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AeroClean Technologies, Inc. (NASDAQ: AERC) is a medical technology company that offers medical grade air sanitzation solutions through its products utilizing its patented technology. AERC stock is currently trending among FinTwit investors thanks to its over 600% run since the company’s product received FDA clearance. Considering the potential of the company’s air purification product, some investors are bullish AERC stock could be a valuable long-term hold.
AERC Stock News
Through its patented SteriDuct technology, AERC’s products are able to instantly kill viruses and bacteria on contact. This technology was designed to use safe, solid-state UV-C emitters at the wavelength required to kill 99.9% of air pathogens. In this way, SteriDuct is able to remain compact without using UV light tubes. Based on this, the technology is able to meet the highest requirements for hospital operating rooms as it continuously changes the air in the room.
Through testing, SteriDuct has proven its ability to kill pathogens. In one of the studies, AERC studied its technology’s impact on a surrogate pathogen for Covid-19 – MS-2 Bacteriophage. In this study, SteriDuct showed great potential in eliminating Covid-19 as the study showed a 4.21 +/- 0.27 average net log reduction after just 45 minutes. In light of this, AERC appears to be well-positioned to capture a new health-conscious group of investors impressed with the technology’s range of applications.
With this in mind, AERC has two marketed products – Pūrgo and Pūrgo Lift. Utilizing the patented SteriDuct technology, Pūrgo is a portable and easy to use pathogen eliminating system that has virtually no maintenance requirements. Despite its portable size, Pūrgo is able to meet the CDC’s standards for patient’s rooms for air quality safety since it can deliver four log kills of multiple pathogens in 45 to 60 minutes. This rapid elimination of pathogens is achieved through continuous sanitization and advanced filtration.
As for its other product, Pūrgo Lift also utilizes the patented SteriDuct technology and advanced filtration. However, this device is different from Pūrgo as it can be placed vertically or horizontally in elevators. Pūrgo Lift also operates at 175 CFM which means it can exchange the air every minute in elevators. Based on this, AERC believes Pūrgo Lift can reduce pathogens by more than 10 times when people ride an elevator together.
By utilizing SteriDuct technology in Pūrgo devices, AERC has a competitive advantage in its market. Unlike other air filtration devices, Pūrgo kills 99.9% of airborne pathogens including viruses, bacteria, superbugs, as well as allergens. Moreover, Pūrgo’s UV LED does not generate ozone and is much safer for indoor use compared to other devices with UV lamps which contain harmful mercury gas. In light of these features and patented technology, AERC could be well-positioned to grow its revenues significantly in 2022 and beyond.
Given the significance of Pūrgo’s features, it is no surprise that the device was granted 510 K clearance by the FDA – classifying it as a Class II Medical Device. This clearance was granted to AERC after an in-depth review of the device and its ability to eliminate airborne pathogens. By receiving the FDA’s clearance, AERC has the potential to capitalize on a total addressable market worth $26 billion which includes both the $11.8 billion healthcare market and the $14.6 billion non-healthcare market. With this in mind, gaining this clearance could help AERC secure contracts with healthcare facilities, businesses, and even government agencies. In that case, AERC stock could prove to be a valuable long-term investment considering the company’s unique technology.
While the company will likely secure more sales after becoming FDA approved, AERC has already successfully secured a number of deals. Most notably, AERC agreed with Hospital for Special Surgery (HSS) to install Pūrgo devices in its facilities. HSS started deploying these devices in non-clinical areas with high traffic back in February and also installed Pūrgo Lift in a public elevator. As is, HSS is already planning to deploy Pūrgo devices in more areas.
On top of this, AERC secured a deal with the city of Palm Beach Gardens to install its Pūrgo devices throughout the city’s offices and facilities. These devices were installed in areas with high person-to-person interactions including the 911 call center, emergency operations center, conference rooms and the city council chambers to lessen the impact of Covid-19. As the initial deployment of these devices was completed in February, AERC expects more deployments for the city in the future. Since AERC has already secured a partnership with a city, the company could be positioned for similar partnerships in the future.
After these successful deals, AERC is looking to expand its sales and distribution capabilities. This led AERC to sign an agreement with a channel sales partner to offer its products to schools, government agencies, and commercial opportunities. At the same time, AERC launched distributor initiatives aimed for the public and private sectors as well as healthcare markets. Considering these efforts to increase sales, AERC stock is one to watch in case the company announces significant deals in the near future.
Given that the company is focused on generating more revenues, AERC added Timothy Scannell to its BOD. As the former president and COO of Stryker Corporation, Scannell brings over 30 years of experience to AERC’s board. During his time at Stryker, Scannell was responsible for driving market leading sales and impressive merger and acquisition results. If Scannell is to replicate his previous success with AERC, the company could be set to witness financial growth in 2022 and beyond.
In addition, AERC appointed Jimmy Thompson as Vice President of Strategic Sales to drive revenue growth within targeted industry verticals. As well, Thompson will be responsible for developing strategic distribution, reseller, and channel partner relationships. Through his experience in healthcare technology, Thompson will focus his efforts on improving relationships with partners in various industries – with a main focus on the healthcare industry. With this in mind, AERC appears to be poised for financial growth this year as it intensifies its efforts to secure new deals.
Now that AERC was granted FDA approval, the company is in a prime position to capitalize on the American Rescue Plan. This plan provided $350 billion to state and local governments to support recovery and response to Covid-19 – including upgrades to ventilation and filtration. The plan also included an additional $130 billion for the funding of air quality upgrades in schools to prevent shutdowns. Additionally, Centers for Medicare and Medicaid Services provided funding for long-term care providers to improve ventilation and filtration through ultraviolet germicidal irradiation and HEPA filtration in order to eliminate the spread of Covid-19. Since these technologies are already integrated with Pūrgo devices, AERC is well-positioned to secure new deals as part of this targeted federal funding.
AERC Stock Financials
In terms of its financials, AERC reported $21.4 million in assets compared to $23.7 million in Q4 mainly due to cash on hand declining to $17.7 million from $19.6 million. Meanwhile, AERC reduced its liabilities from $2 million in Q4 to $1.6 million. As for its revenues, AERC reported $6.7 thousand. However, the company’s operating costs rose from $1.9 million to $2.6 million – resulting in a net loss of $2.5 million. Despite this, AERC’s efforts to secure new deals could lead to financial growth in the coming quarters.
@RealtorStarShar is bullish that AERC stock could hit $20
@HDOGTX believes that AERC stock is following the same pattern as Redbox (NASDAQ: RDBX)
AERC stock price is currently $13.35 after dropping about 20% on June 14th. The stock shows supports near 13.29, 11.99, 8.75, and 3.75. AERC stock reached a high of $18.53, forming a resistance near 17.67. Since Pūrgo was granted FDA approval, AERC stock climbed over 600%. But closed on heavy selling near its support of 13.29.
On the 1 hour chart the golden cross of the MAs has only recently started but on the 5 minute its coming to a close. Despite this, AERC will likely not return to its price before the run-up considering the value this FDA approval brings to the company. But for confirmation that the upwards trend is continuing, the supports at 13.29 and 11.99 will be important to watch.
Overall, accumulation has remained steady although its showing a slight downtick with profit-taking. The MACD is bearish and the RSI is holding at 51. These indicators resetting after the run could give AERC room to run but considering the drop in trading volume, AERC could see a trend reversal. As is, AERC has an OS of 13.8 million and a low float of 4.25 million.
AERC Stock Forecast
Now that the company’s device has become FDA approved, the AERC stock forecast has become a lot brighter. Its patented technology revolutionizing air filtration and ventilation has given the company a competitive advantage as hospitals, local governments, and companies look to eliminate airborne pathogens in public spaces. Currently preparing to launch Pūrgo Lift and other wall or ceiling-mounted applications in Q4, AERC has catalysts to watch for which are worth factoring into the AERC stock forecast as they could add additional value to the company.
While the stock’s notable run up may be losing momentum, in the long-term AERC is working to increase its sales and could be set for significantly higher revenues this year. The stock had initially been given a $10 price target in February and has since been downgraded to a hold due to its run. It appears to have been given a price target of $7 which could give an indication of where AERC’s PPS will settle in the long-term.
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