It’s an odd sort of paradox: the coronavirus catastrophe is accelerating technological advances across most fields in recent months because we have printed literally trillions of dollars of money around the world over the past 6 months – according to BofA, it’s now at nearly $20 trillion – in a frantic search for solutions, not just to the virus itself, but to the many associated problems we face trying to live with it ahead of a widely available vaccine.
The medical technology field would seem to be a natural ground zero in this conceptual foray. But, in fact, investors have not powered these stocks into orbit, favoring healthcare sector plays more directly related to either testing or vaccine development.
That has left an odd potential blindspot just asking to be monetized around the next corner by speculators interested in one of the most rapidly advancing areas of the technology landscape into the period of perhaps its greatest need: the aging of baby boomers.
With that in mind, we take a look at some of the most interesting names in the medical technology space, including Tabula Rasa HealthCare Inc (NASDAQ:TRHC), Shockwave Medical Inc (NASDAQ:SWAV), Electromedical Technologies Inc (OTCMKTS:EMED), and Medtronic PLC (NYSE:MDT).
Tabula Rasa HealthCare Inc (NASDAQ:TRHC) is a healthcare technology company in the field of medication safety in the United States. The company’s proprietary Medication Risk Mitigation Matrix delivers a multi-drug review, which identifies medication-related risks.
Its cloud-based software applications include EireneRx, a medication decision-support and e-prescribing platform to access patients’ medication-related information; and MedWise that provides medication decision support components for clients seeking to manage their medication risk and improve medication outcomes, and patient relationships by enhancing their existing systems. The company offers its cloud-based software solutions to prescribers, pharmacists, pharmacies, and healthcare organizations for managing the medication-related needs of patients.
Tabula Rasa HealthCare Inc (NASDAQ:TRHC) just announced that its Precision Pharmacotherapy Research and Development Institute (PPRDI) published the research article, “Risk of Adverse Drug Events Following the Virtual Addition of COVID-19 Repurposed Drugs to Drug Regimens of Frail Older Adults with Polypharmacy”, in the August 10, 2020 online edition of the Journal of Clinical Medicine. The article is a result of the first U.S. simulation study conducted in an outpatient setting to assess the estimated risk of adverse drug events (ADEs) with repurposed COVID-19 treatments.
In the study, TRHC’s PPRDI first utilized TRHC’s MedWise™ technology to determine each patient’s MedWise Risk Score™ (MRS), which is a predictive tool for adverse drug events (ADEs). Next, five repurposed COVID-19 drugs (or drug combinations) were added, one at a time, to patient drug regimens. The drug combinations included hydroxychloroquine, alone and in combination with azithromycin; chloroquine, alone and in combination with azithromycin; and lopinavir + ritonavir.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.
Tabula Rasa HealthCare Inc (NASDAQ:TRHC) pulled in sales of $76.8M in its last reported quarterly financials, representing top line growth of 0.8%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($41.9M against $38.8M).
Shockwave Medical Inc (NASDAQ:SWAV) bills itself as a medical device company that develops and commercializes intravascular lithotripsy technology to treat calcified plaque in patients with peripheral vascular, coronary vascular, and heart valve diseases.
The company offers M5 catheters for treating above-the-knee peripheral artery disease; C2 catheters for treating coronary artery disease; and S4 catheters for treating below-the-knee peripheral artery disease. It serves interventional cardiologists, vascular surgeons, and interventional radiologists through sales representatives and sales managers, and distributors.
Shockwave Medical Inc (NASDAQ:SWAV) just reported financial results for the three months ended June 30, 2020. Recent highlights include: Recognized revenue of $10.3 million for the second quarter of 2020, representing a 3% increase over the second quarter of 2019, Completed enrolment in the CAD III pivotal study of IVL for coronary use in the United States, and Completed enrolment in the CAD IV pivotal study of IVL for coronary use in Japan.
“The progress we made during this past quarter, despite the hurdles and challenges of COVID-19, reflects the commitment and strength of our team and the uniqueness of our proprietary IVL technology,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “The continued interest and demand for IVL has really demonstrated how highly valued Shockwave’s technology continues to be as a safe, effective, efficient option for our customers who treat severely calcified cardiovascular disease. All of us at Shockwave have a great deal of gratitude and respect for our partners on the provider side of the system for their dedication to patients, particularly under such challenging conditions. We are honored to have been given an opportunity to work with so many extraordinary healthcare professionals.”
Even in light of this news, SWAV hasn’t really done much of anything over the past week, with shares logging no net movement over that period.
Shockwave Medical Inc (NASDAQ:SWAV) managed to rope in revenues totaling $10.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 2.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($231.4M against $17.7M).
Electromedical Technologies Inc (OTCMKTS:EMED) is a first-mover leading-edge pure play in the emerging field of Bioelectronic medicine, which has rapidly growing roots in the medical establishment after years of skepticism overwhelmed by legit peer-reviewed research that shows it works.
The basic premise behind Bioelectronic medicine is to solve health issues by tapping into the body’s natural electrochemical operating system. Everything you feel in your body is in some way delivered to your awareness by electricity. Hence, with tuned modalities, electricity can be used to solve many of our healthcare issues.
To that end, the company produces the WellnessPRO-Plus device, which is a self-administration tool for bioelectronic medical treatment of chronic pain. It will soon release its next-gen product that has been designed to treat other conditions as well.
Electromedical Technologies Inc (OTCMKTS:EMED) just announced that the Financial Industry Regulatory Authority, Inc. has approved the Company’s official symbol change to “EMED” (from “ELCQ”). The stock began trading under the “EMED” symbol on September 4, 2020.
“We are pleased to get this step accomplished because it helps to create a more coherent and cohesive public identity for our current and prospective shareholders,” remarked Matthew Wolfson, Electromedical Technologies CEO. “We have built something with truly game-changing potential for those in search of a better treatment process for chronic pain, which is an enormous market opportunity. And everything we can do to make our relationship with public market investors more seamless is a positive development helping to drive future growth.”
And the stock has been acting well over recent days, up something like 4% in that time.
Electromedical Technologies Inc (OTCMKTS:EMED) has already sold 8,000 units of the WellnessPRO® device, with customers including over 250 schools and universities, who use these devices in their athletic departments and research programs, and a number of professional athletes and sports teams in the NBA, NHL, and NFL. This is obviously a more speculative name in the space, but it could represent a more explosive opportunity given its relative lack of awareness among investors despite having credibly carved out such a powerful position in a potentially revolutionary niche in the market.
Medtronic PLC (NYSE:MDT) trumpets itself as a company that develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide.
It operates through four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group.
Medtronic PLC (NYSE:MDT) most recently announced that it has received U.S. Food and Drug Administration (FDA) approval of its MiniMed™ 770G hybrid closed loop system. This newest insulin pump system offers the company’s most advanced SmartGuard™ technology, as featured in the MiniMed™ 670G system, with the added benefits of smartphone connectivity and an expanded age indication to children as young as 2.
“We’re thrilled to be launching this new system as we understand how important these data sharing features are, particularly right now — with many individuals and families opting to see their doctors virtually via telehealth visits,” said Sean Salmon, executive vice president and president of the Diabetes Group at Medtronic. “As a parent, I understand very personally why connectivity is so important and I’m pleased we’ll be able to broaden access to hybrid closed loop therapy with the additional peace of mind caregivers need to ensure the well-being of their loved ones. This latest launch underscores my personal commitment to making life easier for people living with diabetes through the technologies we deliver.”
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Shares of the stock have powered higher over the past month, rallying roughly 6% in that time on strong overall action. Medtronic PLC (NYSE:MDT) managed to rope in revenues totaling $6.5B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -13.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($13B against $13.1B, respectively).
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