Bank of America/Merrill Lynch: The fight against obesity will be a major investment trend

(Source: Reuters) - The fight against Obesity will be a major investment trend for the next 20-25 years, a report by Bank of America/Merrill Lynch

"Obesity may be the most pressing health challenge facing the world today and efforts to tackle it will shape thinking by policymakers and in boardrooms around the world," said Sarbjit Nahal, equity strategist at BofA Merrill Lynch Global Research. "Global obesity is a mega-investment theme for the next 25 years and beyond."

Source: http://in.reuters.com/article/2012/07/16/us-obesity-report-merrilllynch-idINBRE86F1CT20120716

ONCIOMED, Inc. Awarded New Patent for a Novel Treatment of Obesity and Diabetes.

Oct 29, 2012

Onciomed, Inc. (Irvine, California), a developer of minimally invasive technologies for the treatment of obesity and diabetes reported that the U.S. Patent and Trademark Office has awarded an additional key patent covering the design and implantation method for its novel device to treat obesity and diabetes. Several additional patents are also currently in review at the patent office which will significantly add to Onciomed’s portfolio.

“The challenge of current treatments is that most of them offer a single mode of action and thus the durability of weight loss is often a problem as the stomach expands over time”, said Dr. Raj Nihalani, president/CEO of Onciomed, Inc. “Our novel VEST technology system was designed to be an alternative to traditional, highly invasive, irreversible bariatric surgery.” It is performed through a single incision laparoscopic procedure, and once in place, the device is intended to be a permanent solution.  The VEST acts as a true restrictive technology to provide feelings of early fullness and satiety along with a faster gastric emptying time leading to a reduced absorption of fat and glucose. Patients can then modify their diet, thereby returning to a healthier lifestyle, and, in turn, reduce their dependence on diabetes medications.

 “These patents further demonstrate the uniqueness of our VEST technology system, using a minimally invasive and reversible approach for obesity treatment and diabetes,” said Dr. Nihalani, president/CEO of Onciomed, Inc. “We are pleased with the claims allowed and believe these patents provide a great foundation for Onciomed to build on as we continually expand our intellectual property position. These patents, along with a high-powered team and a demonstrated animal study and human feasibility, all provide significant confidence to make the Onciomed technology the future standard of care for the minimally invasive leading treatment of obesity and diabetes.”

Onciomed also announced that it will be raising $5M in Series A funding to start enrollment of a clinical trial patients outside the U.S.

Dr Nihalani added, “We have run the company very leanly to date, and have reached milestones that most of the medical device companies accomplish at the Series B round of their financing.”

For additional information contact: Glenn Morimoto at: glennmorimoto@hotmail.com

Ph:415-450-0473 and Santhosh. V at: santhosh.vadivelu@gmail.com ; ph: 650 278-6683

IT Companies: Reality Check

Only a little more than two dozen U.S. companies have a market cap that size. Remember, all stock trades are ultimately a matter of valuation, and valuation is always a matter of perspective. Perspective almost always needs to be checked, and that is certainly so with the level of hype that is surrounding this IPO.

So is Facebook's underlying business worth owning? To figure this out, I recommend keeping several things in mind.
1. You should be interested in "What's next." Facebook is "What's now."
Everyone already has a Facebook account. How much can it grow from here? That's not a rhetorical question: It's a quantifiable one.


Right now, Facebook's business generates revenue of $3.7 billion and nets 26.9%, or $1 billion. The company grew 77.8% from 2007 to 2008. In the next three years, it grew 185%, 154% and 89%, respectively.

The trend is clear: Facebook's growth is waning. The best comparison here is Google (GOOG), which had four strong years of growth in excess of 30% before growth waned. Facebook is at that point now.
Now, Google, it has to be said, grew into its valuation. It ended 2004 at $192.79 a share and shot up 235% to its current market cap, which works out to 19.6 times earnings. But it is unlikely that Facebook will be able to accomplish the same feat.
To be worth $100 billion in market cap, at 19.6 times earnings, Facebook needs to have $5.1 billion in earnings. At its current net earnings margin of 26.9%, that implies top-line revenue of $19.3 billion, which is 421.3% above 2011 levels. This means Facebook has to double revenue and earnings in 2012, then double it again in 2013, then start to have 30% annual growth. If it does that -- which would be an incredible business feat -- it would be worth the top end of its IPO price range.