IsoRay Is Branching Out

Summary

  • IsoRay is a specialist of brachytherapy using proprietary radioactive seeds based on Cesium-131 to cheaply, safely and effectively treat certain cancers.
  • Its main market is that for certain prostate cancer treatments and that has been affected by the pandemic, but there is a large and growing backlog.
  • The company is venturing out, treating other cancers and embarking on combination therapies and embracing new imaging methods.
  • Recent substantial share price gains and financing deals seem to have absorbed much of the near-term prospects for investors, even if the company now has cash for years to come.
  • Looking for a portfolio of ideas like this one? Members of SHU Growth Portfolio get exclusive access to our model portfolio. Get started today »

IsoRay (ISR) is a company providing brachytherapy, a therapy that uses the radiation of little seeds implanted close to tumors in order to deliver targeted ongoing radiation therapy. IsoRay has unique seeds based on Cesium-131 which are particularly suited to this.

Source: IR presentation January 2021

Here are the advantages of the company's unique Cesium-131:

  • It produces a higher intensity radiation (30.4 Kev) compared to alternatives like Palladium-103 (20.8 Kev) or Iodine-125 (28.5 Kev).
  • It has a shorter half-life (9.7 days) compared to alternatives like Palladium-103 (17 days) or Iodine-125 (60 days).
  • It needs just 33 days to deliver 90% of its dose compared to 58 days for Palladium-103 and 204 days for Iodine-125.
  • As a result, it is detectable in the body for 97 days compared to Palladium-103's 107 days and Iodine-125 600 days.

Cesium-131 was cleared by the FDA in 2003 for a host of cancers, including prostate cancer, brain cancer, breast cancer, colorectal cancer, gynecological cancer, lung cancer, liver cancer, ocular melanoma and pancreatic cancer.

The company began the production of Cesium-131 seeds in 2004, the production process is proprietary, from the 10-K:

Cesium-131 is a radioactive isotope that can be produced by the neutron bombardment of Barium-130 (Ba-130). To produce the Cesium-131 brachytherapy seed, a proprietary chemical separation is performed that results in 99.9% pure Cesium-131 isotope. Purified Cesium-131 is adsorbed onto a ceramic core containing a gold X-ray marker. This internal core assembly is subsequently inserted into a titanium capsule that is then welded shut and becomes a sealed radioactive source and a biocompatible medical device.

It sources the isotope from Russian supplier (JSC Isotope which has the INM and RIAR reactors) but they do have contingency plans, for instance for when that reactor is down, as happened a couple of years ago.

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This article was written by

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Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in ISR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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