|Health Discovery Corporation Update|
|By Howard Stillman, Veteran NY Securities Analyst|
|Tuesday, 19 April 2011 06:35|
The company has pioneered in the field of Molecular Diagnostics for over 10 years and has been awarded 49 patents with an additional 39 patents pending for its established technology utilizing Support Vector Machines.
Reflecting its accomplishments to date, it also mentioned in its recently released report that it has completed its testing and has received payments on two major joint ventures with Abbott Labs and Quest Diagnostics. The successful results have been announced on their urine test for prostate cancer where it demonstrated 97-99 % effectiveness in diagnosing cancer cells as well as normal body tissues. This compares with the PSA blood test for prostate cancer, which has only 70-80% accuracy. It looks like the Company is primed for significant operating growth when the aforementioned medical companies launch their worldwide commercial programs following their successful validation of the results of the preliminary tests.
The techniques’ applied mathematical formulas combined with artificial intelligence sources to identify the chromosomes and the cells genetic makeup to determine if disease is present and which specific targets to treat. Moreover, its test can disclose by testing the blood if the cancer has spread through the body. These studies provide early detection which can lead to an improved opportunity for doctors to treat and cure disease in its early stages when greater success can be achieved. It can also enhance the use of existing drugs and advance the development of new medicines that can effectively cure the disease. In summary, early detection, optimal therapy, reduced drug reaction and lower health costs are possible in this new world of Personalized Medicine..
The company has announced that new agreements have also been established with the Anderson Cancer Center in Texas and Beth Israel hospital in New York among others and the tests are in progress for diagnosing cancers of the breast (subsequent contract with Quest), pancreas , colon melanoma and leukemia with current and future partners. The company’s current sources of revenue include license fees, milestone payments, service programs and royalties.
The company is at a stage when its potential can be realized as an important participant in the $50 billion annual medical diagnostic market growth. It has taken a longer period of time than first predicted to get to this stage of the process, but now with the tests completed, one can expect a quicker resolution of the introduction of the product to the market.
In addition, On April 7, 2011, the Board of Directors of the Company appointed Maher Albitar, M.D., the Company's Chief Medical Officer, to the Board of Directors and perhaps more significantly, Thomas Gallagher, President, Chief Operating Officer and General Counsel of Health Discovery Corporation, informed the Board of Directors of his intention to pursue a new opportunity. The Board of Directors accepted Mr. Gallagher’s resignation effective February 22, 2011.
According to a statement from the company, HDC’s Board of Directors and Mr. Gallagher have begun discussions about a possible joint venture in order to pursue business opportunities with an emphasis on non-medical data-mining and business analytics using HDC’s technology. As currently contemplated, the proposed joint venture would grant Mr. Gallagher’s new company a non-exclusive license to Health Discovery Corporation’s substantial patent portfolio and know-how in exchange for a minority ownership interest in the new company. The parties will begin serious discussions about this possibility in the coming weeks.