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Cell MedX Corp (OTCMKTS:CMXC) is an emerging player in the diabetes space. The stock has been locked in a chopping and grinding and occasionally ripping bullish trend for most of the past 17 months. We are seeing a pullback in recent days in the context of an upward trend channel that has been showing signs of potentially accelerating. It’s important to put this potential acceleration in context so we may evaluate it more effectively.

First of all, the diabetes market is massive and unfortunately growing: 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. Secondly, CMXC recently registered with the FDA as a Class II non-exempt device for its flagship product, the e-Balance device. Finally, 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.

Cell MedX Corp (OTCMKTS:CMXC) bills 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.

A Fundamental Trend

As discussed above, CMXC has seen a strong jump in investment flows into the stock over recent months. And the company’s collection of recent catalysts suggests a fundamental trend.

The company announced last month that its ongoing clinical observational trial – to establish its e-balance technology as safe and effective as a treatment alternative for diabetes – is “progressing as expected”.

Apparently, as noted above, the group of study participants has been increased to 21, with 18 subjects having received their first eBalance treatments. Company communications suggest that all 30 subjects have been initiated at this point.

That points to an exciting time for the stock: we are likely nearing the point when real data may start to come in that could conceivably make some serious waves for the stock. This is, after all, a biotech in the medical device space. We have seen similar plays make enormous advances as new data hits the marketplace. Naturally, such new data could be of either good or bad character, but here is what we have so far:

Current Observational Clinical Trial assesses 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;

Mr. McEnulty, the Company’s CEO, stated: “Our registration with the FDA is an exciting step forward, and I’m happy to see that our Observational Clinical Trial is also progressing as scheduled, which together will get us that much closer to reaching our end goal of helping people improve their lives and well-being.”

 

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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