IsoRay Medical™ reaches milestones with successful round of funding, major technology agreement, and continued expansion with medical centers across the U.S.
RICHLAND, WA—IsoRay Medical™, Inc. a wholly owned subsidiary of IsoRay Inc. (ISRY.OB) has met significant milestones in February, including raising over $7 million in private funding, the signing of a major technology licensing agreement, and the continued expansion of medical centers offering the Company’s Cesium-131 radioisotope as a cancer treatment option.
Based in Richland, WA, IsoRay Medical™ is the world’s only manufacturer and distributor of Cesium-131 radioisotope used in the treatment of prostate cancer and other malignant diseases.
IsoRay’s Chairman and CEO Roger Girard announced that IsoRay Medical™ closed a major round of private funding on January 30, raising $6 million. The company opened a subsequent private placement, at a higher price, to accommodate investors who had wanted to participate in the $6 million placement. Under the new placement, opened February 1, 2006, the company has raised in excess of $1.3 million.
In another major move that could significantly reduce manufacturing and production costs, IsoRay Medical™ has signed an exclusive North American technology licensing agreement for Cesium-131 with Belgium-based IBt s.a. (Euronext ticker: 'IBTB') providing IsoRay Medical™ with access to IBt’s Ink Jet production process and its proprietary polymer seed technology for use in cancer therapy using Cesium-131 in brachytherapy procedures.
“We also believe polymer seeds have important clinical advantages, including more precise seed placement because of enhanced imaging characteristics, major improvement in stranding capabilities, improved dosimetry and the polymer is simply more user friendly,” said Girard.
“This is an important step as we lay the groundwork for expanding isotope therapy and new technology initiatives,” said Girard. “The positive response from investors is running parallel to the growth we are seeing from the medical community.”
He said IsoRay Medical™ would immediately apply for FDA approval for the use of the two proprietary technologies used separately or in tandem.
IsoRay Medical™ currently manufactures Cesium-131 seeds using titanium seed technology. The rights granted under the definitive exclusive agreement allows IsoRay to use IBt’s polymer seed technology and Ink Jet process combined with IsoRay’s 131-Cs technology exclusively throughout North America.
The company now has 36 medical centers and clinics in the United States offering the Cesium-131 treatment option, including the Arnold Palmer Prostate Center at Eisenhower Lucy Curci Cancer Center in Palm Springs, the Duke University Health System and NewYork-Presbyterian Hospital/Weill Cornell Medical Center.
IsoRay Medical™ announced in December 2005 that it would begin production testing at the Idaho National Laboratory in early 2006. Successful tests could lead to a development program enhancing IsoRay’s isotope production capabilities of Cesium-131 at facilities located in Pocatello, Idaho.
The Cesium-131 isotope is currently being used in brachytherapy treatment for prostate cancer, which is the second leading cause of cancer deaths among men in the U.S. Protocols are currently scheduled to begin during the first quarter of 2006 for use of the isotope in both the lung and the pancreas. Other forms of delivery devices for the isotope are also being considered, which may create a higher demand for the isotope in the future.
About IsoRayIsoRay, Inc., through its subsidiary, IsoRay Medical™, Inc., is the sole producer of the Cesium-131 brachytherapy seed, used to treat prostate and other cancers. The Cesium-131 seed offers a significantly shorter half-life than the two other isotopes commonly used for brachytherapy, which results in a substantially faster delivery of therapeutic radiation, lower probability of cancer cell survival and reduction of the longevity of common brachytherapy side effects. IsoRay is based in Richland, Washington. More information is available about IsoRay at www.isoray.com.
Statements in this news release about IsoRay’s future expectations, including: viability of the polymer seed technology in various applications, including, among other things, the completion of milestones needed to develop the Ink Jet technology for use in polymer seeds containing Cesium-131, the advantages of our Cesium131seed, the level of market share our seed may attain, and all other statements in this release, other than historical facts, are forward-looking statements. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as physician acceptance, training and use of our products, our ability to successfully manufacture, market and sell our products, our ability to manufacture our products in sufficient quantities to meet demand within required delivery time periods while meeting our quality control standards, and our ability to enforce our intellectual property rights, and other risks detailed from time to time in IsoRay's reports filed with the SEC.
Media Contacts :
Roger Girard , President and CEO
IsoRay, Inc. 206.849.6507 (cell)
Barry Bartlett, The Bartlett Group Public Relations
206.285.0673 ; 206.335.4694 (cell)