BioCurex Business

Basic research shows that RECAF is a highly conserved (common and essentially identical) molecule in humans and animals. We have confirmed in our laboratory, with samples provided from three different sources, that our RECAF test detects malignancy in dogs and cats.

To commercialize tests for animal companions we have incorporated OncoPet Diagnostics, a fully owned subsidiary set up with the purpose of commercializing the OncoPet RECAF test. This version of our serum RECAF test correctly detected 85% of cancers in dogs at the standard specificity value of 95%. These figures are consistent with those obtained on human patients.

Initially our focus will be directed to dogs and cats. We can begin marketing this application quickly because it does not require any laboratory testing of blood samples for governmental or regulatory approvals and we have completed the developmental testing. We will market this application under a separate brand name. We plan to pursue a dual-channel revenue generation strategy. In some markets we will license our technology to clinical labs who will conduct the testing and in other markets we shall do the testing in our own contract laboratory. Our POC rapid test is also being developed for the veterinary market and may be available for commercialization before it is available for human use. We will market our product directly to end users, such as veterinarians and animal protection societies, and through distributors.

Cancer is the number one cause of death among dogs and cats in the United States, Europe, and Japan. Recent studies have shown that more than 50% of all dogs ultimately die of cancer, and some breeds, like golden retrievers and boxers, have cancer rates that are even higher. However, cancer is also the most curable of all chronic diseases in pets. To help improve detection, specialists encourage veterinarians to include cancer screenings in their wellness exams for pets of all ages.

There are approximately 75 million household dogs in the United States and on average dog owners spend $219 on veterinary visits annually. There are approximately 88 million household cats in the United States and their owners spend an average of $175 a year on routine veterinary visits. Dog- owning households that spent $1,000 or more in a year jumped from 2.2 percent in 1996 to 8.4 percent in 2006. Dogs averaged 1.5 visits to the veterinarian during 2006, and cats averaged 0.7 visits to the vet in the same year.

Our marketing strategy for our OncoPet RECAF test is based on the following assumptions:

There is little or no need for regulatory approval related to our initial plans and, therefore, we can begin marketing our OncoPet RECAF product immediately.

The costs involved to commercialize OncoPet RECAF are manageable

Our marketing efforts will target both veterinarians, who have to recommend OncoPet RECAF to pet owners, and pet owners themselves.

Our RECAF tests for the veterinarian market will be marketed initially by our subsidiary OncoPet Diagnostics Inc. and by distributors of veterinary products. We have so far received inquires from approximately 20 veterinary distributors. When our POC rapid test is approved for animal use on a commercial basis, we will either license it for distribution or use a contract sales force for distribution.