Nuclear medicine healthcare company Positron Corporation specializes in the field of cardiac Positron Emission Tomography (PET) imaging, which is the gold standard diagnostic test for nuclear cardiology. With its focus on leading-edge technology, Positron has evolved from an R&D company to a business enterprise with a strong market position.
Possessing a robust recurring cash-generating business model, Positron is facilitating the stabilization, security, and growth of the industry by increasing and creating the supply of medical radiopharmaceuticals and radioisotopes. Positron stands out as the only company currently possessing the critical components to vertically integrate the fragmented source supplier environment existing within today’s nuclear cardiology market.
In today’s industry, two dominant diagnostic modalities exist: SPECT, which is a dated technology, and PET, which is an advanced technology. The current market for cardiac SPECT radiopharmaceuticals in the United States is between $600 million and $620 million. On the rise with superior technology, cardiac PET is expected to increase from $70 million to more than $200 million by 2015. Direct costs for cardiovascular disease, the leading cause of death in the U.S., are projected to increase from $316 billion in 2011 to $818 billion by 2030 – putting Positron in a peak position as the imaging market moves increasingly toward the PET modality and away from SPECT.
Among Positron’s core products is Attrius, which is the only new, non-refurbished dedicated PET system in the world. This proprietary software technology, offering Coronary Flow Reserve (CFR) and low-dose protocols, received Frost & Sullivan’s “North American Molecular Imaging System New Product Innovation Award” in 2010. Attrius offers a new perspective in the world of cardiac imaging.
In addition to Attrius and other core product offerings, Positron is pursuing, through its wholly owned subsidiary Positron Isotopes Corporation, initiatives to secure the supply of key isotopes utilized in both PET and SPECT. The company plans to build and operate the largest commercial high energy/high current 70MeV cyclotron in the world, capable of producing Strontium (Sr-82), which is the parent isotope utilized to produce Rubidium (Rb-82) generators – the radiopharmaceutical most commonly used in cardiac PET imaging. The company plans to combine the cyclotron with facilities for material processing, isotope target manufacturing, radiopharmaceutical manufacturing, and equipment manufacturing.
Positron has elected to locate the cyclotron facility in Gary, Ind., and has accepted a pledge resolution for $15 million in tax increment financing (TIF) bonds from the Redevelopment Commission of the City of Gary, Ind., toward developing the 70 MeV cyclotron project. The City of Gary will also assist in sourcing the appropriate allocation of new market tax credits (NMTC) to cover up to $15 million, or 33%, of the project’s estimated total development costs.
The market for 70 MeV cyclotron’s products is strong. Due to the recent growth of cardiac PET imaging, the isotope supply is likely to reach capacity within the next one to three years. The annual demand for medical imaging products produced by a high-energy cyclotron is currently estimated at more than $20 million and is projected to reach between $30 million and $35 million over the next few years – with continued growth estimated at between 25% and 35% annually thereafter. The Department of Energy currently lists many isotopes for medical treatment that are in short supply – some of which can be produced in a high-energy commercial accelerator.
Transitioning from R&D to clinical trials to commercial use, these isotopes will further expand the market. A high-energy cyclotron can additionally, using secondary targets, produce low-energy isotopes in conjunction with the production of high-energy isotopes, thus generating additional revenue. Entering the market with virtually no competition, Positron can be a key market maker in all of these segments, with considerable revenue potential and diversity.
Offering the most comprehensive solution in nuclear cardiology, Positron holds a strong market position and has developments in view to capitalize on advancing technology to further emerge as a leader in nuclear medicine – making the company an attractive prospect for investors.
For more information, visit www.positron.com
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