SAN FRANCISCO, CALIFORNIA -- (Marketwire) -- 02/19/13 -- Patient Home Monitoring (PHM) (TSX VENTURE: PHM), a company focused on in-home management for patients with chronic disease, today announced it has engaged Buchanan Ingersoll & Rooney PC (www.bipc.com), a law and governmental affairs firm, to advise the company on in-licensing an INR meter for home use in the US and Canadian markets.
The Impact of a Proprietary Device
As a result of licensing a proprietary device, PHM may realize substantial benefits, including:
-- Significant increase in cash flow through reduced patient acquisition costs. The current capital cost of US $750 per patient requires almost one year of patient gross profit to recoup. PHM anticipates a significantly lower capital cost to provide its own meter, reducing the payback time to a matter of weeks rather than months.-- Enhanced gross margin by reducing disposable costs. Strip and peripheral costs, along with depreciation of the in-home meters, constitute a significant portion of PHM's direct costs. By reducing these costs, PHM hopes to realize a significant increase in gross margin well beyond the 68.4% gross margin in Q1 of fiscal 2013.-- Reduce the impact of projected reimbursement cuts. Since PHM launched commercial operations, rates for PT/INR patient self- testing have been reduced by 15%. PHM seeks to reduce reimbursement risk through strategic interventions. PHM believes that by securing a proprietary device, it will be better situated to endure reimbursement pressures.-- Increased market value of PHM. PHM closes in on its vision of being a full service chronic disease management company by securing a proprietary in-home testing device. The enterprise value of the company will increase from the improved margins, cash flow and return on equity from the proprietary in-home testing device.
Details of the Engagement
The engagement will cover both identifying an appropriate meter and formulating a plan for 510(k) approval. Initial estimates project completion during PHM's fiscal 2014 year.
Buchanan Ingersoll & Rooney PC is a large professional services firm with an FDA practice based in Washington, D.C. with expertise in medical device in-licensing and approvals. With attorneys formerly employed by the FDA and Congress, Buchanan Ingersoll & Rooney PC was one of the first firms to offer a practice exclusively focused on FDA issues. Over the past 25 years, the firm has secured 510(k) approval for a plethora of devices.
The engagement will commence immediately and will have three phases. The first phase will consist of selecting a meter sufficient for the market needs and regulatory requirements. The second phase will involve negotiating a license for the product for the US and Canadian markets. The third phase will be to acquire US and Canadian regulatory approval.
"I anticipate that securing control over a proprietary in-home testing device will improve our value proposition to the market dramatically," Dr. Jaime Gerber, CEO of PHM said, "Clearly, as we enroll patients, PHM's financial metrics will improve with decreased capital costs and increased margins. We also plan to license a meter with wireless technology which I believe will yield higher accuracy and productivity from our patient base. With approval, PHM can offer flexibility to patients with a selection of several self-testing devices."
"By focusing on securing the rights to our own meter," Continued Dr. Gerber, "PHM can offer a better overall outcome for the patient and the referring physician while increasing the financial value of the company."
PHM is a healthcare services company focused on providing in-home services for patients suffering from chronic disease. PHM's main revenue line is offered to patients on blood thinner medications such as Coumadin® or warfarin. PHM has recently announced it will embark on a process to expand services to its patient base in both the US and Canada.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Patient Home Monitoring
Managing Director, Stanmore Capital Partners, Inc