This past week we introduced SpectraScience (OTCBB: SCIE) to our readers

News for SpectraScience (SCIE)

We want to disclose that Tommy Thompson sits on the board of directors for SpectraScience and certainly has a bias, but his perspective on the business and its opportunity is so much of the reason, in his own words that he has joined the team anyhow. It is conventional wisdom that development stage and start-up companies success is to a great extend determined by the caliber of the management team.

In this case, SpectraScience is well positioned with a CEO, Jim Hitchin, who successfully built Infrasonics into a company demonstrating compound revenue growth of 62% during its 15-year life before being sold to a competitor for 2.5x revenue. In addition to having the prominent healthcare expert Thompson on the board, SpectraScience has noted healthcare sector investor John Pappajohn and former Executive VP and CEO of ScrippsHealth, Stanley Papplebaum (M.D., MBA) on board as well. Pappajohn has been involved in more than 100 start-ups and has served as a Director in more than 40 public companies.

So we feel pretty confident, that, as much as the business can be set up for success by sheer pedigree, that SpectraScience fits the profile.

And then there is the technology itself. We have previously remarked that SpectraScience's LUMA and WavSTAT devices are proven to provide higher sensitivity in the cancer screening process. This results in higher efficiency, reduced costs and the opportunity to increase patient inflow to the physician, as importantly, more accurate and earlier diagnosis to the patient.

The market for prospective screening patients is not getting any smaller, with the aging population, and we expect it to continue to expand. This will only put more stress on a limited amount of physicians to find more effective and efficient screening tools. This is exactly where SpectraScience is a value-add.

From a financial performance standpoint, we are looking forward to seeing a ramp in sales as the company has been vocal through its press releases that it is moving from R&D into commercialization. As with any transition, we would expect the sales cycle to initially run longer and then shorten as the products are validated in the marketplace.

In the past couple quarters, it has opened up sales channels into both Czechoslovakia and Italy, which should bode well for WavSTAT sales. Most recent, the company announced that the University of Iowa will begin using its LUMA device. We are hopeful that the company will be able to make inroads into larger healthcare organizations such as Kaiser, which would be a great fit, in our opinion and importantly, it would drive volume sales.

We would also note that SpectraScience filled a critical sales void in June, adding a new VP of Sales, Christopher Jackson to the mix. Jackson is proven building medical device companies of this size, having grown sales of a previous business, Adeza, from $750 thousand in annual sales to more than $44 million, expanding its sales force from 4 to 75 people. So we think that the pieces are in place.

The stock has been trading in a range between $0.48 and $0.75 over the past couple of months, closing yesterday at $0.56. The news has only been getting more consistent and more promising. Yesterday's announcement that it has been awarded another patent, in our opinion, further mitigates risk at the current level by adding more value to the company's broadening IP portfolio. It is further demonstrative that management is focused on protecting its investment as it accelerates into commercialization and sales.

Disclaimer Note: Outcast, Inc. expects to be paid a fee of $6,000 for PR services and $5,400 for website development by SpectraScience. SCPEditor is associated with Hayden Communications, which is a corporate communications representative of SpectraScience.