LifeVantage Corporation (OTCBB: LFVN) climbed to a 52-week high of 0.98 on Monday as shares in the company continue to gain momentum following another impressive quarter which showed preliminary net revenue of approximately $10 million, a 35 percent spike from the $7.4 million reported during the second quarter 2011 and a 270 percent increase from the $2.7 million in net revenue generated during the same quarter last year.
This is coming after the second quarter ending Dec. 31, 2010 marked a $1.0 million increase in net revenue from the first quarter and a $2.4 million jump from the same quarter one year earlier. Investors have responded to the revenue improvements, pushing trading volume in the maker of science-based solutions to oxidative stress higher with a five-day average now sitting above 541,000, well above the 50-day trading average of 250,590 and 200-day trading average of 188,026.
Along with the volume push share price has climbed significantly as well and the current 0.95 level is comfortably ahead of the 50-day moving average of 0.74 and 200-day moving average of 0.55, earning the LFVN strong buy marks from a number of outlets.
The success of LFVN has come largely from their patented anti-aging and wellness product Protandim, a dietary supplement that combats oxidative stress and has shown a number of positive attributes related to the prevention of the proliferation of cells that can cause re-blockage of vessels following coronary artery bypass surgery, stenting, and carotid enarterectomy.
Adding further credibility to Protandim is the fact that it was the subject of a peer-reviewed study conducted by researchers at The Ohio State University, a study sponsored by the American Heart Association and the National Institutes of Health. The findings of that study, published in the scientific journal Free Radical Biology and Medicine, entitled “Protandim attenuates intimal hyperplasia in human saphenous veins cultured ex vivo via a catalase-dependent pathway,” xamined Protandim’s ability to suppress intimal hyperplasia, a common adverse event that limits the effectiveness of several types of vascular surgery.
That review was published back in January and showed that Protandim, a dietary supplement comprised of five highly synergistic herbal ingredients, was able to increase the body’s Nrf2-regulated protective genes, commonly referred to as “survival genes”, which include most of the antioxidant enzymes.
What this does for LFVN is help further separate themselves from a host of anti-aging and wellness products that essentially concentrate on external appearances but provide little in the way of actual health benefits. According to that study Protandim could play a significant role in reducing or even eliminating the blockage of saphenous vein grafts used during multiple bypasses, a process that may result from intimal hyperplasia. Protandim was shown to increase antioxidant enzyme activity in veins cultured at high oxygen, while reducing free radical levels, lipid peroxidation, as well as reduce intimal proliferation to the level seen in a normal healthy saphenous vein.
This is significant for LFVN simply because it demonstrates that Protandim provides benefits that extend beyond its ability to decrease oxidative stress. If future studies can support evidence that Protandim is able to reduce intimal hyperplasia then it could be a serious player in procedures like coronary artery bypass graft (CABG) surgery, angioplasty with stent insertion, and carotid endarterectomy; these three procedures combined affect more than 1.5 million Americans every year.
Of course right now LFVN is marketing Protandim as a clinically proven dietary supplement that provides substantial benefits for healthy aging. For them to get Protandim into the above procedures they would need to get FDA approval and that is a long way off and incredibly costly.
Putting the FDA aside and just looking at the success LFVN has been enjoying there appears to be reason for optimism as the company has posted eight consecutive quarters of net revenue growth and six consecutive quarters of improvement in operating income or loss. LFVN took a big step in continuing that trend last month when they announced the appointment of Douglas C. Robinson as President and CEO, replacing David W. Brown.
Robinson, according to the announcement, brings over 20 years of relevant industry experience, including senior roles at UnitedHealth Group, Deloitte Consulting and PriceWaterhouseCoopers while most recently serving as CEO of WorkWell Systems, a physical medicine and workers’ compensation solutions company.
Recognizing that Brown has headed substantial revenue growth, LFVN has placed him in the position of driving further revenue through the expansion of the company’s network marketing operations. That could mean that in addition to Protandim receiving a greater push the company could advance the visibility of their LifeVantage TrueScience Anti-Aging Cream, a scientifically-based skin care product that contains ingredients of Protandim, giving skin, as the company states, “a beautiful, even and smooth tone, diminishes the appearance of fine lines and wrinkles, and provides a vibrant and glowing appearance.”
Topical creams and anti-aging agents can be as profitable as any FDA approved drug and if Brown can continue to find success in growing revenue for LFVN and opening new marketing channels the company could find itself over that 1.00 threshold soon and provide shareholders impressive gains in the near future.