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April 18, 2012

Accelr8 (AXK): Award-Winning Technology Could Unlock Tremendous Value

Accelr8 Technology Corporation (AMEX: AXK), a developer of innovative materials and instrumentation to rapidly identify infectious pathogens, operating in the same basic industry as companies like PolyMedix Inc. (OTCBB: PYMX) and Becton Dickinson and Co. (NYSE: BDX), appears well positioned to unlock significant value over the long-term.

Fighting a Common Problem in Hospitals

Many people can name a friend or family member that has had pneumonia or sepsis. These are two of the most common hospital acquired infections (HAIs) that lead to nearly 100,000 U.S. patient deaths per year. In addition to the lives at stake, these infections cost some $8.1 billion each year in added costs that come in addition to the $20 billion in costs fighting other bugs.

Accelr8’s primary focus is on the development of BACcel™ – a patented technology designed to rapidly identify bacteria directly from specimen samples in as little as two hours. In intensive care units of hospitals, this technology can be used to reduce the time it takes to find the right drugs to treat HAIs and highly drug-resistant “superbugs” from days to hours.

BACcel™ Technology Garners Publicity

Within the scientific community, BACcel™ gained notoriety after Accelr8 presented at the 51st ICAAC conference in Chicago last September and received an award. The presentation centered on a 53 patient study wherein the company’s technology correctly identified 100% of the Staphylococcus aureus (“Staph”) and Pseudomonas aeruginosa bacteria directly from specimen samples in just hours instead of days.

The ICAAC is the premiere conference on antimicrobial agents and infectious diseases, showcasing the research from around the world. With over 60% of its attendees  from overseas, the conference provides a rare opportunity where thought leaders in the field meet and reach over 10,000 physicians, clinical microbiologists, researchers and pharmacists.

Solid Business Model Underlying BACcel™

Accelr8’s technology may be in development now, but once a commercialization partner is signed, there’s a great business to be generated. By selling both an instrument and a disposable cassette, the company has developed a razor-razorblade model that could generate both upfront and recurring revenues over the long-term.

The technology can also be used in a number of vertical markets, including bioterrorism and pharmaceutical development. For instance, pharmaceutical companies can use the BACcel™ platform to screen patients in order to ensure they have the right bug that the pharmaceutical is designed to treat, thereby strengthening the statistics and shortening clinical trials.

A Great Investment Opportunity

Accelr8 Technology Corporation (AMEX: AXK) represents a great investment opportunity at its current levels. With a unique technology on the verge of commercialization, the company could be ready to generate significant long-term value for its shareholders.

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