| SHZAMSTOCKS' FEATURED PROFILES |
|
| FREE
STOCK PICKS IN YOUR EMAIL |
|
|
PROFILES
Welcome to our comprehensive profile on Positron Corp.
(OTCBB: POSC)
|
ABOUT POSITRON
Positron Corporation was incorporated in the State of Texas on December 20, 1983 and commenced commercial operations in 1986.
Positron has expanded its business model with a refocus on cardiac molecular imaging. Positron’s joint venture Neusoft Positron Medical Systems Co. Ltd. based in Shenyang, People's Republic of China will allow for the market entry of an inexpensively priced Positron Emission Tomography (PET) system less than their competition’s PET/CT units. The Company believes that market factors such as; reimbursement increases, government regulation changes and an industry wide focus on cost effective imaging has positioned cardiac PET imaging at the forefront of cardiologists demand. Cardiologists now can offer a newly cost effectively priced technology, which has been available since 1995, to their patients. The implementation of a cardiac PET program allows physicians to practice more accurate imaging, save healthcare dollars, while at the same time improve their revenue. That is a win-win-win not often seen in imaging technology.
Positron Corporation will additionally offer Single Photon Emission Computed Tomograhy (SPECT) technology through their wholly owned subsidiary, Imaging PET Technologies (IPT) with IS2 Medical Systems (IS2).
Through the recent acquisition of Dose Shield, Inc., Positron Corporation will now be able to offer a unique combination of low cost medical imaging technology, affordable radiopharmaceutical solutions and disease specific programs / software differentiating themselves from all other medical device manufacturers.
Positron Corporation is currently developing a coronary disease reversal and prevention online management & solution program. This was made possible by Positron’s agreement with Dr. K. Lance Gould and the University of Texas for rights to Dr. Gould’s heart disease reversal diet and comprehensive practice management, patient centric program. Positron believes that its online coronary disease reversal and prevention product will provide a solution for patients, insurers, self insured corporations and thousands of community hospitals looking to differentiate their services, save cost and reducing outward migration of patients to the larger hospitals.
The future of Positron’s medical products is their solid-state technology developed by Dr. Valeri Savieliev in Quantum Molecular Technologies (QMT). Solid-state technology will allow Positron to offer customers more portable, affordable and organ specific molecular imaging systems.
The Company’s strategic plan is not to be a “me too” vendor, but re-launch themselves as a unique niche player in the cardiac disease detection market through their automated dose dispensing systems molecular imaging devices, as well as the disease management segment through our innovative software solutions backed by, written, and guided by the industry pioneers. The potential addition of being able to sell radiopharmaceuticals to the end user changes the dynamics and provides the Company with a significant amount of recurring monthly revenue. The cardiac diagnostic market, while highly competitive, is not being properly addressed by the “big 3” to accommodate the trends from government pressures to reduce the healthcare burden while improving outcomes.
Positron’s focus on cardiology has its foundation in the company’s original core competency which is providing cardiologists with superior imaging tools combined with disease specific software solutions. Even though the market dynamics have changed dramatically since 1983 when the company offered their first cardiac device, Positron has continued to address its offering to meet current needs of the Company’s customer. The management of Positron has positioned the Company for growth in the Cardiology market. It is clear that Positron Corporation is ready to seize a significant stake market position and demonstrate solid growth for years to come.
Market Opportunity
Nuclear medicine is a form of diagnostic imaging in which depictions of the internal anatomy or physiology are generated primarily through non-invasive means. Diagnostic imaging facilitates the early diagnosis of diseases and disorders, often minimizing the scope, cost and amount of care required and reducing the need for more invasive procedures. Currently, five major types of non-invasive diagnostic imaging technologies are available: x-ray; magnetic resonance imaging; computerized tomography; ultrasound; and nuclear imaging. The most widely used imaging acquisition technology utilizing gamma cameras is single photon emission computed tomography, or SPECT. The Company believes that due to recent market dynamic changes that additional nuclear imaging techniques will become more utilized such as PET technology. The Company is ideally positioned in the diagnostic cardiology imaging market in offer both SPECT and PET imaging devices as well as radiopharmaceuticals.
Nuclear medicine is part of a trend in Radiology that continues to improve image quality and demonstrate increasing utilization rates. Modalities such as computed tomography(CT), magnetic resonance imaging (MRI), and diagnostic procedures such as CT angiography compliment and are being combined to enhance both SPECT and PET procedures. Nuclear Medicine will continue to be used for a substantial number of imaging procedures, especially in cardiology, due to the unique ability to demonstrate the function of a cell, the lower purchase and maintenance costs of the imaging device, the smaller physical footprint of the imaging device, the easier service logistics of the imaging device and the affordability of radiopharmaceuticals.
The market opportunity trend for Positron Corporation has many facets. The market opportunity can be divided into several categories that include:
- Cardiology groups looking to reduce costs in SPECT imaging by purchasing discounted generic radiopharmaceuticals. Cardiology groups looking to increase revenues by offering PET services to their customers. Cardiology groups looking to reduce costs in PET by purchasing discounted generic radiopharmaceuticals. Radiopharmacies needing to comply with a new federal regulation approval of USP-797 in June 2008. Several Radiopharmacies are in need of an upgrade to their equipment to comply. The Company’s recently acquired Nuclear Pharm-Assist® is an affordable platform to comply with the new regulations.
- Radiopharmacies looking to automate the dispensing of FDG. The Nuclear Pharm-Assist® automates this process to avoid radiation exposure issues that are common with this process. The Company has an order for 7 of their Nuclear Pharm-Assist® units sold to existing FDG producers.
- Community Hospitals looking to differentiate their cardiology services and stop outward migration. The Company has a point to model in Niagara Falls Memorial Medical Center which was the first community hospital to offer a heart disease reversal and prevention program guided by PET imaging.
The Company intends to be the first company to the nuclear cardiology imaging market offering a total package solution. The solution for PET customers will include the AttriusTM imaging system, unique disease specific software as well as competitive radiopharmaceuticals. The solution for SPECT customers is the Pulse CDCTM imaging system, Cardio-AssistTM radiopharmaceutical dispensing unit in addition to competitive priced radiopharmaceuticals.
Hospitals and cardiology offices currently perform more than 15,000,000 nuclear cardiology procedures annually. Heart disease will continue to become our nation’s number one cost. The increase of reimbursement will drive a majority of that volume to PET imaging and subsequently purchase of Positron scanners. The combination of offering radiopharmaceuticals with SPECT systems will drive the sale of additional systems.
According to the U.S. Department of Health and Human Services, there are more than 22,000 cardiovascular diseases specialists today in the U.S. and their number will increase to 31,000 by 2020. Positron Medical has a technology advantage that allows them to be the low cost provider, yet maintain similar or better margins. As the low cost provider, they will penetrate this market with their total package that includes devices, disease management solutions and radiopharmaceuticals. In the USA, the estimated cost of economic loss related to heart disease is $431.8 billion; the comparable number for cancer is $190 billion. Yet, PET scans were performed 88% of the time on cancer patients compared to 8% directed towards heart patients.
In 2004, estimated 79.4 million individual patients within the United States, or 27% of the total population, were affected with cardiovascular disease with a mortality of 871,500. One in three adult men and women will have some form of cardiovascular disease (CVD). Within the context of CVD they now know that early detection, risk factor modification, exercise and effective drug therapy can stop the progression of disease and in some patients even reverse the disease process. Positron Medical is a leader in providing this type of preventative health care.
Cardiac Health Statistics
Population of the United States as of April 2007: 301,594,125
Population with CVD (27%): 81,430,400
Mortality related to CVD: 36.3% of all deaths, or 1 out of every 2.8 deaths in the US
CVD accounts for more deaths than any single cause
If all forms of CVD were eliminated, life expectancy would increase by nearly 7 years.
Estimate direct and indirect cost of CVD in 2007 is $431.8 Billion US.
53% of CVD deaths occur in women. Since 1984, more women than men have died of CVD each year.
Women are more likely to suffer from a myocardial infarction (MI) at older ages than men – the average age of first MI is 65.8 and 70.4 in men and women, respectively.
After menopause, the rate of CHD is 2-3 times that of pre-menopausal women who are the same age.
Significantly more women than men suffer from acute chest pain due to myocardial ischemia.
In 2002, nearly twice as many American women died of CVD than from ALL types of cancer combined.
Physical inactivity: Only 30% of the total US population participated in regular physical activity.
Smoking: Among adults 18 or older 23.4% of men and 18.5% of women are smokers. The direct medical cost of smoking in the US is 75.5 billion dollars and lost productivity costs associated with smoking ($92 billion) bringing the total estimated $167 billion in the US each year
High blood lipids: The 2004 estimated prevalence of total cholesterol in adult’s age 20 or greater at or above 200 mg/dl was 105,200,000. Less than half of those individuals that should be on antilipid medications are receiving them. Only about 33% of patients treated are achieving their goal LDL and less than 20% CHD patients are at their LDL goal.
Overweight: Over 140,000,000 individuals in the United States are overweight with 66,000,000 meeting the criteria for obesity. (2004 numbers)
Diabetes: The 2004 estimated prevalence for diabetes is 15,200,000 (diagnosed) and undiagnosed (5,000,000).
Metabolic syndrome: There are approximately 47,000,000 individuals with this syndrome in the United States. These are a perfect group for their program because they may not reach any of the diagnostic risk factor groups above but are at risk for development of HD.
High Blood Pressure: In 2004 there was a total estimated prevalence of 72,000,000 individuals.
Patents and Proprietary Technology
The Company holds certain patent and trade secret rights relating to various aspects of its PET, SPECT and other related technologies, which are of material importance to the Company and its future prospects. There can be no assurance, however, that the Company’s patents will provide meaningful protection from competitors. Even if a competitor’s products were to infringe on patents held by the Company, it would be costly for the Company to enforce its rights, and the efforts at enforcement would divert funds and resources from the Company’s operations. Furthermore, there can be no assurance that the Company’s products will not infringe on any patents of others.
A royalty payment to John Zehner via NukeMed, Inc. and Mike Thomas was part of the purchase agreement from Positron for Dose Shield. Several patents are pending for the patient injection system portion of the Nuclear Pharm-Assist®, also known as the Tech-Assist™. |
|
