While clinical trials in the medical device sector provides vital information before being granted regulatory approval further studies after a product is approved can provide more insight into boosting sales—especially those from current medical device users.
On Tuesday (April 10), NeuroMetrix’s (NASDAQ:NURO) reported results from a clinical study published in the Journal of Pain Research, which tested the company’s Quell product, a wearable pain relief device.
The device is worn on the upper calf and taps into the body’s natural pain response system to provide pain relief. Some of the patients in the study had backgrounds of arthritis, low back pain, herniated disc and more.
Some of the study’s key findings include: patients used the product for an average 35 hours per week; participants reported improvement in all pain outcomes; pain outcomes showed a strong dose-response relationship; and that 60 percent of patients that participated in the study reported improvement in pain interference with activity or mood.
With 713 subjects in the study, there was a relatively even amount of male and female. Most participants have had chronic pain for over three years in the different pain backgrounds previously mentioned.
Device users can personalize and manage therapy with the Quell app. It also tracks relevant health data including sleep, pain, activity and gait. The device has already been cleared by the US Food and Drug Administration (FDA).
“The findings confirm that Quell provides valuable incremental pain relief to many individuals with chronic pain,” said Shai N. Gozani, president and CEO of NeuroMetrix. “We believe that our ability to leverage the Quell Health Cloud to conduct sophisticated, large scale scientific and clinical research is a substantial long term competitive advantage.”
The medical device and technology company uses neurostimulation combined with digital medicine to address chronic health conditions such as chronic pain, sleep disorders and diabetes. Quell is the company’s lead product, while its other products include DPNCheck for detecting diabetic peripheral neuropathy (a complication for diabetics), and the Advance system a point-of-care diagnostic platform for addressing common neuropathies.
Following Tuesday’s announcement, shares of the company increased as high as 11.28 percent before dipping slightly to an overall 9.02 percent increase to $1.45 at market close. By Wednesday (April 11), however, the share price had a minor decrease to $1.35.
Between April 2017 and August 2017, NeuroMetrix’s share price declined 67 percent. That said, NeuroMetrix’s share price has remained steady around its current share price since that point. The company has also proved to have a big increase in sales over the last 52-weeks. Its 2017 financial results showed a 42 percent increase in sales to $17.1 million from $12 million in 2016.
In the past five years the company’s share price showed a high volatility on the decline, but without much negative news to explain why. Investors may become increasingly interested the company as they take note of the revenue increasing.
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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.