Business Development Overview
QMC is in early stage discussions with a worldwide manufacturer/distributor/retailer of consumer goods concerning participation in the development of quantum dot consumer products that could result in two or more possible product collaborations for retail mass production and distribution. This would provide QMC and Solterra with an experienced partner in design, production, marketing and sale outlets for new consumer products. Further research and discussions are needed and industrial and commercial applications of these products could be developed independently of any alliance.
QMC has a NDA with a Top 10 printing industry manufacturer specializing in security products and printing of bank cards, currency, passports and other documents. Initial discussions centered on Tetrapod quantum dots (“TQD”) uses as an ink. TQD can be used in many ways for security products. Inorganic TQD exhibit photostability, narrow bandwidth and wide spectrum with very unique signature property advantages over dyes and chromophores for identification, tracking and tracing purposes. QMC quantum dot patented printing capabilities for inkjet and R2R (roll to roll) can also be employed for mass production of secure passports, bank cards (for identification and interaction), money and other financial instruments. TQD’s have singular properties in multiple fields of science including Photonics, Plasmonics, Optoelectronics and Piezoelectric and are now being used in sophisticated security and sensor applications that cannot be duplicated by counterfeiters.
QMC has fielded inquiries from conductive metallic ink makers interested in non-exclusive licensing or co-development of a QD-Polymer ink for various printed electronics applications. These companies are conducting due diligence on quantum dot characteristics for their applications. One possible use is for RFID (radio frequency identification) antenna applications for tracking packages in-transit as part of an active track and trace system with greater range and information holding, replacing passive systems. Active RFID can be read at further distances and can contain more information than passive systems. Conductive metallic inks used in active RFID can experience decreased function due to heat and/or oxidation, and have had recent high price increases in base material costs. In another use, invisible tetrapod quantum dot ink could be painted on valuable property and be used for property identification if stolen and recovered.
QMC has a NDA and is in discussions with a large molecular biology company currently successfully marketing recombinant proteins to researchers to functionalize QMC TQD to their own recombinant proteins, antibodies, aptamers, and peptides as value added product to sell to researchers in the life sciences. QMC is actively pursuing this same biotech market for other companies amenable to non-exclusive licensing of our quantum dots for research purposes or joint venture for development of advanced diagnostic tools delivering instant results at low cost or the use of our TQD as a drug delivery platform.
Quantum dots in biotech offer improved performance at the same or lower cost of current technologies. For diagnostic purposes, TQD’s used in bioluminescent resonance energy transfer diagnostic assays have the major advantages over current state-of-the-art polymerase chain reaction of being near instantaneous and highly accurate besides offering the potential for mass production and much lower end-user costs. Assays, microarrays and point of care devices will also benefit from the high quantum yield, increased sensitivity and photostability of quantum dots over fluorphores and small organic dyes in identification, tracking and analysis of target cells. Polyethylene glycol coated PQD’s can be bioconugated to antibodies, proteins, peptides, aptamers and small molecules. TQD have a high surface area to mass ratio due to their small size, diseases or conditions. TQD’s offer the ability to multiplex by binding to both targeting and drug agents, with the added capability of fluorescing if needed generally under 10nm (Nanometers), as a drug delivery platform for theranostic treatment of cancer and other Nanobio applications.
Quantum Materials has an alliance agreement with Nanoaxis LLC. Nanoaxis specializes in developing leading edge bioimaging, biological diagnostic tools and drug therapies that rely on the unique properties of nanomaterials and more specifically TQD’s. Compared with the conventional organic dyes, quantum dots have several some attractive advantages: long-term photostability, higher fluorescent outcome, narrower fluorescence emission, sensitivity to the electric and magnetic field. These advantages give a broad prospect for quantum dots to be applied in the biophysics field. QMC is working with Nanoaxis for the joint development of these exciting new diagnostic tools and drug therapies. The immediate aim of the alliance is to develop TQD based Cancer diagnostic kits and theranostic applications including Alzheimer’s, Type 1 and Type 2 Diabetes, Breast Cancer and Major Depression.
Quantum Materials is developing specialized quantum dots for NanoAxis to functionalize with their proprietary biomedical nanomaterials for a multiplexing drug delivery platform for drug/gene therapy and diagnostic medical devices technologies. The technology alliance allows these technologies to be developed rapidly due to Quantum Materials’ ability to create the highest quality quantum dots in quantities necessary to support multiple projects with timely deliveries.
The immediate goal is to develop a QD microarray device for detection, diagnosis and quantification of early cancers. The QD-MI device will be designed for rapid detection and grading of various multiple cancers using blood assays; easily, with higher accuracy and at less cost than current single ELISA assays. All diagnostic and pharmaceutical products will include QMC quantum dots functionalized by NanoAxis biomedical IP nanotechnology. We anticipate we can achieve production and initiate sales in fiscal 2013 and based on our limited test marketing, we believe this product has the potential to be well received by the nanobio markets. However, no assurances can be given the aforementioned plans will occur or lead to profitable operations.
According to a recent report published by BCC Research the total market for nanobiotechnology products is $19.3 billion in 2010 and is growing at a compound annual growth rate of 9% to reach a forecast market size of $29.7 billion by 2015.According to a New Report by Global Industry Analysts, Inc. the Global BioImaging Technologies Market is forecast to Reach US$37.4 Billion by 2017. Another recently published report by Bharatbook.com entitled "Quantum Dots : Technologies and Global Markets" indicates that the global market for quantum dots (QDs) in 2010 was worth an estimated $67 million in revenues. This market is projected to grow over the next 5 years, reaching almost $670 million by 2015, representing a tenfold increase. Optoelectronics, which includes quantum dot photovoltaics, represents one of the greatest market sectors. This area was launched in 2010 and is expected to increase at a 128.4% compound annual growth rate to reach a value of $310 million in 2015. The more established biomedical sector was valued at $48 million in 2010. This sector is expected to increase at a 30% compound annual growth rate to reach a value of $179 million in 2015.