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Aethlon Medical, Inc. (NASDAQ:AEMD) Has Plenty Of Catalysts Ahead

Aethlon Medical, Inc. (NASDAQ:AEMD) Has Plenty Of Catalysts Ahead
Written by
Jarrod Wesson
Published on
June 25, 2017
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Aethlon Medical, Inc. (NASDAQ:AEMD), the therapeutic company developing immunotherapeutic technologies to combat infectious disease and cancer surprised the market on June 14, 2017, by intimating that new data will be presented at the 2017 BIO International Convention (BIO 2017) on June 21, 2017. On that day, the market will get new "virus capture data from a recently concluded FDA-approved feasibility study that was designed to assess the safety of the Aethlon Hemopurifier® in health-compromised individuals infected with a viral pathogen."Market participants appreciated the news and pushed up the share price from $1.60 to as high as $2.75 on June 15, 2017. Afterwards, in the days following the announcement, market participants booked some profits. Consequently, the share price declined a bit. Have a look at the price action, and also note the amount of volume registered on the day of the announcement and the following days.SourceAethlon MedicalAethlon Medical’s main development is the Aethlon ADAPT™ (Adaptive Dialysis-Like Affinity Platform Technology) system; a Hemopurifier device. The following is a self-explanatory figure, from one of the company's publications:Schematic of Aethlon’s ADAPT™ device platform, Source: openi.nlm.nih.govThe system is explained in the following way to the market participants in one of the company's documents:

"A medical device platform that converges single or multiple affinity drug agents with advanced plasma membrane technology to create therapeutic filtration devices that selectively remove harmful particles from the entire circulatory system without loss of essential blood components." Source

On June 25, 2013, the FDA approved an Investigational Device Exemption (IDE), allowing the company to initiate human feasibility studies of the Aethlon ADAPT. On December 31, 2016, it was stated that the company was testing the device with "ten end-stage renal disease patients" infected with the Hepatitis C to show the safety of this Hemopurifier therapy. It was also mentioned that the current process will help the company with the treatment of HCV as well. The following list of viruses was also said to be targeted by AEMD in its annual report:Virus TypeCollaboratorEbola VirusUnited States Army Medical Research Institute of Infectious Diseases/Centers for Disease ControlDengue FeverNational Institute of Virology/World Health OrganizationLassa Hemorrhagic FeverSouthwest Foundation for Biomedical ResearchWest Nile VirusBattelleH5N1 Avian FluBattelle1918-r Spanish FluBattelle2009 H1N1 Swine FluBattelleSourceFurthermore, Exosome Sciences, Inc., which is a subsidiary of the company, also initiated in October 2013 "exosome-based strategies" to diagnose cancer, and other diseases. In the consolidated balance sheet of the annual report, these activities were also included.Recent DevelopmentsOn June 14, 2017, it was put out that Jim Joyce, Chairman and CEO, will present at the 2017 BIO International Convention (BIO 2017) on June 21 the results of the FDA-approved feasibility study that was noted on December 31, 2016. Market participants will be able to see the presentation at this link. We expect the share price to move quite a bit, when the CEO will be talking. In the same press release, it was noted that the company's products are believed to be able to address bioterror and pandemic threat. These were the terms used to note the potential of the treatments:

"The Company is advancing the Hemopurifer® to fulfill the U.S. Department of Health and Human Services (HHS) initiative to manufacture and procure medical countermeasures, including non-pharmaceutical therapies, that can address multiple high-priority bioterror and pandemic threats, yet may also have commercial viability in other markets. " Source

The company's clinical strategy to treat "infectious viral pathogens, including bioterror and pandemic threats" is not new. On June 6, 2017, at 11:30AM Pacific Time at the Luxe Sunset Boulevard Hotel in Los Angeles, the CEO also gave another presentation at the LD Micro Invitational and talked about these matters. Market participants interested in following the share price move during and after the presentation could learn a lot from what happened on June 6, 2017. The presentation used can be found at this link.Patents ownedFor those skeptical market participants, who are thinking that this is another R&D company that may not find anything useful, let us note something: you are wrong here. We could find the following patents in the last 10-K:PATENT #Patents Issued in the United StatesISSUANCEOWNED -LICENSEDEXPIRATION9,364,601Extracorporeal removal of microvesicular particles6/14/16Owned10/2/298,288,172Extracorporeal removal of microvesicular particles (exosomes) (method patent)10/16/12Owned3/30/297,226,429Method for removal of viruses from blood by lectin affinity hemodialysis6/5/07Owned1/20/256,528,057Method for removal of HIV and other viruses from blood3/4/03Licensed8/30/19SourceFinancial situation - Is there cash inside?In the last 10-K, the following consolidated balance sheet was reported. Market participants should have appreciated the amount of cash on hand, which will serve to finance the future R&D activities of the company. Additionally, note the patents reported:March 31, 2016March 31, 2015ASSETSCURRENT ASSETSCash $2,123,737 $855,596Accounts receivable199,471193,341Deferred financing costs27,64182,324Prepaid expenses and other current assets53,29473,135TOTAL CURRENT ASSETS2,404,1431,204,396Property and equipment, net36,03856,091Patents, net 94,161 103,325Other assets22,41516,776TOTAL ASSETS$2,556,757$1,380,588SourceFurthermore, it was noted that the liabilities reported are little as compared to the total amount of assets:LIABILITIES AND STOCKHOLDERS’ EQUITYCURRENT LIABILITIESAccounts payable$244,804$342,133Due to related parties145,112146,112Other current liabilities136,69585,731TOTAL CURRENT LIABILITIES526,611573,976Convertible notes payable, noncurrent portion527,780155,229TOTAL LIABILITIES1,054,391729,205SourceWritten notification from the NasdaqAlso, we got to know from another document that the company had received a written notification from Nasdaq on February 1, 2017. The letter noted that the market value of the company’s common stock did not meet the Nasdaq minimum of $35,000,000 for the last 30 consecutive business days. As usual, the company has been given 180 calendar days period (by July 31, 2017) to meet the requirement. Like in other cases, we believe that the company may try to make some corporate moves to increase the share price to remain listed on Nasdaq. We encourage day traders to stay alert, as their announcements could cause the share price to increase.ConclusionAethlon Medical presents some interesting catalysts coming up. Furthermore, we reviewed the company's financial statements reported in the last annual report, and saw that the company has plenty of cash on hand with an interesting amount of patents. Finally, the Nasdaq informed the company that its common stock did not meet the Nasdaq minimum requirement of the market value of $35,000,000. We believe that AEMD the next few months will see catalysts that will push up AEMD's share price and allow the company to regain Nasdaq compliance. Thus, we encourage market participants to stay alert. To sum up, subscribe to our newsletter to learn more about this company, as it may surprise soon again.We will be updating our subscribers as soon as we know more. For the latest updates on AEMD, sign up below!Image courtesy of FlickrDisclosure: We have no position in AEMD and have not been compensated for this article.

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