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Positron to build one-of-a-kind high-energy radiopharmaceutical facility in Indiana

|Includes: Positron Corp. (POSC)

Positron Corp (OTCBB:POSC) said Friday that it has signed an informal agreement with the City of Noblesville, Indiana to develop a new, high energy radiopharmaceutical manufacturing facility.

The memorandum of understanding agreement outlines proposed economic incentives for the development of the high energy 70 MeV cyclotron project, which will also see Positron relocate its company headquarters and facilities to Noblesville.

The Indianapolis-based molecular imaging company, which specializes in the field of nuclear cardiology, sells Attrius positron emission tomography (PET) systems that can guide medical and interventional therapy in individual cardiac patients.

These systems depend on radiopharmaceuticals, which feature radioactive isotopes, and are used in the field of nuclear medicine as tracers or imaging agents in the diagnosis and treatment of many diseases, including cardiac disease.

The company has also developed a system, called PosiRx, that automates and simplifies the dose preparation and dispensing processes for radiopharmaceutical agents used in molecular imaging.

Under the terms of the new agreement, which will see Positron expand its radiopharmaceutical manufacturing capabilities for its products, the company has proposed to invest roughly $55 million in the new project, in combination with "significant economic incentives" from the City of Noblesville and the State of Indiana, it said in a statement.

This facility, once completed, will be the highest energy commercial cyclotron, used to accelerate charged particles, for isotope production within the United States, and is expected to advance Positron’s goals for the production of medical isotopes and radiopharmaceuticals used in cardiac PET imaging, diagnostic and therapeutic applications.

“The securing of critical components of the supply chain realized from this project will be considerable; we have built a solid foundation in our core cardiac imaging products and continue to vertically expand into medical isotopes and radiopharmaceuticals, allowing us to offer a complete solution for cardiac PET imaging," said CEO Patrick G. Rooney.

The plans are expected to create more than 80 jobs in Noblesville over the next three to five years, Positron said, while the city is also set to benefit from the "ripple effects" of the new facility, as additional businesses are anticipated to relocate there in the coming years as a result.

All parties involved are currently working to sign a definitive agreement for the project, which will include a proposed incentive package, subject to approval from the Council in Noblesville.