Securing key medical radioisotope(s) is the natural next step in the Company’s progression, which is essential toward integrating the key components within the cardiac PET supply channel.
Given the current shortage of medical radioisotope production and an increasing annual demand for medical imaging, the proposed facility will be unique in that it will be capable of producing isotopes that are not available, or have limited availability, from other commercial sources in the United States or throughout the world.
This high-energy/high-current cyclotron facility will be used primarily for the production of medical radioisotopes in PET diagnostic imaging and radiotherapy. Sr-82 will be the primary radioisotope produced at this facility. Sr-82 is in short supply and currently only produced in the U.S. by the Department of Energy (DOE) National Laboratories.
Upon completion, this 70 MeV higher-energy cyclotron will be capable of producing enough Sr-82 to supply generators for our current customer base with sufficient excess to meet the current and future North American demand. This is a capital-intensive project that can eliminate the largest market-limiting factor in cardiac PET market growth.
· This $65 Million, 70 MeV cyclotron project, will be executed through a wholly owned subsidiary, Positron Isotopes Corporation (PIC). PIC expects to receive financing through a combination of debt and equity raise.
· Positron has selected IBA Molecular, of Belgium, to manufacture their 70 MeV cyclotron and has identified a number of leading engineering and architecture firms capable of designing such a facility. The facility will be located in Gary, Indiana, and will take approximately 36 months to build.
· Positron accepted an offer of economic incentives from the City of Gary, Indiana for $30 Million towards this project. Once the project is completed, in 2016, it can add to the consolidated estimated revenue, for Positron Corporation and Positron Isotopes Corporation of more than $150 Million per year.
· Positron intends to complement the cyclotron with a material processing facility, capable of isotope target manufacturing, with expansion plans for drug manufacturing.
· Positron expects that this project will: add high margin, high demand complementary products to its existing product portfolio; ensure supply that affects the demand for the Company’s focal products; improve synchronization of supply and demand along the chain of Positron’s products and reduce transaction costs. The project significantly enhances Positron’s value proposition to the nuclear cardiology end-users and ultimately, value to our shareholders.