SOURCE: SpectraScience, Inc.

July 27, 2011 09:00 ET

SpectraScience Announces Updates to Business Outlook

Company Unveils Planned Launch of WavSTAT IV, Updates Sales and Marketing Plan and Discusses Capital Requirements

SAN DIEGO, CA--(Marketwire - Jul 27, 2011) - SpectraScience, Inc. (OTCQB: SCIE), a San Diego-based medical device company, today announced that it is making significant progress on several fronts related to commercialization of its WavSTAT technology:

  • Planned launch of WavSTAT IV, with key enhancements designed to improve results and provide for easier use, in October, at UEGW (United European Gastroenterology Week) held this year in Stockholm, Sweden.

  • Expansion of sales and marketing strategy to a two-pronged approach, rolling out with initial regional distribution partnerships for the WavSTAT IV colon cancer diagnostic in key European markets, and working towards strategic global distribution partnership(s) which can be leveraged to address the $1 billion market opportunity for its single-use optical biopsy forceps. In the future, SpectraScience will expand its partnership(s) opportunities to address diagnosis of other kinds of cancer through the use of rigid endoscopy and fine needle aspiration.

  • Planned capital raise within 8 months of approximately $5 million to further drive commercialization and development priorities.

WavSTAT IV Launch

SpectraScience has recently completed upgrades of its linear discriminate analysis (LDA) colon cancer diagnosis algorithm designed to reduce error messages and improve sensitivity in diagnosis of abnormal tissue, and to provide physicians with a diagnostic tool which is both easier to use and better suited to a clinical environment.

Michael Oliver, CEO of SpectraScience, said, "We are focused on rolling out the WavSTAT IV commercially, and these enhancements are fundamental to maximizing the success of this effort and in creating demand in the market. We will be unveiling the WavSTAT IV this October 22nd at UEGW in Stockholm, Sweden. In conjunction, we will be announcing results of important key data from European clinical trials presently underway. We will be providing further details on these trials and what we hope to achieve from them in the coming weeks."

Sales and Marketing Activities

"We believe that our technology is a strategic fit for several of the leading flexible endoscopy firms in the market today, and will provide competitive advantages over the current leading technology from a market share perspective," added Oliver. "So we are continuing with discussions towards developing strategic partnerships that can create an opportunity to leverage our technology on a worldwide basis."

In parallel, SpectraScience is undertaking regionally focused distribution discussions with firms that are well positioned to market its WavSTAT technology in key European markets. "We hope to make announcements in the coming weeks and months about progress on each of these fronts," said Oliver.

Financing Activities

SpectraScience current has approximately $2.3 million in cash and cash equivalents, and management believes that that this is sufficient, under current operating conditions, to provide for working capital into the early portion of next year.

"However, as we ramp our sales and marketing initiatives and continue with further R&D and technology development, we anticipate that our capital expenditures will increase and we will be undertaking financing initiatives that will enable us to continue to grow our business," commented Oliver.

"While it is our policy not to comment or speculate on stock price, I will say that we believe, given the progress that we have made in the first half of this year, and our outlook for the second half and going forward, that our company is tremendously undervalued relative to our opportunity. We are committed to providing our investors and the financial community with a higher level of transparency as to key milestones over the coming months and quarters that we believe will be transformative to the financial outlook of our business, and that this is fundamental to building our credibility amongst the investment community, and foundational to driving shareholder value."

About SpectraScience, Inc.

SpectraScience is a San Diego-based medical device company that designs, develops, manufactures and markets spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without physically removing tissue from the body. The WavSTAT Optical Biopsy System uses light to optically scan tissue and provide the physician with an immediate analysis. With FDA approval for sale in the U.S. and the CE Mark for the European Union, the WavSTAT System is the first commercially available product that incorporates this innovative technology for clinical use.

Contact Information

  • Contact:

    SpectraScience, Inc.
    Jim Dorst
    Chief Financial Officer
    (858) 847-0200 ext. 2019

    Hayden Communications
    Investor Relations
    Todd Pitcher
    (858) 518-1387