Idaho News Updates

SANUWAVE Health (OTC: SNWV) is more than under-the-radar; it appears to be off the screen of value-minded investors as well. That’s a huge mistake. Why? Because the company just posted a blowout third quarter that showed revenues rising by more than 895% compared to the same quarter last year. And that trend is expected to continue into and after the fourth-quarter, with SANUWAVE already saying it expects revenues to reach $3 million, which would have the company record a more than 415% gain in year-over-year revenues. But it gets better.

In fact, it gets much better. Guidance for 2021 is expecting revenues to increase to $25 million, which would deliver another triple-digit gain of 371% gain to its yearly run-rate. The good news is that unlike small-cap companies that are hoping for new product traction, SANUWAVE is working from a historical perspective. Its recently acquired diabetic wound-care asset, UltraMIST®, delivered more than $15 million in sales last year and provided more than $4 million in EBITDA earnings.

But, the addition of UltraMIST® revenues is not the sole provider for growth. SANUWAVE’s FDA-cleared DermaPACE®, wound-care device, when combined with UltraMIST®, is expected to deliver best-in-class painless treatment alternatives to patients with chronic diabetic wounds. More importantly, it positions SANUWAVE as one of the only companies that can provide diabetic wound-care treatment along the entire continuum of care. That’s a significant advantage.

Targeting An $11.4 Billion Diabetic Foot Ulcer Market

The diabetic wound-care market for foot ulcers alone is an $11.4 billion opportunity. That opportunity in and of itself exposes the value-opportunity compared to the current market cap of only $78.4 million. But, not everyone is missing the point. 

Lake Street Capital analysts’ research report calls for a more than 114% increase in price from current levels. They note the impact of the UltraMIST®, acquisition, its enhanced competitive position, and the imminent uplist of the shares to a more senior exchange will supply ample fuel to drive revenues sharply higher over the next twelve months. 

Moreover, they highlight that SANUWAVE will benefit from more than just the historical sales of UltraMIST®. In their report, they recognize the value of the more than 100 trained salespeople already in the market selling UltraMIST®. They also highlighted the positive impact of having an experienced reimbursement team already seated to get these devices covered by the largest Medicare/Medicaid Administrators in the country. Undoubtedly, a knowledgeable sales and reimbursement team are crucial ingredients to every medical device company’s success. SANUWAVE has both. 

Still, the company has more to offer.

Video Link: https://www.youtube.com/embed/hjPSdaKJP5w

Important Biologics Add More Firepower

Lake Street was wise to point out that the company is exceptionally well-positioned to add immediate and accretive revenue streams from its acquisition of UltraMIST®,. They are also correct to value the addition of two important biologics, BIOVANCE®, and Interfyl®,, licensed from Celularity in the same deal.

In fact, these biologics, especially BIOVANCE®, in the near term, are expected to boost revenues even higher. Keeping in mind that the company’s third-quarter results were record-setting, the trend is therefore decidedly bullish. And, while record-setting performances are always embraced, investors are expecting more gains in the current quarter from the combination-therapy potential of its DermaPACE® and UltraMIST® diabetic wound-care devices. 

Clinical evidence shows that these devices can be best-in-class alternatives to current and painful treatments. That, of course, opens the door to substantial front-line opportunities from treatment providers that aim to effectively treat their patients and, at the same time, offer a procedure that patients will continue. Keep in mind, the therapeutic value of UltraMIST® and dermaPACE® is achieved with minimal to no wound contact. Compare that to scraping or digging into a chronic wound to maximize potential benefit, it’s understandable that treatment providers may migrate toward these powerful SANUWAVE solutions.

Indeed, what matters most is that SANUWAVE’s FDA-cleared combination treatment is proven as effective. For that reason, the devices and therapy are earning reimbursement coverage from the largest insurance administrators in the country. BIOVANCE®, too, is achieving its share of reimbursement inclusions, which all combine to drive value well beyond the already record-setting numbers.

Now, add into the mix the value of expanding into the Latin markets.

Latin Markets In-Play

Notably, the surge in revenue during the third quarter was driven by sales in the USA. Now, the market presence for its products has expanded into other countries. SANUWAVE reported receiving regulatory approval from COFEPRIS, the Mexico equivalent of the FDA, to market and distribute dermaPACE® to treat chronic wounds. The company says they expect to leverage Joint Venture opportunities to maximize this approval.

Further, the company announced it received ANVISA approval to market dermaPACE® to treat chronic wounds in Brazil. Both markets are substantial. More importantly, it allows SANUWAVE to expand beyond U.S. borders in its mission to becoming a global diabetic wound-care treatment company. That deserves value now- it’s happening already.

Therefore, using real-time numerations to model a more just valuation, utilizing the $25 million guidance is only one part of the equation. Earning approvals in other countries can systematically enhance revenue opportunities. For that reason, looking only to an expected 371% increase in next year’s revenues may be selling the opportunity short. Global opportunities can enhance those numbers.

Thus, while the street guidance for $25 million in revenues in 2021 is appreciable, SANUWAVE may certainly surprise to the upside. And, with markets doing a valuation using forward-thinking models, analysts will likely notice the broader opportunities and rethink their current valuations. Combine that logic to a completed uplist to a senior exchange, the company’s share price may benefit significantly from both institutional interest and revenue-based valuation models.

The first move higher may come soon. SANUWAVE has already guided for a $3 million record-setting fourth-quarter, and if they indeed post that number, could set into motion a recalculation of future expectations. It would also show, through consecutive quarters, that the acquisition of new assets is helping to significantly accelerate the growth curve. 

Importantly, the markets are likely to reward enhanced visibility.

End Of Year Rally 

SANUWAVE certainly enjoyed a transformational third-quarter. They added UltraMist®, BIOVANCE®, and Interfyl® to its portfolio. Those three assets alone position the company to become a market leader in providing advanced wound-care solutions. Moreover, as perhaps the only company that can treat and improve patient outcomes across the continuum of care, the company may soon grab traction in the industry as a preferred option for treatment. 

The assets already combined to deliver record revenue in the third quarter of 2020. However, the coming quarters may show a more representative presentation of the assets as the sales team includes dermaPACE® as a complementary device to UltraMIST®. That initiative may not have been clearly reflected in the third-quarter since the team was still learning about the dermaPACE® device. Three months in, that is no longer the case. 

Investors should also pay attention to the five additional patents awarded during 2019- 2020. One, in particular, protects claims to treat blood clotting and occlusion. That asset can target a market in dire need of better treatment for conditions that affect roughly 900,000 patients and kills more than 100,000 in the U.S. market alone. In presentations, the company suggested the potential to partner with cardiac-related firms to leverage its allowances, perhaps as early as the first part of 2021. That strategy can save resources and monetize an asset. It’s a win-win scenario.

Clearly, the next step for SANUWAVE is to consummate its most-watched objective- an uplist to a more senior exchange. Although that comes with a reverse stock split, it simultaneously opens the door to institutional investors and additional analysts’ coverage. Moreover, the valuations for stocks are done on revenue and earnings multiples, which SANUWAVE can deliver. In fact, they are setting records on the revenues front. Bottom-line earnings may be close- that could generate a massive move to the upside.

The bottom line is this. The legwork needed to get completed to maximize the potential of its UltraMIST® and biologics assets is done. Lake Street’s coverage was initiated months ago and expects a more than 100% gain in price. 

Now, with an uplist on the cusp of happening and with new market opportunities in Mexico and Brazil, it’s likely they will re-evaluate their targets by using revenues generated from the active first month of SANUWAVES acquisitions.

And, with the forecast for more record-setting sales, that valuation can only be higher.

Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. This email and its release to syndicated outlets has been produced and co-independently produced. Hawk Point Media received compensation from a third-party in the amount of One-thousand-Five Hundred dollars to research, prepare, and syndicate this content.. The producer of this content is LONG SANUWAVE Inc. shares. All content is prepared from publicly available information and is deemed accurate at the time of article preparation. Hawk Point Media strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

Media Contact
Company Name: Blue Hawk Media, LLC
Contact Person: Jake Ellis
Email: [email protected]
Country: United States
Website: https://www.soulstringmedia.com