INDIANAPOLIS, Sept. 22, 2010 (GLOBE NEWSWIRE) -- Positron Corporation (OTCBB:POSC), a leading molecular imaging company specializing in the field of nuclear cardiology, is pleased to provide a corporate update for shareholders to recap recent developments which are expected to translate into shareholder value.
Positron has spent the past 12 to 18 months strengthening its financial position and focusing its operations on high-growth, profitable markets. The Company's underlying goal is to maximize its market share in the nuclear cardiology field by offering cost-effective systems and value-added PET and radiopharmaceutical products to end-users. In pursuit of its objectives, Positron has established several key initiatives to increase revenue and establish new markets for its product line. It has also taken necessary measures to ensure the Company is in a strong financial position to pursue those opportunities. Positron's corporate vision and strategy follows on the successful development of its FDA-approved state-of-the-art cardiac PET scanner, as well as the expansion of its focus on the radiopharmaceutical industry.
Positron's chief executive officer, Patrick G. Rooney, stated, "We are very excited about the prospects for Positron and its future. The Company's business plan is evolving from purely selling devices to a recurring cash-generating business model by providing end-users with solutions of systems, services and consumables. We have always focused on the bigger picture and in building a company that is well positioned - a lean organization with a focus on products and markets that provide profitable margins and exponential growth."
FINANCIAL STRENGTH:
- August, 2010: announced significantly improved balance sheet, financial strength and flexibility as a result of resolving several outstanding debts, including a settlement with certain investors relating to a prior financing transaction. Positron reduced its debt dramatically from approximately $7 million at the end of the first quarter, and is now essentially debt-free.
RECENT ACCOMPLISHMENTS:
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September, 2010: opens state-of-the-art training center to educate physicians, technologists, nurses and administrators on the use and benefits of cardiac PET imaging in the daily operations of their facility.
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August, 2010: announces strategic alliance with Covidien, one of the world's largest manufacturers of radiopharmaceuticals, for development of an innovative distribution model of radiopharmaceuticals based on Positron's devices.
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July, 2010: acquires pharmaceutical manufacturing plant for development of radiopharmaceuticals and contract manufacturing.
- March 2010: Positron's Attrius® receives Frost and Sullivan's "Most Innovative Medical Device of the Year" award for 2010.
MILESTONES:
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Positron has sold nine PET systems thus far in 2010 and expects to sell an additional four to six by year-end, with an estimated backlog of six. The Company has positioned its resources in anticipation of significant growth over the next few years, with projected sales targets of 40 and 120 systems in 2011 and 2012, and an estimated backlog of 12 and 22 PET systems for each year, respectively.
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For 2010, the Company expects revenue to be almost four-times higher than 2009 levels, growing to approximately $6 million, which does not include the additional sales of PET systems noted above. Although expected to occur in 2010, revenue on those sales will not be recognized until the first quarter of 2011.
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With the current run rate, and potential revenues generated from its developing radiopharmaceutical businesses, Positron is anticipating significant growth over the next few years. The Company expects to experience growth across all product lines, including PET systems, unit dose delivery systems and radiopharmaceutical sales and sales generated through radiopharmaceuticals manufactured by the Company.
- Positron expects its rapidly developing radiopharmaceutical business will represent a larger portion of its revenue mix in the future. It is expected by 2013 radiopharmaceuticals will account for more than 30 percent of Positron's sales.
LOOKING AHEAD:
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As a result of the acquisition of a radiopharmaceutical manufacturing plant, Positron has accelerated its pharmaceutical growth plans by 12 months.
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Positron has plans to immediately deploy its Nuclear Cardio-Assist™ automated unit dose delivery device for distribution of Covidien radiopharmaceuticals, and expects income from this revenue-sharing arrangement to expand significantly in the future.
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Positron expects to explore additional strategic interests that advance PET imaging systems and radiopharmaceutical distribution.
- The Company plans to evaluate all organic and strategic partnership opportunities and will continue to engage in more robust and rewarding business development opportunities.
Positron has built its expertise and its business model on the rapidly growing nuclear cardiology field. Nuclear cardiology radiopharmaceutical sales are expected to reach $2.1 billion by 2014 (Bio-Tech Systems, 2008), and the market has never been stronger for cardiac PET and efficient radiopharmaceutical distribution. The Company believes by advancing its market share in these areas and combining that focus with increased market awareness and name recognition, together, will result in returned value for its shareholders.
About Positron: Positron is a molecular imaging company focused on Nuclear Cardiology. Positron utilizes its proprietary product line to provide unique solutions to the Nuclear Medicine community ranging from imaging to radiopharmaceutical distribution. Positron products include: the Attrius(TM), a PET imaging device; the Pulse(R), a SPECT imaging device; the Nuclear Pharm-Assist(R), an automated radiopharmaceutical distribution device; and the Tech-Assist(TM), a radiopharmaceutical injection shield. More information about Positron is available at www.positron.com.
Forward Looking Statements: Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance and may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Positron Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Positron assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the Securities and Exchange Commission.