NEW YORK, NY / ACCESSWIRE / February 22, 2016 / Bionik Laboratories Corp. (OTCQX: BNKL), an undervalued company making great strides in human movement with ARKE, its robotic "legs," has captured the attention of global computing giant International Business Machines (NYSE: IBM). Through IBM's groundbreaking Watson, a new generation of cognitive software based in an open architecture cloud and IBM's own design, Bionik Labs is proving invaluable to the larger company's goals of bringing innovation into healthcare.
IBM doesn't choose just anybody to work with. Both Michal Prywata and Thiago Caires, co-founders of Bionik Labs and leaders of the company, drew IBM's interest and a symbiotic relationship was born. Earlier this month, the two parties joined hands to bring ARKE to the rehabilitation market, under the guidance of IBM's Bluemix cloud, where machines and language meet to create cognitive functioning. http://finance.yahoo.com/news/bionik-laboratories-utilize-machine-learning-130500204.html Messrs. Prywata and Caires attempted to build a cloud design on their own but lacked internal technology resources; IBM provided the perfect solution.
ARKE's success to date is all about sensors - every movement is recorded and, now with Bluemix, appropriately and sleekly analyzed. The sheer volume of information is daunting but necessary to doctors and physical therapists seeking to improve their patients' degrees of movement. I've written in the past about ARKE's superiority over competing devices and this latest collaboration with IBM further distinguishes Bionik Labs from the rest. Analytics aside, Bluemix will make available, in real time, vital patient information that practitioners can immediately act on to tailor treatment. Bionik Labs will have full access to IBM's stellar team of programmers and engineers. Better health outcomes for those with spinal cord injuries and other neurological conditions is the ultimate objective.
Like a proud parent of prodigies, IBM hosted a showcase last September for Bionik Labs and its ARKE exoskeleton. (https://www.youtube.com/watch?v=wX0d89z8vYQ) Mr. Prywata gave background to their technology, which started when he and Mr. Caires met in Canada's first university biomedical department. Sharing a passion for computer-generated mobility, the two created a device using brain waves to move an artificial arm, later parlaying their ingenuity into design of ARKE. The pair stressed cost savings to the US healthcare system using ARKE: $400 billion for spinal cord injury and even more for stroke, citing a statement from the Christopher and Dana Reeves Foundation. Here's an exceptional feature possessed by ARKE alone - computer feedback from the exoskeleton allows it to "learn" through motion, greatly improving the rehabilitation process.
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Bionik Labs founders at IBM Insight 2015
IBM has a big interest in healthcare, as evidenced by its investment in a number of companies, no least being ultimate innovator Medtronic, Inc. (MDT:NYSE) where Watson and Bluemix work with Medtronic's CareLink device for diabetic patients to detect hypoglycemic episodes before they happen. Given downstream chronic conditions stemming from this insidious disease like nerve and eye damage, doctors are eagerly embracing new technology.
A substantial investment was made in Softbank Robotics, a Japanese firm with support from IBM for the first humanoid robot designed for home and business use and, like something out of science-fiction tales, the ability to read emotions. Sales, commenced last year, took off like a rocket.
More stunning, IBM recently announced purchase of Truven Health Analytics for $2.6 billion, its intent to bolster Watson's healthcare capabilities. (http://www.modernhealthcare.com/article/20160218/NEWS/160219904?utm_source=modernhealthcare&utm_medium=email&utm_content=20160218-NEWS-160219904&utm_campaign=financedaily) The deal adds 8,500 clients - from hospitals, health plans, doctors, and life science companies to state and federal agencies, a treasure trove of data from upwards of 300 million people. Dubbed the "future of healthcare," all of this information will lead to which drugs, treatments, and combinations of therapies work best. IBM envisions a shift to medical care based on the greatest value to the patient; using Watson puts pieces of the therapy puzzle together. Another shining testament to Watson, its value is endorsed by world-renowned Memorial Sloan Kettering of New York. When faced with vast amounts of patient data, the institute is able to easily extract only information that's relevant to the project at hand.
The object of rehabilitation is to improve walking ability, both speed and distance. Secondary yet important concerns are certain co-morbidities that afflict wheelchair-bound individuals, like pressure sores, loss of bone density, and urinary tract infections. Spinal cord injuries require an average 11-day stay in acute care, and in-patient rehabilitation of more than one month. Care for the first year costs almost $3 million; each subsequent year of life brings to sufferers an expense of $400,000. Stroke figures are even higher, given its more commonplace occurrence - costs of up to $20 million in the US alone is headed by hospitalization with another $7 million for drugs. Wheelchairs, a mobility technology not updated in 1500 years (powering being the only innovation) are used by at least 10 million people in developed countries, a large majority who would benefit from ARKE which will allow them to stand, walk, and rehabilitate faster - a miracle made possible by Bionik Labs.
Current exoskeleton industry leader ReWalk Robotics (RWLK:NASDAQ) was handed a landmark decision just days ago by a large commercial health plan in the Northwest US for reimbursement of its device, overturning a former denial. (http://finance.yahoo.com/news/rewalk-robotics-exoskeleton-deemed-medically-130500734.html) Surprisingly, approval includes use of ReWalk in the home. This is clearly a boon for Bionik Labs; ReWalk was not considered experimental or an investigational technology and deemed medically beneficial, clearing a path for ARKE when it enters certain geographic markets upon approval here, in Canada, and in Europe. Filing is anticipated by year-end.
At a market capitalization of $81.9 million, Bionik Labs carries many of the risks associated with small stocks - less news flow, liquidity issues, and shares possibly subject to manipulation. Cash as of September 30, 2015 stood at $7.8 million on a pristine balance sheet with no debt. Operating expenses, headed by research and development have been well managed, although at the company's burn rate, runway is limited. Access to IBM talent and cost savings inherent in cloud computing should mitigate some of this threat.
With first-class technology and valued tools for rehabilitators and doctors alike, soon to embark in very large markets, Bionik Labs will, I believe, emerge as the winner in the exoskeleton arena. It's Board of Directors, including Dr. Robert Hariri of Celgene Cellular fame, an impressive list of Advisors with public company medical device backgrounds in addition to several surgeons, and now the blessing and support of IBM, puts Bionik Labs in an excellent position to succeed.
CONTACT:
Sharon di Stefano
smallcapforecasting@gmail.com
SOURCE: Small Cap Forecasting, Inc.