January 31, 2022
Re: Shareholder Update
Dear Positron Shareholders, In consideration of our announcement of the collaboration with Neusoft Medical Systems and the expansion into the PET/CT modality we are pleased to update you on key developments that set the path for the growth and success at Positron for many years to come.
As many of our investors know, in 2021 Positron returned to being a full reporting company with the OTC Markets. The Company will continue filing quarterly and annual reports in a timely fashion. Our plan for 2022 is to matriculate to a more prominent higher tier on the OTC marketplace as well as file regular reports with the SEC. The Company has retained both accounting and audit firms to meet all quotation criteria for this higher tier. This commitment to greater transparency and reporting for our shareholders was and remains an important requirement for delivering value for both customers and investors. On January 18, 2022, we announced that Positron entered into a long-term exclusive cooperation agreement with Neusoft Medical Systems (Neusoft) for the development and distribution of our new PET/CT system. Neusoft also produces Positron’s Attrius PET scanner and is at the core of the development and advancement of the technology for Positron systems. Over the past few years, both parties have worked towards this next phase of our relationship to offer the best PET/CT system(s) available. This expansion to PET/CT was key to the Company’s future on multiple fronts, likely setting Positron on a path for exponential growth. Positron’s ability to offer a PET/CT system enables us to synergistically meet the new demands of the nuclear cardiology community as well giving Positron the tools to enter and thrive in the oncology segment of the nuclear imaging market with what we understand as the best product at the best price able to service all healthcare providers.
Positron’s agreements with Neusoft have several details that are key to the Company’s plans. Positron will be the owner and applicant of a “New Device 510K” with the FDA and expect to submit in coming months. Our system is based on Neusoft’s “NeuWise PET/CT” which is currently approved in many regions outside of North America. Positron has purchased a NeuWise system for delivery in Q1 2022 to validate its performance and capabilities with select radiopharmaceuticals. This validation will be conducted at a Positron customer site and will be in parallel with our FDA application and is the most efficient use of time and resources. Positron’s ability to offer PET/CT is a game changer at most every level of our business. Neusoft has been a great asset for Positron in the continuous development of the Attrius PET scanner and now a state-of-the-art PET/CT that is a technically superior system that we are fully confident will meet the needs of both cardiac and oncology industries.
Our PET/CT system has clear and specific benefits that are expected to drive demand and customer adoption. The system is superior as to the quantity and quality of data and images acquired; increased data helps physicians better diagnose patients, deliver greater and more effective services, and meet reimbursable guidelines. The technology consists of 4D image renderings vs the 3D images of our competitors, significant improvement acquisition times and greater image resolution, LYSO crystals, more robust software to include coronary flow reserve analysis, novel image registration, proprietary reconstruction algorithms and a 64 slice CT. Advancements in technology improve production and service costs which will increase uptime and serviceability, all at greater profit margins.
Most every aspect of the nuclear PET imaging environment have improved during the recent year(s) with expanding reimbursements, improved diagnostic software capabilities, stable pharmaceutical supply and a migration from SPECT to PET which all foster additional growth, specifically when combined with a new state of the art imaging system; Positron’s PET/CT is this system. Positron believes it will play a significant role in advancing nuclear imaging through development of SaaS/Cloud-based platforms to help healthcare institutions achieve greater efficiency, streamlining secured access to data and improved patient outcomes. Such services further advance Positron’s position in the industry and should improve the Company’s revenue streams and profitability across all areas of its business.
In our opinion we are entering a “perfect storm” of advanced technology, better medicine and business efficacy that should improve patient outcomes and drive demand. Due to the Company’s expertise in cardiology most all of Positron’s initial efforts will focus on the cardiology market however our PET/CT is perfect for oncology and neurology which is exponentially greater in size and one that we plan to fully address with all our resources once we receive our FDA 510K approval. The announcement of our PET/CT enabled us to introduce our product and plans to the leading industry participants and societies, healthcare practices, hospitals, and physicians. In effect this was the launch of a new business and future. As evidence of our efforts, we recently joined a team of leaders in the nuclear cardiology industry in meeting with dozens of physicians who are expanding within the cardiac PET arena. These meetings were very productive and promising for the industry. We are thankful for the support and proud to be a part of presentations from the true champions of the nuclear cardiology industry.
As part of our agreements with Neusoft Medical System, Positron has purchased all Attrius systems and parts inventory from our joint venture with Neusoft. These six fully developed PET systems are elegant imaging devices for practices seeking the most economical and efficient dedicated cardiac PET solutions. The placement of most of these systems have been earmarked for several customers and are expected to be sold and placed beginning Q2 2022.
The team at Positron and its network of exceptional physicians are experts in the nuclear cardiology market. Our first order of business will be to address this new demand with the support of physician and corporate champions in this industry, medical societies and specialized cardiovascular organizations, and Positron’s valued customers.
In coming weeks, we will begin adding to our sales and marketing presence with an industry specialist with vast experience and a broad client base in the cardiac SPECT and PET arena. One of our target groups are existing SPECT operators as many are seeking to migrate into PET and PET/CT. Positron will also pursue additional targets as we work with pharma companies, medical societies and directly with practices to collaborate in the education and guidance towards the PET modality.
Positron is fully aware of the opportunity within the oncology sector and its necessity for PET/CT. This oncology segment will be a main target for our product and services and one that will require specialists in the field. Our plans are to complete validation and the FDA 510K application while focusing on meeting the immediate needs of cardiology however as we properly tend to our cardiac initiatives, we expect to expand full force into oncology imaging.
As a reference the global PET/CT device annual market size is expected to reach $3.34 billion by 2028 fueled by an aging population and prevalence of chronic diseases that is creating demand for new technologies and improved diagnostics, all of which can be obtained from PET/CT and advanced software. The U.S. is the largest market in the world and remains much of the total addressable market for which we are targeting to gain a 10% market share of the market.
We also understand the need to educate and or convey the scope and competitive advantages we have and will need to build on. We have a great team handling our investor relations and will be attending investor conferences, investor meetings and/or medical industry conferences.
As an operating business we will be targeting our marketing efforts towards promoting our products and solutions for existing and potential customers. As a publicly traded entity we understand the importance of creating value for customers and investors with the need to properly deliver our value and potential every day. We will do everything possible to expand our reach and share all relevant information. We will keep all followers of Positron informed through follow on correspondences as well as advertise such conferences through press releases, web presence, and social media. Positron will launch its new website in the coming months. Our web presence will spotlight our PET/CT which is also a sales and marketing launch of sorts.
Positron’s Attrius was met with great accolades while earning Frost and Sullivan’s New Product Innovation of the Year Award for its Attrius we fully expect to have the same level of excellence with Positron’s new PET/CT. We believe our system will meet the needs of many physicians and practices alike while most certainly providing the best technology and services for all patients whether in cardiac or oncology imaging.
I hope this update finds you well and lends to some greater understanding of the scale of what we are building. Based on our recent developments we will update you more frequently with all newsworthy events. Thank you for your support. Best Regards,
Adel Abdullah Positron Corporation President