As any investor will tell you a company will only succeed if there is a demand for the product that it sells. Led Medical Diagnostics Inc (LEDIF in the United States) is a company that sells a medical screening device that can provide early detection for oral cancer. As the rates of cancer continue to increase throughout the world the market for this medical technology will easily be sustained thus, justifying the investment.
Oral Cancer
The device designed and manufactured by LED Dental (a subsidiary of Led Medical) is known as the VELscope Vx Enhanced Oral Assessment System. It was the first system in the world to use tissue fluorescence visualization technology”blue light” to detect various cancers of the mouth. More than 25 million screenings have already been performed by over 12,000 dentists in 23 countries.
This medical instrument is marketed mostly to dentists and is available through major dental supply distributors and is used to conduct more screenings for oral cancer and other oral diseases than any other supportive device.
Led Medical Diagnostics Inc is based in British Colombia, Canada and was founded in 2003. The company is a leading developer of LED-based visualization technologies for the medical industry. It was able to develop this technology through a partnership with the British Colombia Cancer Agency and the further backing of the National Institutes of Health in the United States with more than $50 million USD in funding. Various other United States and Canadian government and private organizations contributed to the effort as well.
Memphis Tennessee
Led Medical is attempting to expand its presence by entering in partnerships with schools and universities. The latest example of this was the announcement made this week that the company subsidiary LED Dental is now partnering with The University of Tennessee Health Science Center of College of Dentistry. This will allow students, residents, and faculty access to new and sophisticated imaging technology. The partnership will provide hands on training with RAYSCAN a – Expert which is a multi-function digital imaging system.
Light Enhanced Diagnostics (LED) Dental through the VELscope is able to help dentists identify viral, fungal, and bacterial infections. In addition to different types of cancers and tumors any type of inflammation can now be visible to dentists.
In December of 2013 Led Medical entered into 2 new non-exclusive partnerships for distribution with Benco Dental Supply and Burkhart Dental Supply both companies are located in the United States.
In January of this year a nonexclusive distributive partnership was signed with Patterson Dental in both the American and Canadian markets.
Cancer of the Mouth
The same month it was announced that the company had signed an agreement with BC Cancer Agency to create and commercialize a progression-risk assessment test for oral cancer. The test is based on a quantifiable genetic phenomenon known as “Loss of Heterozygosity” or LOH.
Earlier this month Led Medical announced that the LED Imaging division of its wholly owned subsidiary Led Dental is partnering with Ray Co., LTD, a subsidiary of Samsung, to sell, install and provide support for the RAYSCAN a – Expert dental imaging system.
A major challenge for the company this year is to move from a single product strategy (which it owns the patent) to a more diverse portfolio of digital imaging products.
As of December 31, 2013 working capital for the company Led Medical was $4,445,795 USD (United States Dollar),which included cash of $4,358,986. A comparison for a year earlier (12/31/2012) was a negative working capital of $96.749 which included cash of $969,584.
The company reported revenue of $2,519,574 USD for 2013 as compared to $6,312.754 USD in 2012. Net loss was $6,955,217 USD for 2013 as compared to a net loss of $866,933 for 2012. This is a result of an over reliance on a single product for too much of the expected generated growth of the company. Now that the company is diversifying its product line and distribution efforts better growth potential can be expected.
As of April 22, 2014 the company stock opened at .5050. The previous close was 0.4952. The days range for the penny stock was 0.46 to 0.5085. The volume was 154,830.
A month ago the stock was at 0.42 a share
The 52 week range for the stock has been from a low of 0.1950 to a high of 0.5350. The gain for the stock for this time period was +85.82%.
Although there are a number of issues in relation to Led Medical Diagnostics considering the future demand for cancer screening and related technologies, it is the belief of this writer that the company has good forthcoming earning potential.