|Positron Chariman confirms talks; Partnership or Buy-Out News May Follow|
|Thursday, 22 April 2010 03:00|
Positron Corporation (OTC BB: POSC.OB) has been around for 27 years, but now it finally looks ready to move to the next level. It speaks volumes that recently, the company became the recipient of the “2010 Frost & Sullivan North American Molecular Imaging Systems New Product Innovation Award.”Frost & Sullivan is a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The New Product Innovation Award is a prestigious recognition and validation of Positron Corporation’s accomplishments (see the chart below to see previous winners of the Frost & Sullivan award), but they may not be the only group ready to acknowledge the company and their technologies.
Rumors of a lucrative buy-out or partnership have been swirling around the company during the past two weeks. Multiple sources told BioMedReports, that details about "a big announcement involving Positron and a much larger, publicly traded NYSE company worth at least $25 billion" could come as early as next Monday.We reached out to Positron's Chariman of the Board, Patrick G. Rooney and the head of the small molecular imaging company focused on Nuclear Cardiology has confirmed that his company "is currently in discussions with a potential partner in our industry."
Rooney refused to offer any assurances or details about when an agreement might be reached.
Triggered by our alert, shares rose over 43% yesterday, but further confirmation about interest in the micro-cap company could easily send shares into the multiple dollar range.
Last year, Positron achieved a major milestone, as its joint venture with Neusoft Medical Systems of China received FDA 510k approval on the “Attrius” PET scanner. The event signaled the beginning of Positron’s ability to market and sell its state of the art cardiac PET scanner, the Attrius, in the United States.
In addition, the company's Nuclear Pharm-Assist® technology is set to reshape the radiopharmaceutical distribution in the nuclear cardiac imaging space. Analysts believe Positron will generate extraordinary revenues selling radiopharmaceutical consumables to the large customer base that exists today for SPECT radiopharmaceuticals (7,000+ opportunities) and will leverage the same base as the SPECT industry migrates to PET as the #1 cardiac imaging modality in the world.
"The device is like a large refrigerator that is an automated virtual pharmacy," explains Rooney. "The way the world works now, is that if you are looking for an image of your heart, your doctor calls the radio pharmacy and they order a dose syringe cocktail. It arrives and you get an injection with it. Currently, companies like Cardinal Health and GE Healthcare control this market and radio pharmacies deliver the radio pharmaceuticals. What our device does is that it compounds what you need on site, so literally we can install these devices at your cardiologist's office and when you walk in, they don’t say 'Hey, come back tomorrow so we can order you a does of radioactivity. With us, you hit some buttons and it comes out of this vending machine, if you will.
"So now literally, instead of opening up brick and mortar for $3 million and selling pharmaceuticals, we can install this inexpensive automated device that is compliant with all United States regulations on exposure issues and you can literally walk in; they hit some buttons and boom! A cocktail comes out in a syringe. They inject you and you get imaged on the spot. It works in emergency rooms- obviously that would work well- but it also works in cardiology offices where it's about patient management, It provides inventory control, it lower exposure issues and, quite frankly, it lowers cost across the board because there is less drive time, less gas consumption, etc.
"What's happening here is that the future of nuclear cardiology is PET," explains Rooney. "It's been said by the Society of Nuclear Medicine and many other organizations. The future is PET for a lot of things, better medicine, more efficiency and there were some reimbursement changes on October 30, 2009. PET reimbursement was increased by 25% and SPECT Scans (Single Photon Emission Computed Tomography) was decreased by 36%. So what happens is that this deal is worth about $100 for a PET scan and a SPECT scan is now worth about $11 or $12 dollars. So now, doctors are doing 12-15 a day to make or take 20,000 dollars or more a day, 250 days a year. That's a lot of money.
Is it any wonder the bigger players want in on the game that Positron controls so tightly? What is that worth to them? What will it be worth to investors?We will keep you posted as this story continues to develop.
Disclosure: Long POSC