Competitive Technologies, Inc. (CTTC) Research Update Released
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New York, NY - August 15, 2013 (www.investorideas.com newswire) Taglich Brothers released an updated research report on Competitive Technologies, Inc. (CTTC), reiterating a Neutral rating due to weak revenue growth and an increased debt burden. The report noted the following key investment considerations:
CTTC's MC5-A pain therapy device treats cancer-related and neuropathic pain that afflicts several million patients who have failed to find relief. If the MC5-A penetrates as little as 2% of the estimated target market, revenue upside could be substantial.
A combination of MC5-A sales gains and margin improvement could sharply narrow operating losses during the next three years.
CTTC aims to build a marketing staff more sharply focused on sales to US government agencies and securing broader insurance reimbursement for MC5-A treatments. The company also plans to start building an inhouse sales force that should be better trained and dedicated solely to MC5-A sales.
For 2013, we project a loss of ($0.17) per share on revenue of $736,000, down from the $880,000 projected earlier. On deployment of a more effective sales force, revenue could rise sharply, albeit off small base, to $1.7 million in 2014. But costs are expected to remain high, leading to a 2014 loss of ($0.15) per share.
In 2Q13 (results reported Aug. 13, 2013), CTTC lost $675,000 million or ($0.04) per share, on revenue of $136,000. We projected a loss of ($0.04) per share on revenue of $280,000. In the year-earlier quarter, the company lost ($0.06) per share on revenue of $63,000.
CTTC's financial condition is significantly unbalanced and its cash position is very tight. By our estimates, the company will need approximately $4.5 million in additional financing by the end of 2014.
Competitive Technologies, Inc. (CTTC: OTC PK), headquartered in Fairfield , Connecticut , offers technology transfer services. CTTC licenses technologies from clients, obtaining licenses or rights to intellectual property on a broad array of technologies from universities, companies, inventors and patent or intellectual property holders. The company's intellectual property portfolio includes rights to technology in life sciences (healthcare), electronics, nano science and physical sciences.
Licenses and rights licensed by CTTC from clients are in turn licensed or sub-licensed to customers, including large multinationals seeking to augment their product development efforts and enlarge their pipelines. Customers pay CTTC license fees, royalties, or a share of per procedure or per unit revenue. Since its inception, CTTC has licensed nearly 500 technologies to corporations and shared over $100 million in shared technology revenues with universities and inventors.
Near-term growth efforts are based on the commercialization of a medical device that CTTC acquired rights to in 2007. The product, FDA-approved and CE marked, is eligible for regulatory clearance in most of the world's medical markets. The MC5-A, also known as the
Calmare Pain Therapy device, could potentially gain wide acceptance as a treatment for neuropathic and oncologic pain that has not responded to pharmaceutical or other device-based pain therapy.
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