Chronicle Journal: Finance

SeeThruEquity Issues Report on United Health Products, Inc.

NEW YORK, NY / ACCESSWIRE / March 21, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued a report on United Health Products, Inc. (OTCQB: UEEC).

The report is available here: UEEC Primer.

We initiate preliminary coverage of United Health Products, Inc. (OTCQB: UEEC, "United Health Products"). We see United Health Products as a speculative microcap investment option in healthcare sector targeting the multi-billion dollar hemostatic and sealant markets. United Health has developed a patented hemostatic gauze intended for the healthcare and wound care sectors. The company's flagship product, Hemostyp®, is an all natural hemostatic agent derived from regenerated oxidized cellulose, which has been shown to quickly control bleeding from open wounds and body cavities. UEEC has recently filed an application with the FDA that, if approved, would expand the indications for Hemostyp® to include new opportunities including use in general surgery. The company also continues to work towards sales distribution advancements in the retail, veterinary, dental, and dialysis markets.

United Health Products is based in Henderson, NV, and is led by CEO Douglas Belpate, an executive with over 30 years of experience in the medical device and wound care sectors. This note is an initiation primer and hence we are not issuing a price target or forward estimates for United Health Products at this time. We expect to issue a full initiation piece during calendar 2017.

Highlights from the report include:

Hemostyp® an all-natural approach to wound care

UEEC's flagship Hemostyp® Topical Hemostatic Dressing is an all natural hemostatic agent. Hemostyp® has been shown to produce hemostasis in less than 45 seconds when applied to an open wound. The product has received FDA approval as a Class 1 device designed to absorb exudate//drainage from superficial wounds and help control bleeding, and is sold in prescription and over-the-counter formulations. Initially the company has targeted the medical, sports, dental, military and veterinary sectors. Hemostyp® is a 100% cellulose product that is made through a patented process from regenerated cotton cellulose, and then oxidized and etherized to become water-soluble. When contacting blood and exudates, the Hemostyp® cellulose expands into clear gel, resulting in a process of adhering and creating pressure to seal the wound.

UEEC files for expanded use indications for flagship Hemostyp® products under 510(k) program for surgical setting

United Health Products has recently taken a significant stride forward on the regulatory front. The company is seeking to expand the indications for its flagship Hemostyp® regenerated cellulose product. The company filed for expanded use indications for Hemostyp® under its current 510(k) application with the FDA. Hemostyp® is already cleared as a Class 1 device, which is indicated for topical wound dressing for temporary control of external surface bleeding.

The amended application seeks to achieve Class 2 clearance, indicated for use for internal procedures for controlling and managing bleeding. If approved, the expanded indications would allow Hemostyp® expanded applications of use in surgical settings, significantly increasing the market potential for the company. In an announcement describing the amended 510(k) application, UEEC management stated that it expected a response from the FDA within 90-180 days.

UEEC targeting significant market opportunity with Hemostyp®

If approved, the expansion of indications for Hemostyp® would likely increase total available market for UEEC. Indeed, if the company is successful in its regulatory efforts, Hemostyp® would be cleared as a Class 2 device, which management believes would enable indications for general surgical procedures. UEEC believes that Hemostyp® will have initial applications in both the hemostatic and sealant markets, which were estimated to be $6.5bn globally in 2016. These are very attractive end markets, which are expected to grow at approximately 10% a year through 2017E, totaling $7.7bn.

Encouraging order activity in veterinary market

In January 2017, UEEC held a call with investors and stakeholders to update progress in new distribution channels, and reported encouraging order activity in the veterinary market. During the call, management stated that the company is progressing with its distribution agreement with Animal Health International, and that the company began its initial rollout for Patterson Veterinary and Animal Health International in December. In the call UEEC noted that combined Patterson Veterinary and Animal Health International are the largest veterinary product suppliers in the United States, with 85 distribution centers, which service more than 8,000 veterinary clinics around the country.

UEEC CEO, Douglas Beplate stated on the call that the company had agreed on an initial rollout of five SKUs with Patterson Veterinary and Animal Health International, which would initially cover 15 distribution centers. UEEC shipped 100,000 units to these distribution centers in December and management stated that another 200,000 units had been scheduled for March. Patterson has over 400 inside and outside sales representatives, who will be promoting Hemostyp® during calendar 1Q17, and UEEC is hopeful that initial results will warrant further penetration into the 85 center distribution network.

Please review important disclosures on our website at

About United Health Products Inc.

United Health Products Inc. (UEEC) develops, manufactures, and markets patented hemostatic gauze, for the healthcare and wound care sectors. The product, HemoStyp®, is derived from regenerated oxidized cellulose, which is all natural, and designed to absorb exudate/drainage from superficial wounds and helps control bleeding. UEEC is focused on identifying new markets and applications for its products and increasing sales in its current markets.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

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Ajay Tandon

SOURCE: SeeThruEquity

ReleaseID: 457831

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