By: Dylan Sikes - AllPennyStocks.com News

Monday, May 12, 2014

Little bacteria are a big problem globally…and the problem is getting worse. The World Health Organization recently released a report giving its perspective on growing concerns of antibiotic resistance that could threaten decades of medical advances. The popular publication The Guardian on Friday issued an article describing diseases that were once thought to be a thing of the past, those such as tuberculosis, typhoid, gonorrhea, as possibly coming back “with a vengeance” because of the stalling ability of today’s medications to destroy bacteria. Cases are popping up all over the world where last resort antibiotics are proving ineffective, creating a great need for new therapeutics and technologies immediately. Big pharma has avoided developing new antibiotics for decades now because of their often-low return on investment and difficult regulatory mandates to make it to commercialization. Investors would be wise to perform their due diligence on the few companies that are advancing new classes of drugs and innovative approaches, from biotechs to technology companies, in a bid for new ways to kill bacterium.

Alpharetta, Geogia-based Sanuwave Health, Inc. (OTCQB:SNWV) is focused on developing and selling noninvasive, biological response activating devices for the repair and regeneration of skin, musculoskeletal tissue and vascular structures. The company’s high energy shock wave technology is used in several products, namely dermaPACE®, OssaTron®, Evotron® and orthoPACE®, that have garnered CE Marks for marketing throughout Europe, and/or regulatory approval for sales in Canada, Asia, Australia and New Zealand. OssaTron is approved by the U.S. Food and Drug Administration for orthopedic conditions that don’t respond to conservative therapies. dermaPACE (“PACE” being an acronym for Pulsed Acoustic Cellular Expression) is currently being reviewed by the FDA following a pivotal clinical trial for the treatment of diabetic foot ulcers.

The company has also patented its technology for non-medical fields, such as energy, industrial applications and food and water purification. All told, the company has 38 patents issued or pending for its shock wave technology.

On Monday, one of those patent applications shifted from pending to approved (#8,685,317) for the use of shock waves to clean and sterilize fluids in containers and/or pipes. This ties in with the growing bacteria problem as the Sanuwave’s technology is designed to destroy biological contaminants, such as bacteria, viruses and other microorganisms that can be found in fluids.

While most of the headlines are centered on household name diseases and severe hospital-acquired infections, bacteria destruction at any point is vital. This is no niche market that Sanuwave is looking to address as it has the opportunity to move vertically and horizontally in the water-treatment equipment industry for cleaning industrial, dirty or polluted waters estimated by Forbes to hit $1 trillion by 2020.

“We believe that this new Sanuwave patent also shows that our technology may be used to economically sterilize liquid foods, including milk, with a U.S. market of $22 billion in retail sales annually, and natural juices that account for about $92 billion as a global market,” commented Kevin Richardson, Chairman of Sanuwave, in a prepared statement on Monday disclosing the patent and potential uses.

Shares of SNWV are inching upward in early Monday action, rising 3 percent to 53 cents on the news. Technical traders may also notice that the stock price has developed a support in the area of 50 cents, essentially holding the price point since last July and cycling up to around 80 cents on moves off of it. Patent news is typically not market moving, but with an upcoming FDA decision and protected IP bringing the company’s offerings to light in the bacteria space, it could be just enough to bolster the stock for another move off support. Proper due diligence is, as always, encouraged.

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