Entia Biosciences Inc (OTCMKTS:ERGO) shares were up 20% on Wednesday to $0.0600 and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.02 to $0.10. The company has a market cap of $1.70 million at 28.31 million shares outstanding.
In a press release yesterday, Entia Biosciences Inc announced that the European Patent Office has granted European Patent Number 1 761 784 with the title “Identification of Ergothioneine Transporter and Therapeutic Uses Thereof” of the University of Cologne, Germany. Previous patents for the same inventions were already obtained in the United States, Canada and Israel and were exclusively licensed to Entia under the aforementioned license.
“The grant of this European patent further strengthens our exclusive intellectual property position in this technology across a significant geographic market,” stated Marvin Hausman
MD, Entia BIOSCIENCES INC Chief Science and Technology Officer.
He added that their soon-to-be-introduced medical food products will help Entia Biosciences Inc bring this technology to bear on chronic kidney disease, psoriasis, Parkinson’s disease, multiple sclerosis and autism.
On its weekly time frame, it can be seen that the stock is still in a steady downtrend but appears to be bottoming out. Volume is still weak as there are no major catalysts that might trigger a sharp reversal at this point, although price is inching close to the 100 SMA for a potential upward crossover.
For now, the short-term 100 SMA is safely below the 200 SMA to indicate that the path of least resistance is to the downside, signaling potential losses for Entia Biosciences Inc shares. Also, the gap between the moving averages is widening, reflecting strengthening selling pressure. MACD is oscillating so consolidation around these levels could carry on until the company provides more updates.
In any case, the patent approval represents a stride in a positive direction for the company so it may only be a matter of time before these translate to strong revenues and potential for growth. In a press release back in September, Entia Biosciences Inc aits submission of “late breaking clinical trials” results has been accepted for presentation at the American Society of Nephrology’s Kidney Week 2016 Annual Meeting November 17-20 in Chicago.
“The acceptance of our CKD clinical trial study for presentation is evidence of the Society’s interest in the potential of our technology,” stated Entia CEO HAusman.
This gave the company an opportunity to present their technology to a wider audience in the US, thereby generating more interest in ErgoD2. Studies show that Chronic Kidney Disease takes a significant toll on the health of more than 25 million individuals in the US, costing the healthcare system $42.5 billion annually at nearly 10% growth rate each year, representing a large market for its product.
Entia Biosciences Inc is a company that develops pharmaceutical-grade organic compounds, including a foundational compound called ErgoD2, which is a pharmaceutical-grade organic compound created from whole foods that contain the micro-nutrients L-ergothioneine, an amino acid that has a transporter in every human body. This improves iron homeostasis and mitigates iron-related disorders presenting in anemia, chronic kidney disease and select neurodegenerative diseases, with its formulations utilizing organically cultivated specialty mushrooms available from various domestic and international suppliers.
The company also develops and markets health-related nutraceuticals and cosmeceuticals. Its market and scientific research has identified mushroom species and suppliers to provide the nutritional profiles for its ErgoD2 formulations.