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BioElectronics Corporation's Chairman Updates Investors

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BioElectronics (OTC: BIEL) has released an update from Chairman Richard Staelin, PhD. The company is focusing on new sales channels for its RecoveryRx product, including the VA system and veterinary market. A potential legal action against Mundipharma for breach of contract is being considered. The company terminated a contract with Synergy due to unfulfilled obligations.

BioElectronics is pursuing partnerships with third-party experts for product distribution. A clinical study on the effectiveness of Actipatch for pillar pain management has been accepted for publication. The company continues to seek well-qualified partners both internationally and domestically to expand its market reach.

BioElectronics (OTC: BIEL) ha pubblicato un aggiornamento dal Presidente Richard Staelin, PhD. L'azienda si sta concentrando su nuovi canali di vendita per il suo prodotto RecoveryRx, includendo il sistema VA e il mercato veterinario. Si sta considerando un'azione legale potenziale contro Mundipharma per violazione di contratto. L'azienda ha terminato un contratto con Synergy a causa di obbligazioni non adempiute.

BioElectronics sta perseguendo partnership con esperti di terze parti per la distribuzione dei suoi prodotti. Uno studio clinico sull'efficacia di Actipatch per la gestione del dolore ai pilastri è stato accettato per la pubblicazione. L'azienda continua a cercare partner ben qualificati sia a livello internazionale che nazionale per espandere la sua portata di mercato.

BioElectronics (OTC: BIEL) ha lanzado una actualización del presidente Richard Staelin, PhD. La empresa se está enfocando en nuevos canales de ventas para su producto RecoveryRx, incluyendo el sistema VA y el mercado veterinario. Se está considerando una acción legal potencial contra Mundipharma por incumplimiento de contrato. La empresa ha rescindido un contrato con Synergy debido a obligaciones no cumplidas.

BioElectronics está buscando asociaciones con expertos de terceros para la distribución de productos. Un estudio clínico sobre la efectividad de Actipatch para el manejo del dolor en los pilares ha sido aceptado para su publicación. La empresa continúa buscando socios bien calificados, tanto a nivel internacional como nacional, para expandir su alcance en el mercado.

BioElectronics (OTC: BIEL)는 Richard Staelin 회장(박사)으로부터 업데이트를 발표했습니다. 이 회사는 RecoveryRx 제품의 새로운 판매 채널, VA 시스템 및 수의학 시장에 집중하고 있습니다. 계약 위반으로 Mundipharma에 대한 잠재적인 법적 조치가 고려되고 있습니다. 회사는 의무를 이행하지 않은 이유로 Synergy와의 계약을 종료했습니다.

BioElectronics는 제품 배급을 위해 제삼자 전문가와의 파트너십을 추진하고 있습니다. 기둥 통증 관리에 대한 Actipatch의 효과에 대한 임상 연구가 출판을 위해 수용되었습니다. 회사는 국제적으로나 국내적으로 시장 범위를 확대하기 위해 잘 자격을 갖춘 파트너를 계속 찾고 있습니다.

BioElectronics (OTC: BIEL) a publié une mise à jour du président Richard Staelin, PhD. L'entreprise se concentre sur de nouveaux canaux de vente pour son produit RecoveryRx, y compris le système VA et le marché vétérinaire. Une action en justice potentielle contre Mundipharma pour rupture de contrat est à l'étude. L'entreprise a résilié un contrat avec Synergy en raison d'obligations non remplies.

BioElectronics cherche à établir des partenariats avec des experts tiers pour la distribution de produits. Une étude clinique sur l'efficacité de Actipatch pour la gestion de la douleur des piliers a été acceptée pour publication. L'entreprise continue à rechercher des partenaires bien qualifiés, tant à l'international qu'au national, pour élargir sa portée sur le marché.

BioElectronics (OTC: BIEL) hat ein Update vom Vorsitzenden Richard Staelin, PhD, veröffentlicht. Das Unternehmen konzentriert sich auf neue Vertriebskanäle für sein Produkt RecoveryRx, einschließlich des VA-Systems und des Veterinärmarktes. Eine potenzielle rechtliche Handlung gegen Mundipharma wegen Vertragsbruchs wird in Betracht gezogen. Das Unternehmen hat einen Vertrag mit Synergy aufgrund nicht erfüllter Verpflichtungen gekündigt.

BioElectronics strebt Partnerschaften mit Drittanbietern für den Vertrieb seiner Produkte an. Eine klinische Studie zur Wirksamkeit von Actipatch bei der Behandlung von Säulenschmerzen wurde zur Veröffentlichung angenommen. Das Unternehmen sucht weiterhin gut qualifizierte Partner sowohl international als auch national, um seine Marktpräsenz auszubauen.

Positive
  • Contracted with a service-disabled veteran-owned small business to bring RecoveryRx into the VA system
  • Potential launch of RecoveryRx into the veterinary market with positive clinical findings for canine osteoarthrosis
  • Possible partnership with a large corporate-owned veterinary clinic chain for product evaluation and distribution
  • Clinical study on Actipatch's effectiveness for pillar pain management accepted for publication
  • Pursuing litigation financing for potential legal action against Mundipharma for breach of contract
Negative
  • Unsuccessful attempts to obtain insurance coverage for medical devices in the United States
  • Failed contract with Synergy due to unfulfilled obligations
  • Slow progress in identifying and securing partnerships with third-party experts for product distribution

Outlines Sales Activities, Clinical Trials, and a Potential Legal Action Against MundiPharma

FREDERICK, Md., Oct. 16, 2024 (GLOBE NEWSWIRE) -- BioElectronics Corporation (https://www.bielcorp.com/ OTC: BIEL a developer of medical technology products, today releases an update from its Chairman, Richard Staelin, PhD.

Dear Shareholders,

It has been a while since I provided an update on BioElectronics Corporation's activities. Below are some of the most significant.

Current Medical (RecoveryRx) Sales

Although our RecoveryRx product is well accepted in professional practices that offer cash services or products, most medical offices deal strictly with items billable to insurance. Although we have tried to obtain insurance coverage for our medical devices, we have not been successful in the United States. This has led us to re-focus our efforts on channels where the product is paid for by the system and not the patient. Consequently, we recently contracted with a service-disabled veteran-owned small business (SDVOSB) to bring RecoveryRx into the VA system, leading in part to getting an unsolicited testimonial from Congressional Medal of Honor recipient Major General Livingston which can be viewed here: https://youtu.be/jljs7QPX7KE?si=TSX71Dh-kvG4tzOL It is our current expectation that this testimonial, coupled with an aggressive sales effort from the SDVOSB sales force, will soon result in not only our veterans getting needed relief from our RecoveryRx medical device, but also an increased volume of sales for the RecoveryRx product.

A second line of attack to increase sales is to launch our RecoveryRx product into the veterinary market, since this is a market where customers are used to paying cash for their pet's needs. We have built this launch plan around our strong clinical findings that show our device greatly increases the quality of life of older canines who suffer from osteoarthrosis. We recently obtained a sales presentation meeting with the President and executive veterinarian of one of the larger corporate-owned veterinary clinics that operates both within the US and globally. Based on this presentation, they decided to formally evaluate our products. Assuming a positive outcome, this will mean that each of the 1000 or so clinics in the United States will be able to use and sell our products.

In addition, we have gradually built-up demand for our RecoveryRx product among independent veterinarians who order directly from us. Our product has a decided cost advantage for treating animals for osteoarthrosis compared to the most popular pharmaceutical solutions and the Assisi device.  

Finally, we have undertaken to redesign the RecoveryRx product to better fit a small animal. This new design is currently being evaluated in the field.

Additional Clinical Trials

Our distribution partner in Italy informs us that a study entitled "Effectiveness of Actipatch in the Management and Prevention of Pillar Pain Following open Carpal Tunnel Release Surgery in weight-bearing hand of Elderly Patients: An Observational Study" has been accepted for publication.  Pillar pain is a complication observed in post-surgical carpal tunnel release. Although pillar pain typically subsides within three months post-surgery, a small percentage of individuals might endure its effects for up to six months. The cause of pillar pain is unknown and there is no absolutely effective treatment, nor is there agreement on the treatment. The conclusion from the study is the use of our model 088 medical device proves to be a viable and effective approach for managing and preventing pillar pain in elderly patients with weight-bearing hands who have undergone carpal tunnel release surgery.

Possible Legal Action against Mundipharma for breach of contract

In September of 2023 the Company terminated a contract with Mundipharma Southeast Asia. In that contract, Mundipharma guaranteed to purchase a volume of product costing about $14 million over the 5-year period starting in late 2018. In return, we agreed to grant them exclusive distributorship in five SEA countries. However, these purchases never approached this required amount, nor did Mundipharma meet their obligation to register the product in four of the five territories. Consequently, at the end of the contract the Company began negotiations with Mundipharma to reach an equitable solution concerning its obligations to purchase and register our products. However, even after correspondence with Mundipharma’s C-suite executives, no such agreement was reached, leaving us with the next (very expensive) option which is to enter into binding arbitration to settle this dispute.  Consequently, we sought outside support to move to this next level. The Company is now in the final stages of obtaining the necessary litigation financing with a firm that has already independently evaluated our case against Mundipharma for their breach of contract. Although no final decision has been reached, their expert legal advisor has indicated that we have a strong case. Assuming we secure the litigation financing, we intend to pursue our action against Mundipharma.

Synergy Corporation Contract

I want to address the failed contract with Synergy Corporation, since a number of investors have asked about this contract. After completing due diligence using two independent advisors and noting that Synergy had already signed a contract with a west coast firm, we executed an agreement with Synergy in July of 2022 and soon afterward announced this to the public. The agreement required Synergy to register our products with multiple local health authorities and place their initial stocking order. Despite promises, numerous meetings, and assurances by Synergy's management and CEO, they failed to meet their obligations. We concluded and still believe they submitted false information to our management team. In June of 2023, BioElectronics terminated the contract.

Other Possible Sales Contracts

As stated several years ago, we believe our core capabilities are in R&D and manufacturing. We do not have the financial or personnel resources to launch a major product brand.  Instead, we have focused our efforts to work with third-party experts with the capital and marketing expertise required to educate and reach customers looking for a pain relief solution. These third-party experts can be medical professionals (e.g., veterinarians, doctors, etc.) if the customer is looking for medical advice or marketing and sales firms if the customer is looking for a solution via an over-the-counter product. We continue to search out well-qualified third-party partners, both internationally and domestically and regularly engage in meetings and conversations with such potential partners. These discussions are in different stages of progress, from discussing final approval and registration, to initial exploration of possible interest. Given our product offerings' unique advantages and regulatory requirements, these discussions often take a long time, especially with major distributors with multiple levels of management review.  I would like to assure our investors that we are laser-focused on identifying the best partners and then making certain that both parties find economic value in the relationship.

Finally, I want to thank our investors who have been with the Company for many years. Our progress has been slow and at times frustrating. However, we still strongly believe our products provide effective pain relief for many conditions.   An increasing body of clinical studies confirms this belief, and we continue seeking researchers to study additional conditions.  Our vision and goal remain, i.e., use our core capabilities to realize our mission of reducing human and animal suffering from pain and providing good economic returns to our investors.

Richard Staelin, PhD
Chairman of the Board

Contact:

Kelly Whelan, President
301-874-4890
ir@bielcorp.com


FAQ

What new sales channels is BioElectronics (BIEL) exploring for RecoveryRx?

BioElectronics (BIEL) is exploring new sales channels for RecoveryRx, including the VA system through a contract with a service-disabled veteran-owned small business, and the veterinary market for treating canine osteoarthrosis.

Is BioElectronics (BIEL) considering legal action against Mundipharma?

Yes, BioElectronics (BIEL) is in the final stages of obtaining litigation financing to pursue legal action against Mundipharma for breach of contract regarding unfulfilled purchase obligations and product registration requirements.

What is the status of BioElectronics' (BIEL) contract with Synergy ?

BioElectronics (BIEL) terminated its contract with Synergy in June 2023 due to Synergy's failure to meet its obligations, including product registration and initial stocking orders.

Has BioElectronics (BIEL) published any new clinical studies on its products?

A clinical study on the effectiveness of BioElectronics' (BIEL) Actipatch in managing pillar pain following carpal tunnel release surgery has been accepted for publication.

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