Jul 14, 2020 (AB Digital via COMTEX) -- Electromedical Technologies (OTC: ELCQ ) reported a jump in revenues of 22% in Q1 compared to the same period last year. The increase can be attributed to WellnessPro®, an FDA cleared bioelectronic device designed to relieve chronic, intractable, and acute pain. The next-generation device targets the pain-management sector that treats an estimated 1.5 billion people globally.
WellnessPro® is positioning Electromedical Technologies to elevate a new era and category of medicine called "Bioelectronics," a new standard of treatment that can safely use electrical signals to replace pills, injections, implants, and patches to combat chronic pain. The device shows a unique ability to unlock the body's natural ability to achieve wellness and better health by using energy, frequency, and vibration.
Notably, the company points out that Q1 growth came without any additional advertising. Instead, the sales were organic and generated by more and more people using its devices and sharing the powerful results they experience with their social networks. Electromedical Technologies is also benefiting from the growing trend of holistic and natural treatments from patients seeking pain relief alternatives that may be used at home.
Pace Of Growth Increases
The double-digit revenue increase comes as the company's pace of execution has been significantly improved. The company noted strong product demand that resulted in selling out of this year's production run and is building inventory to meet the pent up demand for its WellnessPro® product. Nearly all purchase orders came from new buyers, indicating that people seek safer and healthier alternatives to pain medications that can cause adverse side effects on people's health. Market statistics show that nearly 100 million Americans suffer from some kind of acute or chronic pain.
Importantly, Electromedical noted that Q1 was pacing to be the strongest quarter of sales deliveries in its history until its operations were interrupted in February and March due to the pandemic. As a result, since the device inventory was sold out early this year, and following GAAP accounting procedures, some Q1 income will be reflected in its Q2 results.
Although Q2 will get a jump-start in revenue, additional growth is expected to materialize from product and strategic initiatives that include improvements in technology, research expansion, new product releases, and a refocusing on localizing production in the U.S.
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Targeting Chronic Pain Market With Drug-Free Bioelectronics
An estimated 1.5 billion people worldwide suffer from chronic pain, and a majority of them are being treated with highly addictive prescription medication. However, Electromedical Technologies is engineering change through "bioelectronics," a developing and potentially significant field of "electronic" medicine that uses safe electrical impulses over the body's neural circuitry to relieve pain.
Their technology is born from the knowledge that the human body is controlled by electrical signals sent through the nervous system, which can become distorted after accidents or from a disease. Electromedical Technologies is showing that bioelectronic medicine may have the ability to safely correct irregularities in the nervous system by modifying the electrical language of the body related to pain relief.
Developing and manufacturing bioelectronics since 2004, Electromedical is familiar with the science behind the technology. For more than a decade, their WellnessPro® product line has been changing the lives of thousands of its users by bringing portable, effective, and lasting relief from chronic pain. Their FDA-cleared, CE-marked, SGS, and Cofepris certified WellnessPro® products are simple to use and offer treatment flexibility with a proprietary algorithm and rotating frequencies.
WellnessPro® is showing compelling and advantageous differences from competing products.
Competing Products Can Be Invasive
Electromedical Technologies is focused on innovation. At the same time, they keep a close eye on industry competitors like Google (nasdaqgs:GOOG) and GSK (NYSE: GSK ), which have invested a combined $1.5 billion into the electroceutical market. But, Electromedical Technologies is taking a different approach to treatment.
Unlike the Google and GlaxoSmithKline partnership developing invasive implants, Electromedical Technologies is keeping to its strategy of bringing to market FDA-cleared products that are non-invasive and non-toxic. The Company’s first product, the WellnessPro™, received FDA clearance on July 6, 2007, as a Class II Medical Device. It's 510(K) approval is explicit in labeling its intended use for the treatment of chronic intractable and acute pain, and as an adjunctive treatment for post-surgical and post-traumatic acute pain.
The company's newest next-generation device, WellnessPro Plus®, adds new technology based on a unique energy delivery system called DeepPulse™. DeepPulse™ delivers a low voltage current to treat chronic pain and demonstrates an ability to provide longer-lasting and more effective pain relief than many drugs and other products on the market. Those advantages can increase the distance from invasive procedures, addictive drugs, patches, and implants.
In January, the company noted that strategic plans are in place to extend its marketing outreach to wellness and pain management centers, targeting venues with significant patient traffic. They also are expecting to qualify its products for use in the European Union, Mexico, and Canada, further expanding its available markets. A successful campaign may substantially increase the pace of WellnessPro® market penetration.