MELA Sciences Reports Third Quarter 2014 Financial Results

IRVINGTON, N.Y., Nov. 12, 2014 (GLOBE NEWSWIRE) -- MELA Sciences, Inc. (Nasdaq:MELA), developer of the MelaFind ® system, a non-invasive software-driven image analysis device intended to provide a dermatologist with objective data of clinically irregular pigmented moles when they choose to obtain additional info to help them decide whether or not to biopsy (at the most curable and cost-effective stage), today announced financial results for the three and nine months ended September 30, 2014.

Business Highlights for the Third Quarter and Subsequent Weeks:
  • Announced that in the 2013 Outcomes for Cleveland Clinic's Dermatology & Plastic Surgery Institute report the use of MelaFind reduced by 61% benign biopsies of the clinically suspicious pigmented lesions in an at-risk population, indicating that MelaFind analysis may prevent overly aggressive biopsy decisions. There may also be an overall improvement in biopsy risk.
  • Increased to four the number of sponsored "reader" studies conducted in the U.S., with the most recent occurring in October at the Fall Clinical in Las Vegas. These studies measure the impact of MelaFind on physician biopsy management and support the use of MelaFind as a tool to improve the dermatologist's overall accuracy in finding more melanomas and in reducing the number of benign biopsies. The number of dermatologists who have participated in the reader studies currently totals 592, or nearly 8 percent of the U.S. dermatology population.
  • Announced collaboration with Columbia University to explore potential next generation MelaFind enhancements.
  • Raised approximately $13.8 million in net proceeds through the issuance of 4% senior secured convertible debentures due July 2019, convertible into 5.8 million shares, and refinanced its existing Series A Convertible Preferred Stock with a new issue of Series B Convertible Preferred Stock, convertible into 4.8 million shares. The debt and preferred stock issuances are convertible into the Company's common stock at a conversion price of $2.565 per share. Issued common stock purchase warrants at an effective exercise price of $2.45 per share, with warrants to purchase 4.8 million shares expiring in 18 months from the date of issuance, and warrants to purchase 6.2 million shares expiring five years from the date of issuance.

Rose Crane, MELA Sciences President and CEO, stated, "I am very pleased with the progress we made over the course of the last several months in advancing MelaFind's value proposition in support of the early detection of melanoma. During the quarter, we added to the growing body of evidence showing the MelaFind system is an effective tool not only for reducing health care costs, but also for saving patients from unnecessary medical biopsies with the third party data presented by Cleveland Clinic as well as additional Company-sponsored reader studies.  MelaFind exemplifies the positive shift in healthcare outcomes that can be achieved when innovative technology is implemented and its progress is quantified."

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