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Guided Therapeutics Inc (OTCBB:GTHP) Makes Progress In Its Fight Against Cervical Cancer

Guided Therapeutics Inc (OTCBB:GTHP) Makes Progress In Its Fight Against Cervical Cancer
Written by
Ryan Mitchell
Published on
March 15, 2018
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Guided Therapeutics Inc (OTCBB:GTHP) has become a beacon in the global fight against cancer. The firm has had to battle against declining share prices, government restrictions and near illiquidity in a bid to push the sale of the LuViva system, designed to detect cervical symptoms as early as possible.However, the decline in its price has continued for a long time and its recent rise, though minute has aroused some curiosity. All of this, along with the large market for its product has the market wondering what the future holds for GTHP.Take a look at the stock’s recent price action: GTHP Daily ChartCompany OverviewGuided Therapeutics, Inc. was established by Shabbir Bakir Bambot and Richard L Fowler in October 1992 and its head office is situated in Norcross, Georgia.The firm is credited for the development of the LuViva Advanced Cervical Scan, a rapid and painless test which is used for the timely recognition of ailments which could lead to cervical cancer. The test was developed rapidly eradicate false positive HPV and Pap results and determine cervical disease overlooked by current tests. The process simply works by pointing light towards the cervical area and assessing the reflected light using a spectrometer. The returned light is then examined for physical and chemical precancer symptoms. Unlike HPV and Pap tests, the equipment does not need a painful tissue sample. Another benefit is that results are known instantly.Recent DevelopmentsThe firm reported very recently today that it had attained the required company regulatory approval from the Indian Ministry of Health & Family Welfare to permit the sale of the LuViva technology as well as disposables. Investigations from the ministry ended with the conclusion that the system is not invasive in nature and need not be regulated according to the Drugs and Cosmetics Act 1940 and Medical Device Rules 2017 applicable. Due to this outcome, LuViva is now permitted to be sold in India.Chief Executive Officer, Gene Cartwright outlined that there are roughly 330 million ladies in India alone who are at an appropriate age to undergo screening for cervical cancer. He added that only a minute portion of these women who are at the appropriate age is currently undergoing screening in India as a result of the logistical difficulties involved in using other techniques of cervical cancer screening. LuViva is a very sensible alternative to other existing methods as it does not need a patient sample or a laboratory, and the outcome is known in just a minute after testing. Globally, there are over here are about 2.5 billion women who are at least 15 years and remain at risk of developing cervical cancer. It is estimated that the global market for cervical cancer diagnostics and screening, which is currently carried out using cytology (Pap test) for primary screening, is projected to at $6 billion and may likely to grow to almost $9 billion by 2020.Late last year, the firm reported news of a new order of 4,000 single-patient-use Cervical Guides which it had received from its Indonesia distributor along with the news that it had gone into an agreement with DSS Image for possible distribution within India.The firm’s LuViva Advanced Cervical scan has recently begun routine use in Indonesia. The Indonesian distributor had made a request for a total of 10 LuViva devices along with four thousand disposables in at the end of last year.Gene Cartwright explained, management believes that the continued orders from their distributor are a pointer towards an increasing acceptance of the value that the LuViva system offers to its customers especially in emerging countries. It is their plan to continue in the pursuit of other markets that would be able to benefit from the technology’s unique combination of simplicity of use, immediate results and a capacity to deliver understandable clinical results.Based on results from the World Health Organization, Cervical cancer has been ranked as one of the most frequent cancers in women globally and the most frequent for women in India. India has an estimated population of 366 million women who have surpassed 15 years of age, and are at risk of developing the ailment. The current projections point towards nearly 132,000 new cases per year and 74,000 deaths India, accounting for almost a third of deaths due to cervical cancer worldwide.Financial PerformanceIn 2016, revenue amounted to $0.6 million, the same as the sales figures recorded in the previous year. With the new demand for the LuViVa, the revenue figures are expected to increase in the future.Encouragingly, cost of sales dropped by 8% in the period, a pointer that the company may have improved in its operating efficiency. In similar fashion, R&D expenses fell by 50% and SGA by a 33%.Operating loss for the year was $3.8 million, a drop of nearly 50% from the previous year. Net loss fell by a similar percentage to $3.97 million.The statement of financial position reveals that the firm is highly geared. On its books, its total debt is worth about $10.8 million, resulting in a very high debt-to-equity ratio. Worryingly, it also has a low liquidity ratio of 0.11.ConclusionGTHP looks to have a promising future, but the firm needs to improve its results to return to its previous levelsDisclosure: We have no position in GTHP and have not been compensated for this article.

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