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Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Cisco who wrote (1184)	1/18/1998 11:22:00 AM
From: Frank Buck	Read Replies (1) \| Respond to of 1894

Cisco, <<...allows AccuMed to reduce the portion of its operational costs dedicated to continuing cytopathology R&D...>> Whatever that amount is presently should be cut in half. I suspect the analysts will cover this in ample-detail during the conference call. The one thing that we should be heartened by is this reduction along with the other $2M annual cost cuts from the previous AccuMed consolidation will really speed the profitability of AccuMed. I am suspecting that should these R&D costs "carving measures" become finalized in this quarter that the effects will be seen totally on the second '98 quarterly release. That being the case, the expected, previous $2M reduction will mean a Q-2 '98 $0.5M expense reduction along with an additional [$0.?/2 value] for this new R&D operational cost reduction. That coupled with an increase in '98 Q1-revenues should put us at breakeven. Any robust sales orders could kick the numbers into positive territory. Then we will have made the transition from a developmental company to a manufacturing/production company. If Sigmund is correct, we should then realize the benefit of the "multiple-irons" in the fire, and will be viewed more favorably, with an associated reappraisal of stock value determination. If you look at the present Company Income Statement you can see that a boost in revenues or a reduction in operating expenses will even the "level" toward break-even. If we should realize an increase in revenues and a double-reduction in operating expenses as depicted above, Cary's Fluff Analysis should look even better. The reworking of those numbers may even put the per share price into the double-digit arena. Cisco, the aforementioned links you provided indicate that cytometric evaluation of cells should provide an early indication to pre-cancerous conditions. This is a phenomenal medical landmark! Currently a tumor is detected and then evaluated for malignancy.The present regime; fine-needle aspiration (flow-cytometry) has its own perils. One being that the puncture point into a cancerous tumor can release the malignant cells throughout the system. The evaluation of the DNA measurement in an attempt at determining early pre-cancerous conditions, should definitely provide an early step in the early treatment of some cancers. Maybe NewCo should contact QLT Phototherapeutics Inc., to see if they would like to be a part of this new venture. Their FDA approved light activated cancer drug Photofrin is said to be approved for treating early stage lung cancer. That is exactly what the AcCell/Savant will be able to detect. Very exciting!! Your statement "who will need automated screening..." certainly rings true. However with a new cytometric evaluation for HPV cells, I wonder if AccuMed will not cannibalize its other developed equipment for the assisting of cytotechnologists in that determination? Frank