Unique Medical Device Distributor Has Great Upside Print E-mail
By Peter Depalma   
Thursday, 17 June 2010 11:00
Last year, one of the strongest stock price percentage gains was seen by a small medical device company called BioElectronics Corp., which trades on the pink sheets under the symbol BIEL (OTC: BIEL.PK). We wrote rather extensively about this company and many of our readers saw tremendous gains. The stock rose significantly, from fractions of a cent to nearly a dime, on the hopes that the company’s pulsed electromagnetic frequency (PEMF) drug-free, anti-inflammatory device would receive FDA clearance. Despite multiple attempts, that clearance has yet to be granted.

Even as late as yesterday, the company announced a revised strategy to gain clearance. Investors who like the technology have been looking at an alternative method for playing the huge revenue growth potential of the product and others like it.

Earlier this year, a startup called YesDTC Holdings (OTC:YESD), a fully reporting over the counter company which has been getting more attention on message boards and chat rooms, has acquired the exclusive Japanese marketing rights for all of BioElectronics products.

Like BIEL before it, this could turn into one of the most exciting and undervalued small-cap plays in the medical device related area of the market as we hear that the company has set its sights on acquiring many other brands and technologies which it can market directly to consumers around the globe. In the days ahead, we believe the company will announce more acquisitions and agreements which will affect both top and bottom line revenue growth and we are advising small-cap investors interested in the space to place the company on their watch list.

Earlier today, the companies issued a joint press release indicating that some significantly improve products and a revolutionary treatment for back pain when the first marketed into the Japanese market, via YesDTC. Profits in the back pain market could be substantial considering that the American Academy Of Orthopedic Surgeons says that there are more than 16 million office visits annually in the US alone relating to back pain. According to Duke University, more than $26 billion each year is consumed within the healthcare industry specifically relating to the back.

While marketing of the Allay menstrual pain product has been hampered in the U.S. due to lack of FDA clearance, entry into the Japanese market for this product should be relatively easy and highly profitable. This is a huge market with researchers estimating that between 60 to 70% of women suffer from pain during menstruation, with tens of millions of women experiencing pain so severe that they often call in sick to work or otherwise restrict their normal activities.

After looking closely at YesDTC, we think it is one of the best undiscovered medical device plays on the market today because it has the potential to align multiple commercial revenue streams while building a strong distribution base for several medical device and healthcare related products.

The BioElectronics product line is only the first of many that are likely to produce strong near-term revenue growth without the on-going expenses associated with development and regulatory clearance pipelines.

The company also has its sights set on a significantly improved personalized medical alarm technology that will allow two-way conversations from a pendant. Sources tell us that YesDTC is in the process of bringing the product to market in competition with industry leader Life Alert Emergency Response, Inc.- famous for its. “I've fallen and I can't get up” television commercials. In addition, we are told that the company is also on the verge of acquiring an additional brand that is doing tens of millions of dollars in revenue already in the U.S. alone.

While the revenue growth possibilities for BioElectronics are still constrained due to their year-long battle with the FDA for marketing clearance, investors may want to look at this distributor. YesDTC is a great alternative to make a play for medical device profits.

We believe the other brands the company is getting ready to launch may offer a significant amount of upside revenue potential. In addition, we think you should be watching the stock over the short term as rumors are beginning to swirl that Japanese marketing clearances are close at hand. Should these events occur, the stock appreciation could be significant.

This alert is being shared with subscribers only, but will be issued as a fully press-released story to all of our readers and the markets later this afternoon.

 

Disclosure: No Positions




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