SOURCE: SpectraScience, Inc.

December 22, 2010 16:00 ET

SpectraScience Provides Operational Update and Strategic Plan for Fiscal Year 2011

SAN DIEGO, CA--(Marketwire - December 22, 2010) -  SpectraScience, Inc. (OTCBB: SCIE), a San Diego-based medical device company, today provided an update relating to the previously announced strategic restructuring of its business and announced its strategic plan for fiscal year 2011.

The Company believes that the key to our efforts moving forward will be to concentrate on selling our approved products in receptive target markets that can be accessed in the short term. Implicit in this is a commitment to minimize our cash expenditures while executing according to plan. The Company is in the process of paring down clinical trials that are unrelated to our primary business: selling our WavSTAT® colon application.

The Company's primary advantage remains that SpectraScience is the only company to provide an adjunctive technology that results in a definitive diagnostic assessment of cancerous and pre-cancerous tissue in the colon.

Michael Oliver, recently appointed President and CEO of SpectraScience, said, "We have undertaken a thorough review of SpectraScience's business and operations, and have concluded that the growth opportunity for the Company has never been stronger. We are realigning and narrowing our focus to meet key strategic goals in 2011 including establishing a formal partnership with a market leader, and executing a better-managed rollout of the WavSTAT in the European markets where we have identified specific opportunities. We intend to prove the commercial viability of our business this coming year and to leverage initial milestone achievements to move to cash breakeven and profitability. This strategy will provide us with the greatest opportunity to drive revenue and build shareholder value."

Objectives for 2011

  • Establish Partnership with Global Leader. During the first half of the year we expect to enter into a distribution agreement with a strategic medical device partner and begin concerted sales efforts in the European Union. Our focus will be to demonstrate our technology, support sales efforts and grow both our revenue and geographic presence with our partner. After demonstrating the viability of our products we expect to branch out across the continent into other countries.

    • Q1 2011 -- Complete proof-of-concept analysis with strategic partner

    • Q2 2011 -- Enter into regional distribution agreement with strategic partner

    • Q3 2011 -- Enter into EMEA distribution agreement with strategic partner

  • Develop European Market. Establishing a partnership as described above will be paramount, however, on a parallel path, we also intend to focus on specific geographic markets within the European Union. Independently we will identify an appropriate European country in which to establish beachhead customer accounts that we will manage closely and leverage into a larger customer base, first within this initial country, and then expanding to other countries as appropriate. We expect this initiative to begin in Q2 of 2011 and to progress throughout the remainder of the year. 

As of December 22, 2010, SpectraScience has approximately $3.9 million in cash and cash equivalents, and no debt. The Company's Board of Directors does not expect that it will require any additional working capital to execute its plan through fiscal year 2011.

These initiatives are the first steps in moving SpectraScience forward to create long-term shareholder value. All of us at the Company want to thank our shareholders for supporting us through this transition.

About WavSTAT

The WavSTAT Optical Biopsy System employs a spectrometry technique called Laser Induced Fluorescence (LIF) to optically illuminate and analyze tissue using a biopsy forceps. The System uses an optical fiber to send cool, safe UV laser light into suspect 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 physical "signature" 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 biopsy forceps to biopsy the tissue.

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.
    Michael Oliver
    President and Chief Executive Officer
    Jim Dorst
    CFO and Chief Operating Officer
    (858) 405-9933

    Hayden Communications
    Investor Relations
    Todd Pitcher