Investors that are considering taking a position in Allezoe Medical Holdings, Inc. (OTCBB: ALZM) based on their recent announcements detailing their agreement to acquire patent pending technology that would enable healthcare providers to “see and treat” Human Papillomavirus (HPV) and their subsequent launching of a new wholly-owned subsidiary, SureScreen Medical, Inc. that will be responsible for taking their HPV diagnostic technology through the appropriate trials and federal clearances may want to take a closer look at the company’s track record.
Just a few months ago ALZM was still trumpeting the advancements made by their wholly-owned subsidiary Organ Transplant Systems, Inc. and its “plans to redefine human organ transplantation through better preservation with its LifeCradle product line.” Despite the fact that the LifeCradle technology “has already been shown in pre-clinical studies to significantly increase preservation time and improve the condition of transplanted animal hearts compared with the current systems in use” the technology has made little progress in the most important area, obtaining FDA approval.
LifeCradle was to be the technology that redefined how organs transplants were handled and the company boasted a number of big names with impressive credentials as Board members of OTS yet there have been no new developments and it appears as if they have simply shelved their supposed dedication to “completing the FDA clearance necessary to bring this much-needed product to market.”
It was this LifeCradle technology that was responsible for boosting shares as high as 2.60 back in late March before things began to fall apart for ALZM. While ALZM tried to downplay the resignation of Tommy Thompson as a member of the Board of Directors of OTS the details that led to the resignation carried a significant amount of damage. Michael Holder, former CEO of ALZM, acknowledged “that this loss has been caused, at least in part, by an unauthorized stock promotion,” a promotion that falsely claimed Thompson was a member of the Board of Directors of Allezoe Medical Holdings.
The idea that Thompson would resign from his position at OTS simply because of an erroneous claim made by an unrelated stock promotion is certainly hard to believe unless there were some serious concerns on Thompson’s part concerning any alliance with ALZM. As quickly as Thompson’s resignation was made public shares in ALZM began to fall, sinking down to 0.65 within a week of the news.
By May shares of ALZM had stabilized a bit, holding right around the 0.70 mark, but they didn’t get a boost from their announcement that OTS had “expanded research on its LifeCradle® HR device for donor heart preservation to include a new collaboration with Duke University Medical Center.” This research was to evaluate the potential resuscitation of human donor hearts that are currently being discarded and while the impact that positive findings would have generated could have been substantial ALZM has yet to report any results, not a good sign.
ALZM maintained their approach to attracting shareholders in the following months, consistently mentioning their “plans to redefine human organ transplantation through better preservation with its LifeCradle® product line” yet these plans have never amounted to any progress with the FDA. How they would even get their clinical trials started remains a mystery as they had just over $92,000 in the bank as of May 2011 and with share prices down to 0.07 – 0.09 it’s not as if they could just raise sufficient money through the sale of securities.
Perhaps recognizing that the LifeCradle is close to, if not completely in, the grave ALZM hasn’t reiterated previous beliefs that they would bring the technology to market in 2012. Instead ALZM wants investors to get excited about their newly acquired technology related to HPV and what better way to get investors excited than to tell them about the potential that exists. ALZM’s recent releases have pointed out that “20 million Americans are currently infected with HPV and it is expected that 5.5 million more will contract the HPV through sexual contact each year,” noted that “HPV causes 70% of cervical cancer cases; cervical cancer is diagnosed in 11,000 women per year in the U.S. alone,” and stated that “HPV infects 233 Million women worldwide; one woman dies every 2 hours from cervical cancer” which of course leads to the financial gains that their newly acquired and wholly-owned subsidiary SureScreen Medical, Inc. could generate. While falling short of making any claim ALZM does sate that “an $18B diagnosis and treatment market exists worldwide” and that’s a conservative estimate.
Interestingly ALZM’s current CEO, Michael Gelmon, offered in the company’s most recent release “Many technologies do not see the light of day because companies fail to go through the proper processes and channels to commercialize what they have in hand. We are committed to a thorough process that can be rewarding for the healthcare field and our shareholders.” It kind of makes you wonder if Gelmon is even familiar with the LifeCradle technology that hasn’t seen the light of day.
Regardless, Gelmon stated “With SureScreen Medical, we will leave no stone unturned. Naturally we’re moving quickly – it’s an exciting time and we want Allezoe to be the game-changer in how HPV is diagnosed around the world.” For those who bought into ALZM’s concept of “moving quickly” before its highly doubtful they will find this new call for action all that appealing.