By Brian Marckx, CFA

This morning (4/11/13) SANUWAVE (OTC BB:SNWV) announced receipt of a U.S. patent to sterilize blood using shock waves. On the Q4 2012 earnings call about two weeks ago management talked for the first time about looking at derivative applications for its shock wave technology, outside of the main focus which is wound healing. Blood sterilization is one of these derivative applications in the medical space (SNWV is also exploring non-medical applications such as with oil extraction and fracking water cleaning) that SNWV listed as a potential pursuit. Blood sterilization could potentially be one of the low-hanging-fruit opportunities for SNWV.

Shock wave technology has been used for years in lithotripsy devices to break up kidney stones. In fact SNWV acquired Healthtronics' orthopedic business in 2005 which facilitated the development of the company's dermaPACE device. HealthTronics is a leading manufacturer of lithotripsy devices. It was found that when lithotripsy devices were first being used to break up kidney stones that the shock waves also had the effect of killing bacteria. This anti-bacterial effect has also been observed during wound treatment therapy. Shock waves have also shown to have a similar effect on viruses.

Given this anti-bacterial/anti-virus efficacy and a significant unmet need for a safe and effective means to clean blood (for example for blood transfusions and blood donations), blood cleaning seems like a natural pursuit for SNWV's endeavor to broaden the potential market for their technology.

We expect we'll hear more about SNWV's plans for validating their technology for blood cleaning and potentially for other applications in and outside the medical space in the near future.

A copy of the full research report can be downloaded here >> SANUWAVE Health Report

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