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Biotech / Medical : NSIX -- Neuromedical Systems, Inc.

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To: Pices who wrote (40)10/12/1997 8:46:00 PM
From: Daniel Rimar   of 137
 
>>>We would appreciate hearing from you about your observations of the Papnet testing system. Do you think that the system will be the coming winning choice? What is the potential of this technology (Papnet in particular)?>>>

NSIX and Papnet do have a good chance of comming out on top. Most
people in the industry think that automated Pap smear screening will be the norm in the not too distant future.

Papnet screens a standard Pap smear and records images of the 128
cells or groups of cells it considers to be the most likely to be abnormal. Then a Dat tape with the images is sent back to the lab
and viewed by a cytotechnologist. So viewable results are produced
for each individual Pap smear. The lab does not currently buy the actual machine which screens the Pap smear. The lab sends the Pap
in to NSI where they have the screening mechanism, and the DAT tape and original Pap smears are sent back to the lab.

Neopath is a system in which you are supposed to run all your Pap smears through. The machine is supposed to eliminate a certain
percentage of the Paps as likely to be normal (lets say 80%) and
the remainder as higher risk. The idea is that you would not have to manually screen the 80% likely to be normal, but only the remaining 20%. The lab buys or leases the screening machine.

Cytc Thin Prep is not an automated or computerized screening method. It is a machine which prepares Pap smears for manual screening (you could send these slides in for automated screening however). From what I've learned so far the lab can buy, lease, or pay on a per specimen bases.

Autocyte is coming on later in the game. I dont know much of anything about their automated screening process, and niether do alot
of labs at this point. They are comming in later in the game, and with Papnet already being a "lab-hold" word I think they will be fighting an uphill battle.

I think Papnet has the best chance out of the automated Pap smear screening companies, and would also say it is the most widely known
automated screening company. I think the fact that the Lab does not have to buy or maintain the screening machine gives it an advantage as well. There is no "downtime" involved with waiting for a machine to be repaired. The only equipment is the computer and software used to view the images from the DAT tape, and it is a standard PC. (DOS based, Windows 95 version comming). Cytc is very well known as well, but is not in automated screening.

Dan

Disclaimer: The above information is mearly my opinion based on my
experience, and should not be considered in any way as an endorsement
to buy, sell, hold or short any security. I own a paltry 500 shares
of NSIX.
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