Precision Therapeutics Increases Equity Stake in Helomics to 25%
March 14 2018 - 4:30PM
Precision Therapeutics Inc. (NASDAQ:AIPT) (“Precision” or “the
Company”), formerly Skyline Medical, a company focused on applying
artificial intelligence to personalized medicine and drug
discovery, announced today that it has converted a previous
$500,000 loan to Helomics into a 5% equity stake. This follows the
purchase of preferred stock convertible into 20% of the outstanding
common stock of Helomics Corporation in January
2018, bringing the Company’s total ownership of Helomics to
25%.
Headquartered in Pittsburgh, Pennsylvania, Helomics has
established operations that bridge two emerging areas of the
healthcare industry: precision medicine and big data. Helomics’
competitive advantage lies in its proprietary D-CHIP™ database,
which contains de-identified data compiled from more than a decade
of clinical testing of tumor responses to drugs, coupled to an
Artificial Intelligence (AI)-powered bioinformatics engine which
generates actionable scientific insights from this rich data. These
insights are used by BioPharma companies in the research and
development of targeted cancer treatments for any given patient
profile, driving improved patient outcomes.
Dr. Carl Schwartz, Chief Executive Officer of Precision
Therapeutics, commented, “We are pleased to increase our equity
stake in Helomics as we rapidly advance our strategy to position
Precision Therapeutics as a leading provider of CRO and diagnostic
services to the precision medicine market. Our aim is to facilitate
the development of personalized cancer treatments by bringing
together some of the most advanced bioinformatics and artificial
intelligence technologies on the market, and applying them to the
fast-growing precision medicine space. We will leverage Helomics’s
proprietary D–Chip AI platform, which contains the drug response
profiles of over 149,000 patient tumors, in collaboration with our
next generation patient derived (“PDx”) TumorGenesis tumor models,
to provide actionable insights for clients in the pharmaceutical,
diagnostic, and biotech sectors. We intend to build out the
D–Chip’s high-quality data set in order to drive new client
agreements, improve patient outcomes and grow revenues.”
About Precision Therapeutics Inc.
Precision Therapeutics (NASDAQ:AIPT) operates in two
business areas: first, applying artificial intelligence to
personalized medicine and drug discovery to provide personalized
medicine solutions for clients in the pharmaceutical, diagnostic,
and biotech industries, and second, production of
the FDA-approved STREAMWAY® System for automated,
direct-to-drain medical fluid disposal.
Precision Therapeutics' CRO services business is committed
to improving the effectiveness of cancer therapy using the power of
artificial intelligence (AI) applied to rich data diseases
databases. This business has launched with Precision
Therapeutics' investment in Helomics Corporation, a
precision diagnostic company and integrated clinical contract
research organization whose mission is to improve patient care by
partnering with pharmaceutical, diagnostic, and academic
organizations to bring innovative clinical products and
technologies to the marketplace. In addition to its
proprietary precision diagnostics for oncology, Helomics offers
boutique CRO services that leverage our patient-derived tumor
models, coupled to a wide range of multi-omics assays (genomics,
proteomics and biochemical), and a proprietary bioinformatics
platform (D-CHIP) to provide a tailored solution to our client's
specific needs. Helomics is 25% owned by Precision
Therapeutics. Helomics® is headquartered in Pittsburgh,
Pennsylvania where the company maintains state-of-the-art,
CLIA-certified, clinical and research laboratories. For more
information, please visit www.Helomics.com.
Precision Therapeutics has also announced the formation of a
subsidiary, TumorGenesis to pursue a new rapid approach to growing
tumors in the laboratory, which essentially “fools” the cancer
cells into thinking they are still growing inside the patient.
Precision Therapeutics and Helomics have also announced a
proposed joint venture with GLG Pharma focused on using
their combined technologies to bring personalized medicines and
testing to ovarian and breast cancer patients, especially those who
present with ascites fluid (over one-third of patients). The growth
strategy in this business includes securing new partnerships and
considering acquisitions in the precision medicine space.
Sold through the Skyline Medical business of Precision
Therapeutics, The STREAMWAY System virtually eliminates staff
exposure to blood, irrigation fluid and other potentially
infectious fluids found in the healthcare environment. Antiquated
manual fluid handling methods that require hand carrying and
emptying filled fluid canisters present an exposure risk and
potential liability. Skyline Medical's STREAMWAY System fully
automates the collection, measurement, and disposal of waste fluids
and is designed to: 1) reduce overhead costs to hospitals and
surgical centers; 2) improve compliance with OSHA and
other regulatory agency safety guidelines; 3) improve efficiency in
the operating room, and radiology and endoscopy departments,
thereby leading to greater profitability; and 4) provide greater
environmental stewardship by helping to eliminate the approximately
50 million potentially disease-infected canisters that go into
landfills each year in the U.S. For additional information,
please visit www.skylinemedical.com.
Forward-looking Statements
Certain of the matters discussed in this announcement contain
forward-looking statements that involve material risks to and
uncertainties in the Company's business that may cause actual
results to differ materially from those anticipated by the
statements made herein. Such risks and uncertainties include risks
related to the proposed joint ventures, including the need to
negotiate the definitive agreements for the joint ventures;
possible failure to realize anticipated benefits of the joint
ventures; and costs of providing funding to the joint ventures.
Other risks and uncertainties relating to the Company include,
among other things, current negative operating cash flows and a
need for additional funding to finance our operating plan; the
terms of any further financing, which may be highly dilutive and
may include onerous terms; unexpected costs and operating deficits,
and lower than expected sales and revenues; sales cycles that
can be longer than expected, resulting in delays in projected sales
or failure to make such sales; uncertain willingness and ability of
customers to adopt new technologies and other factors that may
affect further market acceptance, if our product is not accepted by
our potential customers, it is unlikely that we will ever become
profitable; adverse economic conditions; adverse results of any
legal proceedings; the volatility of our operating results and
financial condition; inability to attract or retain qualified
senior management personnel, including sales and marketing
personnel; our ability to establish and maintain the proprietary
nature of our technology through the patent process, as well as our
ability to possibly license from others patents and patent
applications necessary to develop products; the Company's ability
to implement its long range business plan for various applications
of its technology; the Company's ability to enter into agreements
with any necessary marketing and/or distribution partners and with
any strategic or joint venture partners; the impact of competition,
the obtaining and maintenance of any necessary regulatory
clearances applicable to applications of the Company's technology;
and management of growth and other risks and uncertainties that may
be detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission, which are available
for review at www.sec.gov. This is not a solicitation to
buy or sell securities and does not purport to be an analysis of
the Company's financial position. See the Company's most recent
Annual Report on Form 10-K, and subsequent reports and other
filings at www.sec.gov.
Contacts:Investor RelationsKCSA Strategic
CommunicationsElizabeth Barker(212) 896-1203ebarker@kcsa.com
MONEYINFO, LLCCharles
Moskowitz617-827-1296info@moneyinfo-llc.com
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