Newsletter Watch: PURE Bioscience

As his favorite speculative small-cap stock for 2008, Gene Inger, editor of The Inger Letter, looks at PURE Bioscience (OTC: PURE), a developer of antimicrobial agents with a wide range of uses covering areas such as disinfectants, cleaning solutions for hard surfaces and potential uses in the pharmaceutical sector.

Inger suggests that with the growing recognition for staph infections in hospitals and Novovirus on ships, PURE is in a win-win position — poised to benefit investors and create products that provide health-care solutions to society.

The firm's products are based on SDC (silver dihydrogen citrate), which is an electrolytically-generated source of stabilized ionic silver, shown to have antimicrobial action.

"This ingredient is currently manufactured for use in disinfectant products and as an active ingredient, additive or preservative for inclusion in third party products. It is also being tested for pharmaceutical purposes from mouthwash to wound care,” he says. “Its product is unique; it is the first non-antibiotic approved by the FDA for such testing in 30 years."

According to the advisor, the company has considerable markets for hard-surface cleaning solutions. He points out that Home Depot, Inc. (NYSE: HD) became one of the first adopters.

"We also see other potential markets evolving where sanitary conditions are important, such as cruise ships; institutions, hospitals or gyms," Inger says.

Meanwhile, he points out that the FDA has approved testing for SDC 'in man' for the first of numerous external and internal pharmaceutical applications. "This is an important milestone, as there's been an historical aversion to all silver-based treatment modalitie," he says.

"Given growing problems with low-efficacy (resistance) from many primary antibiotics, or even toxicity from common household or institutional antimicrobials, it is our thinking that the FDA and EPA both recognized it was necessary to revert, in a sense, to modern least-toxic next-stage replacements or newer supplements to the increasingly less-efficacious antibiotic and antimicrobial treatments."

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