Verisante Technology, Inc. (VRS – $0.53) is a medical device company committed to commercializing innovative systems for the early detection of cancer. The Verisante Aura is used for skin cancer detection, while the Verisante Core, which is still in development, is applicable for lung, colon and cervical cancer detection.
Skin cancer is the most common form of cancer and is currently diagnosed based on visual examination by a dermatologist or general practitioner, leading to unnecessary biopsies and high costs. Results from both a preliminary clinical study on 274 lesions as well as a much larger follow-up study on 1,000 lesions, demonstrate that the Verisante Aura has significant diagnostic accuracy in distinguishing malignant from benign skin lesions, thus reducing unnecessary biopsies by 50 to 100 percent.
The Company has received approval to market the Aura in Canada, the 27 EU member states, and Australia. Commercial sales of the device will commence later this year.
Moreover, the FDA approval process has been initiated in the United States. A pre-IDE meeting with the FDA is on the agenda where the Company will receive formal guidance on what it needs to do to get approval to market the Aura in the United States. Approval in the US will open up a huge additional market for the Aura.
Verisante owns the exclusive worldwide rights to the technology which is used in the Aura. It was developed by the BC Cancer Agency together with the University of British Columbia and refined and tested at the Skin Care Centre at Vancouver General Hospital.
Verisante Technology has a bright future ahead. The Company continues to meet expected milestones for this year and it moves closer towards full commercialization of the Aura. Based on expected sales and profit margins for the Aura, we reiterate our buy recommendation for Verisante Technology with a price target of $2.40, which is more than 4 times today’s stock price.
Download your copy of the Verisante Technology second quarter 2012 Company Report.
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