Several Market Factors Should Accelerate the Ascent of Catasys Inc. Print E-mail
By M.E.Garza   
Wednesday, 21 September 2011 02:04
fda calendar and biotech investingA combination of positive pending catalysts combined with the realization of key milestones should help accelerate the anticipated ascent of Catasys, Inc. (PINK:CATSD).
After some key announcements during a presentation at last week’s Rodman & Renshaw Healthcare Conference in New York City, investors have been watching the stock for new contractual activity and other anticipated initiatives which should begin to facilitate the realization of profits and turn the company’s financial fortunes around. Earlier this month, the Company’s Board of Directors declared a reverse stock split as part of the Company’s initiatives to improve its capital markets appeal to investors.

As we first reported earlier in the week, Catasys had found it incredibly difficult to get off the starting block with previous versions of their medical treatment approach which was designed specifically to help healthcare plan providers save money. After some adjustments, proven performance models have now emerged. It appears that the firm is finally beginning to convince the insurance industry that it can help solve a $21 billion problem posed by health plan members who suffer from substance abuse. Those substance dependent members cost health plans up to eight times more than other enrolled members.

Many of those costs are passed on and have caused insurance premiums to skyrocket 100% during the last 10 years. Because insurance providers are under increasing pressure to reduce costs and legislative Health Care Reform is pressuring the industry for additional price controls, Catasys executives are anticipating that additional clients will engage them and contract their unique service.

It appears that the firm’s revised business model has finally put them on track to realize their long promised potential and since their patented, proprietary technology is now the only solution with proven efficacy in this space, Catasys should be primed for rapid growth and expansion.

We fully anticipate that Catasys will reach their recently stated profitability goals. In addition, the on-going development of existing client relationships coupled with a strong sales pipeline should facilitate exponential revenue growth during 2012 and beyond.

News announcements should call investor attention to Catasys as it attains some of their anticipated milestones in the days and weeks ahead; particularly since the current market valuation does not yet reflect these pending developments.

Disclosure: None

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