Business Strategy Advances During 2011
INDIANAPOLIS–(CRWENEWSWIRE)– Positron Corporation (OTCBB:POSC.OB), a leading molecular imaging company specializing in the field of nuclear cardiology, today issued an update to its shareholders recapping recent activities and highlights.
Dear Fellow Positron Shareholders,
This letter will serve as a means to update and inform you about the activities and opportunities that exist as a shareholder in Positron Corporation. Positron is a leader in molecular imaging, focused on the field of nuclear cardiology. Positron provides innovative technologies and services that are reshaping the field of nuclear cardiology. Through our proprietary PET imaging systems, services and radiopharmaceutical solutions, Positron enables healthcare providers to more accurately diagnose disease and improve patient outcomes while practicing cost effective medicine.
Originally a research and development company, Positron has positioned itself as a recognized pioneer within the field of nuclear cardiology. Positron�s business strategy has evolved from simply an imaging systems provider, to a �full solutions� provider within the nuclear cardiology imaging community. The Company is actively pursuing key initiatives to ensure the growth and longevity of Positron and the industry by securing the supply of source materials, providing key products that apply to both PET and SPECT imaging modalities and offering attractive financing solutions.
Activities and Highlights
Positron continued to strengthen its position in the field of molecular imaging by making significant progress towards the autonomy of critical components that are key to our full solution strategy, during 2011 we:
// Pursued a 70 MeV high-energy cyclotron project through our wholly owned subsidiary, Positron Isotopes Corporation, an Indiana corporation. This project will be the world�s largest commercial cyclotron, capable of producing Strontium (Sr-82), the parent isotope utilized to produce Rubidium (Rb-82) generators: the radiopharmaceutical most commonly utilized in cardiac PET imaging.
// Commenced discussions with private equity, strategic corporate partners and investment banking firms interested in providing capital for its $91 million cyclotron project; a combination of approximately equally amounts of equity and debt. Current plans are for $24 million dollars of this project to be allocated in the form of debt to Positron to develop the cardiac PET market, produce radiopharmaceuticals and execute the Company�s full solutions plan. This capital is sufficient to achieve these objectives.
// Obtained commitments to receive economic incentives from Noblesville, Indiana for $6.7 million dollars in TIF bonds, which will be paid off through facility taxes.
// Awarded $38 million in Midwestern Disaster Area Bonds by the Indiana Economic Development Corporation, commonly referred to as Private Activity Bonds with tax-free status.
// Executed an agreement with IBA Molecular, of Belgium, for a 70 MeV cyclotron. This cyclotron project will allow Positron to meet the growing demand of the cardiac PET industry.
// Identified new location(s) in Noblesville, Indiana for the Company�s corporate offices, manufacturing, research, development, and cyclotron facilities (negotiations currently in process).
// Contracted American Structurepoint Inc. as the Company�s architectural engineering firm for the design of the new cyclotron and manufacturing facility in Noblesville.
// Identified and engaged several key global partners, companies and institutions to provide technical and scientific assistance for the production of radiopharmaceuticals including; optimal production techniques, quality control, facility design, and waste management to provide added manufacturing redundancies.
// Accelerated the Company�s internal development of a proprietary Rb-82 generator and its associated infusion cart with prototypes currently in testing phase. The Company is pursuing potential partnership opportunities with third parties in regards to this component of its business. This product is a key element of Positron�s strategy to vertically integrate the production and delivery of a complete cardiac imaging solution: isotope (Sr-82), generator (Rb-82), and PET imaging system (Attrius(R)).
// Amended the Company�s Nuclear Regulatory Commission site license to allow for the commercial distribution of Indium Oxine (In-111). Positron intends to file an aNDA for FDA approval of Indium Oxine thereby allowing the Company to market the product directly to physicians.
// Commenced production of Indium Oxine at our radiopharmaceutical manufacturing facility in Crown Point, Indiana. The Company has identified customers for our radio-chemical grade Indium and expects revenue immediately. The market for Indium Oxine is approximately $30 million in annual domestic sales. We expect the income from Indium to not only support the Crown Point manufacturing operations, but also support the development of other strategic proprietary products. Our near term objective is to expand on our radiopharmaceutical and radioisotope products offered at our Crown Point facility. This objective adheres to the original plan for this facility since its acquisition in 2010.
// Achieved significant advancements on the Company�s new state-of-the-art coronary flow reserve software, developed in collaboration with the University of Texas. Positron expects to offer this software in conjunction with their Attrius PET system; expected release date of Q2 2012. This CFR software, a clear differentiator and advantage for Positron, was developed by leading cardiologist and industry luminary Dr. K. Lance Gould. CFR measurement in Cardiac PET imaging and is being heralded as a key driver in the upcoming growth in cardiac PET.
//
Successfully launched the Company�s PosiRx� Pilot Program. PosiRx is an automated radiopharmaceutical system that the Company believes will revolutionize the industry by offering a unique alternative to the current paradigm for the handling and distribution of radiopharmaceuticals. In coming weeks, Positron expects to install three systems with leading nuclear cardiology luminaries and a nuclear pharmacy. Since introduced in April 2011, the PosiRx system has received a number of valuable enhancements, based on customer feedback, in an effort to expand the system�s capabilities, thereby broadening the potential market. There are two revenue models that we believe best serve the Company�s PosiRx expansion plans; 1) service lease PosiRx systems to practices/hospitals handling their own radiopharmaceutical consumables 2) installing PosiRx systems into practices/hospitals whereby Positron sells radiopharmaceutical consumables direct to the customer.
// Made significant advancements on Positron�s proprietary automated quality control module for the PosiRx system; including patent filings for its proprietary method of testing Tc-99m compounds for radiochemical purity. This module is currently in beta prototype testing and will be available by end of year 2011. This module is complementary to the PosiRx system, making it the complete solution for nuclear cardiology practices and pharmacy customers.
// Finalized attractive financing programs which will offer alternative financing solutions for physicians, practices and hospitals designed to minimize any barriers to entry into cardiac PET. The Company believes offering a financial solutions model that mitigates upfront acquisition costs greatly accelerates the expansion of cardiac PET and Positron�s position in the marketplace.
Market Scope
New clinical indications and positive reimbursement for cardiac studies could cause PET radiopharmaceutical sales to grow more than tenfold in the U.S. in coming years, to more than $4 billion by 2018, according to a new report from market research firm Bio-Tech Systems.
U.S. PET radiopharmaceutical sales could expand from $391.8 million in 2010 to $4.31 billion in seven years. The report also projects that U.S. SPECT radiopharmaceutical sales will increase, although not as dramatically, from $758 million in 2010 to $1.68 billion by 2018.
Positron as an Opportunity
Positron has methodically positioned itself as the cardiac imagining industry�s only complete cardiac imaging solutions provider by offering innovative products, services, source isotopes and financing options discussed above. Positron is positioned to provide a full end-to-end solution for nuclear cardiologists while facilitating the growth and security of the industry. Through this approach, Positron will be able to significantly reduce supply chain costs and drug shortages, therefore passing on the rewards of preferential pricing to its customers.
Positron�s potential earning power is immense. Projected revenue growth could be exponential over many years, increasing as each of our components become available. We expect revenue from radiopharmaceutical distribution systems and consumables to commence immediately, and expect a progressive ramp in revenue generation from PET systems to coincide with the availability of radiopharmaceuticals. The Company expects further revenue growth upon the introduction of additional radiopharmaceuticals and financing opportunities. The cardiac imaging industry has an indisputable need for a full solutions provider with the vision to aggregate all key components to meet the markets increasing demand. We believe Positron�s solid history of providing innovative, award-winning products, combined with a strong commitment for securing the future, uniquely positions Positron as a leader in the cardiac imaging industry. PET is the future of nuclear cardiology. Positron is PET.
If you would like to learn more about Positron Corporation please feel free to contact us at investor@positron.com or 317.576.0183.
Regards,
Patrick G. Rooney
Positron Corporation
Chief Executive Officer
Source: Positron Corporation
Contact:
Positron Corporation
Patrick G. Rooney
Chief Executive Officer
317.576.0183
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