NEW YORK, NY / ACCESSWIRE / January 12, 2016 / Medical technology advances at different paces for different applications. Designing new tools for ailing hearts has slowed considerably in the last few decades; orthopedic gimmicks have fared better, but tend to draw litigation. Nothing, however, in the medtech arena has seen the likes of Bionik Laboratories Corp. (BNKL)'s ARKE, a lightweight, slimly designed and user-friendly device to provide 'legs' to paraplegics.
Positive attention is happening fast: on January 12, Bionik presents its unique robotics 'exoskeleton' at the 8th Annual Biotech Showcase in San Francisco, a well-attended forum for latest innovations. Usually featuring life science companies, Showcase this year runs it's first-ever program in medical devices. Most important, the conference draws not only investors, but a networking host of public and private firms. Bionik's presence could lead to high-profile collaborations.
At Showcase, Bionik's CEO Peter Bloch will share plans for growth strategy that center on licensing or acquiring similar products to increase its global reach, and possible partnerships. A better setting for this endeavor could not be invented, as Showcase is the leading healthcare venue in this country for upcoming products.
Bionik is not stopping there: after Showcase, there will be presentations on ARKE in Montreal and Paris. These are especially valuable because ARKE is planned to market first in Canada and Europe, where clinical trial requirements are not as strident as the US. An ARKE unit has already been shipped to a hospital in Canada, where feasibility studies will be done - such as tests on battery life and documentation due diligence by engineers. Other trials will be conducted in Paris. My recent conversation with Bionik co-founder Michal Prywata, the brainchild of ARKE, convinced me of his confidence of success.
ARKE, now in its second generation with significant enhancements like improved control for users and scalable software for upcoming technology applications, will be placed in rehabilitation units in Canada with clinical findings by spring of this year. Home use for ARKE is a goal for Bionik, which, when approved, would revolutionize lifestyles of those confined to wheelchairs, bringing a quality of life never before imagined.
Healthcare reimbursement is always a sticking point for companies with new medical solutions, particularly devices. Good news: last December the US Department of Veteran Affairs approved payment for exoskeletons - considered a 'landmark' policy. Although granted to a competitor, this action paves the way for ARKE, a huge milestone for Bionik.
On the subject of competitors, they pale in comparison. ReWalk Robotics Inc. (RWLK), who was the recipient of VA's compensation largesse, still employs cumbersome equipment that hasn't been redesigned in over a decade yet still posts sales in the millions. Ekso Bionics Holdings, Inc. (EKSO) also boasting sales in seven digits, is difficult to operate using a power source worn, knapsack like, with heavy boots to propel forward motion.
Newer technology, coming from inspired work of Bionik's technical staff, hold exoskeleton ARKE above others. Materials are lighter, customization for different patients has been perfected and, best yet, operation of ARKE is simple. Its computerized tablet connects to an Internet cloud for use by rehab therapists to adjust treatment. This alone is a boon to healthcare savings, and will push further reimbursement by payors. Behind this is a wealth of technical effort examining the geometry of lower limbs. Putting patients into ARKE with ease of use, light materials, and electronic power is the competitive advantage. Safety for the patient is a hallmark of ARKE's superiority.
The market for exoskeletons is soaring - from an estimated $68 million last year to close to $3 billion over the next nine years. Demographics and the rising incidence of spinal trauma drive these numbers. Stroke, a terrible but inevitable event coming with age, will also lead to increased use of Bionik's products.
As clinical trials commence, paths to regulatory approval loom on the horizon. Mr. Prywata expects first sales to happen (in Canada and Europe) early next year. It would not be surprising if Bionik's appearance in public forums, such as those mentioned above, hurry this process along.
More fantastic devices inhabit Bionik's laboratory: a prosthetic knee run by software that smooths walking while 'learning' gait patterns, and motion detection in stroke victims to aid mobility. For this future-age medical device company giving life back to long-term sufferers, and its near-term potential for significant upside, investors would be well-advised to buy this stock at current undervalued prices.
CONTACT:
Sharon di Stephano
smallcapforecasting@gmail.com
SOURCE: Small Cap Forecasting, Inc.