SAN DIEGO, Feb. 5, 2013 /PRNewswire/ -- Aethlon Medical, Inc. (OTCQB: AEMD), today released the following note authored by its Chairman and CEO, Jim Joyce.
In our quest to innovate life-saving therapeutics, we have persevered through untold challenges to create a single medical device that offers to optimize the benefit of cancer and infectious disease therapies. As our endeavors transitioned beyond R&D, we thought we were cognizant of the entire alphabet soup of healthcare and financial regulatory agencies we would need to navigate to bring our technology to market.
However, on September 30th 2011, we were blindsided by an action never anticipated. The Depository Trust Company (DTC) eliminated the electronic transfer of our securities, otherwise known as a "DTC Chill." As a result, broker-dealers across America began to restrict or prohibit trading in Aethlon Medical shares, which in turn reduced liquidity and inhibited the true sentiment for our company to be accurately reflected by the public markets. A recently published viewpoint of a securities law firm provides a more succinct perspective on a DTC Chill:"The Depository Trust Company is the only stock depository in the U.S. When DTC provides services as the depository for an issuer's securities, its securities can trade electronically. Without DTC eligibility, it is almost impossible for an issuer to establish an active market in its securities." As the result of protracted legal effort, DTC has agreed to lift the restriction on the electronic transfer of our securities, which we reported in an SEC filing on January 7th. In a related event, I am pleased to inform shareholders and other interested parties that our transfer agent has notified us that the CUSIP underlying our shares is now unlocked to again allow for our shares to be electronically traded on the DTC system. Thus, signaling the end of a lengthy and disheartening challenge faced by our organization. While we cannot measure the full impact the DTC Chill, I ask you to consider some of our milestone achievements since September 30th, 2011. Milestone achievements that many biotechnology or medical device organizations would envy. On the day (yes, the exact same day) the DTC Chill went into effect, we transitioned from a development-stage to revenue-stage organization as the result of a $6.8 Department of Defense (DOD) contract award from the Defense Advanced Research Projects Agency (DARPA). Since contract initiation, we have generated in excess of $2 million in revenues and have advanced the development of a device and blood processing system to combat sepsis. Related to our DARPA program, we teamed with two larger industry organizations to respond to a $25 million systems integrator contract opportunity. The recipient of this contract has not yet been announced by DARPA. We reported our first Hepatitis-C (HCV) efficacy data related to the use of our Hemopurifier® as an adjunct to optimize the benefit of standard of care drug therapy. The results exceeded expectations as a three-treatment Hemopurifier® protocol was demonstrated to reduce viral load to undetectable levels in as little as seven days. Since September 30 th, 2011, organizations with clinical stage adjunct therapies have been acquired for a much as $11 Billion. Based on prior discussions with the U.S. Food and Drug Administration (FDA), we established a protocol to elute the post-treatment biological fluid from the Hemopurifier® as a means to quantify HCV capture. The result established an unprecedented data point validating the capture of up to 300 billion copies of HCV during a single treatment. I plan to detail the relevance of this datapoint in a future CEO note.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts