Skin Electrodes: Treating multiple pain areas while developing multiple revenue streams.
When I review companies I try to understand the story and simplify it. This is critical in Life Sciences because most investors are not medial researchers or technicians. In fact, Life Science (LS) investments and Biotechnology investments are the most difficult - yet necessary - because of the risk/reward associated.
Every investor should pick an area of LS/Biotech because the payoff can be very rewarding and you become a better investor as you understand the potential of new medical technology. Having said that... let me describe a groundbreaking investment in non-narcotic chronic pain management. Hopefully, I have simplified the opportunity for you to see the potential Competitive Technologies (NYSE, Amex: CTT)
Below is some critical information describing what the company does and what the opportunity is… to help you determine if the medical device sector interests you as an investor.
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Filtered info about CTT
CTT's Pain Management system (known as the Calmare TT) uses a biophysical rather than a biochemical (aka drug) approach, through the use of a multi-processor to simultaneously treat multiple pain areas by applying surface electrodes to the skin. The device has European CE mark certification which is necessary for any medical device to be distributed and sold throughout Europe and makes it eligible for approval for distribution and sales in many other global markets. The all-important FDA approval received in February this year is just beginning to impact not only sales in the U.S., but also the overseas markets that often await our FDA's decision.
Calmare TT Pain Management System
Video:
http://www.calmarett.com/
CTT announced orders for 70 units with revenue to be recognized from 17 units that were shipped in their first quarter (first quarter, 2010 ended Oct. 31). Here is where opportunity knocks--This under-followed company will be filing their first quarter, 2010 10-Q by December 15 which will show a huge improvement over last year's first quarter. The remaining 53 units already ordered, but yet to be shipped, may all ship in the current quarter (ending Jan. 30). And, although largely unknown by most investors now, some institutions are beginning to note the future potential of CTT and have bought 9% of the shares outstanding. Capital management firm, Prescott Group, bought 312,000 shares in the calendar third quarter ending Sept. 30.
This is a new and effective non-invasive and non-narcotic pain management system. As a report on pain management devices from Frost and Sullivan :
"The pain management devices markets are currently in the initial stages of growth and there is significant untapped potential. The markets have overcome the initial inertia and are set to achieve steady growth over the next decade.
'Pain management devices relieve chronic pain without any undesirable side effects", notes the analyst of this research service. 'As prolonged use of certain oral drugs often leads to side effects, patients are increasingly opting for pain management devices over pharmaceutical measures.' "
As for the other potential revenue streams, which I like to call "Lotto" tickets, CTT has the rights to a number of promising technologies, with some technologies already licensed out. The licensing agreements provide CTT with the opportunity to recognize revenue through a combination of licensing fees, royalties on sales and milestone payments:
- CTT has exclusively licensed to Soteira Inc., a private company which has received $23 Million from its VC partner over the past 15 months, nanotechnology bone cement biomaterial with many potential applications, including dental, spinal and other bone-related applications,both human and veterinary.
- CTT is an equal partner with XION Corporation in a joint venture for the research, development and commercialization of CTT's patented melanocortin analogue compounds which have shown potential in treating sexual dysfunction and obesity
- CTT exclusively licensed technology to Clinuvel Pharmaceuticals, Ltd. (Australia) for a sunless tanning agent, a skin-pigment enhancer being researched as a skin cancer preventative, and therapeutic for vitiligo, albinism and psoriasis.
- Technology for a Structural Steel Fissure Detection Paint which contains a built-in, self-activating, crack-indicating or warning capability effective upon the application of the paint to the structure, and requiring minimum training for its use.
- Video and audio signal processing technology licensed in the Motion Picture Electronics Group visual patent portfolio pool (MPEG 4 Visual), and used in streaming video products for personal computers and wireless devices, including mobile phones
- CTT has a Lupus Diagnostic and Monitoring technology which is a cost-effective and scalable testing platform used to detect and monitor the autoimmune disease, Lupus
- Encryption technology that operates at high speeds with low memory requirements to secure applications used on the Internet, telecommunications, smart cards and e-commerce is another technology in CTT's intellectual portfolio
Investing priort to change is why I write these articles. CTT is worthy of more due diligence and monitoring its progress. I see potentially adding CTT to our upcoming World Market Media Nano Cap 25 index in January.