SHARE

There is no doubt that biotech stocks have taken over wallstreet. A classical example is Aurinia Pharmaceuticals Inc (NASDAQ:AUPH). Post positive data news, AUPH jumped from less than 4$ to all the way over 8$.

It’s time to really start to press as the market’s broad momentum holds up and extends. Very few bull markets in history can compare to the current one in terms of sheer breadth and momentum. If you have been on the sidelines, it’s time to get into the game. One of the most explosive opportunities present is in the small and micro-cap biotechnology space. We have a perfect example of that potential in today’s alert: CMXC.

Cell MedX Corp. (OTCQB:CMXC) is an early development stage biotech company focused on the discovery, development and commercialization of therapeutic and non-therapeutic products that promote general wellness and alleviate complications associated with medical conditions including, but not limited to, diabetes, Parkinson’s disease, high blood pressure.

Cell MedX’s proprietary technology is the “eBalance technology”, which is in the research and development stage to manage diabetes mellitus and its complications. The company recently cut over $800k off its current liabilities between its last two reporting periods by converting those liabilities to stock ownership.

 

CMXC also began to move forward with renewed focus after divesting its Avyonce Cosmedics segment in late January. In our experience, that tends to foster greater success in primary segments, particularly in biotech ventures.

In this case, the primary segment is the company’s eBalance technology, a proprietary method for the application of bioelectric signaling to treat diabetes and related ailments. The eBalance device uses a microcurrent-stimulation process that does the work of a healthy metabolism to reduce numbness, tingling or pain in arms or legs of diabetic patients. Cell MedX believes it can also improve glucose control, insulin resistance and blood pressure issues.  Early observations show that eBalance has already shown very positive results in insulin dependent diabetics.

The primary catalyst for the company now is its Observational Study in the main research facility in Hamilton, Ontario. The company just announced that Dr. Richard Tytus, the Lead Investigator, and his team have commenced screening for qualified subjects.

The Observational Clinical Trial has been designed to assess the impact of three months of eBalance therapy as an adjunct treatment, on HbA1c in Type 1 and Type 2 diabetics. The secondary endpoints of the Trial will observe changes from baseline and medical history in the following;

  • Insulin sensitivity
  • Diabetic neuropathy
  • Diabetic foot pain and numbness
  • Wound healing
  • Blood pressure
  • Kidney function
  • To take into account any other changes reported by patients

The Trial is being conducted over a four to six month period enrolling a minimum of 30 individuals who will receive three months of eBalance therapy. All study participants will be screened to confirm a diagnosis of either Type 1 or Type 2 diabetes.

The Company received Health Canada’s approval to commence the Study on January 12, 2017. The detailed information of the Study will be posted on clinicaltrials.gov upon approval of government regulatory agencies.

As with all biotechs, the most exciting and explosive period is during key trials. The market is coming to terms with this technology and its market implications.

So far, the signs seem potentially very promising.  Technically, the stock is forming a bullish ascending triangle pattern, with a key breakout trigger price of $0.40/share. Average volume has been rising, and the stock has been holding above the all-important 200-day simple moving average.

With a float of just 21.1M shares, CMXC could pile on huge gains on any type of breakout move. And the company certainly has the catalysts lined up to do it.

LEAVE A REPLY