Biel News!! Initial Orders Over 120,000K Units!!
FREDERICK, MD, Aug. 10, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – BioElectronics Corporation (OTC: BIEL), (www.bielcorp.com) today released a Chairman’s Letter to Shareholders written by Dr. Richard Staelin, the Company’s Chairman of the Board.
Dear BioElectronics Shareholders :
The purpose of this letter is to update you on the activities of BioElectronics Corporation over the last 10 months, their results, and the impact of these activities on the future of the Company. Although many are probably most eager to learn about these results (which are detailed first), I encourage you to also read my discussion on the underlying logic which led us to where we are today, since it is this logic that forms the foundation that will drive your Company forward over the foreseeable future.
Results to Date
1. We now have signed long term contracts with, and received initial stocking orders and cash deposits from, three major companies. These initial orders total more than 120,000 ActiPatch devices. These three companies will be selling our devices into the United States over-the-counter (OTC) consumer health retail market. They will differentiate their offerings by utilizing different retail channels, branding strategies, and attachment systems (to affix the device on to various locations on the body). Their retail launch dates vary but are currently scheduled between Q4 of 2020 and Q2 of 2021, reflecting industry practice for retailers to plan launch times six to nine months into the future.
2. We also have a signed agreement with a commercial firm that is in the process of recruiting and training up to 400 independent sales representatives who will actively sell our RecoveryRx postoperative pain product line into doctors’ offices, wound clinics, nursing facilities, and hospitals. As with the three OTC retail-oriented companies mentioned above, we will act as the original equipment manufacturer (OEM) for this sales force, providing them with devices upon receiving purchase orders. The principles of this sales force anticipate that sales will begin in Q4 of 2020 and ramp up over the next calendar year.
As an OEM we must respect all of these buyers’ requests not to reveal any specific information about their identity or marketing and sales plans. However, at the appropriate time, probably after retail product launches, BioElectronics will provide more information about each venture in news releases.
3. In terms of international sales, we recently signed a licensing agreement with a major international company and are in the final stages of signing an agreement with another large international company. Both of these companies need to register our products with their respective local medical regulatory authorities before they can distribute and sell our products. In addition, the sales force of our long-standing distributor, Mundipharma, has reentered the field after a slow down of sales activity due to the pandemic. Based in part on this new activity, they are forecasting a reorder in Q4 of 2020.
4. Our engineering and clinical team has continued to improve our understanding of the mechanism of action for the technology behind our devices and to develop new versions of our products. In addition, in conjunction with some of our new sales representatives, we are in the process of establishing new clinical alliances to further strengthen the clinical evidence on our devices.
The Strategy, Plan and Underlying Logic
In early November of 2019 senior leadership started working on developing a long-term strategy that would allow the Company to better compete and thrive in the pain care health market. This team was composed of the current Board, Kelly Whelan, Keith Nalepka, and myself, and augmented by Dr. Sree Koneru who heads up our product development team. Early on, this group concluded that the Company’s core capabilities were its deep knowledge and experience in Pulsed Short Wave Therapy (PSWT) technology which is the use of non-thermal, high-frequency electromagnetic fields for therapeutic purposes.
This knowledge had already enabled the Company to acquire three 510(k) clearances from the U.S. Food & Drug Administration. This expertise also allowed the Company, working with its trusted manufacturer, to develop processes that enabled mass production of high quality, effective, low cost PSWT devices. The group felt that these two core assets not only allowed the Company to successfully compete in the United States medical and retail markets, but also efficiently a) develop new product offerings that would better serve different segments of the pain management market; and b) launch new initiatives into other neurological ailments linked to chronic pain, such as overactive bladder and migraine headaches.
FREDERICK, MD, Aug. 10, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – BioElectronics Corporation (OTC: BIEL), (www.bielcorp.com) today released a Chairman’s Letter to Shareholders written by Dr. Richard Staelin, the Company’s Chairman of the Board.
Dear BioElectronics Shareholders :
The purpose of this letter is to update you on the activities of BioElectronics Corporation over the last 10 months, their results, and the impact of these activities on the future of the Company. Although many are probably most eager to learn about these results (which are detailed first), I encourage you to also read my discussion on the underlying logic which led us to where we are today, since it is this logic that forms the foundation that will drive your Company forward over the foreseeable future.
Results to Date
1. We now have signed long term contracts with, and received initial stocking orders and cash deposits from, three major companies. These initial orders total more than 120,000 ActiPatch devices. These three companies will be selling our devices into the United States over-the-counter (OTC) consumer health retail market. They will differentiate their offerings by utilizing different retail channels, branding strategies, and attachment systems (to affix the device on to various locations on the body). Their retail launch dates vary but are currently scheduled between Q4 of 2020 and Q2 of 2021, reflecting industry practice for retailers to plan launch times six to nine months into the future.
2. We also have a signed agreement with a commercial firm that is in the process of recruiting and training up to 400 independent sales representatives who will actively sell our RecoveryRx postoperative pain product line into doctors’ offices, wound clinics, nursing facilities, and hospitals. As with the three OTC retail-oriented companies mentioned above, we will act as the original equipment manufacturer (OEM) for this sales force, providing them with devices upon receiving purchase orders. The principles of this sales force anticipate that sales will begin in Q4 of 2020 and ramp up over the next calendar year.
As an OEM we must respect all of these buyers’ requests not to reveal any specific information about their identity or marketing and sales plans. However, at the appropriate time, probably after retail product launches, BioElectronics will provide more information about each venture in news releases.
3. In terms of international sales, we recently signed a licensing agreement with a major international company and are in the final stages of signing an agreement with another large international company. Both of these companies need to register our products with their respective local medical regulatory authorities before they can distribute and sell our products. In addition, the sales force of our long-standing distributor, Mundipharma, has reentered the field after a slow down of sales activity due to the pandemic. Based in part on this new activity, they are forecasting a reorder in Q4 of 2020.
4. Our engineering and clinical team has continued to improve our understanding of the mechanism of action for the technology behind our devices and to develop new versions of our products. In addition, in conjunction with some of our new sales representatives, we are in the process of establishing new clinical alliances to further strengthen the clinical evidence on our devices.
The Strategy, Plan and Underlying Logic
In early November of 2019 senior leadership started working on developing a long-term strategy that would allow the Company to better compete and thrive in the pain care health market. This team was composed of the current Board, Kelly Whelan, Keith Nalepka, and myself, and augmented by Dr. Sree Koneru who heads up our product development team. Early on, this group concluded that the Company’s core capabilities were its deep knowledge and experience in Pulsed Short Wave Therapy (PSWT) technology which is the use of non-thermal, high-frequency electromagnetic fields for therapeutic purposes.
This knowledge had already enabled the Company to acquire three 510(k) clearances from the U.S. Food & Drug Administration. This expertise also allowed the Company, working with its trusted manufacturer, to develop processes that enabled mass production of high quality, effective, low cost PSWT devices. The group felt that these two core assets not only allowed the Company to successfully compete in the United States medical and retail markets, but also efficiently a) develop new product offerings that would better serve different segments of the pain management market; and b) launch new initiatives into other neurological ailments linked to chronic pain, such as overactive bladder and migraine headaches.
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