Psychemedics (PMD) focuses on its patented hair-based drug-testing system. The drug and alcohol testing market is a $6 billion market that is expected to grow at a high single-digit rate in the coming years. The two general macro drivers behind the expectation include stricter legal environment due to increasing drug usage and heightened awareness among employers while firm-specific drivers include hair based method's longer detection window and ability to detect drug abuse history. Although the firm delivered strong results for a good period of time, a lack of high entry barrier makes PMD