SOURCE: BioMedReports

BioMedReports

March 09, 2012 09:10 ET

Is Health Discovery Corporation Finally on the Verge of a Turnaround?

LOS ANGELES, CA--(Marketwire - Mar 9, 2012) - Health Discovery Corp (OTCBB: HDVY) is a molecular diagnostics company that captured the imagination of speculators in 2009. The firm saw its share prices more than quadruple in value that year, but the appetite investors had for the stock never truly translated and the fundamentals seemed to lag behind. Eventually shares dropped back down and have been consolidating at these levels for some time.

Pending news flow and developments may help to finally change that, but if you've never heard of the firm, you must first know that HDVY attempts to differentiate themselves from others in the field by using advanced mathematical techniques to analyze large amounts of data and that their three-pronged approach to molecular diagnostics allows for more specific, effective diagnosis and treatment. The promise here has always been that by applying cutting-edge computer technology and mathematical modeling to available and emerging data sources, the emerging player would uncover meaningful relationships useful in prevention, detection, and treatment of disease.

In recent months, the company has been trying to capture the attention of the markets with some key developments, but the news has fallen mostly on deaf ears.

In January, NeoGenomics, a leading provider of cancer-focused genetic testing services, announced that it had licensed worldwide rights to Health Discovery's intellectual property portfolio in order to develop laboratory developed tests (LDTs) and other products relating to hematopoietic and solid tumor cancers, excluding retina and breast cancer. As part of that agreement, NeoGenomics paid $1 million in cash and issued 1,360,000 shares of common stock to HDC in upfront licensing fees. In addition, NeoGenomics will make milestone payments of $500,000 (up to $5 million) for every $2 million in revenue recognized by NeoGenomics based on products and services developed as a result of the licensing agreement. After NeoGenomics recognizes $20 million in cumulative revenue, NeoGenomics will pay a royalty of 6.5 percent on product sales and will share profits from sub-licensing arrangements.

A month later in February, the firm also announced that they would be launching a product called Retinalyze Analytics, to assist Ophthalmologists and Optometrists with the Detection of Macular Degeneration. The firm has high hopes for the product, which was set to launch at the recent Heart of America Convention geared for primary eye care practitioners. If the product is adopted by the industry, it could mean substantial revenues for the firm, but skeptics have taken a wait and see approach despite the fact that the Retinalyze Analytics product would go after a piece of the age-related macular degeneration ("AMD") market -- a progressive eye disease affecting more than 15 million Americans, with over 200,000 new cases diagnosed each year.

Despite the reported popularity and increasing downloads of the company's smartphone software, MelApp -- which uses highly sophisticated patent protected mathematical algorithms and image based pattern recognition technology to and deliver a risk analysis of user's photographed skin lesions within seconds -- investors have noted a lack of true financial impact for the company's bottom line from activities related to the app's downloads and revenue stream.

That has certainly raised the bar for both expectations and skepticism in regards to the new Retinalyze Analytics product. Speculators are standing by to see if the new product can really capture the attention of primary eye care practitioners and we are expecting some announcements in the short term which may give us an indication of not only potential sales and revenues, but also whether HDVY's software and data can truly measure up to the potential of its technologies.

In an effort to help shed more light on some of these news developments -- but in particular the relationship with NeoGenomics, we reached out to Dr. Stephen D. Barnhill, who serves as Chairman and Chief Executive Officer of Health Discovery. A Physician trained in Laboratory Medicine/Clinical Pathology, Barnhill is a Pioneer in the development of Artificial Intelligence and Pattern Recognition Computational Techniques used in Medicine, Genomics, Proteomics, Diagnostics and Drug Discovery.

Investors may read the full interview with Dr. Barnhill at:

http://www.biomedreports.com/2012030991013/is-health-discovery-corporation-on-the-verge-of-a-turn-around.html

In addition, investors interested in accessing BioMedReports' new complete database of clinical trials and upcoming FDA and world-wide regulatory decisions which can be used to make more profitable trades during these volatile markets can go to:

http://biomedreports.com/fdacal.html

News developments and live healthcare sector updates are available constantly via twitter at: http://twitter.com/BioMedReports

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