It’s been a year since we talked about BioSig Technologies Inc (OTCMKTS:BSGM) prospects, a period in which a lot has changed. Things are starting to look up for the company, after months of uncertainty compounded by a sell-off of the stock. Momentum on the stock is already building up, fuelling suggestion that 2018 could be a pivotal year after years of underperformance.
A lot has changed in recent weeks, triggering a buying spree of the stock. The stock is already up by more than 45% for the year and showing no signs of slowing down. A surge in trading volume follows the announcement that the company is on the cusp of a key regulatory approval that could shape its future for years to come.
The upward momentum has picked up the pace in recent weeks and as it stands, the stock is currently trading at 2-year-highs. Given the strength of the upward momentum and the fundamentals pulling strings, it goes without saying that BioSig remains well positioned to continue climbing high.
A rally, followed by a close above the $2.40 mark, should affirm BioSig breakout credentials. The stock faces immediate support at the $1.60 handle, below which it remains susceptible to drop to its 52-week low.
However, given that the company has hit the ground running in pursuing regulatory approval and commercialization of its flagship cardiovascular device, we remain confident that it will continue powering high.
What Does BioSig Do?
BioSig Technologies bills itself as a development stage medical device company focused on the development of proprietary biomedical signal processing technology platform for extracting psychological signals. Its lead product in the space is (Precise Uninterrupted Real-time evaluation of Eloctrograms) PURE EP System.
The device is designed to record, analyze and display electrocardiogram and Eloctrograms used in electrophysiology studies and catheter ablation studies.
Why is The Stock Exploding?
BioSig Technologies is exploding up the charts on reiterating its intentions to be a key player in the $4.6 billion electrophysiology marketplace. Investor confidence in the small-cap company has strengthened in the recent past, on the filling of (510 k) application for the PURE EP System with the Food and Drug Administration.
The application filing follows years of development and studies that have shown PURE EP System to be ‘Very Helpful’ for ablations given its ability to reduce overall noise as well as improve signal clarity/accuracy.
“Our Company’s mission is to improve the standards of patient care worldwide. Submission of 510(k) application is a major milestone, which, once completed, will allow us to bring the PURE EP System to the EP community. Patient-centered innovation is at the heart of what we do, and we will continue to work vigorously to address unmet clinical needs,” said CEO Kenneth L. Londoner.
To accelerate the development and commercialization of the PURE EP System, BioSig Technologies has inked a partnership with Minnetronix.
Minnetronix is to help the company accelerate FDA clearance as well as scale the ability to manufacture the device.
In addition to the regulatory filing, BioSig Technologies has already set up a commercialization team in anticipation of regulatory clearance. The company has also strengthened its balance sheet in recent months as well as industry relationships as it looks to focus on sales efforts this year.
Recent regulatory fillings point to increased insider activity, an indication of growing confidence about the company’s long-term prospects. Director, Patrick Joseph Gallagher, has already bought 20,000 shares of the company’s stock, valued at about $28,000. Director Andrew Lawrence Filler also bought 14,518 shares at an average price of $1.45 for a total value of $21,051.
Increased share ownership indicates increased insider confidence as BioSig Technologies moves to commercialize its first product.
Advisory Board Formation
BioSig Technologies has also strengthened its board of directors in search of expertise and ideas as it moves to commercialize PURE EP system. Joining the company on advisory roles are Vista Asset Management, LLC CEO Kent Williams and leading nephrologist, Dr. Ramachandra Malya.
The two are tasked with the responsibility of providing advice on matters pertaining to strategy, marketing, government affairs partnerships, and mergers.
“We wanted to appoint a proactive Advisory Board, which brings fresh thinking, skills, and expertise to enhance our Company’s performance. Kent and Dr. Malya bring impressive career achievements, which will deliver immediate impact in the top priority areas of our business,” said Mr. Londoner.
What Next For BioSig Technologies after Recent Rally
BioSig Technologies has exploded on expectations that it will gain the much needed regulatory approval for its lead cardiovascular asset. Approval would mark an important milestone expected to strengthen investor confidence thus trigger further movements on the upside.
The development stage company is headed in the right direction guided by the right strategic plan and backed by solid fundamentals. Given that the stock is currently trading at 2-year highs, it may be wise to wait for pullbacks before entering into a long position, in anticipation of further movements on the upside.
Disclosure: We have no position in BSGM and have not been compensated for this article.