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BEVERLY HILLS, Calif.--(BUSINESS
WIRE)--Spectral Molecular Imaging, a wholly-owned subsidiary of
Cascade Technologies, Inc. (OTCBB: CSDT - News), has released a
letter to shareholders from Chairman and founder, Daniel L. Farkas,
Ph.D. In the letter, Dr. Farkas introduces the Company's proprietary
technology and its plans to develop a line of next-generation
medical diagnostic devices in the field of cancer and for other
medical needs:
Dear shareholders,
I'm pleased to take this opportunity to introduce you to Spectral
Molecular Imaging (SMI), a development stage medical device company
we established to commercialize technology that can provide very
early screening for and diagnosis of cancer and other major disease.
We believe SMI's products may enable doctors to save lives and
improve treatment outcomes for tens of thousands of cancer patients
every year.
Pursuant to an agreement we entered into as of March 8, 2010, we
became a public company through a merger transaction with Cascade
Technologies, Inc. In this letter, I'd like to provide some basic
background on SMI's vision, technology and the important medical
needs and markets we're addressing.
The Science of Spectral Imaging
SMI's technology is based on imaging and analysis of human tissue
using light. Light is the richest, most versatile imaging radiation
at our disposal, able to create contrast not only by intensity, as
with x-rays and most other medical imaging methods, but also by
wavelength, polarization, coherence and other properties. The
simultaneous acquisition of spectral and topological information
from a target is known as spectral imaging. The result is an image
“cube,” containing a full spectrum at every point (pixel) in the
image, whether microscopic or macroscopic. This spectral signature
can be used for image classification, thus enabling the objective
and reproducible achievement of a critical step in imaging:
segmentation, or the differentiation of features of interest – in
our case, in tissues of the body.
SMI's technology was originally developed for satellite
reconnaissance, to analyze and understand photographs of earth taken
from space. The same principles allow us to image the human body to
differentiate medically significant features, down to tissue,
cellular and even molecular levels. This spectral imaging can be
conducted non-invasively for procedures such as skin cancer
screening, or in minimally invasive procedures using endoscopes to
examine internal tissues for other diseases or conditions. More
importantly, spectral imaging can provide more detailed diagnostic
information to doctors than is possible under current medical
practices, and can do so far earlier – factors that can mean the
difference between life and death.
Addressing Large Unmet Medical Needs
At present, we're developing medical devices to address several
important medical needs and markets, with three products in the
pipeline:
- MelaSpect(tm), to address
the massive and increasing need for early, reliable,
non-invasive screening for and diagnosis of melanoma (the
deadliest skin cancer);
- EndoSpect(tm), a
spectral/hyperspectral imaging endoscope to investigate tissue
status inside the body during gastro-intestinal and pulmonary
endoscopy and minimally invasive surgery, to provide early
detection of cancer and pre-cancerous conditions; and,
- OxySpect(tm), a device to
map tissue oxygenation in a broad range of organs and body
locations, both during and after surgery.
Fighting Melanoma
SMI intends to bring MelaSpect(tm) to
commercial viability first. According to the Skin Cancer Foundation,
cancer of the skin is the most common type of cancer in the US, with
more than one million Americans diagnosed every year. The American
Cancer Society projects more than 10,000 deaths annually from skin
cancer. There are three major types of skin cancer: basal cell,
accounting for approximately 75% of skin cancer cases; squamous
cell, totaling about 20% of skin cancer cases; and melanoma, which
accounts for an estimated 4% of skin cancers, but is responsible for
approximately 79% of skin cancer deaths. In 2004, more than $1
billion was spent on non-melanoma skin cancers in the US. This year
worldwide spending on melanoma alone is expected to reach $6
billion.
Unfortunately, melanoma is also the fastest growing cancer both in
the US and worldwide, and the most common in young adults aged
20-30. The statistics are sobering: since 1980 there has been a 50%
increase of melanoma in young women, making melanoma the primary
cause of cancer death in women 25-30. Survival rates with melanoma
are extremely strongly dependent on stage of diagnosis, and early
detection remains the only effective means of successfully fighting
the disease.
Currently, doctors rely on visual examination of patients to
identify suspicious skin tissues, a process that often leads to
unnecessary biopsies and too-late diagnoses. Unfortunately,
melanomas can mimic benign lesions that are overwhelmingly more
common, and misdiagnosis or delay in the diagnosis of melanoma can
occur. In fact, misdiagnosis of melanoma is one of the most common
causes for malpractice litigation brought against medical
practitioners, (13% of all claims from 1995-2001), and awards tend
to be large.
SMI's MelaSpect(tm) device would increase sensitivity and
specificity of detection and spot problem areas (early melanoma)
reliably and much earlier than current methods. Our objective is for
MelaSpect(tm) to become an integral part of the standard of care in
melanoma detection.
Addressing other Very Large Medical
Markets
Similarly, other medical devices we have in development are intended
to provide earlier and more reliable diagnosis for other serious
diseases and cancers, such as Barrett's esophagus (a condition
caused by chronic acid reflux that can lead to esophageal cancer)
and lung cancer. In future communications I intend to explain more
about these and other vital medical needs and multibillion-dollar
markets that SMI will work to address.
We believe in the uniqueness and efficacy of our technology and feel
that the products we have in development will prove capable of
saving lives and improving patient health. As an added benefit we
also expect that when our products are generally available in
commercial use medical costs for diagnosis and treatment can be
lowered.
I want to thank you for your attention and support, and I invite our
shareholders and all other interested persons to review SMI's
technology and to follow our progress in the months to come.
Sincerely,
Daniel L. Farkas, Ph.D.
Founder and Chairman, Spectral Molecular Imaging, Inc.
SMI Products
Cancer of the skin is the most common
type of cancer in the US, with more than one million Americans
diagnosed every year. Melanoma is responsible for approximately 75%
of all deaths from skin cancer; it is also the fastest growing
cancer in the U.S. and worldwide, its incidence increasing 20-fold
since 1935, to 1 in 74 people in 2000. The American Cancer Society
projects over 10,000 deaths annually from skin cancer. Early
detection remains the only effective means of fighting melanoma, but
at present dermatologists rely primarily on visual examinations of
patients to identify suspicious skin tissues. Unfortunately,
melanomas can mimic benign lesions that are overwhelmingly more
common, and misdiagnosis of melanoma can occur, with deadly
consequences.
Decision making in minimally invasive surgery currently relies on
the (subjective) assessment of tissue health by the surgeon (in real
time) and a pathologist (off-line). This process needs to be
accelerated and made more reliable for better outcomes as well as
savings.
Tissue health mapping is important in clinical areas ranging from
open-heart surgery to stroke wound/burn healing, and could greatly
benefit from topologically resolved oxygenation data.
MelaSpect™
The MelaSpect™ device addresses the massive need for early,
reliable, non-invasive diagnosis of and screening for skin cancer.
We plan to bring the MelaSpect™ device to commercial viability
first.
EndoSpect™
The EndoSpect™ device is a hyperspectral imaging endoscope able to
assess tissue status during minimally invasive surgery
(gastro-intestinal, pulmonary or other endoscopy). Early detection,
diagnosis and outlining of cancer is enabled by mapping the sizes of
nuclei in cells, without the use of contrast agents, by light
scattering.
OxySpect™
The OxySpect™ device maps tissue oxygenation by spectral imaging in
a broad range of body locations, to assist in assessing tissue
health during and after surgical intervention.
SMI
Technologies
The development of SMI’s technology is
expected to significantly improve long-term patient outcomes while
substantially reducing overall costs for the healthcare system. In
2004, domestic spending on non-melanoma skin cancer alone topped $1
billion, and by 2010 worldwide spending on melanoma is expected to
reach $6 billion. Since approximately 62% of melanomas and 45% of
melanoma deaths occur prior to age 65, melanoma places significant
burdens on the healthcare system well beyond Medicare. Additionally,
published reports estimate the total current annual U.S. market for
endoscopic-imaging products at approximately $6 billion/year for
gastro-intestinal and lung applications alone.
Intellectual Property
SMI has entered into a license agreement with Carnegie Mellon
University for exclusive worldwide license to patents issued to
Carnegie Mellon (with our chairman as main inventor). The uses
licensed to SMI include spectral imaging for all clinical medical
applications, including endoscopy and dermoscopy. In addition, SMI
owns as assignee the rights to a U.S. patent covering a non-invasive
technique for the potential early detection of cancer using
imaging-elastic-scattering spectroscopy.
Applications
SMI's spectral-optical-imaging technology has multiple applications,
end-user markets, and potential revenue streams. The company's
devices are intended to harness its acousto-optic-tunable filter
platform, generating revenue from unit sales, recurring items, and
tangential services, including high profit margin software. SMI also
intends to generate income from telemedicine (dermatology), device
maintenance, optional feature modules, and remote terminals. The
company's objective is for MelaSpect™ to become an integral part of
the standard of care in melanoma detection. Additionally, SMI's
strategy will include the potential acquisition of complementary
products and technologies in the dermatological arena. The company
plans to commence a similar timeline and development plan for each
of the EndoSpect™ and OxySpect™ devices.
Investor Fact Sheet -
PDF
About Spectral
Molecular Imaging
Spectral Molecular Imaging, Inc., a wholly-owned subsidiary of
Cascade Technologies, Inc., is a development-stage, medical
imaging device company. Application of SMI’s proprietary
spectral-optical imaging technology - originally developed for
satellite reconnaissance - is expected to advance the diagnoses
of cancer and precancerous conditions. SMI is developing
non-invasive imaging systems using its patented technology for
improved clinical diagnostics, primarily in the field of cancer
pathology.
SMI’s devices utilize high-resolution
imaging, identification, and analysis of certain molecular,
cellular, and tissue features via patented spectral-imaging
approaches. We also intend to provide services related to our
primary products, including software modules and maintenance
services, and to develop optical diagnostic products that operate in
conjunction with surgical and/or evaluation procedures in real time.
Our technology is expected to enable
early detection and more reliable diagnosis of various diseases,
including skin cancers such as melanoma, Barrett’s esophagus (a
condition caused by chronic acid reflux that can lead to esophageal
cancer) and lung cancer. The development of this technology is
expected to significantly improve long-term patient outcomes while
substantially reducing overall costs for the healthcare system. For
more information, please visit
http://www.spectralmi.com.
Official Website:
www.spectralmi.com
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