Cell MedX Corp (OTCMKTS:CMXC) could well be nearing a fresh break-out over coming days. The stock has been in an accelerating upward trend since the close of last year, charging as much as 300% higher in recent months in a steady ascent as the company moves toward greater legitimation of its core technology: its proprietary “eBalance technology”, which is in the research and development stage to manage diabetes mellitus and its complications.
One of the key reasons we have been a close follower of this company, its stock, and its emerging technological prowess is the market under question. There are over 382 million people today living with diabetes. That number is expected to nearly double over the next generation. 8 out of 10 countries in the world will spend something approximating 10% of their national healthcare spending on treatment of diabetes. By the year 2030, it is estimated that global diabetes-related expenditures per annum will reach nearly a half trillion dollars. Hence, any company with any chance of growing market share in this treatment space has a chance at massive financial success down the line just given the scale of the market in question.
Cell MedX Corp (OTCMKTS:CMXC) casts itself as 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.
The company’s primary asset is Its proprietary “e-balance technology”, which is in the research and development stage to manage diabetes mellitus and its complications. On that note, the company just announced that it has completed its registration process with the FDA and has initiated an application process to receive clearance from the regulator for use of its eBalance device as Class II non-exempt device.
Non-exempt Class II status is important. In addition, “as of March 27th, 2017, the group of study participants had been increased to 21, with 18 subjects having received their first eBalance treatments. The Company expects that all 30 subjects will be initiated into the study by early April.” This is something we were waiting for. It’s a marker of the progression of the trial, and all to the good. And now, as all patients have been initiated, we have to believe that new catalysts consisting of something that feels like “results” may be on the way, and act as a motivator for the next leg in this stock’s trend.
The company has moved now solidly onto a playing field dominated by the likes of Novo Nordisk (NYSE:NVO), Insulet (NASDAQ:PODD), and DexCom (NASDAQ:DXCM) as they bring their technology inexorably to market.
Finding an Edge
The big question to ask oneself is this: How is CMXC different from others in the space? From our research, it boils down to the use of bioelectric signaling to change how cells are working.
The company is currently compiling observational data based on volunteers. That data is starting to support the idea that the technology may have a real role to play. For example, the company’s notes (available on cellmedx.com/observation/subject-id-dw161606) on one subject show that, after 17 years, he started with the eBalance therapy and found that “the treatment made him feel better. Pre-treatment test was 10 and Post-treatment was 9.7.”
“This subject came for his first treatment. The pre-treatment sugar was 7.4 and post treatment was 6.9. The clinicians worked on his right side and he commented the radiating pain was reduced.”
One thing that may be important to appreciate: those interested in the stock might want to hurry up and have a close look for due diligence and get on with it. The company is starting to gear up for far more material production of the prototype:
Last Wednesday, CMXC management hit the wires with the announcement that the Company’s Canadian subsidiary has reportedly entered into a production agreement with an ISO 9001 certified manufacturing facility in Coquitlam, BC, and selected North American suppliers for sourcing essential components for its eBalance Pro device.
According to the release, the move is intended to allow the Company to facilitate its planned distribution under the current registration with the U.S. Food and Drug Administration while ensuring lower production costs and greater control of the manufacturing and distribution process. Furthermore, it will assist the Company with setting up its standard operating procedures under ISO 13485-2016, a requirement by Health Canada to register the Company’s eBalance Pro device as Class II medical device.
It’s time to hurry up and give this stock a closer look because it might not wait around for you from here.