Rewalk Robotics Ltd (NASDAQ:RWLK) Looks Set To Keep Running

Share price of ReWalk Robotics Ltd. (RWLK), the manufacturer of exoskeleton systems, spiked in June on large volume as the market got to know that the company will be developing its product for helping stroke survivors. Have a look at the price action.SourceWe became interested in the company and found out that its exoskeleton systems seem to be quite unique. Additionally, many other relevant investors and insiders have been buying shares. They believe in the company's future.ProductThe following video is the best way to show the product commercialized by RWLK:https://youtu.be/2Xd27c-pz4YSourceThe company's brand is called ReWalk. As shown in the video, it is prepared to help patients "with paraplegia, a spinal cord injury resulting in complete or incomplete paralysis of the legs, who have the use of their upper bodies and arms". The company offers two products:

• ReWalk Personal: it is intended for helping everyday at home.
• ReWalk Rehabilitation: it is designed to help in a clinical rehabilitation environment. It is suitable for providing therapy and provides valuable exercise. In addition, it also enables users to check whether ReWalk Personal is suitable or not.

ReWalk Rehabilitation was launched in 2011 in the United States and Europe. The European CE mark was received in 2012, whereas the FDA clearance was received in June 2014. The company is also working with other countries to increase the amount of potential customers.Why is this solution a great opportunity? In the annual report, there is a lot of information about the technology developed. But, we selected the following features. First of all, ReWalk uses proprietary algorithms to function.

"Designed for all-day use and worn over the clothes of users, ReWalk consists of a light wearable exoskeleton with integrated motors at the joints, an array of sensors and a backpack or waist pack that contains the batteries and the computer-based control system. The control system utilizes proprietary algorithms to analyze upper-body motions and trigger and maintain gait patterns and other modes of operation (such as stair-climbing and shifting from sitting to standing), leaving the user’s hands free for self-support and other functions." Source

Additionally, the system is designed to expend very little energy. Also, it is equipped with safety measures, alarms, and warnings. Have a look:

"Because the exoskeleton supports its own weight, users do not expend unnecessary energy while walking. Safety measures include crutches, which provide additional stability, fall protection, which lowers users slowly and safely in the event of a malfunction, and the secure “stand” mode, which automatically initiates if the user does not begin walking within two seconds. ReWalk is also equipped with maintenance alarms, warnings and backup batteries." Source

What do clinical studies say? Clinical studies, including relevant peer-reviewed journals, noted the following benefits of the ReWalk technology (Some others were noted in the last 10-k):

• Reduced pain
• Improved bowel and urinary tract function
• Reduced spasticity
• Increase in oxygen uptake and heart rate as a result of walking as opposed to sitting and standing
• Reduced hospitalizations

Recent Developments and market reactionOn June 13, 2017, it was put out that a Florida court decided that Blue Cross Blue Shield of Florida "must provide coverage of a ReWalk exoskeleton system for a plan member with a spinal cord injury ("SCI")". This was a great news. It means that the product is not experimental any more. The demand may increase after these events. These were the words of the judge:

"...the ReWalk and other exoskeleton devices have been studied extensively. They have been tested in different environments and on many different individuals. They are already used extensively even as testing continues." Source

The CEO, Larry Jasinski, also explained the event:

"The recent Florida ruling is significant and consistent with the growing body of established scientific data that supports the value of exoskeletal walking. We are encouraged by the chorus of experts who are supporting paralyzed individuals in their appeals processes, and heartened by the trend of coverage rulings that continues to increase in states across the U.S. It is our fervent hope that insurance companies will stop this arduous process of appeals and formulate standard operating policies for coverage of all eligible SCI plan members." Source

However, the most outstanding announcement was made on June 19, 2017. The company noted that it had commenced to collaborate with Harvard University's Wyss Institute for Biologically Inspired Engineering in a new prototype for a soft suit exoskeleton intended to assist stroke survivors. Larry Jasinski, CEO of RWLK, explained in following words:

"We are thrilled with the progress of the Restore system, which will provide life changing technology to a whole new class of patients facing mobility issues. With the prototype finished, we are eager to begin clinical studies and pursue regulatory approvals so that these systems can be provided to millions of patients who can benefit from access to the device." Source

Have a look at the reaction of the market on June 19, 2017.SourceThe share price went from trading at $1.25 to touch almost $2.00. But, the trend did not end there. On June 23, 2017, the share price crossed the $3.00 level on high volume. Some market participants seem to have reacted late to the news put out on June 19, 2017, as there are no other news to justify it.Market participants disclosed The following funds own stakes in RWLK. HolderSharesDate Reported% OutValueCALPERS (California-Public Employees Retirement System)205,000Mar 30, 20171.23%420,249Bellevue Group AG200,000Mar 30, 20171.20%409,999Highbridge Capital Management, LLC.100,000Mar 30, 20170.60%204,999Renaissance Technologies, LLC78,600Mar 30, 20170.47%161,129SourceAdditionally, the CEO and other directors own 51% of the total outstanding shares. Investors can check this information here.ConclusionThere's a big growth market for RWLK and its exoskeleton technology. Insiders have bet heavily on the company's success and the latest court ruling in Florida provides further evidence to back up what insiders have known all along. Overall, we think the share price is in the initial stages of a multi-year run to higher prices. We will be updating our subscribers as soon as we know more. For the latest updates on RWLK, sign up below!Image courtesy of FlickrDisclosure: We have no position in RWLK and have not been compensated for this article.