Optiscan Imaging eyes FDA approval through $800k intellectual property acquisition from MD

Would you call selling your intellectual property to your own company a boss move? For Managing Director, Prof Camile Farah, heck yes. Endomicroscopic imaging tech company Optiscan Imaging (ASX: OIL) has entered into a binding Terms Sheet with Managing Director, Prof Camile Farah, to acquire intellectual property in the form of clinical and histopathological datasets. The deal will be subject to shareholder approval, and Farah stands to gain almost a million bucks from it. 

The datasets include two hundred and twenty eight matched patient libraries of oral cancer, precancer subtypes and normal tissues including confocal image files, corresponding non-confocal optical images (white light and autofluorescence), histopathological images with consensus diagnoses, and matching annotated clinical data, with long term follow-up details.

Optiscan is known for developing endomicroscopic imaging technologies for medical, translational and pre-clinical applications. The tech enables in vivo imaging to study cell behaviour in humans and animals.

Through the proposed acquisition of the datasets, the Company is set to improve its current and future US FDA 510(k) submissions for the use of fluorescein (in-vivo use) and acriflavine (ex vivo use) as topical contrast agents for determination of cellular microstructure, and diagnostic and surgical utilisation.

It is also expected to increase its customer base, as Optiscan hopes its InVivage® oral imaging system to take off as the go-to diagnostic and surgical tool for head and neck cancers, the precision of which arises because confirmed clinical and histopathological diagnoses are matched to images from the Company’s confocal platform. 

The acquisition will enable immediate use of data for image analysis and the creation of artificial intelligence (AI) algorithms to develop computer assisted diagnostics. The inclusion of AI algorithms in regulatory applications will strengthen the Company’s submissions, avoid future delays, and open new revenue streams once cleared. 

With the IP, Optiscan will get started on new device developments featuring enhanced configurations. It aims to position itself as a Company that holds a leadership role in AI software development for confocal microscopy, thus increasing its revenue streams. It will avoid delays in acquisition and paying related expenses associated with access to third party data or payment of licences or royalties for similar datasets so that Optiscan can be in control of its AI algorithms, software development and improved intellectual property. 

What’s more is that, Prof Farah’s IP contents will act as great marketing fodder for Optiscan. It will promote it in scientific publications, marketing literature, grant applications and in support of scientific and commercial collaborations, and as an evidence base for clinical applications sought by customers and technology partners. 

The proposed IP acquisition is worth 6 million fully paid ordinary shares in the Company, amounting to about $840k based on the current share price of $0.14. It will be issued to Prof Farah and placed into a voluntary escrow for a period of 12 months from issue. Though the Company has its plans raring to go, the issue of the Consideration Shares is still subject to shareholder approval.