LOS ANGELES, June 24 /PRNewswire-FirstCall/ -- InstaCare Corp. (OTC Bulletin Board: ISCR) a leading provider of prescription drugs, home testing products for the chronically ill, a leading fulfillment provider of direct to patient diabetes programs, and a leading developer of revolutionary cell phone centric e-health products and technologies, today announced that its operating subsidiary, Pharma Tech Solutions, Inc., has signed an exclusive five-year agreement to distribute a novel at-home diagnostic product targeted at an existing, FDA approved platform for in-home diabetes testing. This new diagnostic product will be targeted at diabetics already a part of the existing $9.8 billion at-home testing market.
The new diagnostic product is comparable to the existing consumable provided by the platform manufacturer, but priced significantly (50%) lower. This new diagnostic, exclusively distributed by InstaCare's subsidiary, will be the sole competing product available on the market. Coupled with its agreement with the worldwide distributor, the Company expects immediate and substantial revenue streams and anticipates its market share to reach 5% in 2012. The $9.8 billion at-home diagnostic testing market is currently growing at rates in excess of 20% per year and is expected to reach $12 billion by 2012.
"We are excited to expand our distribution business with a proprietary product that will sell exclusively into an existing, large and extremely profitable market segment," commented Keith Berman, President of Pharma Tech Solutions, Inc. and CFO of InstaCare. "Much like a generic drug introduced to target a massive market opportunity with a lower-cost offering, this unique product brings state-of-the-art science and a much lower cost structure, and a much higher profit base to an established and growing $9.8 billion industry."
Robert Jagunich, Secretary of Pharma Tech Solutions, Inc. commented, "The existing diagnostic market segment, which has not seen significant innovation in more than five years, currently drives worldwide revenues of nearly $10 billion, in a market that has averaged 20%-plus annual growth over the last five years. We expect to provide a much lower-cost diagnostic to this large market with superior performance, enabling us to capture at least a 5% share of the market within three years. Moreover, this agreement provides for much higher profit margins to our other distribution agreements, giving us the opportunity to greatly expand our revenue base and our overall profitability as we capture market share."
Mr. Jagunich continued, "Millions of diabetics currently own this platform, using it to test glucose levels at home on a daily basis. The consumable portion of this market, for this platform is estimated at $9.8 billion annually, and the market continues to grow as additional consumers purchase the platform. Each test requires a disposable strip, and most diabetics use multiple strips each and every day.
Mr. Berman concluded, "This product addition to our existing portfolio of brand-name products will allow us to achieve enhanced cash flow and profitability, allowing the company to make additional investment in our cell phone centric medical IT products. We are also working on additional agreements for future products directed to another $4 billion segment of the at-home testing market. We look forward to sharing this information with shareholders in the next shareholder conference call."
For more information about InstaCare Corp., Pharma Tech Solutions, Inc. and/or its revolutionary MD@Hand cell phone centric technologies, please visit the InstaCare web site www.InstaCare.net or www.pharmatechdirect.com, or call the company at (805) 446-2973.
This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.
Keith Berman, Secretary and CFO
2660 Townsgate Road
Westlake Village, CA 91361
Ph : 805-446-2973
SOURCE InstaCare Corp.