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Vitrolife: A Small-cap With Potential

On February 7th 2012, Vitrolife AB (STO:VITR) reported their best ever sales in a single quarter.

Sales have increased for 36 consecutive quarters and have grown ~75% since 2006. Over the same period, net income doubled.

The current p/e is ~27 and dividend yield is ~1.3%.

Vitrolife specializes in 3 areas: in vitro fertilization, stem cell therapy and transplantations. They have access to US, European, Middle-east and Asian markets.

As of Dec. 2011, JP Morgan was one of the top 10 investors in Vitrolife.

Other information (from: http://www.news-medical.net/news/20120207/Vitrolife-fourth-quarter-sales-increase-1825-to-SEK-95-million.aspx )

-- Vitrolife was the first company to obtain regulatory approval in China for a whole series of cultivation media for IVF

-- A study showed that EmbryoGlue®, a product patented by Vitrolife, increases the chances of infertile women having children.

-- A clinical study showing good results when using STEEN Solution™ was published in a prominent scientific journal. In all more than 100 patients have now received new lungs through the use of STEEN Solution™.

As an investor with a strong background in the medical sciences, I believe Vitrolife is taking a smart approach to addressing the challenges of in vitro fertilization, stem cell therapy and transplantations. Thus, I would argue Vitrolife is a good investment with long-term potential.

I am long Vitrolife