After underperforming in 2018, Creative Medical Technology Holdings Inc (OTCMKTS:CELZ) is due for a major bounce back. The management, in a shareholder update, has touted multiple milestones expected to go a long way in strengthening investors confidence in the stock. The team is especially relying on the erectile dysfunction treatment solution CaverStem, to spearhead the turnaround.
According to the team, the treatment solution should lead to financial self-sufficiency on sales growth. The company has already launched marketing campaigns targeting both physicians and patients for its candidate product.
The stock is currently languishing at all-time lows its prospects in the market having hit all-time lows, amidst waning investor’s sentiments and confidence. Creative Medical Technology is relying on the erectile dysfunction treatment to reinvigorate its growth metrics.
The stock is currently languishing at the $0.01 level after coming under immense short selling pressure last year. Bouncebacks in recent months have emerged as opportunities from where short sellers have come back and continued to push the stock lower.
Considering the long-term downtrend, the stock needs to rise and stabilize above the $0.02 level to have any chance of averting further slides. Above the critical resistance level, the stock stands a better chance of making a run for the $0.04 level, seen as the next substantial resistance level.
Below the $0.02 psychological resistance level, the stock remains vulnerable to further declines in continuation of the long-term bear trend.
What Does Creative Medical Technology Do?
Creative Medical Technology casts itself as a commercial stage biotechnology company. Through its subsidiaries, the company engages in stem cell research. It develops applications for the treatment of sexual dysfunctions as well as other related issues. The company markets its erectile dysfunction treatment under the brand name CaverStem.
What Next For Creative Medical Technology?
After a lackluster 2018, Creative Medical Technology could be in for a major a turnaround. The management has already touted major milestones it expects in 2019, spearheaded by the CaverStem lead product.
For starters, the company has already started to register sales growth from its main product thanks to aggressive marketing campaigns. Mailer and email campaigns to licensed physicians are set to go live this month targeting areas of urology as well as sexual function and plastic surgery.
The company’s goal is to reach out to over 2,500 new physicians as it looks to strengthen sales channel for CaverStem. In addition, Creative Medical Technology plans to increase its online presence through Social Media as part of the new marketing campaigns. The company is also progressing with its CaverStem program in Switzerland as part of its marketing campaign.
The company also intends to expand its footprint in the sector by providing solutions for female sexual dysfunction. FemCelz is the company’s lead stem cell solution on this front that it hopes will enhance its growth prospects on the treatment of erectile dysfunction across the divide.
“We are preparing the patient protocol and designing the website in anticipation of this launch in Q1. Many of our existing CaverStemTMaffiliated physicians also treat female patients for sexual function, and we anticipate that they will be the leaders in progressing the FemCelzTM program,” Creative Medical Technology in a statement.
The company is also planning to complete the acquisition of Virility Centers of America brand. The centers should open the door for the company to enhance the use of its male and female erectile dysfunction treatment solutions.
In addition, the facilities should provide additional revenue sources from licensing as well as marketing and administrative fees. The facilities should also act as a source of additional revenue through the sale of medical equipment.
Creative Medical Technology is on course to reap the rewards of its investment in CaverStem this year. The company has made impressive strides as it moves to position the erectile dysfunction treatment in physicians and patient’s hands.
Interest in the treatment option remains high, not only in the U.S but as well as in Europe. That said the company remains on course to generate significant revenues on the sale of the treatment solutions in 2019.
Revenue growth is one of the catalysts expected to go a long way in strengthening the stock’s sentiments among investors. After underperforming in 2018, Creative Medical Technology is due for a major bounce back as CaverStem continues to gain traction among physicians and patients.
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Disclosure: We have no position in CELZ and have not been compensated for this article.