After the market closed, Positron Corporation (OTCBB:POSC), provided a corporate update for shareholders. In it, the company CEO recaps recent developments which he expects to translate into shareholder value.
According to the press release which the company issued after hours, Positron has spent the past 12 to 18 months strengthening its financial position and focusing its operations on high-growth, profitable markets. The Company's underlying goal is to maximize its market share in the nuclear cardiology field by offering cost-effective systems and value-added PET and radiopharmaceutical products to end-users. In pursuit of its objectives, Positron has established several key initiatives to increase revenue and establish new markets for its product line. It has also taken necessary measures to ensure the Company is in a strong financial position to pursue those opportunities. Positron's corporate vision and strategy follows on the successful development of its FDA-approved state-of-the-art cardiac PET scanner, as well as the expansion of its focus on the radiopharmaceutical industry.
Positron's chief executive officer, Patrick G. Rooney, stated, "We are very excited about the prospects for Positron and its future. The Company's business plan is evolving from purely selling devices to a recurring cash-generating business model by providing end-users with solutions of systems, services and consumables. We have always focused on the bigger picture and in building a company that is well positioned - a lean organization with a focus on products and markets that provide profitable margins and exponential growth."
- August, 2010: announced significantly improved balance sheet, financial strength and flexibility as a result of resolving several outstanding debts, including a settlement with certain investors relating to a prior financing transaction. Positron reduced its debt dramatically from approximately $7 million at the end of the first quarter, and is now essentially debt-free.
- September, 2010: opens state-of-the-art training center to educate physicians, technologists, nurses and administrators on the use and benefits of cardiac PET imaging in the daily operations of their facility.
- August, 2010: announces strategic alliance with Covidien, one of the world's largest manufacturers of radiopharmaceuticals, for development of an innovative distribution model of radiopharmaceuticals based on Positron's devices.
- July, 2010: acquires pharmaceutical manufacturing plant for development of radiopharmaceuticals and contract manufacturing.
- March 2010: Positron's Attrius(R) receives Frost and Sullivan's "Most Innovative Medical Device of the Year" award for 2010.
- Positron has sold nine PET systems thus far in 2010 and expects to sell an additional four to six by year-end, with an estimated backlog of six. The Company has positioned its resources in anticipation of significant growth over the next few years, with projected sales targets of 40 and 120 systems in 2011 and 2012, and an estimated backlog of 12 and 22 PET systems for each year, respectively.
- For 2010, the Company expects revenue to be almost four-times higher than 2009 levels, growing to approximately $6 million, which does not include the additional sales of PET systems noted above. Although expected to occur in 2010, revenue on those sales will not be recognized until the first quarter of 2011.
- With the current run rate, and potential revenues generated from its developing radiopharmaceutical businesses, Positron is anticipating significant growth over the next few years. The Company expects to experience growth across all product lines, including PET systems, unit dose delivery systems and radiopharmaceutical sales and sales generated through radiopharmaceuticals manufactured by the Company.
- Positron expects its rapidly developing radiopharmaceutical business will represent a larger portion of its revenue mix in the future. It is expected by 2013 radiopharmaceuticals will account for more than 30 percent of Positron's sales.
- As a result of the acquisition of a radiopharmaceutical manufacturing plant, Positron has accelerated its pharmaceutical growth plans by 12 months.
- Positron has plans to immediately deploy its Nuclear Cardio-Assist(TM) automated unit dose delivery device for distribution of Covidien radiopharmaceuticals, and expects income from this revenue-sharing arrangement to expand significantly in the future.
- Positron expects to explore additional strategic interests that advance PET imaging systems and radiopharmaceutical distribution.
- The Company plans to evaluate all organic and strategic partnership opportunities and will continue to engage in more robust and rewarding business development opportunities.
Positron has built its expertise and its business model on the rapidly growing nuclear cardiology field. Nuclear cardiology radiopharmaceutical sales are expected to reach $2.1 billion by 2014 (Bio-Tech Systems, 2008), and the market has never been stronger for cardiac PET and efficient radiopharmaceutical distribution. The Company believes by advancing its market share in these areas and combining that focus with increased market awareness and name recognition, together, will result in returned value for its shareholders.
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