Author incorrectly claimed, “The company’s sole product is a blood volume analyzer called the BVA-100 but there does not appear to be any sales to date.”
NEW YORK – March 21, 2019 – Daxor Corporation (NYSE MKT: DXR) an investment company with innovative medical instrumentation and biotechnology operations focused on blood volume measurement today addressed and corrected an erroneous and misleading article published March 20, 2019, at 12:09pm eastern time on Seeking Alpha.com by Douglas W. House, Seeking Alpha News Editor, in which Mr. House erroneously stated, “Thinly traded nano cap Daxor (DXR -11.3%) is down on 50% higher volume, albeit on turnover of only 88K shares, following yesterday’s corporate overview at the ROTH Conference in Southern California. The company’s sole product is a blood volume analyzer called the BVA-100 but there does not appear to be any sales to date.”
Upon learning of Mr. House’s and Seeking Alpha’s publishing of this erroneous article and misstatements, Daxor contacted the editor to demand a retraction and correction that Daxor has one product, and moreover that it has generated no sales to date. Seeking Alpha promptly retracted the erroneous statements, following the market close, regarding products and revenues, however, as of March 20, 2019 at 7:30pm eastern time, Seeking Alpha had not issued a correction clarifying the facts about Daxor’s substantial sales of both its BVA-100® Blood Volume Analyzer, an FDA cleared, patented instrument that rapidly and accurately measures human total blood volume, plasma volume and red cell volume and Daxor’s, Volumex®, a single-use radiopharmaceutical diagnostic injection and collection kit which have been used in conducting Blood Volume Analysis tests on over 40,000 patients, in over 65 Hospitals since its introduction and which represent strong recurring revenue as Daxor executes its Razor (Instrument)/ RazorBlade (Test Kits) business model and earns additional income from related lab services and maintenance contracts. Moreover, the BVA-100® is reimbursed by Medicare and private insurers in both the inpatient and outpatient settings. Daxor owns and operates the Daxor Oak Ridge Operations (DORO) facility in Oak Ridge, Tennessee, which manufactures, tests, and develops next-generation models of the BVA-100®.
These facts, among many others, are stated explicitly and are readily available on Daxor’s corporate website, available on filings posted with the SEC since the product’s introduction in 2001, and were among information presented at the 31st Annual Roth Conference on March 19, 2019, including but not limited to the many clinical treatment and life savings benefits promoted by Daxor’s groundbreaking and innovative products, as well as the company’s growth strategies, recent developments and business operations. Of interest, Daxor also disclosed previously reported test kit sales growth, where for two years in a row, Daxor’s kit sales have risen over 18 percent year- over -year, in cardiology use, driven by increasing awareness of the value of blood volume analysis to improve heart failure outcomes through reduced mortality and reduced readmissions.
Among the many positive facets and facts the author failed to mention in his article include the fact that in the U.S., 6 million patients per year are treated for heart failure (HF) and poor treatment algorithms are leading to widespread losses among hospitals and related groups. Approximately 10% of all emergency room admissions are HF-related losses incurred by this patient set. For HF admissions, 75% come through the ED presenting an opportunity for early optimal treatment and reduced LOS. Significant reduction in 30-day readmission and mortality has been proven through guided treatment with Blood Volume Analysis (BVA) for HF. The BVA-100® has a critical role in determining outpatient vs. inpatient designation, optimal coding, and significantly reducing LOS helping to avoid going beyond breakeven point for hospitals DRG reimbursement. BVA significantly reduces ICU mortality by as much as 3x and LOS by 20% for patients with Sepsis. Daxor provides actionable results: BVA improves the ICU team– 44% of tests led to a change in strategy.
Daxor was contacted by NYSE Marketwatch when aberrant trading in its shares was detected during the afternoon of the 20th and has been working with it and other regulatory authorities to evaluate the impact of this unfortunate and disturbing event and address any recourse that may be appropriate. The company has also consulted with legal counsel to determine the most appropriate courses of action to take, if any, to address the harm that has been inflicted upon Daxor’s business reputation, operations, shareholders, valuation, investment conditions and the like.
Daxor urges investors and prospective investors alike to rely upon its periodic disclosures with the SEC and its press releases for the most up to date information on the company.
About Daxor Corporation
Daxor Corporation is an innovative medical instrumentation and biotechnology company. We manufacture the BVA-100 Blood Volume Analyzer, the first instrument cleared by the FDA to provide rapid direct measurement of a patient’s blood volume. We believe that the BVA-100 Blood Volume Analyzer has the potential to transform therapy in a broad range of surgical and medical conditions. It is our goal, working in conjunction with hospitals and clinics, to achieve that possibility. Ultimately the company’s mission is to help hospitals and physicians incorporate Daxor’s BVA-100 diagnostic into standard clinical practice. For more information please visit our website at https://www.daxor.com.
Certain statements in this release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding the impact of hiring sales staff and expansion of our distribution channels. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risk associated with our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, FDA regulatory actions, our ability to integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and additional other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made. Daxor does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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