BioCorRx COO Says Addiction Treatment Sector is Steadily Growing, Recession-Proof
Investors in the healthcare sector who want to diversify their portfolio can look into investing in a new entrant with a promising lead product like BioCorRx, Inc. (BICX).
In the addiction rehabilitation sector, BioCorRx (previously known as Fresh Start Private) is one of the leading companies with a Naltrexone implant product touted for alcohol and opioid addiction treatment, while big-cap and mid-cap players like Acadia Healthcare Company Inc. (ACHC) and Providence Service Corporation (PRSC) focus more on behavioral therapy and methadone use.
In an interview with BioCorRx, Inc., Chief Operating Officer Brady Granier discussed the investment opportunities in the health care sector.
Grainier began his career in the healthcare industry as a registered nurse. He then transitioned into media sales at Clear Channel Media & Entertainment (CCM+E) where he was eventually promoted to director of Business Development and other managerial positions over the span of that 11-year career. Before his appointment as the company COO in June 2013, Granier served on the Board of Directors for Fresh Start Private Management Inc.
"The strengths of the addiction rehabilitation industry stems from the fact that addiction is a disease that has familial tendencies. Some people seem to be born with a genetic predisposition for addiction to substances and there is no cure for it. It's a disease that needs to be managed. As long as alcohol and drugs are available, there will always be people with addictions to them unfortunately," Grainier said of the industry's upside potential.
"In times of recession, healthcare services in general seem to be mostly recession proof. There are conflicting reports about alcohol and drug use during times of recession, but people get sick no matter how good or bad the economy is doing at any given point in time. Alcohol is very cheap and easily obtained during times of economic hardship," he added.
Granier also sees changes in insurance coverage due to the Affordable Care Act, as a potential catalyst to set things in motion. "As more and more insurances are required to cover substance abuse under new healthcare laws, opportunities in the industry should improve. We have seen an uptick in the coverage for our program over the last year as reported by clinics that are billing insurances for the program," he stated.
A previous TheStreet report stated that between three and five million U.S. citizens with drug and alcohol problems "will become eligible for insurance coverage under the new health care overhaul." It also said that the rising number of patients seeking help due to the new eligibility term has" prompted private equity firms to increase their investments in addiction treatment companies."
However, Grainier was unsure as to the extent the Affordable Care Act could change the face of the addiction treatment industry. "It's too soon to tell how much the Affordable Care Act will impact the industry," he said. But according to him, rosy forecasts about the industry's employment rate are clear indications of future growth.
Bureau of Labor Statistics data showed that employment of substance abuse and behavioral disorder counselors is projected to grow 31 per cent over the 10-year period between 2012 and 2022. The agency also noted that this is much faster than the average for all occupations.
A Daily Finance report stated that the U.S. addiction treatment industry is forecast to reach $34 billion in 2014, up by 55 per cent from 2005.
BioCorRx, Inc. is headquartered in Santa Ana, California. It offers a comprehensive addiction rehabilitation program called the Start Fresh Program featuring a double-tiered treatment approach consisting of a biodegradable Naltrexone implant product and psycho-social coaching. The Naltrexone implant delivers Naltrexone, an alcohol and opioid antagonist that effectively curbs a patient's cravings. The Life Coaching part of the program meanwhile addresses the psychological and social challenges of dealing with addiction and reintegrating back to society.
In July, BioCorRx, Inc. eliminated nearly $1 million in convertible debt and interest through a series of transactions. About $600,000 of the debt has been reduced in exchange for upfront license fees to debt holders who will distribute BioCorRx's Start Fresh Program in select territories.
Recently, the company has entered into several licensing agreements for the distribution of its Start Fresh Program in the states of Missouri, Minnesota, Oklahoma, Ohio, and Nevada. It also reported new distribution agreements in Virginia, West Virginia, Maryland, Washington, D.C., and North Carolina earlier this year.
To get a more detailed report on the company, interested parties can visit www.BICXCorp.com