Shares of biomedical firm Femasys (NASDAQ:FEMY) more than doubled on Thursday. This followed an important intellectual property (IP) protection announcement. Management stated that the U.S. Patent and Trademark Office (USPTO) issued a notice of allowance for its patent application for its first-of-its-kind permanent birth control solution. FEMY stock initially gained 150% before settling slightly lower.
According to the USPTO website, should the government agency reasonably assess that an applicant is entitled to a patent under the law, a notice of allowance would be sent to the applicant. Therefore, it’s a significant step for an innovative biotechnology firm to protect its investment; hence, the dramatic rise in FEMY stock, which only carries a market capitalization of just over $11 million.
Per Femasys’ press release, the company expects the resulting patent (when issued) will have an anticipated expiration in 2039 at the earliest. As well, Femasys intends to continue to prosecute additional patent applications to further enhance its existing patent portfolio, which will protect the underlying FemBloc permanent birth control solution, along with FemaSeed, an infertility treatment.
FEMY Stock Soars on the Potential of a Burgeoning Market
Naturally, the implication of addressing a large and burgeoning market buoyed investor confidence in FEMY stock. Fundamentally, FemBloc adds another alternative (and an arguably attractive one) for women’s reproductive health solutions. Femasys Founder, President and CEO Kathy Lee-Sepsick stated in part the following:
“The allowance of claims for the FemBloc permanent birth control is another important milestone in protecting the commercial potential for this novel, non-surgical contraceptive option for women seeking a permanent birth control solution, which is expected to begin its pivotal clinical trial phase this quarter. Expansion of our patent portfolio, which consists of over 150 patents globally, demonstrates our strong commitment to protecting the innovation and commercial opportunity of FemBloc, as well as our entire suite of products for women seeking better and more accessible options.”
To be sure, confidence in FEMY stock isn’t just based on pie-in-the-sky rhetoric. According to Grand View Research, the U.S. contraceptive market reached a valuation of around $8.3 billion last year. Experts in the field project that the segment will expand at a compound annual growth rate (CAGR) of 5.16% from 2023 to 2030. At the culmination of the forecast period, the sector may deliver revenue of $12.4 billion.
Adding a nonsurgical, non-implant and in-office solution for permanent birth control may tap into a significant meet.
Why It Matters
Believe it or not, FEMY stock presently carries a unanimous strong buy assessment. Even more startling, the experts’ average price target lands at $6.67, implying nearly 639% upside potential.
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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
