SOURCE: SpectraScience, Inc.

June 09, 2010 09:41 ET

SpectraScience Provides Corporate Update and Outlook

SAN DIEGO, CA--(Marketwire - June 9, 2010) -  SpectraScience, Inc. (OTCBB: SCIE), a San Diego based medical device company, today provided an update on business activities through the first half of 2010 and commented on its outlook for the remainder of this year. Jim Hitchin, CEO of SpectraScience, said, "While current macroeconomic conditions continue to lengthen our sales cycle, we are making important progress. Data collection for our esophageal cancer screening application on the WavSTAT® Optical Biopsy platform has been slower than we would like, however, the new clinical sites are beginning to ramp up their activity. In addition, we have a colon cancer screening test trial soon to begin at a well-recognized managed-care organization. We believe these are important milestones for our Company."

In Europe, our esophageal clinical study in the UK is making good progress and we plan on beginning a similar study in France within the next several weeks. We are currently collecting data from the UK site, and expect to be able to release preliminary results once these studies conclude. Today, our applications include early detection of colon and esophageal cancers. However, expanding our WavSTAT optical biopsy platform to address additional forms of cancer will be critical to add value to our prospective customers and patients.

Our goal is to allow healthcare practices to make a single hardware investment and to leverage their initial investment to screen for an increasing number of cancers while reducing time/cost and increasing accuracy. As we move our esophageal application closer to commercialization, we believe it will only be the first step to increase our overall sales opportunities.

Following is a list of highlights that reflect our efforts at SpectraScience year-to-date. We believe we are in a fight against one of the greatest challenges in the world today, and that our optical biopsy technology can be instrumental in increasing successful diagnosis at earlier stages, therefore reducing mortality rates and saving costs for health care providers. We remain committed to building shareholder value and appreciate to our shareholders for their support.

Update and Key Highlights

  • Progress on esophageal clinical trials. We recently received preliminary data from esophageal trials in Europe, and are in the process of reviewing these results. We expect to provide an update on this data as soon as practicable.
  • Progress on additional WavSTAT applications. SpectraScience is seeking additional patents for its technology and is evaluating the technology for other applications including use in inflammatory bowel disease (IBD), gastric cancer, lung cancer and pancreatic cancer.
  • Strong showing at Digestive Disease Week (DDW). DDW is the world's leading conference for gastrointestinal clinicians and scientists. Approximately 16,000 GI professionals attend each year from around the world. At this year's DDW, SpectraScience saw a strong positive response from prospective customers and healthcare thought leaders to the introduction of its latest generation of the WavSTAT System.
  • Cost control and balance sheet. In response to the uncertain economic environment we continue to hold down our costs and manage expenditures as conservatively as possible. Our working capital position has improved and we plan to continue to manage cash carefully. 
  • Progress with industry thought leaders. At DDW, two of the industry's leading practitioners and researchers made specific mention of the WavSTAT as an important emerging technology in opening remarks at two session keynote addresses. Validation and advocacy on behalf of leading researchers and practitioners in the cancer screening market are critical to our strategy and we are pleased that the groundwork we have laid on this front is beginning to take root.
  • Sales and marketing. We continue to expand our distribution network in Europe and prepare for product introduction in the US. We are engaged in discussions with several potential strategic partners who could enable us to accelerate our development and secure a broader potential reach for our products. 
  • Communications. In January we engaged CWR Partners, LLC to develop and manage an ongoing media relations program to generate awareness of our products and the value-add which the WavSTAT and LUMA technologies bring to the healthcare market. CWR has spent the past several months introducing SpectraScience and its technologies in order to garner media attention and recognition. We are pleased to report that more and more journalists are expressing interest in SpectraScience. Examples of this include a national article that will run in Self Magazine in June 2010 and two recent television interviews with Jim Hitchin that can be viewed on our web-site. Click on the "Education tab" and "videos." CWR continues to work on increasing our exposure with television, newspapers, online publications, blogs, magazines and radio.
  • Board of directors. Sheldon Miller, Esq. joined our Board of Directors in May 2010. He is a nationally recognized lawyer bringing to us his many years of legal experience. We particularly value his input on intellectual property law as it relates to our IP portfolio.

About WavSTAT

The WavSTAT Optical Biopsy System employs a Spectrometry technique called Laser Induced Fluorescence (LIF) to optically illuminate and analyze tissue using a standard biopsy forceps. The System uses an optical fiber to send cool, safe UV laser light into suspected tissue, where the light reflects back to a computer at different frequencies, depending on the type of tissue. For example, in abnormal tissue, cells fluoresce differently than in healthy tissue and have a different "fingerprint" that our system can interpret as either normal or abnormal. This can greatly assist the physician by providing an additional indication, displaying a green light for normal tissue and a red light for abnormal tissue. If the tissue appears abnormal, physicians can also use the WavSTAT System to biopsy the tissue.

The WavSTAT has FDA clearance to market for detecting pre-cancerous and cancerous tissue in the colon. The Company made several upgrades to its original technology before introducing it at this year's DDW and launching it in the European market in September 2009. SpectraScience is planning a full-scale market launch in the US in late 2010 or early 2011. Currently the Company holds approximately 60 patents for its optical probes and underlying technology.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties that may cause SpectraScience's actual results to differ materially from results discussed in forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by SpectraScience in this news release, its most recent Form 10-K and in SpectraScience's other reports filed with the Securities and Exchange Commission ("SEC") that attempt to advise interested parties of the risks and factors that may affect SpectraScience's business. These forward-looking statements are qualified in their entirety by the cautions and risk factors filed by SpectraScience in its annual report on Form 10-K and other documents.

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. The Company's LUMA imaging technology has received FDA approval for an optical non-invasive system that is proven to more effectively detect cervical cancer precursors than conventional methods available in the market today.

Contact Information

  • Contact:

    SpectraScience, Inc.
    Jim Hitchin
    Chief Executive Officer
    (858) 847-0200 x201

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