementation on Body Composition, Strength, and Power in Humans and Mechanism of Action in a Rodent Model." Journal of the American College of Nutrition 35.8 (2016): 679-691.
- Buxmann, Waldemar et al. “Process for Producing a Composition Containing Active Follistatin.” U.S. Patent # 8,815,320 B2, August 26, 2014.
- Padliya, Neerav D., et al. "The impact of fertilization on the chicken egg yolk plasma and granule proteome 24 hours post-lay at room temperature: capitalizing on high-pH/low-pH reverse phase chromatography in conjunction with tandem mass tag (TMT) technology." Food & function 6.7 (2015): 2303-2314. Source MYOSPETS Blog
Lets take a look at the technical setup
The daily doesn't paint a great picture as the stock has a tendency to pop and flop and it has a very tiny float of just over 4 million shares. I am viewing MYOS as a long term hold play for several reasons. I like the fact that management has skin in the game. I am becoming a true believer in the product as a consumer. I love undiscovered story stocks that have potential catalysts on the horizon. I believe as the testimonials start rolling in for both products the potential for significant growth lies ahead for MYOS and that should translate to share price increase. After todays big pop on no news I would not be shocked to see an offering. The cash burn remains a concern and until the sales start increasing and the company can achieve cash flow positive results there will most likely be more dilution for existing shareholders in the near term.
"As of March 31, 2018, the Company had no debt and had $1.7 million in working capital. The Company raised approximately $287 from the sale of 140,295 shares of common stock for $2.11 per share through its at-the-market program with H.C. Wainwright & Co., LLC. Subsequent to the end of the quarter, the Company consummated a private placement of shares of common stock on April 25, 2018, issuing 806,452 shares at a purchase price of $1.24 per share to a group of accredited investors, including MYOS CEO Joseph Mannello and a member of the Company's board of directors, for aggregate gross proceeds of $1.0 million."
Source First Quarter Earnings results transcript
Full disclosure I have started a position in my long-term hold account and could be looking to add opportunistically on pullbacks to potential price support areas. I will lay out a full trade plan for the pro members over the next couple days.
Disclosure: I have a long positions in MYOS and could look to add to that position within the next 72 hours.
