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The largest order in Competitive Technologies' (OTCQX:CTTC) history for the proprietary Calmare Pain Therapy Management device was announced Tuesday (Oct. 5). The record order was from Spero Pain Relief Therapy, LLC. to equip 13 new clinics which will open over the next two years in Utah, Nevada and Southern California. The clinic network has signed a purchase agreement for a minimum of 114 Calmare medical devices for the 14 clinics (first clinic opened one month ago) and will result in the recognition of $3 million in net revenue for CTTC over the next two years .("Net revenue" is defined as net after payment of inventor royalties and distributor and sales rep commissions).

What is most significant about this large order is that it may mark the beginning of a broader awareness and appreciation by the medical community of the efficacy of the company's promising non-invasive treatment for chronic pain. Although the Calmare technology has 501-K marketing clearance from the FDA, the company's distributor network has been slow to meet with sales success. But with more clinical evaluations and clinical studies validating the efficacy of the system, the turn may be at hand.

There seems to be some momentum in sales and marketing activity developing in the past few months since Dr. Thomas J. Smith of Virginia Commonwealth University's Massey Cancer Center presented his clinical findings of the efficacy of the Calmare system in the treatment of chemotherapy induced peripheral neuropathy (CIPN) at the American Society of Clinical Oncology (ASCO). Subsequent to this presentation in June, the pilot trial findings were published in the Journal of Pain and Sympton Management last month.

In addition, there have been more patient testimonials that have come to light as more clinics evaluate the Calmare system.

But isn't this Calmare technology just TENS therapy reincarnated?


What appears superficially as just Transcutaneous Electrical Nerve Stimulation (TENS) therapy is actually significantly different (besides being actually effective). The Calmare technology involves the use of electrostimulation that, unlike standard, utilizes a low electrical current directed at the central nervous system through electrodes on the patient's skin on either side of the pain area. Also, unlike TENS therapy, the Calmare technology applies sixteen proprietary electrical impulse algorithms that are programmed in the medical device. The technology specifically targets the body's C-fiber pathway (which transmits slower and chronic pain signals) versus the acute pain pathway. These electrical signals perform as artificial neurons to "re-program" the brain's receipt of the pain signal or message to offer long lasting pain relief instead of just "blocking" the pain message. TENS therapy can, at best, result sometimes in short-term pain relief.

CTTC's low shares outstanding count of about 13.8 Million shares gives the company a modest market cap of $22 Million (at current price of $1.62). Should the company continue to capitalize on more sales, coupled with more clinical findings from medical centers (there are three new trials starting), CTTC could develop into a real player in the lucrative market of chronic pain relief (especially given the Calmare's important competitive advantage of being non-invasive and non-narcotic).

Disclosure: Long CTTC.PK

Source: Competitive Technologies: More Frequent Sales to Come?