Sign Up NowThis Month's Tiny Gems - May 2013

FluoroPharma Medical, Inc. (FPMI)
Local Corp. (LOCM)
MELA Sciences, Inc. (MELA)




FluoroPharma Medical, Inc. (FPMI)


FluoroPharma Medical, Inc. (FPMI) is focused on the $1.7 billion market for molecular imaging agents. The company is discovering and developing patented Positron Emission Tomography (PET) imaging products to improve patient management by evaluating cardiac disease at the cellular and molecular levels. The market growth for this imaging technology presents tremendous opportunity for innovative developments that address leading unmet medical needs.


If the company remains on track with its development plans, the first of its three products could hit the U.S. market within the next three to four years.


CardioPET, for coronary artery disease, is on track to start phase IIb clinical trials by year end. FluoroPharma believes that within the third year of launch, CardioPET could achieve potential revenue opportunity of approximately $400 million in the third year (2019/2020) and $600+ million in the fifth year (2021/2022) after launch.


Phase II clinical trials for BFPET, also for coronary artery disease, are expected by year end. The company estimates that BFPET could capture about 1% - 3% of the total market for MPI radiopharmaceuticals in the first full year after launch (possibly 2016/2017) and will account for about 20% - 30% of the market five years following launch (possibly 2021/2022). This could mean revenue from sales of BFPET as high as $50 million in the first full year after launch and $700 million five years after launch.


VasoPET for coronary artery disease is on track for phase Ib clinical trial by year end. FluoroPharma believes that VasoPET could result in revenue opportunity of $18 million in year one (2017/2018), $270 million in year three, and $420 million in year five (2022/2023).


For the first quarter of 2013, FluoroPharma’s results were better than Zacks’ estimates in terms of expenses and cash burn. The company’s development progress is in line with Zacks’ expectations, and the research firm said it sees the FluoroPharma’s fundamentals improving as the overall market for PET continues to grow, maintaining an Outperform rating on the company’s stock.



Local Corp. (LOCM)


Local Corp. (LOCM) has demonstrated consistent progression since its inception in 1999, becoming one of the fastest growing online media companies in the nation. When Local Corp. completed its IPO in October 2004, its offering was ranked as one of the most successful in North America. Local Corp. was awarded its first patent in 2007, and now has eight patents and 11 more patents pending, including inbound marketing platform, Octane 360.


Utilizing a line of powerful technology platforms, Local Corp.’s aim is to capitalize on modern media/advertising trends, deploying a host of innovative business solutions including digital marketing products and tools such as local business and product search, mobile, SEO, Web hosting, social media and daily deals, helping merchants grow their business by connecting them with consumers on a local and national scale.


Local Corp.’s Business Solutions offerings include Launch, the company’s online marketing solution, which helps businesses establish an online presence to reach and engage consumers via Web sites, mobile solutions, social media, business listings, banner advertising, and strategic content. The company’s proprietary technology works to place businesses at the forefront of local options, ensuring that the business is seen by target customers in that geographical location.


Through Media Services, Local Corp. enables agencies to reach local audiences on a national scale and helps publishers enhance their content and grow revenue. Advertisers come from a network of partners that includes organizations of all sizes, from leading national brands to small businesses. Local Corp. recently reached a record 1 billion ad impressions within a single month.


In addition to Local Corp.’s consumer properties, which include its flagship Web site,,, the company supports more than 1,000 regional media sites to help them manage their online presence, engage and retain customers, and increase revenue. These sites help online shoppers find and purchase the products they’re looking for while delivering value to businesses through increased revenue and deeper customer engagement.


In the first quarter of 2013, Local Corp. reported positive cash flow from operations a quarter ahead of schedule, driven by solid gross margin expansion, and said it remains on track to grow revenues sequentially as it forecasts sequential adjusted EBITDA and EPS growth.




MELA Sciences, Inc. (MELA)


MELA Sciences, Inc. (MELA) is focused on innovative medical technologies for the detection of melanoma, the deadliest form of skin cancer. Approximately 130,000 people are diagnosed with melanoma each year, and one person in the U.S. dies of melanoma every hour. With no cure for the disease in late stage, early detection is vital to survival, and MELA is developing its technologies to address this significant unmet medical need.


The market is ripe for revolutionary technologies. The mortality rate of fatalities from melanoma has increased 50% since 1973. In fact, melanoma is now the fastest growing cancer, moving at a rate of 6% per year.


The company’s flagship product, MelaFind®, helps dermatologists determine whether or not to biopsy certain clinically atypical pigmented skin lesions. The FDA has approved MelaFind for use in the United States, and has received the CE Mark for use in the European Union. Within the first 12 months of being in the market, MelaFind secured 138 signed user agreements, deployed product placements in 28 states and 12 cities in Germany, and is in discussions with more than 140 additional interested dermatologist practices.


MELA is in phase 2 of its launch with an ongoing marketing campaign that contributed to first-quarter 2013 revenues of $144,000 and deferred revenue of $392,250, a slight improvement over previous quarter revenues. MELA’s technology was recently included in the Cleveland Clinic’s Top 10 Medical Innovations for 2013, and the company continues revenue-driving initiatives such as an expanded Web presence including Twitter, Facebook, and a campaign strategy with WebMD; national, regional, and local television segments; and promotional placements in health, beauty, & wellness magazines.


With enough cash to fund its operations into 2014, MELA is well capitalized with cash reserves, ending the first quarter with cash and cash equivalents of $21.6 million.