Last Friday, we alerted subscribers to PositiveID Corporation (NASDAQ:PSID). Things are starting to come together for this innovative company that is developing a glucose-sensing RFID chip for diabetics.
The self-contained, implantable bio-sensing device will, for the first time, have the ability to measure glucose levels in the human body through an external scanner, thereby eliminating the need for diabetics to prick their fingers multiple times per day.
In a recent interview, PositiveID Corporation’s Chief Executive Officer, Scott Silverman, told BioMedReports.com PositiveID’s glucose-sensing microchip product under development could emerge as the long-awaited non-invasive alternative to daily management. The Company is slated to announce results Phase II tests for its glucose-sensing RFID microchip by the end of 2Q10, although the announcement could occur in mid-quarter. In additon, there is chatter that the company may be in the process of acquiring a complimentary technology that may give investors reason to take note. That news is expected at any moment.
Speaking about the genesis of the Company’s implantable RFID microchip technology, PositiveID’s CEO, Scott Silverman remarked, “To date, I believe that this is one of the greatest technologies of our generation.”
Tracing its technology and roots to its predecessor, VeriChip, PositiveID has partnered with RECEPTORS LLC in the development of a glucose sensor on the end of an implantable RFID microchip. Presently, diabetic patients must prick themselves 2-3 times daily to test and monitor glucose levels. For years, the diabetic community has been longing for a non-invasive method of glucose monitoring. PositiveID’s methodology and technology could end up being the diabetes patient community’s Holy Grail.
Patients would receive a subcutaneous injection in their arm whereby a small RFID microchip, the size of a grain of rice would be implanted. By using an ASIC (under development) as a communication device, one would simply wave a scanner over the arm and blood sugar readings would be displayed. Management is forecasting that a new chip would have to be implanted every 6-12 months. However, that is not likely to be viewed as a negative.
“I believe that 99% would say give me a shot every 6-12 months rather than prick their finger 3 times a day,” noted Silverman.
The market is huge and growing. Interestingly, the Company has received a great response from the diabetic community with requests to participate in clinical trials and clamoring for data and information.
At present, PositiveID is expected to release its Phase II results before the end of the second quarter and begin Phase III tests later this year. A complete prototype should be completed 12-18 months from the end of Phase II. With a novel, and patented non-invasive biological glucose-sensing implantable RFID device, management believes that FDA approval could come within 3 years.
In addition to this project, the Company has other diabetic management applications under development, as well as a very promising virus detection project, using the same technology. Currently, PositiveID is developing a similar, non-invasive method of testing for pandemic viruses, such as the H1N1 virus, or potentially any type of flu virus, that would not require lab testing. Given the time and cost savings, and urgency, this offering has tremendous upside. Silverman expects to complete Phase I testing this year for its virus triage detection system for H1N1 soon and initiate Phase II by year-end.
Based on our conversation, it is clear that management is anxious to close a transaction that would be both a complement to its existing strategy in the diabetic management virus detection area, but also generate revenue and cash flow, which would help fund development. This type of transaction and other business development activities such as finding marketing partners for its products under development are clearly part of management’s hit list.
PositiveID’s stock has had an interesting history since the closing of a reverse merger in late 2009. With news of the merger closing, and positive product development news, the shares soared to $0.50 – $4.00, and have since retreated to the $1.42 level on Friday. However, with a spate of news expected in the near term, the shares could see another one of those spikes.
Disclosure: No Positions
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