Robot Pills: A Game-Changer In Drug Delivery, With Potential Stock Upside

The pharmaceutical industry may be on the brink of a transformation, with innovative “robot pills” offering a potential solution for drug delivery, which could also prove lucrative for investors. This revelation comes despite the stocks’ current undervalued status and associated risks, CNBC reported.

Some early-stage drug delivery companies are developing pills that can safely transport delicate molecules through the harsh conditions of the gastrointestinal tract. These companies, largely unnoticed by investors, could be the next big thing in the pharmaceutical industry.

Edward Nash, an analyst at Canaccord Genuity, explains that drug delivery has traditionally been a roll-up sector.

“Once they really started to show positive proof of concept data, you would see Big Pharma … swoop in and take them over,” he said.

Companies such as Rani Therapeutics RANI, Biora Therapeutics BIOR, Avalyn Pharma and Elektrofi are making strides in this area.

Both Rani and Biora are employing capsules, or “robot pills”, in their drug delivery systems. These capsules protect the drug until it reaches the correct location in the body, then release the drug into the bloodstream.

See Also: Is Your Marijuana Safe? Study Exposes Disturbing Truth About Illicit Products

These companies are also working on treatments for osteoporosis, psoriatic arthritis, hypoparathyroidism, psoriasis, and other conditions. Canaccord Genuity’s Nash believes that these novel delivery methods could greatly expand a drug’s market.

Rani Therapeutics has seen a 36% decline in its share price so far in 2023. However, Nash rates Rani shares a buy, with a $26 price target, implying a substantial 568% upside from Friday's closing price. Meanwhile, Biora Therapeutics, valued at $41 million, has an average price target of $34, over 1,000% above its closing price on Friday.

While investors keep an eye on the progress of these companies, the next few months are crucial for Rani. The company is set to begin its phase 2 trial for osteoporosis by the end of the year, which if successful, could significantly de-risk the platform and bring the company closer to commercialization.

Read Next: Contemporary art has globally outperformed the S&P 500 between 1995 and 2022. These curated pieces could do even better and you can own their shares. Click here to check them out.

Photo by roberto-sorin for Unsplash