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Arch Therapeutics Inc (OTCMKTS:ARTH): Stopping Bleeding In Record Time

Arch Therapeutics Inc (OTCMKTS:ARTH): Stopping Bleeding In Record Time
Written by
Aaron Smith
Published on
September 29, 2016
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Arch Therapeutics Inc (OTCMKTS:ARTH) is a stock we profiled a little over two months ago after it had sunk more than 25%, as information was released as to the filing of a prospectus with the SEC. The article focused on what we believed to be an overreaction in the market. We couldn't have been more on the money. The market agreed, and ARTH more than doubled from $0.25 to $0.54 over the next ten trading days. This would have provided the opportunity to lock in a nice quick profit. If you still held on, ARTH has provided all sorts other opportunities for you to do lock in a profit. In fact, it's been as high at $0.94 which would have yielded almost a 400% gain. However, since then, we've seen ARTH come down and we feel that it is even a more compelling buying opportunity.First, a little background on the Company, ARTH is a medical device company that developed a significant advance to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. Arch is developing products licensed by MIT with the goal of making surgery and interventional care faster and safer for patients. Arch's flagship development stage product candidates, known as the AC5 Surgical Hemostatic Device™ and AC5 Topical Hemostatic Device™, are being designed to stop bleeding in surgical procedures.Today, we are at these levels once again and with the stock trading at $0.64 we want to strongly reiterate what we believe is a significant buying opportunity. ARTH presently has $5.7 million in cash and with a burn rate of $1.3 million per quarter, that should last them until July 2017. If everything goes well, AC5 will hit the market and ARTH will start to see revenues, perhaps becoming self-sustaining which is a major milestone for a biotech.Some of the reasons we felt strongly about the stock back then ring true even more so today. On the 18th of August, ARTH announced its President and CEO, Terrence Norchi, MD conducted an interview with Dave Donlin, the host of Publicwire.com's "Small Cap Spotlight" podcast. Dr. Norchi discussed the AC5 Topical Hemostatic Device™ ("AC5"), the results of the Company's recent clinical study of AC5 and its current plans for submitting a CE Mark application, among other topics.To summarize, the main points of the podcast was that ARCH is steering their special technology to very exciting markets. They’ve also assembled a great team to produce quality products from this special technology and, most importantly for the stock, they are focused on building value for their shareholders while making a positive impact in patient treatment.

Dr. Norchi said, “This technology has the potential to be a real game changer for doctors and patients alike with reduced surgical times, reducing other potential risks and the cost of procedures."

On the 12th of September, ARTH was a featured presenting company at the 18th Annual Rodman & Renshaw Global Investment Conference at the Lotte New York Palace Hotel. At the conference, Terrence W. Norchi, MD, CEO highlighted some significant points about ARCH. First, he noted that ARTH is a biotech company with medical device pathway and relatively low capital requirements. ARTH has several potentially high margin novel products targeting large growing markets. They are expecting to commence their first commercial opportunities in 2017 and their pipeline opportunities are significant (surgery, trauma, wound care, military, etc.).He highlighted ARTH’s first product: AC5 Hemostatic Device (AC5) which is a simple, effective, versatile, and safe medical device that also works in the presence of “blood thinners.” It does this through a MIT-licensed self-assembling peptide that creates a hemostatic barrier on a wound. The safety and efficacy endpoints were met in AC5 first clinical trial.News expected to be coming from ARTH will be the release of the details of the subset analysis of the first clinical trial when they get the final report. Due to the significance of this, it will be subjected to peer review and disseminated in a respected medical journal. Additionally, they’ll release information related to its next activities going forward in planning the next clinical trial(s) and announce any progress with the additional regulatory filings, namely when they file the application for CE Mark for EU commercialization authorization. ARTH’s initial focus is Europe but intends to expand to the US and other geographical areas. More good news should follow as well with ARTH looking to develop its pipeline further, move forward establishing ARTH’s intellectual property and establishing its commercialization strategy for 2017. All of these developments, as the news is released should send the stock significantly higher. We will be updating our subscribers as soon as we know more. For the latest updates on ARTH, sign up below!Disclosure: We have no position in ARTH and have not been compensated for this article.

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