POSC: Some facts on Positron
There is a lot of information and talking going on at the moment, so it is important to put things in perspective and try to remove a certain amount of emotion. We can do this by setting the facts out there and building from there.
1) POSC recently presented at MedAxiom in Washington DC. The MedAxiom Spring Conference targets 5400 physicians covering 45 states with approximately 65% of current attendees being CEO’s and other high-level administrators, and the other 35% being cardiologists.
2) Recent changes in reimbursements for PET and SPECT imaging have created an additional market for the Attrius on top of the need for better cardiovascular imaging.
"This fee schedule states that Myocardial PET perfusion imaging was increased 20% to $1,432.87 per study. The Schedule also states that Cardiovascular SPECT reimbursement for outpatient cardiology practices billing under CPT codes has been reduced by 36%."
3- SPECT imaging is in trouble because world shortage of the Molybdenum-99. Cardiac PET uses Rubidium-82 and possibly flurpiridaz, or F18. This opens up expanded use of PET scanners and studies have shown higher resolution using these agents over SPECT agents.
4- PET scanners made by POSC will compete due to price-point. PET-CT machines typically cost upwards of $2 million, while the Attrius will be nearly half that cost. They are also aiming at getting these into private practices, not just imaging centers and large hospitals.
5- They recently won the Frost & Sullivan award, 2010 North American New Product Innovation Award in Cardiac Molecular Imaging Systems. This is significant since Frost & Sullivan is a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies.
They chose Positron's(POSC) Attrius based on 5 criteria: (1)Innovative Element of the Product
"With the introduction of Positron Corporation’s Attrius cardiac PET scanner, the issues surrounding sensitivity of PET imaging like size of detector, distance from patient, detector encoding scheme, parallelism of the electronics, and packing fraction are greatly reduced. The Positron Attrius scanner’s design is optimized for cardiac imaging unlike their competition with PET/CT. The Positron Attrius was created with a lower price tag, smaller footprint, reduced radiation exposure to the patient, improved workflow, provisions for rapid quantitation and improved serviceability."
(2)Leverage of Leading Edge Technologies
"Positron’s quantitative cardiac specific therapy monitoring software was initially developed in partnership with an industry leading cardiologist with the primary goal of permitting easy interpretation of even the most complex clinical cases. The Attrius product is equipped with a robust, cardiac specific, imaging software which can execute on multiple processors to provide concurrent acquisition, reconstruction, image processing, and display, as well as other key functions including data archiving, without interference. Positron’s leading edge hardware and software truly sets them apart from their competition."
(3)Value Added Features/Benefits
"Positron Corporation’s Attrius cardiac PET scanner is one of the highest 2D sensitivity systems on the market today. It features more uniformity achieved in its slice sensitivity, consistency in the quantitation from slice-to-slice, and the ability to more accurately define the locale of a lesion or perfusion defect. Furthermore, Positron’s unique, shorter septa detector design enables it to achieve dynamic performance efficiency. As a result, Attrius boasts cooler operating conditions for improved electronic reliability versus the competition. Additional features include heart disease specific software including the ability to monitor therapy, coronary artery overlay display, open architecture for new protocol development and customization and motion correction software. The Attrius, when added to a medical practice or hospital will add benefit to all parties along the treatment paradigm."
(4)Increased Customer Value
"Positron’s Attrius scanner is designed to provide a significantly lower cost of ownership as compared to PET/CT modalities. Positron’s rapid segmented attenuation correction scanning allows for scan times competitive to that of PET/CT. Moreover, the Attrius product’s gantry design minimizes the floor space required for installation. This in turn enables PET to be installed in clinics wherever floor space is a premium. Overall, Positron is committed to leading this new quantitative dimension in PET imaging by designing the Attrius product line with fewer boards, easier access to the detector modules, and boards due to the flexible rear nosecone shield design, fewer power supplies, fewer lighter gauge cables, and automated tuning features imbibed within it. The Attrius was designed with a small footprint, allowing the system to fit into a 15’ x 20’ space. The table limit was increased to 450 lbs, permitting larger patients to be imaged. The table is also capable of loading patients from the front or back, improving the position options for imaging."
(5) Customer Acquisition/Penetration Potential
" The cardiac PET market is expanding evidenced by large and mid-sized pharmaceutical companies developing single-dose F-18-based cardiac perfusion agent in response to renewed interest. PET is becoming more in demand than PET/CT with a lower cost of entry. New scanners, such as Positron’s, are updated to today’s standards. With the newly-minted FDA approval, Positron can now ramp up production and sales to cardiology offices and hospitals. The device seems well timed given the current urgency to curb costs, reduce patient radiation exposure and demonstrate effectiveness as the U.S. considers health care reform options. The product line is manufactured in Shenyang, China, through their joint venture with Neusoft Medical Systems. Their manufacturing facility has a large capacity which enables Positron to meet even the highest demand for the product.
Positron’s Attrius is the only dedicated PET available today for the thousands of cardiologists and hospitals looking for a solution to today’s imaging challenges."
Source
6- The CEO confirmed to shareholders in the last month that,
" Positron has several immediate opportunities with some of the largest companies in the nuclear medicine industry. Any combination of success with these opportunities will have a tremendous positive present and future impact on Positron."
Tomorrow should be an interesting day. I am still holding for the news and will be updating tomorrow based on relevant news released. GLTA.
Posted by Patrick at 6:51 PM 4 comments
Labels: POSC
Friday, April 23, 2010
POSC: More about the Attrius and it's market
I decided to make a new post for this since the other one got rather long. As the article below describe, the Attrius is serving a specific, but high-demand market, namely cardiac PET.
Recently, there is a stack of evidence pointing towards the ascension of this company and the Attrius. In the past 4 months, they have sold 2 of the machines, won the Frost & Sullivan award, increased demand by non-radiologists. These sales and market direction seem to be unnoticed by most, but not any longer.
In January, they announced the sale and installation an Attrius scanner to a prominent cardiology practice,
" Positron Corp., a molecular imaging solutions company focused on Nuclear Cardiology, announced the sale and installation of its PET scanner to Manhattan based, Gramercy Cardiac Diagnostic Services, owned by New York City cardiologist, Dr. Peter Rentrop."
Joseph Oliverio, Chief Technology Officer of Positron said, "Dr. Rentrop is a leader in the nuclear cardiology field and has been performing SPECT imaging in the greater New York City area for decades and we are proud that he selected Positron for his Cardiac PET imaging device." Oliverio further said, "Dr. Rentrop's addition of PET imaging to complement his SPECT business further validates cardiologist's move towards PET and the acceptance of the technology as the future of nuclear cardiology. Positron has the ideal solution for thousands of cardiology groups looking to improve their diagnostic accuracy at an affordable price."
Dr. Peter Rentrop added, "I am delighted with the opportunities that PET gives Gramercy Cardiac's partner physicians to extend and improve the services they provide to the patient communities of New York. The improved diagnostic accuracy of PET will prove invaluable in improving patient outcomes and I am glad to be partnering with Positron in this program." _________________________________________________
Additionally, in March, they announced the sale of its Attrius PET scanner to Ochsner Health System of Louisiana
"Robert Bober, M.D., F.A.C.C, Director of Nuclear Cardiology at Ochsner states, “We are eager to offer Louisiana residents the best technology for coronary disease detection.” Dr. Bober went on to state, “We selected Positron as our preferred vendor due to their dedication to high quality cardiology imaging and their vast amount of experience in this field.”
Joseph Oliverio, Chief Technology Officer of Positron states, “The Attrius sale to Ochsner demonstrates our expanding market beyond private cardiology practices. We are grateful to have such a prestigious hospital network join our user group.” Oliverio further stated, “Positron has the ideal solution for thousands of cardiology groups and hospitals looking to improve their diagnostic accuracy at an affordable price. As a Company we have always been at the forefront of cardiac PET and see the market for our products and industry continue to expand at a rapid rate. As evidence we are experiencing an unprecedented demand for our new device.”
_________________________________________________
Growth rate of the market
What you notice here is an increased use by non-radiologist, namely cardiologists, looking to add value through the price point of the Attrius and it's accuracy.
Recently, in a study " in the March issue of the Journal of the American College of Radiology (JACR Volume 7, Issue 3, March 2010, Pages 187-191).
The data for the study was collected utilizing the Medicare Part B Physician/Supplier Procedure Summary Master Files for 2002 through 2007.
The study states "Although a large percentage of PET scans in private offices are done by radiologists (45.4 percent in 2007), the growth rate among nonradiologists was far higher (737 percent) than radiologists (259 percent) between 2002 and 2007 and private-office PET market share for nonradiologists rose from 13 percent in 2002 to 24 percent in 2007”, according to Rajan Agarwal, MD and colleagues at the department of radiology, University of Pennsylvania Health System in Philadelphia. "
Additionally, the Centers for Medicare & Medicaid Services (CMS) 2010 Medicare Physician Fee Schedule was released stating the following:
"The Medicare Physician Fee Schedule outlines the payment rates for medical services paid to private physicians in the outpatient office setting. This fee schedule states that Myocardial PET perfusion imaging was increased 20% to $1,432.87 per study. The Schedule also states that Cardiovascular SPECT reimbursement for outpatient cardiology practices billing under CPT codes has been reduced by 36%."
So physicians are going to have to switch to PET scans in order to cost-effectively run their practice. Also, SPECT are in trouble because of "the world shortage of the molybdenum-99 isotope for the near future." Positron has already been working around this.
"Positron also has been in contact with Bracco Diagnostics of Princeton, NJ, which markets the PET radiopharmaceutical CardioGen-82 (rubidium Rb 82 generator), the only generator-based PET cardiac perfusion agent approved by the FDA and reimbursed for coronary artery disease evaluation.
"We have been in close contact with them and they have reassured us that there is a significant demand for [a PET-only cardiac system]," Oliverio said. "
______________________________________________
Added Efficacy and Efficiency
The Attrius adds value to the practice in several ways.
1- Lower radiation levels.
2- Improved accuracy
3- A radiologist is not needed.
4- Reduce unnecessary, potentially invasive procedures
"The device offers a coronary disease quantitative software package written by cardiac PET pioneer Dr. K. Lance Gould from the University of Texas Medical School at Houston. In addition, Positron plans to offer ejection fraction analysis and CT angiography fusion with PET data through third-party software."
" Many in the industry are looking for new technologies to improve their diagnostic accuracy, improve patient outcomes, reduce patient radiation exposure all while adding to their bottom line. The elusive solution to this dire situation may lie in an already well established, underutilized imaging modality: PET.
While PET is a more costly procedure than the SPECT imaging, the use of PET in cardiac nuclear medicine has been shown to reduce long-term costs and resolve clinically complicated cases. The accuracy of PET helps reduce the need for unnecessary angiograms. It can also reduce bypass surgeries by more accurately risk stratifying patients that may require the invasive procedure from those that might benefit from alternative therapies. This modality has also been shown to quantitatively monitor therapy, which helps provide personalized medicine plan for each patient. PET, specifically without a CT, has shown to have the lowest radiation exposure for the assessment of coronary disease.
"Positron's Attrius is the only dedicated PET available today for the thousands of cardiologists and hospitals looking for a solution to today's imaging challenges," concludes Prasanna Kannan. "Implementing a PET program will allow cardiologists and hospitals to improve their diagnostic accuracy, reduce unnecessary downstream procedures, reduce patient radiation exposure, and practice more efficiency while improving their bottom line."
"With cardiac PET, it is known that it will have a clinical benefit if it is put into practice," Oliverio said. "At the same time, the ability to monitor therapy and take advantage of the trends of medicine going toward proactive, nonsurgical methods, and the ability to track coronary disease progression, reversal, or cessation of disease, is priceless, in my opinion."
from chasing alpha
