Medsurge Medical Completes Acquisition Of Cryo-Genomics Ltd.
10/19/2005 5:11:09 PM
Medsurge Medical Products Corp. (MSR:TSX-V) announced today that it has closed its acquisition of Cryo-Genomics Ltd. and acquired all its rights, patents, and proprietary technologies with regards to 2 Tier Faecal Occult Blood Testing (FOBT). FOBT is the gold standard for Colorectal Cancer prevention with studies indicating that one third of all Colorectal cancer deaths can be prevented through yearly FOBT testing. World Health Organizations (WHO) and Cancer Agencies Internationally recommend that every person over the age of 50 have FOBT done annually. Medsurges 2-Tier FOBT technology is designed to better screen for human blood in feces ruling out false positives that occur from foods such as red meats, seafood, and certain vegetables. The false positive rate, as high as 14% results in unnecessary colonoscopies at a cost of $1,000 per procedure with a perforation rate of 1 to 3 per 1000 colonoscopies. In British Columbia Canada there were 360,000 single tier FOBT Tests performed last year at a cost of approximately $2.9MM($8 per test). The false positive for 2-Tier Testing is 3% according studies performed in the US by Kaiser Permanente. The savings to the B.C. Government HealthCare System are in excess of $20MM per year. The additional cost of 2-Tier Testing would be $2.2MM annually to the B.C. Government, an acceptable figure when considering the savings. Similar cost savings to the B.C. Government exist in most 1st world countries. Medsurge is looking forward to approaching the B.C. Government along with other large purchasing organizations worldwide explaining the benefits of 2-Tier Testing.
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