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Bioelectronics Corp (OTCMKTS:BIEL) Can Strengthen On Its Flagship Product Rollout

Bioelectronics Corp (OTCMKTS:BIEL) Can Strengthen On Its Flagship Product Rollout
Written by
Chris Sandburg
Published on
February 8, 2017
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Throughout the entirety of January, Bioelectronics Corp (OTCMKTS:BIEL) traded for in and around $0.0003 a share. A triple zero sub penny. On February 2, however, volume spiked, and PPS followed. By February 7, Bioelectronics went for $0.0015 a share – a 400% gain in a matter of days. The company has since corrected around 35% or so, and currently trades for circa $0.001.Even at this price, Bioelectronics still trades for a market cap of close to $12 million based on more than 12.6 billion shares outstanding. It's a double zero micro with a massive float and very little in the way of volume, but is there any value in a speculative exposure?Maybe.By way of a quick introduction, this company is a healthcare entity based out of Maryland, which bills itself as a developer and marketer of disposable, drug-free, pain therapy, and wearable medical devices. It's got a pretty robust product portfolio (this is before the latest approval, which we'll get to shortly), which includes a menstrual pain product, a heel pain insole, and a wound closing and pain treatment.The latest gains come on the back of the company's announcing that the FDA has given a green light for over the counter (OTC) distribution of its lead product, what's called ActiPatch. Bioelectronics' technology is rooted in something called neuromodulation. Neuromodulation is a term that describes the direct stimulation of the nervous system (or in other words, nerves) through electrical impulse. ActiPatch employs this type of neuromodulation therapy approach to target what it calls muscoskeletal pain, which is another way to describe muscle and back pain. At core, the product fires electrical signals from a patch to the nerves of the patient, and this regulates the electrical activity of nerves. This regulation, in turn, relieves pain.Now, it's important to note that the approval process for these sorts of products is a walk in the park when compared to the development pathway of a new chemical drug. Basically, all a company like Bioelectronics has to do to start selling its product is to prove that its safe.This low barrier to entry means plenty of products hit the shelves, and this somewhat dilutes the target potential market.With that said, it also means that a company doesn't have to do too much to set itself apart from a large portion of the currently available treatments, and it's in this fact that we see some upside potential for Bioelectronics.As well as being proven safe (as underlined by the FDA's approval of the product for commercial sale), Bioelectronics' ActiPatch has also been proven effective in reducing pain (and pretty considerably) by way of some investigational studies, the results of which demonstrated that ActiPatch reduced baseline pain, on average, by 39.9%, with 52% experiencing a ≥40% pain reduction averaging 66% from baseline. In addition, 50% of the subjects were able to reduce or eliminate analgesic medication use including those using opiate-based medications. This latter point is as important as the efficacy data for us, as the US is really struggling with an opioid epidemic right now, and any therapy that can reduce chronic opioid intake (and this one can) should be easy to market, and market well.So, what's next, and what's the bottom line?Revenue for the last four quarters has ranged from circa $500K to $700K. Cash is a real concern, reported at just $21K at September 30, so we expect some near term dilution.With that said, this latest OTC approval is a nice development for a company, and has done enough to draw enough volume to give it a boost. This speculative attention should do enough to carry it forward into the coming quarters, and we are looking for some numbers to offer insight into consumer (and distributor) uptake of what we see as Bioelectronics' now-flagship product.We will be updating our subscribers as soon as we know more. For the latest updates on BIEL, sign up below!Disclosure: We have no position in BIEL and have not been compensated for this article.

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