NeuroMetrix Inc (NASDAQ: NURO)
NeuroMetrix is having an incredible day in the market today after announcing that it has started the commercialization process in Mexico for a detection system known as DPNCheck. Today, we’ll talk about what DPNCheck is, why the launch in Mexico is so important, how NURO is reacting to the news, and what we can expect to see from the stock moving forward.
What Is DPNCheck
DPNCheck by NeuroMetrix is a tool that’s designed to diagnose consumers with diabetes. By measuring sural nerve conduction velocity and response amplitude biomarkers, the test is able to evaluate peripheral neuropathies, most importantly diabetic peripheral neuropathy. The new testing system is not only accurate, but it is incredibly cost effective.
Why Launching In Mexico Is So Important
While Mexico’s population isn’t exactly the largest in the world, it is known to have one of the highest rates of type 2 diabetes in the world. In fact, about 12% of Mexico’s entire adult population has been diagnosed with the condition. The massive amount of consumers with type 2 diabetes is one thing, but the death toll the disease has on the country is astronomical. The reality is that in Mexico, type 2 diabetes is the leading cause of death, resulting in about 70,000 deaths per year. To make matters worse, this figure is expected to rise as the diabetes epidemic continues to grow in the country. Based on this data, it’s clear that Mexico is a great target market for NURO and their DPNCheck program.
As a result of the need, DPNCheck is going to start by being used in one of Mexico’s major government healthcare institutions, of which there are only 6 in the country. Because the largest opportunities for NeuroMetrix are held within these 6 institutions, the largest effort in the commercialization process will be negotiating DPNCheck into all of these institutions down the road, which will be a great thing for NURO.
How The Market Is Reacting To The News
As investors, history has taught us that when positive news comes out with regard to a publicly traded company, we can expect to see a positive reaction in the market as a result. That’s exactly what we saw from NURO as a result of DPNCheck commercialization efforts in Mexico. Currently (10:09), NURO is trading at $2.57 per share after a gain of 11.74% so far today on the news.
What We Can Expect From NURO Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from NURO. It’s clear that the company is moving things in the right direction in order to lead to long term profits. NURO’s DPNCheck is a much needed diagnostic tool in Mexico and around the world. As the company works to commercialize the tool, chances are that profits will come in a big way. So, if you’re looking for a low cost, emerging biotech company to get involved in, you may want to take a very close look at NURO and the opportunity the stock provides.
What Do You Think?
Where do you think NURO is headed and why? Let us know your opinion in the comments below!
[Image Courtesy of Crowd Fund Insider]
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