LOS ANGELES, April 18, 2011 /PRNewswire/ -- InstaCare Corp. (OTCQB: ISCR) a leading provider of prescription diagnostics, 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 significantly expanded its agreement to control, manage and distribute the novel at-home diagnostic product, the Shasta Genstrip. This diagnostic consumable is targeted at an existing, FDA-approved platform for in-home diabetes testing, the market leader in the $20 billion worldwide market.
The revised and expanded agreement provides Pharma Tech Solutions ("Pharma Tech") with worldwide distribution rights to all markets and complete control of the Genstrip diabetes diagnostic product, including regulatory responsibility with the US FDA, Medicare and Medicaid, plus the European Economic Area approval of the mandatory "CE" (Conformite Europeenne) conformance mark.
"This expanded agreement provides us with greater control and significantly broadens our market opportunity, accelerating our pathway to market and increasing the ultimate potential of this business line," commented Keith Berman, President of Pharma Tech Solutions, Inc. and CFO of InstaCare. "This increased control is of paramount importance, as it allows us to drive the regulatory approval process and better manage the overall initiative. We are moving with all due haste while simultaneously building a distribution, sales and marketing infrastructure necessary to support this game-changing product. "
This new diagnostic product will be targeted at diabetics already a part of the world-wide at-home diabetes testing market estimated to exceed $20 billion in 2010. Shasta Genstrip, an alternative test strip, is comparable to the existing diagnostic provided by the platform manufacturer, but priced at approximately one-half the cost. This new diagnostic, exclusively managed and distributed by InstaCare's subsidiary, will be the sole competing product available on the market. Management anticipates substantial revenue streams and anticipates its market share to reach 7-10% by the end of 2012. The at-home diagnostic testing market is currently estimated to exceed $20 billion globally in 2011 (more than $10 billion in the U.S.). This market has grown historically at rates in excess of 25% per year.
"This product is ideally suited for our business, as we will market Genstrip using strategies and tactics similar to the generic drug industry as we exploit the established diagnostic platform," Mr. Berman continued. "The platform manufacturer has spent considerable resources to create a razor/razor blade model with a high-value, moderate-cost consumable. We will leverage this effort and the installed base to sell and distribute a much lower-cost consumable for this market, and we have also added exclusive international distribution rights as well as entry into domestic direct to patient (mail order) markets. This unique product brings state-of-the-art science and a much lower cost structure, and a much higher profit base, estimated to be greater than 200% higher than those margins provided under our earlier agreement with Shasta Technologies, LLC."
For more information about InstaCare Corp., Pharma Tech Solutions, Inc., Shasta Genstrip and/or its revolutionary [email protected] 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.
SOURCE InstaCare Corp.