Precision Therapeutics Inc. is a healthcare company that provides personalized medicine solutions and medical devices in two main areas: (1) precision medicine, which aims to apply artificial intelligence (AI) to personalized medicine and drug discovery; and (2) Skyline Medical, which markets the FDA-cleared STREAMWAY System for automated disposal of medical fluid waste.
The Company’s precision medicine services, designed to use AI and a comprehensive disease database to improve the effectiveness of cancer therapy, were launched with Precision Therapeutics’ investment in Helomics Corporation (the Definitive Merger Agreement was signed on June 28, 2018)—a key element in the Company’s strategy to diversify its product portfolio beyond the offerings of its Skyline Medical business.
The Company’s precision oncology services center around Helomics’ diagnostic technology—Dynamic Clinical Health Insight Platform or D-CHIP—that combines a database containing the molecular, genomic, and drug response profiles of over 149,000 tumors with an AI-based searchable bioinformatics platform.
Helomics’ precision oncology services include the following steps: (1) obtain a sample of the patient’s tumor and medical history; (2) test and determine the genetic profile of the tumor, establishing the type and strain of cancer; (3) compare the results with its database utilizing the Company’s D-CHIP to determine the best therapeutic options for that particular tumor profile; and (4) provide an actionable therapeutic roadmap.
The Company intends to add additional strategic partnerships and acquisitions to expand its precision medicine footprint. One example of this is the formation of a wholly-owned subsidiary, TumorGenesis Inc., to develop the next generation patient-derived tumor models for precision cancer therapy.
Helomics generates revenues through a range of CRO services, which include tumor profiling, biorepository, and clinical and diagnostics tests, and through subscriptions from medical companies that require access to its D-CHIP database and analytics engine to support their internal product development efforts.
Precision Therapeutics also markets the STREAMWAY System for automated and direct-to-drain medical fluid waste disposal. Sold through its Skyline Medical business, the STREAMWAY System is FDA-cleared in the U.S., has a medical device established license to sell in Canada, possesses a CE mark allowing sales in Europe, and is regulatory approved in Australia and New Zealand for sales. The Company has installed over 100 units in more than 50 facilities in the U.S. To the Company’s knowledge, the STREAMWAY System is the only known wall-mounted direct-to-drain system designed to collect, measure, and dispose of surgical fluid waste.
The STREAMWAY System is a fully automated system that disposes of an unlimited amount of potentially-infectious fluids collected during surgical procedures, virtually eliminating the exposure risk to bloodborne pathogens. The System is intended to replace the manual process of collecting fluids in canisters (which is still being used by many hospitals and surgical centers), resulting in safety, cost, and efficiency benefits.
In 2017, the Company implemented a refocused sales and marketing campaign, which included the hiring of key sales personnel and the expansion of its international presence. These efforts resulted in an acceleration of STREAMWAY System sales, with 16 units sold in the first quarter of 2018 compared to 10 units sold throughout all of 2017. The Company has stated that it expects to sell 100 systems in 2018.
Through the operation of its Skyline Medical and Helomics businesses, Precision Therapeutics has an established revenue stream, while positioning itself for additional revenue sources through the expansion of its precision medicine initiatives.
At March 31, 2018, the Company had cash, cash equivalents, and marketable securities of $2.2 million.