Have you researched AICX? If not, here's a start, for you. AICX, (AI = Applied Imaging), fully reporting, Nasdaq National Market - genetics analysis, new automated cancer detection system (Micrometatasis Detection System - MDS) and several other genome-based products. Unlike most genetics research companies, they have been doing real business for over 15 years, and the CEO predicts profitability, early next year.
AICX website - aicorp.com
AICX news, filings & reports - biz.yahoo.com
Applied Imaging CEO presentation, sound and slides, which fully explains Applied Imaging's products and market position - a very promising outlook, even before the more recent FDA approval for AI's MDS.
www2.vcall.com
For example, that AICX expects to be facing the opportunity of up to a half a billion dollar market for their products within another year or two.
More recently - FDA Clears Applied Imaging System for the Detection of Micrometastic Cancer Cells
biz.yahoo.com
From, "The Wall Street Transcripts," Jack Goldstein,
CEO Interview - published August 14th, 2000
twst.com
Excerpts, as follows:
(Introduction of Applied Imaging's CEO) - "Dr. Goldstein has 26 years of management experience at leading companies in the diagnostic industry. From 1986 to 1997, Dr. Goldstein worked for Johnson & Johnson in various executive management positions, including President of Ortho Diagnostic Systems, Inc. and Executive Vice President of Professional Diagnostics at Johnson & Johnson world headquarters. Before joining Johnson & Johnson in 1986, Dr. Goldstein served in senior management positions at Baxter Health Care Corporation and American Home Products Corporation. Dr. Goldstein has a PhD in Microbiology and is Board Certified in Public Health by the American Board of Medical Microbiology."
Words from the CEO, Dr. Goldstein - "Last year we acquired our biggest competitor, which was the instrument business of Vysis. We have consolidated that business into ours, and it significantly improved our business and operational effectiveness. On July 5 we announced the acquisition of the imaging business of a company called PSI, or Perceptive Scientific Instruments. We've acquired that business and are well along the way of executing our strategy to consolidate this fragmented market."
"The second part of our strategy is to move very aggressively into the cancer and cancer genetics market. As you know, there's a tremendous explosion in the field of genomics with the sequencing of the human genome and some of the genomes of animals and plants as well. /// … So the explosion of knowledge in the area of genetics, and cancer genetics particularly, is where we're really focusing the company."
"Last year we came out with a new instrument system that we call Genus™, which was designed specifically for the chromosome analysis of plants and animals. This is used in the genetic engineering of plants and in the selection of specific traits of animals. Prior to this automated system, there really was nothing out there to address this particular market."
Question from the interviewer: Do you expect any significant changes in your sector of the market in the next couple of years? If so, how do you think you could respond to those changes?
Dr. Goldstein: I'll go back to what I was talking about before. I believe we will see significant changes, driven by the human genome project and the sequencing of genes in animals and plants. This is resulting in an explosion of information. It's almost like the Industrial Revolution in the 19th Century, so this is the Genetic Revolution. With this we will see a tremendous number of additional drug targets, more drugs associated with the definition of these diseases from a genetic standpoint, and, we think, a tremendous increase in the need for the kind of tools that we make. We believe the market is going to explode.
Interviewer: Over the next few years, what do you see as the rate of gain in sales and earnings for Applied Imaging?
Dr. Goldstein: We grew over 20% last year. Our first quarter revenue for this year was up 38%, and we believe that we're going to continue at those levels. I think you'll see a sustained growth over the course of the next few years. And in terms of earnings, we're looking to be profitable next year.
Interviewer: Would you say that you have the management team in place to accomplish your goals?
Dr. Goldstein: "Well, we have brought together a very experienced management team. For example, I've been in the business for about 26 years. I spent most of my career at Johnson & Johnson, where I was President of Ortho Diagnostics, which is the Diagnostics Division of J&J. And then I came out here and took over as CEO of Applied Imaging. I brought along with me, very soon after I came into the company, a gentleman by the name of Carl Hull. Carl came from Abbott, and Abbott was a key competitor of J&J. I brought Carl in as VP of Marketing and Sales, and last year we made Carl President and COO. At that time, we also brought in two very experienced marketing and sales professionals, one in the US and one overseas, again, two people whom both Carl and I knew pretty well. Both of them were either from J&J or Abbott at one point in their careers, and they have been executing the plan on the ground and have really been making the numbers. Lastly, a couple of months ago, we brought in Barry Hotchkies as CFO. Barry has over 30 years of experience and was the CFO of the Berkeley National Laboratory, and prior to that, he was a VP of Finance of W.R. Grace & Co. So we're really fortunate to have a very good and very experienced team. In addition, we have a very good Board. For example, on our Board - and one of the reasons why I came to Applied Imaging - we have Kirk Raab, who was the prior President of Abbott and prior CEO of Genentech. We have Andre Marion, who was the founder and CEO of Applied Biosystems. And lastly, we have someone with whom I worked while I was at J&J. He was one of the founders and a Vice President of Chiron Corporation, Pablo Valenzuela. So we really have the right people in terms of the staff here and on the Board to run the company well. They are big names in the industry, and they participate in the company."
Interviewer: What would you say long-term investors should focus on in reading your financial reports at this time?
Dr. Goldstein: "I would focus on a number of things. The first one is the growth of the markets that we are in, and the explosion in the field of genetics and cancer. Second, I'd look at our revenue growth and the way that we're managing the company to be profitable next year. So I think when you look at the leveraging of the resources that we have, look at our top-line growth, look at our bottom line moving toward profitability, investors can easily get the idea of where we're going."
Interviewer: And would you say you are a global company?
Dr. Goldstein: Yes. Actually, 60% of our sales are outside of the US, and 40% in the US. I think that's pretty typical for an international medical company.
Interviewer: Do you have any thoughts or comments about your stock price at this time?
Dr. Goldstein: "I think everybody would say their price is too low. Our view is that our stock is very much undervalued One of the problems is that biotech and genetics have not been in the limelight of the investment community since, probably, around 1996 or 1997. And mainly because of disappointments in that particular market, our stock price has languished, and as a result, we don't really have any coverage. And without coverage, it's hard for people to know what you're doing and it's hard to get visibility. So we believe that we're highly undervalued. We are working to increase visibility and get people to know us."
Interviewer: So will you continue to try to get the message out?
Dr. Goldstein: "We're trying to get the message out in every avenue that we can. At this juncture, meeting with every analyst and institutional investor that we can here on the West Coast, and in addition, in New York, Chicago, Milwaukee and Minneapolis, some of the bigger centers. We are having luncheons with stockbrokers to get to the retail market."
Interviewer: Is there anything else you want to discuss or highlight?
Dr. Goldstein: "In conclusion, we are the leader in image analysis in genetics, in cancer and prenatal genetics. We have expanded into cancer pathology, particularly in the spread of cancer or metastatic disease. And I think it's important to note that we have introduced a product called the MDS for the detection of cancer micrometasteses that we believe gives us access to well over a $300-million market. The company is moving in the right direction; we're moving toward profitability. Our sales are increasing. We have a solid cash position. We have low-technological risk, and we're moving the company forward."
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Again, FYI, the interview (excerpted above), was published, Aug 14th, just a few of weeks ago (however, before the news release of FDA approval for AI's MDS.
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Applied Imaging - President: Moving to New Markets
Aug 11, 2000 (BUSINESS WIRE) -- Applied Imaging President and COO Carl Hull, says his firm's Medical Imaging business sees big potential in cancer cell analysis. The firm is growing 38 percent year on year, and is close to profitability.
For the complete streaming video story, users should access
on24.com
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Applied Imaging Is Granted Patent for a Method to Analyze DNA from Rare Cells, Including Cancer Cells
SANTA CLARA, Calif., July 19 /PRNewswire/ -- Applied Imaging Corp. (Nasdaq: AICX
- news) today announced that the U.S. Patent and Trademark Office (PTO) has issued Patent No. 6,087,134 entitled ``Method for Analyzing DNA from a Rare Cell in a Cell Population.'' The newly issued patent relates to a method of isolating and subsequently analyzing the DNA in single cells (including cancer cells) from a larger population of normal cells. The isolation and analysis of single cancer cells is critically important in cancer research for the discovery of genes involved in the disease as well as in the identification of new cancer markers.
Applied Imaging CEO Dr. Jack Goldstein stated, ``This innovative technology greatly augments the analysis capabilities of our new instruments developed for cancer pathology. Using this technology with our MDS(TM) automated imaging system, single cancer cells can be identified and isolated from a population of normal cells. Cancer researchers can then perform molecular analyses, including polymerase chain reaction (PCR) and other studies, on purified cancer cell populations rather than on mixed cell populations.''
biz.yahoo.com
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The research is readily available to understand why AICX has gone up recently, and could continue to go up more in the near term - albeit with a few relative trading consolidations and adjustments along with general market conditions. As the CEO has said in the recent interviews, he has begun meeting with market analysts - he considers AICX to be under-priced, and he is trying to get the word out, about the very good outlook for increase in AICX shareholder value, going forward.
Of course, all individual investors must make their own conclusions.
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