Is United Health Products Inc (OTCMKTS:UEEC) Just Getting Started After 200% Surge?

United Health Products Inc (OTCMKTS:UEEC) strong start to the New Year builds on an impressive run that saw the stock register higher highs late last year. The stock is currently trading in a strong uptrend and we believe it remains well positioned for more gains given its push for market share in the internal surgical market.Stock Price Analysis Over the past one month, United Health Products has gained more than 200% in market value underscoring its credential as a breakout stock in the space. The gains have come at the back of enormous trading volumes, a further indication that investors are starting to take note of the company’s long-term prospects.However, the stock has pulled back from record highs of $1.49 a share and is currently trading in a tight $0.83 to $1.28 trading the range. UEEC Daily ChartAll indications are that the pullback could be a minor correction pending further movement on the upside. Immediate resistance is at the $1.28 handle above which it could make a push for its 52-week high. On the downside, immediate support is at the $0.83 handle, below which it could drop to the $0.50 mark.The stock has a consensus ‘buy’ rating on Wall Street on a survey carried on 22 analysts. 21 analysts, rate it as a ‘buy’ as one analyst rate's it as a ‘sell.’Before we look at the catalysts that are likely to push the stock higher, let us look at what makes the company tick.United Health Products Business OverviewUnited Health Products bills itself as a product development and solutions company that manufactures products for the healthcare and wound care sectors. The company designs products, provides services, and applies technologies with the primary goal of improving healthcare and making it affordable.The company manufactures and markets hemostatic gauze used to absorb exudate/drainage from superficial wounds in addition to controlling bleeding.Its products portfolio also includes dental gauze products for oral surgery, trauma gauze for battlefield trauma. United Health Products serves dental, medical, sports and veterinary sectors.The healthcare product’s company is the subject of renewed investor interest on Wall Street in the wake of a significant development involving the Food and Drug Administration.Recent Developments Late last year, United Health Products announced the completion of an array of tests for its patented hemostatic gauze, HemoStyp product, as part of an FDA submission. The biocompatibility tests tested for irritability, sensitivity and cytoxicity and absorption of the product.Test results indicate that the product exceeded other competitive products when it comes to performance.Buoyed by the test results, United Health Products has scheduled a face-to-face meeting with FDA experts for January 17, 2018. It will use the meeting to provide the agency whatever information is needed to advance the application of HemoStyp for Premarket Approval.A further testament that HemoStyp credentials is the fact that the FDA has selected it, as one of nine participants of its new and innovative CtQ Pilot Program. The program seeks to uncover products that have a chemical makeup able to demonstrate safe interaction with the body.Products that demonstrate repeated safe interaction with the body will be allowed expedited entry into the market.

“The FDA has stated that it intends to work collaboratively with pilot program participants during the review of their PMA submissions to define characteristics of the device that are critical to product quality and how these characteristics are controlled in design and manufacturing prior to the postmarked inspection,” United Health Products in a statement.

The company has also announced plans to apply for the designation of HemoStyp as a Class III medical device in Australia.If approved, the designation will pave the way for its use in internal surgeries. The device could obtain approval for application within 30 days.In addition to Australian application, United Health Products, South Korean distribution partner is in the process of submitting HemoStyp with the South Korean Ministry of Food and Drug Safety. The distributor is applying for its classification as a class III medical device.United Health Product is also set to enter the African market after its South African Distributor, SSEM Mthembu Medical SSEM confirmed the approval of HemoStyp for marketing in South Africa. The distributor has already placed its first order for the product.The South African market provides a unique sales opportunity that could help take the product mainstream in the healthcare sector while acting as a reliable revenue stream.Bottom LineApproval of HemoStyp for use in the American market will mark a significant milestone in United Healthcare Products push to entrench itself in the internal surgical market. Approval would allow the company to get a piece of the pie of the hemostatic products market that is estimated to be worth more than $7 billion. Over the next few years, it should grow by 7.1% to over $8.3 billion.Selection of HemoStyp for the FDA CtQ program is a significant achievement that investors appear to be taking note of. A move by the company to pursue sales opportunity in Australia, South Korea, and South Africa also highlights the company’s sales ambitions as it moves to generate more shareholder value.United Healthcare Products efforts in marketing HemoStyp should act as a catalyst in drawing in more investors, who in return should push the stock higher.We will be updating our subscribers as soon as we know more. For the latest updates on UEEC, sign up below!Disclosure: We have no position in UEEC and have not been compensated for this article.