When it comes to fields like science and health care, some acronyms are more well-known than others.

For example, you're probably familiar with the FDA (Food and Drug Administration) and its role approving and regulating new drugs and devices. And given recent history, you're probably also familiar with the CDC (Centers for Disease Control and Prevention).

But if you want to make big money as investors in these fields, there's another acronym you need to know about. It's an organization targeting a market that's on its way to becoming worth $108 billion, and its job is to help biotech companies and cutting-edge drugs get to market faster and cheaper.

I'm referring to CROs, which stands for contract research organizations.

Make no mistake: These are vital firms that do the heavy lifting for clinical work, the kind that not even some of the biggest companies in the world can do on their own.

Today, I want to tell you about a leading CRO business, a company on pace to double its earnings in just over two years...

Which means an investment in it could soon double, too.

The Need for CROs

Launching new medicine is a time-intensive process. The amount of research needed to find and test new chemicals is astounding.

According to a report on drug development from the Biotechnology Innovation Organization, the industry's advocacy association, it takes almost 11 years on average to get a drug from Phase 1 trials through regulatory approval.

And that's if the drug successfully makes it past trials in the first place. Less than 8% of drugs in Phase 1 trials end up getting approved.

From a public health perspective, this rigorous process isn't a bad thing. Many drugs and therapies may seem effective at first glance, but they turn out to be ineffective, or even unsafe. Weeding these drugs out is a critical part of the approval process.

As you might imagine, all this time spent developing and testing new drugs is also quite expensive. According to medical experts at FTLOScience, a science-focused education platform, getting a new drug to market costs about $2 billion.

That's where CROs enter the picture. These are companies that biotech and pharmaceutical firms contract for specialized research, monitoring, and other services.

And one CRO is a go-to resource...

Demand for This Firm is About to Explode

This company specializes in providing services for smaller biotech firms that tend to achieve the biggest breakthroughs in medicine. In fact, 85% of this company's revenues come from these smaller firms, often where the most exciting research happens.

Notably, while funding for biotech overall may be pulling back, things are looking good for the company I'm focusing on.

You see, while Covid created a huge influx of money into the pharma space, many non-Covid research projects were shelved. That means the biotech industry now has a huge number of well-developed, promising drugs in its pipeline.

And as a result, a lot of biotech companies are about to send their drugs through trials and the regulatory approval process. Combine that with pent-up demand for non-Covid-related breakthroughs, and demand for this company's research, regulatory, and clinical trial services is about to explode.

Customers Need This Company

Keep in mind that smaller biotech companies are often just a scrappy group of scientists and engineers. Their expertise is in finding or inventing products and technologies.

Switching gears to organize a safety trial involving hundreds of people isn't their strong suit. It's just not what they do. And chances are, it would distract from their primary duties.

That's why they reach out to CROs to handle this stuff for them. CROs are well versed in running safety trials with medical centers. They have entire networks of hospitals, clinics, and national regulatory agencies. And the company I'm recommending is no exception.

When it comes to trials, this company knows all the pitfalls, knows how to handle the paperwork, and knows how to meet deadlines. Furthermore, it has the trained people to make it all happen.

This company's expertise doesn't just apply to safety trials, either. It can help clients with every rung on the drug approval ladder – from helping answer basic questions to developing and running clinical trials, to overseeing the safety monitoring programs for drugs and devices once they've launched.

Paying Off Handsomely

This full-service approach is paying off handsomely. It's why this company's outlook for this year is around $1.7 billion in sales, a nearly 19% jump from last year (and much higher than Wall Street forecast).

As a contractor, this company makes money throughout the entire trial and approval process, no matter if the drug beats the odds and makes it to the market.

Thanks to this setup, this company is an earnings powerhouse. Over the past three years, it's grown its per-share profits ("PSP") by an average of 32%. In the most recent quarter, it grew PSP by nearly 60%.

Even taking a conservative approach, I'm forecasting this company's earnings to double in a little over two years. And rest assured, its stock price could double just as quickly.

If you're a "Pro" subscriber, I'll reveal the name of this exciting CRO, just a week before its latest earnings report is due and its stock could be ready to jump. So don't miss out!

Cheers and Good Investing,

Chief Investment Officer
Trend Trader Daily

Tags: cros healthcare