Medsurge to Purchase Cryo-Genomics and Enter $15 Billion Cancer Prevention Market.
VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 19, 2004
Medsurge Medical Products Corp. (TSX-V:MSR) announced today that it has entered into an agreement to purchase Cryo-Genomics Ltd and all its rights, patents, and proprietary technologies with regards to 2 tier Faecal Occult Blood Testing (FOBT). FOBT is the gold standard for Colo-Rectal Cancer prevention with studies indicating that one third of all Colo-Rectal cancer deaths can be prevented through yearly FOBT testing. Further investigation reveal an enormous market size whereby every person over the age of 50 should have FOBT done annually as compared to hemorrhoid banding which affects one in four people over age 55 in their lifetime. The sell price of the slides and reagents for testing would sell for a similar price as the O'Regan Ligator. The potential estimated market size is therefore in excess of $15 Billion per year. The product is complimentary and ideal for colo-rectal health clinics and Medsurge's existing world distribution network, as hemorrhoids that usually bleed, should be banded before FOBT is performed.
The terms of the agreement allows for Cryo-Genomic shareholders to receive a total of 2,400,000 MSR shares at a price of $0.28 which is a 25% discount from the previous days close, plus $500.00 cash, and a further US$90,000 to be paid at a later date for patent costs incurred. A further 100,000 stock options are to be granted to Dr. Iain Cleator at an exercise price of $0.37 per share. The agreement is subject to TSX Venture exchange approval.
Marc Morin, President and CEO of Medsurge, said today that "Entering the cancer prevention market is a further indication of Medsurge's commitment to lead in bringing to market proprietary niche patented medical technologies. I would further like to thank everyone involved for their many months of work on this project, and look forward to the rewards of bringing a life saving technology to market."
About Cryo-Genomics and 2 Tier FOBT
Fecal Account Blood Tests (FOBT) is a common test that is widely used at present for early detections of cancer and polyps. The existing test that is most commonly used is inexpensive ($1.00) and is very broad in its detection whereby many foods such as red meat, some sea food, and even certain vegetables will result in a "false positive". Statistically this false positive rate is 14%. This cause's increase strain on the health care system as the next procedure recommended is a colonoscopy. Colonoscopies are expensive at over $1000.00 each and involve certain serious risks such as perforations (statistically 1 / 1000) mathematically a 14% false positive will result in 140% of the target population having unnecessary colonoscopies performed after 10 years. Many HMO's and government organizations are looking for ways to lower this number of colonoscopies. The problem is that the test needs improvement. There are more expensive tests ($30.00+) that have been invented that are human blood specific and therefore unaffected by food. Cryo-Genomics has patents for an invention allowing for two or more tests to be performed at one time whereby the combination of the expensive test and inexpensive test can be placed on one slide. The expensive test need not be performed if the first inexpensive test is negative as the cost is incurred after specimen collection. Statistically the false positive of 14% should be lowered to 3% thus saving 11% unnecessary colonoscopies.
Medsurge is a medical device technology company that has developed and is marketing internationally the first single use, patented, disposable, hemorrhoid banding system with numerous regulatory approvals to market including USFDA, European CE, and Japan FDA.
For further information, visit the Company's website at www.medsurgemedical.com or the SEDAR website at www.sedar.com or email us at email@example.com.
BY THE ORDER OF THE BOARD OF DIRECTORS
Marc Morin, President and Chief Executive Officer
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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|Date:||Feb 19, 2004|
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