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ALR Technologies Inc (OTCMKTS:ALRT) Gets A Boost From The FDA

ALR Technologies Inc (OTCMKTS:ALRT) Gets A Boost From The FDA
Written by
Jarrod Wesson
Published on
September 25, 2017
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Today, we will present a new profile, ALR Technologies Inc (OTCMKTS:ALRT), the medical device company, to which FDA has granted clearance for an innovative Insulin Dose Adjustment feature of ALRT diabetes management system. On September 19, 2017, the market reacted by pushing up the share price from $0.01 to $0.15 in only one session. More than 40 million shares changed hands. Have a look at the share price reaction before we provide more details: 1 month chart for ALRTBusinessALRT is very old company founded in 1987 in Nevada. It was initially called Mo Betta Corp., but in April 1998, after an agreement with A Little Reminder (ALR) Inc., the business activities as well as the name were changed. Since late 2011, it has been headquartered in Richmond, Virginia .According to the last annual report, the company received FDA clearance and achieved HIPPA compliance for its Health-e-Connect System. The commercialization commenced in 2012.What are the company's products?ALR Technologies is said to use internet-based technologies to help healthcare professionals monitor patient's health. Its flagship product seems to be Health-e-Connect Remote Diabetes Management Program. Here is how the company explains its system in the documents received by the market:

"The Health-e-Connect Remote Diabetes Management Program is a remote monitoring and care facilitation program that allows patients to upload the blood glucose data from their glucometers. ALRT Diabetes Care Facilitators monitor that data and, based on clinician approved protocols, provide advice, support and interventions when patients show blood glucose readings that are out of an acceptable range or if they are failing to test their blood glucose as prescribed." Source

The system has been clinically assessed proving that this type of remote care is associated with significant lowering of A1c levels. Additionally, second trials also showed that Internet-based Blood Glucose Monitoring Systems were associated with comparable reductions in A1c levels with that of more expensive Continuing Glucose Monitoring Systems.What's the company working on right now?According the to the last 10-k, ALRT plans to use the know-how accumulated to treat other chronic diseases. These new products would require new FDA approvals.Recent Developments - The FDA approvalMany investment sites included the most recent announcement. Seeking Alpha, Yahoo Finance or Business Insider released the press release on September 19, 2017 noting that the FDA had approved a feature of the ALRT diabetes management system.According to the press release, the system works as follows. Using the American Association of Clinical Endocrinologists and American Diabetes Association Insulin dosing guidelines, the system assesses patient blood glucose values to provide reference doses based on the guidelines.The optimal Insulin dosing is then calculated. If the patient's current insulin dose is different from the reference doses, the system sends a notification to the healthcare professional suggesting a dose review. Sidney Chan, CEO of ALR Technologies, was quoted:

"With FDA clearance for Insulin Dose Adjustment, it will simplify insulin dosing for healthcare providers. First, it makes it easy for healthcare providers to titrate insulin dosing for new insulin patients. Second, it will help healthcare providers to prescribe optimal dose(s) for patients on insulin, addressing the so called 'insulin glass ceiling." Source

We believe that the development is quite significant, as the market size for the company's product is quite large. According to the manufacturers, Novo Nordisk mortality rates resulting from mistakes with Insulin add an estimated $950 per patient to total U.S. health care costs.In our opinion, if the company is able to commercialize the medical device, it's a game changer.Financials and ConclusionCurrently trading with a market cap of $20 million, ALRT is an interesting small cap. We appreciate the innovative technology developed by the company, but believe that in order to really make the company grow, financing is needed. With little cash, considerable amount of liabilities and in a pre-revenue stage, dilution is inevitable. However, if the company is able to commercialize its products, the share price will be off and running regardless. To sum up, follow ALRT closely, a major breakthrough might just be around the corner.We will be updating our subscribers as soon as we know more. For the latest updates on ALRT, sign up below!Image courtesy of Comms Engage via FlickrDisclosure: We have no position in ALRT and have not been compensated for this article.

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