The ongoing market correction has whacked many small-cap biotechs pretty hard. More pain could be on the way. Investors are reluctant to have too much exposure to unprofitable, cash-hungry businesses given the uncertainty in the macroenvironment.

7investing Lead Advisor Maxx Chatsko’s March 2022 recommendation is small and unprofitable, but its intentional growth strategy could soon be rewarded. The commercial-stage company is revolutionizing care for an emergency treatment and earned full regulatory approvals in 2021. Intriguingly, it expects data readouts from two major clinical trials in the second half of 2022 that could give it three high-growth brands in three different, underserved markets by the end of 2023. With infrastructure and payments already in place for two verticals, the business could scale rapidly.

Transcript

This is one of the most attractive small caps on the market today.

Hey everyone, I’m 7investing Lead Advisor Maxx Chatsko. I cover biotechnology and renewable energy here at 7investing, where we empower you to invest in your future by giving you our seven best stock market opportunities each and every month, each backed by the domain competence of one of our lead advisors.

The ongoing market correction has whacked many small-cap biotechs pretty hard. More pain could be on the way. Investors are reluctant to have too much exposure to unprofitable, cash-hungry businesses given the uncertainty in the macroenvironment. Nonetheless, investors might miss opportunities if they’re too cautious with a one-size-fits-all approach.

My recommendation for March 2022 is an unprofitable, small-cap company. But it could soon have three high-margin, high-growth market opportunities that have poor or no treatment options. It earned full approvals for one of these verticals in 2021 — and is delivering gross margins of 80%. If it earns two more approvals in 2023, then the business could achieve at least 50% annual revenue growth for the foreseeable future.

If you want to read my full research report, then you know what to do — go to 7investing.com. And remember, it’s never too early or too late to start investing in your future.