|NWCI "Partnership/Buyout in the Works" After Company is Awarded Key Patent|
|Friday, 15 January 2010 02:49|
Another buyout rumor is engulfing the biotech sector. This one comes on the heels of Thursday morning's key patent news announcement for small cap, NewCardio (NWCI.OB).
This Silicon Valley based company with a very small share float wanted "very badly" to meet with us for a one-on-one interview session at the OneMedForum conference in San Francico. Suddenly, they dropped off the face of the earth and no one could be reached for comments, much less an interview.
Why? What happened?
On the last day of the conference, rumors began to fly that the company was in deep negotiations for a major partnership or buy out. After chasing the story for the last 24 hours, and seeing the key patent announcement hit the news wires on Thursday morning, it is my opinion that if the deal occurs, it will likely send shares of NewCardio much higher.
The company has a hot new technology that is shaping up to be not only the next great diagnostics tool in cardiovascular medicine, but could also turn into "the ultimate medical phone app." There is talk about a hardware/software combo that would allow anyone to hold a smart phone-like device up to their chest in order to interpret/communicate the readings directly to a doctor.
Designers of this technology (who come from a tech background designing chips and microprocessors) have figured out that a great number of doctors simply do not know how to interpret heart monitor signals either correctly or accurately. They feel that EKG technology is "under utilized" as a diagnostics tool and see a multi-billion dollar market for their products.
Thursday morning, the company announced news about a key patent (which needed to be in place before the rumored sale) and the news sent shares flying.
If the rumors of the buyout are true, (sources confirmed to BioMedReports on Thursday afternoon that discussions are definitely underway) then shares could easily continue to climb from Thursday's already unusual high trading/volume levels.
According to an upbeat presentation at the OneMedForum in San Francisco earlier this week, NewCardio is said to be entering the commercial phase as a cardiac diagnostic and services company.
The company's proprietary software platform technologies provide higher accuracy to, and increase the value of, the standard 12-lead electrocardiogram (ECG). NewCardio's three-dimensional ECG software platform reduces the time and expense involved in assessing cardiac status while increasing the ability to diagnose clinically significant conditions which were previously difficult to detect. NewCardio's software products and services significantly improve the diagnosis and monitoring of cardiovascular disease, as well as cardiac safety assessment of drugs under development.
The video below is from the OneMedForum presentation which took place 3 days ago.
More videos and presentations can be found on the company's website:
Disclosure: Long NWCI