Jim Oberweis, Jr., money manager and editor of The Oberweis Report, is a long-standing expert in small cap, high growth stocks, trading at reasonable valuations relative to their growth rates.

Here, the advisors looks at a trio of specialty healthcare companies involved in niche markets such as women's health, autoimmune disease and vaccines.

"The Female Health Company (NYSE: FHC) manufactures and markets the femalecondom. This product currently is the only medical device approvedby the FDA under a woman’s control intended to prevent unintended pregnancies and the spread of sexually-transmitted diseases. "The rise of the global HIV/AIDS pandemic, especially in emergingcountries, has increased the need for women to have their ownmeans of disease prevention products. Approximately 80% of thecompany’s customers are public sector agencies including USAID,which distribute the products to areas in need.

"Near-term driversinclude pending FDA approval of its second generation female condom and the recent reauthorization of the EmergencyPlan for AIDS Relief (PEPFAR) which will allocate $48 billion forAIDS prevention and treatment over the next 5 years.

"In thecompany’s latest reported fourth quarter, sales increased approximately 52% to $7.8 million from $5.2 million in the fourth quarter oflast year. The Female Health Co. reported earnings per share of $.08in the latest reported fourth quarter versus $.04 in the same quarterof last year. 

"Alexion Pharmaceuticals (NASDAQ: ALXN) is a biopharmaceutical company focused on the development of therapeutic products for the treatment of severe diseases including cardiovascular and autoimmunedisorders and cancer. 

"The majority of the company’s current salescome from their Soliris product used to treat a rare blood disorderreferred to as PNH (paroxysmal nocturnal hemoglobinuria). PNH isa rare, acquired (not inherited) blood disorder.

"PNH  causes anindividual’s immune system to destroy its own red blood cells (calledhemolysis), resulting in life-threatening thrombosis, recurrent pain,kidney disease, disabling fatigue, and impaired quality of life.

"Solirisis the only available therapy to block hemolysis in patients withPNH. Soliris was discovered, developed and marketed exclusivelyby Alexion following FDA approval in the US in March 2007.

"InJune of 2007, the European Commission (EU) approved Soliris forthe treatment of patients with PNH in 29 countries. Today roughly67% of the company’s revenues are derived in the US with theremainder coming from Europe.

"In the company’s latest reportedthird quarter, sales increased approximately 250% to $76.5 millionfrom $21.8 million in the third quarter of last year. Alexion Pharmaceuticals reported earnings per share of $.23 in the latest reportedthird quarter versus a loss in the same quarter of last year. 

"Akorn (NASDAQ: AKRX) develops ophthalmic and injectable pharmaceutical products. One of the company’s main growth drivers is its genericTetanus Diphtheria vaccine, which the company estimates has already taken 25% of the market share versus its brand-name competitor in just a little over a year.

"Other near-term developmentsinclude the October 2008 launch of a premium ophthalmic anesthetic, Akten Gel 3.5%, which can be used for a variety of procedures including cataract surgery, retina surgery, and other miscellaneous ocular procedures.

"In the company’s latest reported thirdquarter, sales increased approximately 102% to $31.9 million from$15.8 million in the third quarter of last year.  Akorn reported earnings per share of $.03 versus a loss in the same quarter of last year. 

"Clients of Oberweis Asset Management own approximately 600,000 shares of The Female Health Co., approximately 34,000 shares of Alexion and 850,000 shares of Akom.We consider the shares of these companies appropriate for risk oriented investors."