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The Diabetic Chronic Wound Care Market Needs Better Treatment, SANUWAVE Health Delivers The Answer

Shares of SANUWAVE Health (OTC: SNWV) are gaining strength as investors position themselves ahead of a planned NASDAQ uplist and expectations for another set of record-setting revenues. SANUWAVE is scheduled to release its year-end results later this quarter and will follow a best-ever Q3 when SNWV posted an 895% increase in revenues compared to the same prior period. 

Analysts at Lake Street Capital are bullish, calling for another quarter of record revenues and a revenue run-rate of at least $25 million this year. Moreover, they have set a 12-month price target at $0.34, representing a roughly 70% increase from current levels. The great news is that PT was published several months back, suggesting that a run toward those levels, based on expected record earnings, has already started. 

Of course, the bullish sentiment stems from SANUWAVE’s transformative acquisition in 2020 of UltraMIST®, an ultrasound healing therapy targeting a massive chronic diabetic wound-care market. The acquisition should add at least $15 million in revenues and $4 million in EBITDA toward its bottom line. However, those numbers can get even stronger after combining sales from its own FDA-cleared dermaPACE® shockwave device. Combined, the two devices position the company to offer best-in-class, potentially front-line, treatment to patients suffering from chronic diabetic wounds and ulcers. 

Investors would be wise to consider SNWV at these levels, especially after an article in BioSpace exposed the massive opportunity that SNWV is already targeting. And while SANUWAVE was not listed among the top treatment providers in the US markets, that will likely change. At least two reasons support that statement.

First, unlike most of its “top” list, SANUWAVE is the only known company that offers an effective treatment option during the entire continuum of care. And, second, SANUWAVE’s devices treat patients quickly, painlessly, and evidence shows…they work. (watch video on homepage)

Billion Dollar Markets

The article BioSpace, submitted by Transparency Market Research, indicates that the global diabetic foot ulcer treatment market was valued at $5 billion (USD) in 2018. However, since then, the need for treatment is accelerating, with a CAGR of 7.5% from 2019 to 2027, projecting the market will almost double to $9.6 billion. And with diabetes a global concern, that estimate could end up being conservative. However, it does put SNWV in the right market, with the right products, at the right time.

Undoubtedly, diabetic foot ulcers are a serious problem and are hard to treat. Most often, these wounds are caused by complications arising from diabetes mellitus. But, researchers are also finding that these chronic wounds are also caused by peripheral neuropathy and peripheral artery diseases. And more than having a significant socioeconomic impact on economies and patients, these wounds are painful and debilitating. Alternative treatment options can make things worse. 

That bodes well for SANUWAVE, whose non-contact, quick, and painless treatment alternative is becoming a popular option for caregivers and a favorite for patients. UltraMIST® is already doing well to meet the challenges by utilizing low-frequency ultrasound to provide a non-contact wound healing solution. When combined with dermaPACE®, this dual treatment shows a unique ability to deliver effective therapy to patients with chronic diabetic wounds while eliminating unwanted drug-induced side effects and pain caused by alternative treatment options. And their effectiveness is not going unnoticed. 

In fact, its reimbursement coverage rate is increasing, a sure sign that insurers are willing to pay more for a treatment that can save untold amounts of money over a patient’s lifetime with the disease. The even better news is that SNWV devices can treat all grades of chronic wounds.

Treating A Massive Wound-Care Market

Important to note is that the market is inconsistent in how it treats diabetic chronic wounds. There are three primary treatment types- wound care dressings, wound care devices, and active therapies. Each plays a role, but a video published by SNWV may show that its devices are the best treatment course. (scroll down the linked page to see the devices in action)

Certainly, the wound care dressings segment will maintain a sizable share of the market, but if better solutions are available (UltraMIST® and dermaPACE®), that option can become less pervasive. Moreover, wound care dressings are expensive, require professional care, and cause multiple visits to a treatment provider. 

SANUWAVE, on the other hand, can help facilitate treatment within 30-minutes, can be performed by a technician, and is virtually painless during the entire process. And with no scraping or wound contact, the chance of aggravating the wound or ulcer is significantly minimized.

Better still, UltraMIST® and dermaPACE® can effectively treat multiple wound grades, a significant advantage over competing devices. Keep in mind that while they can target almost every wound type, most cases are grade 1, which is in the two device’s wheelhouse.

Moreover, having a portfolio of best-in-class devices helps reduce other issues. By successfully treating wounds and ulcers, the SANUWAVE treatments could result in fewer hospital inpatient settings, reduce outpatient services, and potentially allow for home healthcare, as long as it is administered professionally. Keep in mind, UltraMIST® and dermaPACE® are FDA-cleared devices that have been evaluated for treatment effectiveness and safety. They should never be confused with off-the-shelf products that claim to have the same effect on wound treatment. And, unless UltraMIST® and dermaPACE® become over-the-counter devices, patients should not expect similar therapeutic value, even if an infomercial claims otherwise. 

Now, with a more than 100 person sales team and an experienced reimbursement team that is increasing coverage, SNWV is in its best position ever to capitalize on its transformative 2020. The CEO has not shied away from expounding on his expectations. 

Expectations For Massive Growth

SANUWAVE is confident that the acquisitions made will change the company. In actuality, they already have. But, CEO Kevin Richardson expects things to get much better, suggesting that during a 2020 presentation, the company’s enhanced product lineup, combined with its experienced sales and reimbursement team, can help push revenues toward the $100 million levels by 2024. He also suggested that dermaPACE® and UltraMIST® could be the most effective one-two punch treatment available when used together. Thus, the entirety of the SANUWAVE story deserves far more attention than it is getting. 

At the same time, investors who are hesitant to purchase at these levels might be missing the point. Or, they are merely waiting for the uplist to happen and take positions after the planned reverse split. While feared by some in tiny OTC stocks, the reverse split will not change the value of SNWV. It will clean up the capital structure, invite institutional investment, and make available more conventional financing options. And with SNWV saying that an R/S will only happen ahead of an uplist, it’s a net positive in the near and long term. 

Now, with markets assessing the value of the SNWV assets and with research showing that these markets are getting more valuable, SANUWAVE share prices, at these levels, may not last. Watch the video again and then compare the treatment differences against scraping and dressing a wound. The SANUWAVE option is demonstrably better. 

And that’s why SANUWAVE is likely to come out from under the radar soon. After all, a $25 million company with momentum at its back doesn’t’ stay in the background for long. Once found, they often rally higher quickly, leaving those that procrastinated behind. SANUWAVE Health is a valuable company; its share price will likely reflect that point soon. 

 

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