Thursday, August 16, 2012
Theralase Creates Two Operating Divisions
Toronto, Ontario – August 16, 2012, Theralase Technologies Inc. (TSX-V: TLT) announced today that it is reorganizing its operations into two separate reportable operating divisions to better service and focus the company’s resources for both independent markets. The Therapeutic Laser Technology (TLT) division will be responsible for all aspects of the Company’s burgeoning therapeutic laser business, which manufactures products used by healthcare practitioners predominantly for the healing of pain and the Photo Dynamic Therapy (PDT) division, which researches and develops Photo Dynamic Compounds (PDCs) for the destruction of primarily cancer.
Roger Dumoulin-White, President & CEO of Theralase Technologies stated that “It has become evident through the recent successes of both technology platforms that these two operating divisions have unique requirements in terms of financing, staffing, logistics and resource allocation. Our intent is to manage and focus the direction of each division to better execute on their respective strategic objectives. Our therapeutic laser products have been recognized by independent health care practitioners worldwide as “best-in-class” in terms of safety, efficacy and overall clinical performance. In terms of market size, it has been reported by the American Pain Association that health care expenses, lost work time and reduced productivity due to pain, costs the US medical system approximately $100 billion annually. In order to help alleviate their pain, Americans consume annually in excess of $20 billion of pain medications and according to a recent study 42% felt that pain medications were ineffective in relieving their pain, allowing a minimum $8.4 billion annual market opportunity for Theralase. Our corporate mandate is to capture less than 1% of this underserved market achieving annual revenues of $50 million in a recurring revenue model within the next 5 years. Theralase intends to capitalize on this market through the direct sales, marketing and international distribution of our growing platform of laser technologies; including our flagship TLC-1000 product and soon to be released TLC-2000 product”.
Mr. Dumoulin-White added, “In the current decade, oncology has been one of the most important growth segments among the biotechnology and pharmaceutical markets. The global cancer drug market alone is expected to surpass $US78 billion in 2012. Theralase has recently made significant advances in the research and development of its novel patented Photo Dynamic Compounds (PDCs) in terms of cancer destruction that are laying the groundwork for Health Canada and FDA Investigational New Drug (IND) applications, anticipated to be submitted in 2013. The potential market for our advanced PDT technology platform for the first targeted clinical indication of bladder cancer in the US alone is over $3.5 billion annually. Our mandate is to partner the PDC technology after FDA Phase 2 clinical approval, expected within the next 3 to 5 years and to successfully negotiate a royalty agreement for the worldwide distribution of this technology, commencing immediately after formal regulatory Health Canada and FDA approval, expected within the next 5 to 7 years. Due to the lack of clinical research and advances in the field of bladder cancer treatment over the last 16 years, Theralase is confident that our advanced PDC approach could quickly gain sizable market share with the right pharma partner in this underserved market. Our mandate is to capture 10% of this market with our pharma partner and through royalty revenue generate recurring revenue in excess of $50 million annually.”Mr. Dumoulin-White concluded by stating that, “Theralase’s mandate is to build both the TLT and PDT divisions into separate $50 million annual recurring revenue models within the next 5 to 7 years.”
About Theralase Technologies Inc.
Theralase Technologies Inc., founded in 1995, designs, develops, manufactures and markets patented, superpulsed laser technology utilized in biostimulation and biodestruction applications. Theralase technology is safe and effective in treating pain, inflammation and for tissue regeneration of neural muscular skeletal conditions and tissue healing in both humans and animals. Theralase also develops patented Photo Dynamic Compound (PDC) technology focused at targeting and destroying cancers, bacteria and viruses when light activated by Theralase’s proprietary and patented laser technologies.
For further information please visit www.theralase.com , regulatory filings may be viewed by visiting www.sedar.com.
This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchanges) accepts responsibility for the adequacy or accuracy of this release.
For More Information
President & CEO,
416-447-8455 ext. 225
Director of Investor Relations,
416-447-8455 ext. 262