POSITRON CORPORATION (OTCBB: POSC)

Dear Reader,

Regular StockUpTicks readers are well aware of our pronounced affinity for biotechnology and healthcare-related equities. Like many savvy investors we see the enormous and aging demographic of baby boomers and ponder the impact on companies with business plans that may service them.

It’s undeniable that this massive group of Americans will be heading toward healthcare’s proverbial and literal doors in unprecedented masses. Clearly, this presents an opportunity for innovative and practical solutions and services in the healthcare and biotechnology fields.

Enter today’s featured company, Positron Corporation (OTCBB: POSC), which engages in the design, manufacture, marketing, and servicing of advanced medical imaging devices utilizing positron emission tomography (PET) technology, all of which are directly in front of this quickly arriving horde of baby boomers.

Take a look at today’s featured profile below. Sometimes a business plan doesn’t need to be sexy as much as it should be sensible. Positron seems to fit that ideal.
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About Positron

PET differs from other imaging technologies by measuring biological processes of organs and tissues and produces functional images for the diagnosis and treatment of patients in the areas of cardiology, oncology and neurology. Positron offers a unique combination of low cost technology and disease specific software solutions differentiating themselves from all other medical device manufacturers. Positron has an experienced clinical management team with more than a decade of clinical expertise in many disciplines within the Cardiac PET industry.

In 2005 Positron formed a joint venture with Neusoft Medical Systems in Shenyang, China called Neusoft-Positron Medical Systems Co., Ltd (NPMS). NPMS will manufacture all of Positron’s PET and PET/CT systems, dramatically lowering manufacturing costs and allowing Positron to be much more competitive in the global marketplace. This efficiency enables Positron to market and deliver the lowest priced, high quality PET and PET/CT devices in the industry.

In 2006/2007 Positron acquired Imaging PET Technologies (IPT), parent corporation of IS2 Medical Systems. IS2 Medical Systems develops builds and services Nuclear Medicine Gamma Cameras (SPECT) offering clinical users the highest resolution in the industry, the most robust feature set and the highest levels of performance and reliability, all at the best prices. A scintillation, or gamma camera, is a diagnostic medical imaging system that is part of a family of systems commonly referred to as .body scanners. Gamma cameras are used in the diagnosis of heart disease, cancers and a variety of other disorders. A mechanical frame (a gantry) rotates an electronic detector head around a patient in order to take a series of clinical images of inside of the body. The scientific team responsible for the design and continued innovation of the company’s world-class cameras comprise more than 125 years of expertise in nuclear medicine physics, mathematics and engineering. The Company is ISO certified and meets related medical device, safety and regulatory requirements, including USA FDA and Health Canada approval, and has a CE Mark necessary for European distribution.

IPT's R&D subsidiary, Quantum Molecular Technologies (QMT) aims to become a significant player by revolutionizing molecular imaging. QMT’s current research is focused on the design and manufacturing of new solid state detectors and data acquisition electronics. This solid state detector will have direct impact on all current imagining modalities as well as new markets including homeland security and high energy physics technologies.

With the acquisition of IPT and its joint venture with Neusoft Medical, Positron is able to offer SPECT, SPECT/CT, PET and PET/CT products in the molecular imaging field and positioned to be at the cutting-edge of the next frontier in molecular imaging.  Positron’s plan of action is to take advantage of integration and synergies between companies to increase sales and marketing, product service, clinical applications and R&D. 

As part of its full solution, Positron is developing disease-specific software for end users.  Positron’s software will be ready to market with the release of its PET camera for NPMS. During 2007 Positron intends to debut its new scanner technology and software solutions package at the 54th annual meeting of the Society of Nuclear Medicine in Washington D.C. and to the Nuclear Cardiology community at the 12th annual meeting of the American Society of Nuclear Cardiology in San Diego, California.

The functional imaging of Positron PET scanners makes early detection possible for the treatment of cardiac disease, cancer, Alzheimer's disease, and more. 
Positron is currently negotiating licensing rights with two revolutionary products to enhance its innovative software solutions.

Positron management believes that its complete software solution will increase demand for its products by many of the 5,000 community hospitals throughout North America. Unlike other imaging technologies, PET technology permits the measurement of the biological processes of organs and tissues as well as producing anatomical and structural images. 

Please click on the following link to watch a video from the Learning Channel's Inside Health that features Positron Corporation discussing PET and its inherent advantages - Click Here.

PET Marketing and Positron

Cardiac PET technology has been available to users for the past decade. The Cardiac PET user base has increased 200% over the past 36 months. Positron is ideally positioned to enter the market with affordable PET and PET / CT systems, and a software solution package that will be sold for significantly less than competing vendors.

Estimated annual sales of both PET and SPECT systems combined globally are $400,000,000.  Positron will target 5,000 community hospitals in the US enabling them to offer this life-saving technology, coupled with unique software solutions at an unprecedented affordable price. Positron believes that the software will be desired by existing PET users, who choose to add new services to their center, as well as compliment the new PET only device. Positron expects to receive annual software licensing revenues to diversify revenue channels.

“As anatomical images reach a limit in what they can reveal, PET's ability to look at underlying 
biological processes is just starting to be tapped.”

* No Cardiac Angiography services * Local hospitals lose patients to larger hospitals for unnecessary Angiography and Revascularization *Patients usually do not return for ancillary services *Cardiac PET provides differentiation to a more non-invasive approach * PET works in the Emergency Room * Keeps ancillary services in house * Matches or beats cross-town competition

For over two decades, Positron has been dedicated to improving the diagnostic process in oncology, neurology, and cardiology. POSC scanners are built with versatility in mind, so customers can access new patient procedures as they are approved for clinical application and reimbursement.

Positron's scanners have always been designed with cardiology in mind. Imaging the heart is the most demanding use of a PET scanner, and POSC scanners are built to do the most demanding imaging. The isotopes typically used for perfusion studies (Rb82 and NH13) have short half-lives, so it is very important to have a scanner that can capture the high volumes of data that are produced in the early part of a scan.

* Positron Corporation (POSC) is the First Name in PET and a pioneer in Positron Emission Tomography.

* Positron is the #1 provider of PET for Cardiac imaging.  Positron's software and hardware are optimized for Cardiac. 

* The cardiac disease market is 500% larger than the oncology market at $400 Billion spent per year on cardiac treatment.

* Positron is able to reduce their camera capital costs through the joint venture with Neusoft Corporation which is contradictory to the larger competition     business strategies. 

* In the past 12-18 months the Cardiac PET market has come to the forefront of the PET industry due to medical insurance reimbursement and a shift to a better diagnostic modality for cardiac disease by the medical profession. 

* This shift comes through a greater understanding by the medical community of the clinical benefits using PET, the aging global population in need of this superior diagnostic modality, and most recently the increase in reimbursement (up 300%) for PET procedures.

* With PET being the better diagnostic modality for cardiac and the lowest price PET and PET/CT we believe Positron will make a significant impact on the approximately 14,000,000 annual SPECT procedure market as it shifts to the more effective PET diagnostic modality.

* If Positron only captures 1% of the SPECT market, sales would top 150 PET machines with service contracts with in the next 24 months resulting in revenues exceeding $100,000,000.

Positron Products

Positron Corporation is the exclusive distributor of ACP Technology™, via our exclusive mPower™ whole body PET scanners. This unique performance component is optimized to yield the highest quality images in clinical oncology, cardiology, and neurology.
 

mPower Scanners from Positron drive performance via:    * High sensitivity and resolution     * High count-rate capability     * Slice-to-slice uniformity     * Accuracy in locating and quantifying lesions

Click Here to Learn More

The mPower system is designed to provide concurrent acquisition, reconstruction, image processing and display and other functions such as data archiving without interference. This is accomplished by providing dedicated processors for gantry control and data acquisition; separate Sun SPARCstations for image processing and operator control and a high-speed data path between the PDAS2 acquisition system and the image processing workstation. 

Another independent processor is used to control gantry and bed functions. The software is designed to make efficient use of the scanner’s computer system by initiating concurrent operations on these parallel processors. 

× Display of single and multiple images from one or more studies
× Display magnification of a selected region of the image
× Interactive threshold and window/level adjustments
× Scaling functions include linear, exponential, logarithmic and gamma
× Display of scale bar and quantitative information
× Flexible image annotation
× Rotation of images in three axes in real time
× 3D Image Rotation

ONCOLOGY IMAGE DISPLAY SOFTWARE
The oncology software supports a variety of clinical applications, including differentiation of recurrent tumor from necrotic tissue. There are nineteen different oncology image-viewing screens as standard. 

 
CARDIAC IMAGE DISPLAY PACKAGE
Clinically validated cardiac software that enables the doctor to assess myocardial perfusion of all regions of the left ventricle of the heart using Rubidium-82 chloride produced by an approved generator. There are thirteen different cardiac image display screens as standard.
 
 

Features include: ×  Full 3-dimensional image reorientation ×  Side by side rest and stress image comparisons ×  Horizontal long axis, vertical long axis and short axis displays ×  Polar maps (bullseyes) for rest and stress acquisitions ×  Regional quantitative analysis ×  Absolute and relative ratio maps of each region of the heart and topographic maps ×  Statistical comparison with normal database ×  Cine display for gated images ×  Export of images to research analysis software packages

NEUROLOGY IMAGE DISPLAY PACKAGE
The neurological software supports a variety of clinical applications, from assessment of interictal glucose metabolism within epileptic foci to functional brain mapping based on oxygen consumption, blood flow or glucose utilization. There are six different neurology image display screens as standard.

Features include:
× Full 3-dimensional image reorientation
× Sagittal, coronal, and transverse displays
× Side by side display of two studies for comparison
× Regional quantitative analysis
× Export of re-sliced images to research analysis software packages

Positron In The News

Press Release Source: Positron Corporation
Thursday December 14, 2:09 pm ET

DALLAS--(BUSINESS WIRE)--Positron Corporation (OTCBB: POSC - News) has been rated "Speculative Buy" with a near term target price of $0.70 by Beacon Equity Senior Research Analyst, Lisa Springer, CFA.

The full report is available at http://www.BeaconEquityResearch.com

Anyone interested in receiving alerts regarding Positron Corporation research should email members@beaconequityresearch.com with "POSC" in the subject line.

In the report Ms. Springer writes, "Positron designs, manufactures, sells, and services competitively-priced Positron Emission Tomography ("PET") scanners. These scanners are used to diagnose, stage, and treat critical illnesses such as cancer, coronary disease and neurological disorders, such as Dementia, Alzheimer's and Parkinson's disease. Positron is positioning to be a leader in providing end users total disease solutions. Their business plan is currently focused on introducing an innovative coronary disease reversal and prevention solutions package. The timing of this package is very opportunistic in light of the governments focus on healthcare dollars as well as the aging of the highly educated baby boomer population."

"Positron's competitors in the PET scanner market include Siemens (NYSE:SI - News), GE Healthcare (NYSE:GE - News), Philips Medical Systems, and Hitachi Medical Systems (NYSE: HIT - News). Positron plans to compete by manufacturing and marketing a more cost-competitive scanner. The Company has formed an R&D and manufacturing joint venture with Neusoft Medical Systems, one of China's largest medical device companies."

To read the complete release and disclaimer, Click Here
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Financial Highlights For  POSC

• Positron currently receives approximately $1,000,000 annually in recurring service revenue

• Positron has sold three remanufactured scanners in inventory generating approximately $750,000 of additional revenue

• Positron's annual operational expenses are $1,400,000 and has debt maintenance of less than $800,000

• Positron expects to reduce debt through equity participation and reduction in annual expenses through its JV operations in China with Neusoft Medical Group

Positron generates revenue from sales of PET devices, service of systems, maintenance contracts and software technology and solution packages. In 2006 Positron derived revenue from the sale of three re-manufactured cameras and 12 service contracts while IS2 sold 25 SPECT cameras. Positron and its subsidiary IS2 expect sales to increase in 2007 and years to follow through an internal direct sales force and marketing campaigns that are of greater value through the integration and expansion of both PET and SPECT product lines. The Company’s objective is to sell 100+ devices, service contracts and software solution packages over the next 24 months with a target of 100+ PET and SPECT devices per year.  The Company expects to significantly impact the medical imaging industry through its new product line with the next generation solid state detector imaging devises and organ specific PET over the next 2-4 years. The Company feels that this will add significant opportunities and income generation for years to come.

Recent Trade: 0.09 Avg Vol (3m): 67,622 Market Cap: 5.68M Shares Out:  85,205,000 52 Wk Hi: 0.265 52 Wk Low: 0.013 Float: 35,340,000 Shs Primary State of Incorporation: Texas Country of Incorporation: USA Trf Agent: Continental Stock Transfer

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