PositiveID acquires intellectual property rights and assets of Easy Check Medical Diagnostics

PositiveID CorporationFeb 17 2010

PositiveID Corporation ("PositiveID" or the “Company”) (NASDAQ:PSID) announced today that it has acquired intellectual property rights and assets of Easy Check Medical Diagnostics, LLC, to expand its portfolio of non-invasive glucose-level testing products and diabetes management tools under development. Easy Check has two primary products under development: the Easy Check breath glucose detection system and the iGlucose™ wireless communication device.

The Easy Check breath glucose test, currently under development, is a non-invasive glucose detection system that measures acetone levels in a patient’s exhaled breath. The association between acetone levels in the breath and glucose is well documented, but previous data on the acetone/glucose correlation has been insufficient for reliable statistics. Easy Check’s breath glucose detection system combines a proprietary chemical mixture of natrium nitroprussid with breath exhalate, which is intended to create a new molecular compound that can be measured with its patent pending technology. The Company believes that the use of a heavy molecule to generate a chemical reaction that can be reliably measured may prove the close correlation between acetone concentrations found in a patient’s exhaled breath and glucose found in his or her blood. This could eliminate a patient’s need to prick his or her finger multiple times per day to get a blood sugar reading.

Easy Check’s other product under development, its iGlucose system, uses wireless SMS messaging to automatically communicate a diabetic’s glucose readings to the iGlucose online database. iGlucose is intended to provide next generation, real-time data to improve diabetes management and help ensure patient compliance, data accuracy and insurance reimbursement. In addition, PositiveID believes that the iGlucose wireless communication device is the first to address the Medicare requirement for durable medical equipment manufacturers and pharmacies to maintain glucose level logs and records for the millions of high-frequency diabetes patients.

Benjamin Atkin, the founder of Easy Check Medical Diagnostics, said, “I am excited to become a part of PositiveID, an innovative healthcare identification and technology company focused on developing solutions to some of today’s most urgent healthcare needs. By joining forces with PositiveID and leveraging their experience in bringing products to market, we will be able to accelerate the path to commercialization for our Easy Check breath glucose test and our iGlucose communication device.”

PositiveID, in conjunction with development partner Receptors LLC (“Receptors”), is also developing an in vivo glucose-sensing RFID microchip to detect glucose levels in the human body. PositiveID and Receptors are currently in Phase II development, the goal of which is to develop a proof-of-principal sensing system consisting of a Combinatorial Artificial Receptors Array (CARA™) modified support and its complementary fluorophore labeled synthetic competitor agent. The companies expect that this sensing system will demonstrate a glucose concentration response in model blood and interstitial fluid matrices. Phase II is expected to be completed by mid-2010 and will build on Phase I, which successfully demonstrated the application of the glucose-sensing system to the detection of glucose levels.

Scott R. Silverman, Chairman and CEO of PositiveID, stated, “As we continue the development of our glucose-sensing microchip with Receptors, we believe the acquisition of the intellectual property and assets of Easy Check Medical Diagnostics, LLC provides complementary, non-invasive testing products and wireless communication tools that can position us as a significant player in diabetes management. Existing solutions in diabetes care are painful and have mediocre compliance rates. With our current portfolio of products under development, we are hopeful we can improve diabetics’ lives while helping them manage their healthy glucose levels, thereby decreasing the risk of diabetes-related complications and reducing medical costs.”

According to a November 2009 study by researchers at the University of Chicago published in the journal Diabetes Care, the number of diabetics in the U.S., which currently stands at 23.7 million, may almost double in 25 years, and the annual cost of treating them may triple to $336 billion.