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Emmaus Life Sciences Incorporation

SYMBOL: EMMA

We all dream about buying an undervalued stock just before it blasts off and I think I just did.
We all dream about buying an undervalued stock just before it blasts off and I think I just did.

Just a few months ago some bold investors picked up shares in various companies, at the bottom of the markets’ recent rocket-like recovery, many for 20-30% gains.

While those results are nothing to sneeze at, what I’m looking at is potentially much bigger. Plus, most of the recovery trades are now long gone and the market seems precariously overvalued, but, regardless of the direction that the wider economic recovery takes, biotechs are poised to continue to lead the way.

Emmaus Life Sciences

EMMA is a commercial stage biopharmaceutical company, engaged in the discovery, development, marketing and sale of innovative treatments and therapies, including those in the rare and orphan disease categories.

Endari®, which has already hit over $20 million in sales, and growing, in just 3 years of FDA approval, is currently used to treat Sickle Cell Anemia. However, Endari is showing very promising phase 2 results for Diverticulosis, a potentially massive market with limited competition.

Read about the potential for positive phase 3 results inside.
LEARN MORE

Endari®, which has already hit over $20 million in sales, and growing, in just 3 years of FDA approval, is currently used to treat Sickle Cell Anemia. However, Endari is showing very promising phase 2 results for Diverticulosis, a potentially massive market with limited competition.

Read about the potential for positive phase 3 results inside.
LEARN MORE

Read my urgent report now, and you’ll understand why EMMA could be the stock pick of the year for your family and friends.

Considering those factors, and more, its stock should score highly on value, growth and quality.

EMMA is NOT a penny stock!

Emmaus Life Sciences, EMMA, trades at a level that’s too low to ignore. The company was listed on the NASDAQ and it looks like it’s positioned to return to a national exchange. For example, on October 14, it announced that it made a major move to strengthen its balance sheet.
That’s not the only reason why I believe that EMMA isn’t your typical “penny stock.” In fact, EMMA was on the Nasdaq and, due to a listing process accounting error, the company was forced to reorganize on the OTC Venture Markets.
Plus, considering the opportunities for its prescription grade L-glutamine (PGLG) oral powder, EMMA is an undervalued stock that investors should consider.
FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

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Emmaus Life Sciences Incorporation

SYMBOL: EMMA

EMMA’s gaffes have given savvy market players a chance to buy well below $5!

The company’s operations and trajectory have not changed, and continue to improve and add value, as the accountants work to restate the financials.

EMMA’s gaffes have given savvy market players a chance to buy well below $5!

The company’s operations and trajectory have not changed, and continue to improve and add value, as the accountants work to restate the financials.

Normally, a restatement of this kind would be the worst news a company could have, but, in Emma’s case, it is the exact opposite. The company announced the following, regarding the restatement.
  • The misclassification as equity of warrants issued by EMI in October of 2018, which warrants should have been accounted for as liabilities based upon fair value.
  • The erroneous consolidation as a Variable Interest Entity, or VIE, of EMI’s interest in EJ Holdings, Inc., which should have been accounted for based upon the equity method.
  • The misclassification as equity of warrants issued by EMI in October of 2018, which warrants should have been accounted for as liabilities based upon fair value.
  • The erroneous consolidation as a Variable Interest Entity, or VIE, of EMI’s interest in EJ Holdings, Inc., which should have been accounted for based upon the equity method.
Neither issue is material to its operations and should have minimal impact on the company’s finances. There is nothing that indicates the business has not and will not continue to grow, as you can see by reading recent press releases, which should give market participants some degree of comfort while considering this play.

The more I learn about EMMA, the surer I am that it must be the most undervalued commercial stage biotech listing on any market today.

Since the FDA approval of Endari® for sickle cell, in 2017, the company has been growing year over year.

Since the FDA approval of Endari® for sickle cell, in 2017, the company has been growing year over year.

EMMA announced a Medicaid Drug Rebate agreement, allowing coverage of Endari® (L-Glutamine oral powder).
The company shipped 24,072 boxes of its patented drug, Endari® , in 2019, at $1,110 per unit, for sickle cell disease treatment.
Its growth plan is on track to increase its current sales, with EMMA reporting 48% increase in “Emmaus Unit Sales” and a 58% increase in “Distributor Unit Sales”, in 2019 sales over 2018 sales, while Emmaus Unit Sales set a new quarterly sales record in Q1-2020 and Distributor Unit Sales in Q2-2020.
The Company is also preparing Endari® for success in the Middle East and North Africa (MENA) region. “On June 29, 2020 Emmaus announced it received Endari® marketing authorization from the Israeli Ministry of Health and on July 23, 2020 announced the opening of its Dubai office. These developments will accelerate the company’s efforts to reach the estimated 100,000 potentially treatable sickle cell disease patients in the MENA region.”
FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

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Emmaus Life Sciences Incorporation

SYMBOL: EMMA

This means that, using recently reported wholesale price estimates, Emmaus nearly hit $27 million in 2019 sales; just from Sickle Cell disease only, with the US being home to about 100,000, of the planet’s estimated 20-25 million, sufferers.

$27 MILLION

OF ENDARI 2019 SALES

20-25 MILLION

SICKLE CELL DISEASE SUFFERERS

Emmaus currently has 43 million shares outstanding, with additional preferred stock available and a warrant that was also delisted for the aforementioned reasons.

EMMA's Endari® testing for diverticulosis has shown promising results in slowing or reversing progression of this disease, to the point that patents for this treatment have been issued in the US, Japan, China, Mexico, Australia, and Indonesia, and pending in other countries.

EMMA's Endari® testing for diverticulosis has shown promising results in slowing or reversing progression of this disease, to the point that patents for this treatment have been issued in the US, Japan, China, Mexico, Australia, and Indonesia, and pending in other countries.

Initial, limited, clinical results suggest that Endari “may be effective in slowing and reversing the progression of diverticulosis, in April 2019 Emmaus commenced a Pilot/Phase 1 study of its PGLG oral powder to evaluate the change in the number and size of colonic diverticula and assess safety in 10 to 15 patients at multiple study sites. A preliminary interim evaluation of the first patients in the study indicates consistently positive results. Although the trial is ongoing, based upon the data obtained so far, Emmaus would intend to pursue a Phase III trial under the FDA’s abbreviated 505(b)(2) regulatory pathway.”
A recent PR stated that two patients, who completed a six month pilot trial, to study Endari’s effect on diverticulosis, experienced dramatic decreases in the amount of diverticula in the sigmoid colon; one reduced the amount of sacs by 50% and the other by 100%.

Product Expansion & Timeline

When speaking about PGLG oral powder as a treatment for diverticulosis, Yutaka Niihara, M.D., M.P.H., Chairman and Chief Executive Officer of Emmaus, stated, “In my three decades of clinical experience, this is the first time I have observed or heard of any treatment that may reverse the progression of the disease.”
Joanne Ball-Gautschi, CEO and President of Partner International, added, “With no current treatment options available, this is a serious unmet medical need with significant market potential worldwide.”
Accordingly, with the positive data, EMMA announced it has embarked on preparing for a Phase 3 trial for further testing of the efficacy.
FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

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Emmaus Life Sciences Incorporation

SYMBOL: EMMA

Diverticulosis is a quite common condition especially for the aging western populations. It’s estimated that around 58% of people over the age of 60 will have some form of this disease. 70% of 80-year-olds in the U.S. have diverticulosis and 10% to 25% of these patients will develop diverticulitis, a debilitating GI disease that often requires hospitalization and on occasion surgical intervention

Diverticulosis

According to “Science Direct” it is the 5th most costly gastro condition, and in the US costs an estimated $2.2-2.6 Billion in direct and indirect costs. This market is substantially larger than Sickle Cell, and if results in Phase 3 mirror those above, the company could quickly become competitive in this space, and could easily outperform Endari’s use for sickle cell, especially if it can be a “CURE”

Diverticulosis

According to “Science Direct” it is the 5th most costly gastro condition, and in the US costs an estimated $2.2-2.6 Billion in direct and indirect costs. This market is substantially larger than Sickle Cell, and if results in Phase 3 mirror those above, the company could quickly become competitive in this space, and could easily outperform Endari’s use for sickle cell, especially if it can be a “CURE”

If EMMA’s potential doesn’t excite you, you must be dead!

Emmaus is well funded and has enough cash to continue its current growth trajectory.
The company is making a lot of cash and reinvesting that cash on infrastructure to prepare it for larger sales cycles. The company’s “impact” capital should create substantial sales increases going forward.
The company has more than $50 million in assets, lots of cash and recently sold its Telcon RF pharmaceutical stock position for $36.6 million net proceeds. EMMA, then loaned $26.1 million to Telcon, in the form of a cash backed bond, so its balance sheet will no longer be affected by Telcon’s stock volatility.
Emmaus is not the best at writing press releases, as they are over complicated and hard to understand, to the point that the estimated $10 million in profits from the sale of Telcon RF Pharmaceutical’s securities was interpreted by the market as a negative, but they have been delivering positive corporate news and I think that they will earn widespread coverage after they refile their audits.
News drives markets and this company has significant events which will be unfolding very soon in the hottest biotech/pharmaceutical market in US history.

Catalysts which will

DRIVE EMMA OVER $5.00

  • The auditors have been working since August to complete the restatement of the financials. We should expect these to begin showing up very soon!​
  • The company sold the shares in Telcon RF, which will help the company maintain the shareholder equity needed for the Nasdaq relisting.​
  • The company continues to expand its current markets, while announcing the addition of several new channel partners and distributors around the world. These will be future catalysts for sales growth and a distribution network which will quickly dispense Endari® for Diverticulosis once expected FDA approval happens.​
  • The auditors have been working since August to complete the restatement of the financials. We should expect these to begin showing up very soon!​
  • The chart on EMMA shows the company previously trading at a high of almost $12 and above $4, as it faced a delisting from NASDAQ. The number of shares “sold” to cause the price decline is at most a few million shares, as some of the traded shares indicate buying as the price fell and shareholders averaged down. Today’s bull market has sent Biotechs soaring, especially on drug efficacy announcements and positive earnings. ​
  • The chart indicates the stock could easily break out more than 500% from today’s trading levels and could quickly eclipse the $5.00 range upon the filing of the financials, in preparation for NASDAQ relisting.​
  • A quick scroll through the filings shows pages and pages of Form 4s, which means insiders are trying to buy all the cheap stock. This indicates that you and everyone else should be buying these shares right now.​
  • Comparable listings are probably trading around 30 times earnings, maybe higher. We can’t do a valuation until the audits are restated, but it appears the book value for the stock is higher than the price today. Even at 3 times earnings, with all the cash and real debt (not accrued losses) the company would be a significant more valuable than where it’s been trading. Emmaus has made some massive strides towards returning to a national market, but, currently, it trades at a single-digit P/E ratio.​
  • Moreover, if PGLG is approved for Diverticulosis, it may be beneficial for other ailments as well.​

Catalysts which will

DRIVE EMMA OVER $5.00

  • The auditors have been working since August to complete the restatement of the financials. We should expect these to begin showing up very soon!​
  • The company sold the shares in Telcon RF, which will help the company maintain the shareholder equity needed for the Nasdaq relisting.​
  • The company continues to expand its current markets, while announcing the addition of several new channel partners and distributors around the world. These will be future catalysts for sales growth and a distribution network which will quickly dispense Endari® for Diverticulosis once expected FDA approval happens.​
  • The auditors have been working since August to complete the restatement of the financials. We should expect these to begin showing up very soon!​
  • The chart on EMMA shows the company previously trading at a high of almost $12 and above $4, as it faced a delisting from NASDAQ. The number of shares “sold” to cause the price decline is at most a few million shares, as some of the traded shares indicate buying as the price fell and shareholders averaged down. Today’s bull market has sent Biotechs soaring, especially on drug efficacy announcements and positive earnings. ​
  • The chart indicates the stock could easily break out more than 500% from today’s trading levels and could quickly eclipse the $5.00 range upon the filing of the financials, in preparation for NASDAQ relisting.​
  • A quick scroll through the filings shows pages and pages of Form 4s, which means insiders are trying to buy all the cheap stock. This indicates that you and everyone else should be buying these shares right now.​
  • Comparable listings are probably trading around 30 times earnings, maybe higher. We can’t do a valuation until the audits are restated, but it appears the book value for the stock is higher than the price today. Even at 3 times earnings, with all the cash and real debt (not accrued losses) the company would be a significant more valuable than where it’s been trading. Emmaus has made some massive strides towards returning to a national market, but, currently, it trades at a single-digit P/E ratio.​
  • Moreover, if PGLG is approved for Diverticulosis, it may be beneficial for other ailments as well.​
FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

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Emmaus Life Sciences Incorporation

SYMBOL: EMMA

Management

We all know that management is one of the most important factors to consider when investing in a company or product. Emmaus’s great team includes talented executives and advisors, but the differentiator is its CEO and Chairman of the Board.

Yutaka Niihara, MD, MPH​

Dr. Niihara has been involved in patient care and research for sickle cell disease for most of his career, and is the principal inventor of the patented L-glutamine therapy for treatment of sickle cell disease. He is a cofounder of Emmaus, principal investigator for LABioMed at Harbor-UCLA Medical Center and Clinical Professor of Medicine at the David Geffen School of Medicine at UCLA. He founded the company in 2000.

Yutaka Niihara, MD, MPH​

Dr. Niihara has been involved in patient care and research for sickle cell disease for most of his career, and is the principal inventor of the patented L-glutamine therapy for treatment of sickle cell disease. He is a cofounder of Emmaus, principal investigator for LABioMed at Harbor-UCLA Medical Center and Clinical Professor of Medicine at the David Geffen School of Medicine at UCLA. He founded the company in 2000.

His experience includes serving as President, Chief Executive Officer and Medical Director of Hope International Hospice. Board-certified by the American Board of Internal Medicine and the American Board of Internal Medicine/Hematology, Dr. Niihara is licensed to practice medicine in both the U.S. and Japan. His honors include the Lifetime Achievement Award, from the Sickle Cell Disease Foundation of California and the Abigail Kawananako Award. Dr. Niihara received his B.A. in Religion from Loma Linda University, obtained his M.D. from Loma Linda University School of Medicine in 1986, and received his MPH from Harvard School of Public Health in 2006.
Dr. Niihara’s laser focus on unleashing Endari’s benefits for millions, perhaps even billions, of patients who desperately need better solutions, since founding the Company in 2000.
Yet, even more impressive, is Dr. Niihara’s integrity and attention to detail, in leading the Company’s voluntary correction of the auditing problems.

Conclusion

With the success of Endari® for treating Sickle Cell and tests showing promise for Diverticulosis, EMMA is poised for future success and should be able to create significant value for shareholders, who take a position while the company is finishing their audits.

The company is well funded, continues to grow revenues and has announced several new partners in multiple countries to expand its products footprint. There will, undoubtedly, be updates on these ventures, more Phase 3 Diverticulosis test news, which is a disease that afflicts 60% of all adults over the age of 60.

Management is sound and the recent sale of a volatile position, which hurt the company’s shareholder equity, should enable the company to meet the requirements needed to list on the NASDAQ again. Smart money would be wise to continue to follow and invest in EMMA.

Our editors have been buying shares, and we plan to sell them when the company relists on NASDAQ, or the price action is such that it makes sense to exit. This trade should be great with the overcharged market, and we believe it makes sense for a longer-term hold at these levels

24/7 Market News
Editor

FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

FOR MORE INFORMATION VISIT: WWW.EMMAUSMEDICAL.COM

TICKER SYMBOL: EMMA

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