HDC to Receive a Significant Equity Position in the New Company and Royalties Paid on a Per Test Basis from Breast Cancer Tests Performed
SAVANNAH, Ga.--(BUSINESS WIRE)--Health Discovery Corporation (“HDC”) (OTCBB: HDVY) today announced that Dr. Richard Caruso will change his role with the company from Board Member to Senior Advisor in order to activate a new independent company to be able to pursue the goal of developing a superior breast cancer prognostic test using HDC’s support vector machine (SVM) technology and the cooperation of the MD Anderson Cancer Center.
Dr. Caruso stated, “I have now established a new company called Smart Personalized Medicine, LLC to pursue the goal of developing a superior breast cancer prognostic test using HDC’s SVM technology. As such, I would like to now finalize negotiations and execute a License and Development Contract with HDC in the field of breast cancer in exchange for an HDC participatory equity position in this new company and a per test royalty to be paid to HDC after successful commercialization of the new breast cancer prognostic test. If we are successful this has the opportunity to benefit the HDC shareholders. I believe that it is necessary for me to resign from the Board of Directors of HDC at this time in order to have the opportunity to attempt to independently negotiate a License and Development Agreement with HDC for Smart Personalized Medicine, LLC in the field of Breast Cancer applications. The HDC licensing attorney has advised both HDC and me that to avoid any potential conflict of interest issues in my negotiations with HDC, I should be negotiating from an independent position and not as a Member of the HDC Board of Directors. I respect that opinion and am honoring that request.”
Dr. Richard Caruso continued, “As an HDC shareholder, I remain very excited about the future of HDC and therefore I would like to continue participating in the exciting opportunities currently facing the company. Therefore, I will continue as a Senior Advisor to the company effective immediately upon my Board resignation.”
“This is a tremendous opportunity for HDC to participate with Dr. Caruso as he initiates development of a breast cancer prognostic test using HDC’s SVM technology to successfully compete with other breast cancer prognostic tests like OncotypeDX provided by Genomic Health (NasdaqGM: GHDX). This type of undertaking requires focused attention and potentially millions of dollars in funding to succeed. A primary focus of HDC currently is the successful commercial launch of our recently announced prostate cancer test. Therefore, the best opportunity to achieve success for our shareholders would be to have Dr. Caruso start a new company that is independently funded and solely focused on the development of breast cancer prognostic tests,” stated Dr. Stephen Barnhill, Chairman and CEO of Health Discovery Corporation. “With Dr. Caruso’s successful track record as current Chairman of the Board and Founder of Integra Life Sciences (NasdaqGS:IART) and honored as the National Ernst & Young Entrepreneur Of The Year in 2006, HDC shareholders should greatly benefit from his experience and determination as he sets his sights on using HDC’s SVM technology to develop a new and improved breast cancer prognostic test to predict the right treatment for the right patient at the right time – the essence of Personalized Medicine.”
About Health Discovery Corporation
Savannah-based Health Discovery Corporation (OTCBB: HDVY) is uniquely positioned in the field of pattern recognition technology. Through the application of its patent protected technology, HDC is a leader in SVM-based molecular diagnostic and prognostic test development in genomics and proteomics, as well as, digital image analysis in pathology and radiology. The Company's SVM and FGM pattern recognition tools have significant application potential in other sizable commercial markets such as oil exploration, financial markets, Internet search and spam, homeland security, and other areas where analysis of large volumes of complex data is required. www.healthdiscoverycorp.com.
This news release contains "forward-looking statements" within the meaning of Section 27a of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the management team of HDC believes that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove correct.
Health Discovery Corporation
Stephen D. Barnhill, MD, CEO, 912-443-1987