ALR Technologies (ALRT): Penny Stock, Recent FDA Clearance, Enormous Potential

ALR Technologies Inc. (OTCBB: ALRT), an innovative medical device company, offers a unique software solution aimed at improving patient adherence to care plans  in the diabetes industry working alongside companies like Abbott Laboratories (NYSE: ABT) and Bayer AG (PINK: BAYRY) that develop diabetes testing supplies.

Meanwhile, diabetes is becoming a growing problem around the world. By some estimates, 500 million people, or 1 in 10 adults, will have diabetes by 2030. For more information on these trends and statistics, investors can see the following article:

http://www.pitchengine.com/watervilleresearch/500-million-or-1-in-10-adults-will-have-diabetes-by-2030

Undervalued Stock in an Enormous Industry

ALR Technologies has a market capitalization of just $18 million, despite having a late-stage medical device within a multi-billion dollar industry. According to the American Diabetes Association, approximately 25.8 million adults and children have the disease in the U.S., which represents some 8.3% of the population as of 2011 and cost some $174 billion in 2007.

Despite its growing prevalence, many forms of diabetes are preventable. According to the National Institutes of Health, studies have shown that people at high risk for diabetes can prevent or delay onset of the disease by losing 5-7% of their weight. And even if they have diabetes, many of its complications can be avoided by adhering to a diabetes management plan.

The problem is that many people don’t follow their diabetes management plan. Diabetes patients are responsible for more than 95% of their own care and many healthcare professionals express frustration that patients don’t follow diet or exercise plans, check blood sugars or even take their medications as prescribed.

HeC System Makes a World of Difference

ALR Technologies’ Health-e-Connect (HeC) System is an internet-based platform for diabetes patients and their healthcare providers to improve communication and monitoring of a patient’s health management program.  For instance, the software will upload data from a patient’s glucose meter into a database that allows healthcare providers to quickly assess user compliance and test results compared to targets.

In August 2010, Diabetes Care published the results of a trial conducted by Dr. Hugh Tildesley, et al, comparing insulin dependent diabetes patients receiving conventional care with patients that had additional follow-up via an internet based blood glucose monitoring system (IBGMS). The HeC System was the IBGMS deployed in the trial. The study showed A1c dropping from 8.8% to 7.6% over 6 months in the diabetes patients who had the additional IBGMS follow-up. The A1c test is important in diabetes treatment management as a long-term measure of control over blood glucose. In general, every 1% drop in A1c may reduce the risk of microvascular complications by 40%.

In July of 2010, the company submitted a 510(k) application to the FDA for its proprietary HeC System to enable it to market the technology in the U.S. On October 17, 2011, ALR Technologies announced the 510(k) clearance of its HeC system for remote monitoring of patients in support of diabetes management.

A Solid Investment Opportunity

ALR Technologies represents an early stage investment opportunity. With a 510(k) cleared medical device available for the market, the company’s $18 million market capitalization may be significantly undervalued.  Given the efficacy of IBGMS as reported by Dr. Hugh Tildesley, et al, the sales potential of the HeC system could be very large.

For more information on ALR Technologies, please see the following resources:

• ·       Company Website
• ·       Latest SEC Filings

ALRT, Randomized Control Trial update and technical trade by The Street Beat

ALR Technologies, Inc. (OTCBB:ALRT) recently updated a movie/Power Point which is a presentation from a “Randomized Controlled Trial” showing the effect of internet therapeutic intervention on HbA1c (hemoglobin A1c) levels in patients with Type 2 diabetes treated with insulin. The six-month study was conducted by Tildesley et al. and concludes that the use of an IBGMS (Internet Based Glucose Monitoring System) is an effective method of improving glucose control compared to standard care.

The A1c level is the gold standard in determination of chronic glycemic control in people with diabetes. It is important to keep the A1c level as low as possible to control risks associated with diabetes. As the final slide points out, According to Centers of Disease Control and Prevention:

In general, every percentage drop in A1c blood test results (e.g. from 8% to 7%) can reduce the risk of microvascular complications (eye, kidney and nerve disease) by 40%.

Products such as ALR Technologies’ Health-e-Connect System and Welldoc’s self-named platform are designed to encourage patient compliance and monitoring of glucose levels in manners shown to be effective by this trial.

ALRT randomized controlled trial

View more presentations from ALR Technologies

Below, The Street Beat takes a look at the two-year weekly chart of ALR Technologies shows solid support levels and a stock consolidating after a large climb. The retrace is holding support and the MACD has dropped a bullish cross while the RSI holds over 50; signs that will grab the attention of technical traders.

The Black Market for Diabetic Strips on Ebay - FOX News Baltimore ($ALRT)

26 million Americans have diabetes. The cost of diabetes test strips can really add up. In an effort to save money, some people are turning to the internet and other sources to purchase the strips, but it's a case of buyer beware. Health officials say that many of these black-market strips are expired and can give inaccurate readings, which can in turn damage your health. In this news story out of Baltimore, FOX News reports about the sale of diabetes test strips on the black market on Ebay and other sites. Federal investigators are cracking down and a University of Maryland School of Pharmacy expert explains the health risk:

The ALRT Health-e-Connect (HeC) System is the principal product of ALR Technologies.  The system offers a solution to documenting actual electronic strip count usage, thus reducing availability for the black market.  HeC is a web-based platform designed to assist healthcare providers caring for diabetes patients improve the compliance and management to care plans of patients through remote monitoring. ALRT plans to expand the platform to cover patients with other chronic diseases. The ALRT HeC System’s platform provides a unique communication channel that allows test strip suppliers to have feedback and dialogue with patients to encourage patients’ compliance to diabetes treatment plans. Adherence to prescribed treatment plans should improve health outcomes. The ALRT HeC System was successfully used in a clinical trial by type 2 diabetes patients on insulin as part of an intensive glucose monitoring program.

The HeC System supports data uploads from blood glucose meters manufactured by Abbott Diabetes Care, Bayer Diabetes Care, LifeScan Inc. (a Johnson & Johnson Company) and Roche Diabetes Care.