BioSyent looks for specialty pharma products that are already commercialized in other markets, like the U.S. or Europe, and then in-licenses or acquires those products to commercialize them in Canada. BioSyent focuses on niche products—with peak sales of $20 million or less—that solve an unmet medical need. Not only does this business model give BioSyent a niche that would probably be difficult (or not worthwhile) for competitors to match, but it’s led to strong financial results.

BioSyent hasn’t had any debt on the books since 2001 and hasn’t raised equity since 2002. Today, the company remains debt-free, has over $20 million in cash, and is steadily increasing free cash flow production. The CFO and CEO combined own 17% of shares outstanding.

Management is targeting 20% long-term annualized revenue growth. Currently the market cap sits at $107 million and company trades for less than 25x earnings. Outperform.