Here's Our Take On Premier Biomedical Inc (OTCMKTS:BIEI)'s Strategy

Premier Biomedical Inc (OTCMKTS:BIEI) is a company we first looked at last summer. At the time, the company had just put out some information regarding what it calls its extracorporeal therapy platform, and we noted that this platform was young, but well worth keeping an eye on as it progressed towards clinical development.Heading into the final quarter of the year, management put out a letter to shareholders, and highlighted a secondary operational arm – one rooted in pain management therapies. At the time of this LtS, we suspected that the secondary arm would become the lead program, and as such, would account for much of the company's near to medium to value drivers heading into 2017 and beyond.As it turns out, our suspicions were correct.The majority of the company's update since last October have been rooted in pain management, and it's what markets are looking at right now in order to formulate valuation. We'll look at these updates shortly, and put forward a forward thesis, but first, we'll explain our expectations of the pain management pivot.It's pretty simple. The company's extracorporeal platform is targeting a host of different indication types, with the major blockbusters all included – Alzheimer's, oncology, CNS, autoimmune etc. These are great from a long term potential perspective, but it's going to take a couple of years minimum before any reach the stage where they are ready to go into the clinic for human trials. No human trials, no data, no catalyst. No catalysts, no stock movement. The remedy? A program with quicker payoffs – the pain management program. Basically, the company took a hot indication (opioid-free pain management) and stirred in an even hotter industry (cannabis), and came up with the platform that is now driving its PR machine. This should bridge the gap between pre clinical and clinical development in the blockbusters described above.So, that out of the way, what do we know about the pain management platform?Well, at the moment, it's centered around a roll on product and a patch. The pain relief patches consist of a proprietary CBD hemp oil formulation with 20% more CBD, and a patch area 30% larger, than competition. They are designed to provide up to 96 hours of continuous pain relief. The roll-on applicator contains 110 mg of Premier's proprietary CBD formulation, 10% more CBD than the closest competitor. These are pretty decent specs, and there's data in place that supports efficacy of both products. The key point here, however, is that these products don't need FDA approval before commercialization. That's the beauty of CBD rooted pain management, and that's the core justification (in our eyes) for Premier moving into the space.A recent announcement details a distribution agreement contract with the Pain Relief & Wellness Strategy Center in Grove City, Pennsylvania, which will see the center sell and distribute Premier's pain relief products. Initially, the contract will cover the above discussed pain relief patches and roll-ons, but reportedly will expand as new products are introduced. The most recent announcement, which basically came as a follow up to the just discussed one, detailed three additional distribution agreements. Two relate two Ohio pharmacies, and one relates to a Pennsylvania pharmacy.It's not game changing. These few distribution agreements aren’t going transform Premier's financials overnight. They are, however, the first concrete reports that we've got that outlets are willing to hold Premier's products on-shelf, and they represent (according to the company) the start of a much bigger distribution rollout.As news of further outlets stocking the roll on and the patch hit press, we should see Premier pick up increased speculative interest, and with this added volume, we should see some strength.As the products sell, we should also see some top line increase, and this will eat away at the dilutive risk (which is pretty large right now).All in all, a speculative one with a nice value thesis. Not without its risk, as with any biotech of this size, but enough of a platform to keep the communication coming thick and fast.We will be updating our subscribers as soon as we know more. For the latest updates on BIEI, sign up below!Disclosure: We have no position in BIEI and have not been compensated for this article.