In yet another topsy-turvy session in the markets, investors may want to look for bright spots in this uncertain time. One of today’s biggest winners is Motus GI (NASDAQ:MOTS), a maker of colonoscopy-related medical devices and technologies. Today, a key announcement has resulted in MOTS stock gaining more than 50% so far.
This announcement covers a U.S. Patent and Trademark Office (USPTO) decision approving a new patent for Motus’ “cleaning method for prepless colonoscopy.”
With the new patent, Motus has essentially increased intellectual property (IP) protection for its medical devices and technology portfolio. The company’s unique system, which enables high-quality colonoscopies with minimal prep, is already something the market seems to like. But a patent confirming that this process is unique — and something the company can protect as IP — is especially valuable.
Let’s dive into what this news means for investors and why it’s causing such a pop today.
Why Is MOTS Stock Surging Today?
Motus is certainly a unique company in the very specific products and services it provides. Colonoscopies are something few want, including providers. Accordingly, Motus’ now-patent-protected pre-procedural bowel prep systems may be the answer to everyone’s prayers.
Essentially, this system eliminates, in whole or in part, a significant burden for patients and providers in prepping for a colonoscopy. As the company notes in its press release, the preparation process “is the number one issue that prevents people from getting a colonoscopy which may aid in preventing colorectal cancer.”
Thus, Motus’ market share in this high-demand space, as well as potentially increased demand given its more seamless process, could result in some significant profitability gains over time. Investors seem to also be focusing in on the barriers to entry that this patent provides.
With companies like Motus, concerns always abound about competitive pressures that could impact margins long-term. Having a key patent for the company’s unique value proposition is a big win for investors. Thus, MOTS stock appears to be rallying correctly during today’s session.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
