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While you may not have heard of Electromedical Technologies Inc (OTCMKTS:EMED), there’s a good chance you will before long given the company’s strong proprietary technology and advancing position in the rapidly growing Bioelectronic Medicine space.

The company’s current focus is the use of Bioelectronic Medicine technology to treat and manage chronic pain. It has already hooked a number of top professional athletes in the NBA, NFL, NHL, PGA, and PBR, and has even had to ramp up production to meet rising demand from pro athletes. There are also a host of celebrities on board. But the company is setting its sights on a next stage.

Before we get into that next stage, the first point to make is that the use of this technology to treat chronic pain is a massive market opportunity because it contrasts so powerfully with the main tool now in use for most people – opioid drugs.

Over 100 million Americans suffer from some form of chronic pain. Globally, experts believe the chronic pain market is an opportunity expected to grow to $69 – $105 billion over coming years. But current solutions to this epidemic are woefully inadequate. According to data from the National Institutes of Health (NIH), over 128 people died each day from opioid-related drug overdose in 2018.

The company’s tech – the WellnessPro+ device line – is FDA cleared and proven effective in chronic pain management, and it has already sold 8,000 units to customers including over 250 schools and universities for use in athletic departments and research programs.

Onward and Upward

But Electromedical Technologies Inc (OTCMKTS:EMED) isn’t stopping there.

Just recently, the company announced publicly that it has launched a Phase 1 research program in collaboration with Nazarbayev University to identify the most effective electrical frequencies for driving physiological responses in animal models.

We would note, for the record, that the company stated as follows in its release: “Our animal studies do not involve any human testing, and are not related to our current products. We are conducting this research to augment and advance the science of electro-modulation in healthcare. The United States Food and Drug Administration has not reviewed or approved our animal research studies.”

As far as the key objective: Matthew Wolfson, Founder and CEO of Electromedical Technologies, explained, “We will be tapping into the revolutionary potential of electro-modulation with this Phase 1 study. The core objective is deciphering the physiological impact of a wide range of electrical frequencies in animal models. Explicit animal research will be instrumental in validating effective electrical frequencies. Our unique research program will establish a platform for enhancing electro-modulation.”

The Team

According to the company’s release, Electromedical Technologies Inc (OTCMKTS:EMED) will have a research team led by Professor Dos D. Sarbassov, a renowned expert in cell signaling with intensive postdoctoral research training at the Whitehead Institute for Biomedical Research (MIT). Dr. Sarbassov also worked for many years as Faculty of the Molecular and Cellular Oncology Department at MD Anderson Cancer Center (widely viewed one of the foremost oncology centers in the US). In 2019, Dr. Sarbassov joined Nazarbayev University to develop a cutting-edge biomedical research program.

“Our studies of electro-modulation are in a process of transition from a simplified cell culture to the animal model system,” commented Dr. Sarbassov. “A key question is to determine if changes in cell signaling induced by specific alternating electrical fields will be sufficient to lead to physiological changes in organism. We will study effects of electro-modulation on the insulin-dependent glucose uptake, pro-inflammatory or stress-dependent cytokine secretion, hypertension, tumor growth and viral infection in mammalian animal models. Regulation of the physiological responses by electro-modulation will provide a leverage for corrections of disease related physiological defects. The proposed Stage I studies in the animal models will place a foundation for clinical applications of electro-modulation in the Stage II of our research and development program in collaboration with Electromedical Technologies. Our research work by opening the door for electro-modulation in healthcare will contribute substantially to a precision medicine of tomorrow.”

In addition, the company has also brought a biophysicist on board to help execute the research process. Dr Rakhim Bulibekov will work directly with Nazarbayev University, Nur-Sultan, Kazakhstan, in the development of a comprehensive research program to study effects of electro-modulation on the insulin-dependent glucose uptake, pro-inflammatory or stress-dependent cytokine secretion, hypertension, tumor growth and viral infection in mammalian animal models.

As noted in company communications, regulation of the physiological responses by electro-modulation will provide a leverage for corrections of disease related physiological defects.

Dr. Bulibekov was educated at the prestigious Kazakh National University, where he was later a researcher in bio-medical technology. He was also a key figure at the Academy of Health in the Republic of Kazakhstan. Before that, he was at the Academy of Science in Kazakhstan, where he was involved at the Institute of Nuclear Physics in research on radiation and electroactivity of cells.

The Point

The big point here is to advance the science of electro-modulation and accelerate the development of applications in healthcare that Electromedical Technologies Inc (OTCMKTS:EMED) will be targeting as it develops next-generation devices for the market.

Reading between the lines, this is a clear R&D move to expand its target market from chronic pain to other applications, which could massively expand the company’s total addressable market (TAM), which is a critical metric for assessing the upside potential market cap ceiling over the long run for small-cap stocks among the institutional community.

This will become especially important if the company uplists its shares to a higher tier exchange, which would allow institutional investment managers to get involved.

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