Jul 3 2007
NanoSensors, Inc., a nanotechnology development company that is developing a biosensor device to detect e.coli and salmonella announced today an update regarding its product development timeline for its biosensor. The Company stated that although it had received multiple prototypes of its e.coli biosensor for field testing from its contract manufacturer, due to its limited personnel and financial resources, it has not yet been able to commence field testing the prototype of its biosensor product as it had previously expected.
Although the Company continues to review multiple alternatives in order to strengthen its internal resources, the Company has determined to also explore entering into strategic relationships with a third party in order to facilitate the testing and commercialization of its biosensor product. In order to maximize its ability to pursue bringing a biosensor device to market, the Company will evaluate potential relationships with a range of third parties, including public and private corporations, non-profit organizations, academic institutions and government entities. In this regard, the Company stated that it is focused on partnering with an entity that has experience manufacturing, marketing and selling systems for testing in the clinical molecular diagnostics, industrial and bio-threat markets.
"We have decided to explore these alternatives due to our limited personnel and financial resources," stated Dr. Ted Wong, the Company's Chief Executive Officer. "While we will continue to explore means of furthering the development of our biosensor internally, we cannot foreclose the potential benefits that allying our company with a third party could bring. By working with another entity with greater financial and other resources than we have, we believe that we can significantly reduce the amount of time until we can commercialize our proposed biosensor and begin to generate revenues from our biosensor product. This will also allow us to conserve our resources and minimize our overhead expenses," continued Dr. Ted Wong.
"We continue to feel that the need for a product to detect for e.coli and salmonella in food and water is real and growing as has been evidenced by the three major e.coli outbreaks in 2006 and 2007: one involving tainted produce served at Taco Bell restaurants, the second involving washed-and-bagged spinach from Natural Selection Foods, (collectively these two incidents caused deaths and hundreds of illnesses across 19 states). The third and most recent outbreak involved the United Food Group recalling 5.7 million pounds (2,850 tons) of ground beef that sickened 14 people," Dr. Wong added.
The Center for Disease Control estimates that there are 76 million cases of food poisoning a year resulting in 325,000 hospitalizations and 5,000 deaths. Food poisoning is caused by food-borne pathogens such as bacillus cereus, campylobacter jejuni, e.coli and streptococcus. The Company' research indicates that there is not a product out on the market that is easy to use and provides timely results. The current process to detect for e.coli is through a bio-chemical method and colony counts to determine the level of contamination and takes up to four days. No assurances can be given that the Company will be able to locate a third party with which to pursue the commercialization of its biosensor, that any negotiations with a third party will result in the consummation of a strategic transaction or that the anticipated benefits of a strategic transaction will ultimately be realized.