Frequent Investor Questions

What does VirtualScopics do?
We are a leading provider of image-based biomarker analysis to the pharmaceutical, medical device, and biotechnology companies. We provide critical information that enables drugs and medical devices to enter the market faster and at lower costs (e.g. reduced patient size for reduced trial size). Furthermore, our services provide critical insight so that drug and device development companies can make the go/no go decision sooner and with greater confidence.

What is a biomarker?
As defined by the National Institutes of Health (NIH), a biomarker is a characterization that is objectively measured and evaluated as an indicator of normal biological processes, pathogenic processes, or pharmacological response to a therapeutic intervention.

What is an image-based biomarker?
It is a biomarker identified through one of the imaging modalities. These are magnetic resonance (MR), computed axial tomography (CAT or CT), positron emission tomography (PET), Nuclear Medicine, ultrasound (US) and x-ray.

What services do you provide to companies developing new drugs or medical devices?
Our value-add is our ability to analyze medical images more precisely and with better reproducibility using our patented, proprietary software, image processing methods, and algorithms. We will also assist in research and clinical trial design, imaging site management, data handling and storage as well as consultative services regarding clinical trials and research.

Why would a company do business with VirtualScopics?
Using our image analysis services supported by our other clinical trial services, we can provide information to companies developing drugs and medical products that will assist them to accelerate clinical trials where the drug or medical device development is shown to be effective earlier than other methods. We can also provide information that will permit earlier "kills" saving many millions of dollars.

What is a "kill" in drug parlance?
Term used by the drug and medical device companies that means the ability to terminate an unsuccessful clinical trial.

How costly is it to develop a drug?
Estimates range from $1 billion to $1.7 billion. Some companies expect the cost to bring a new drug to market to reach $2 billion by the year 2010.

Why is your service so important to today's drug and medical device development efforts?
The industry has over 4000 compounds to investigate as possible drug candidates. Given the high costs of drug and medical device development, it is cost prohibitive to investigate all candidates. Through Phase I and Phase II clinical trials, our services can provide companies with early indications of a drug's effectiveness permitting the most efficacious compounds to progress faster.

Do you have any facts to back up your claim that you save companies money?
Yes. For example, we have shown in certain kinds of cancerous tumors that we can tell that a drug will be effective within 48 hours compared to the 12 weeks or so now required. This rapid indication of efficacy, obviously, saves time and money.

Do you have other examples?
In osteoarthritis, in an independent analysis has shown that using our services to look at cartilage, a clinical trial time would be reduced from 24 to 36 months to 12 to 18 months and the number of subjects reduced from 500 to 3000 down to 20. This proves the value and cost-savings realized by using our services.

Why is reduction of the number of subjects so important?
It was mentioned earlier that there are over 4000 compounds that are candidates for evaluation as a drug. There are just not enough people to participate in clinical trials to evaluate all these compounds. Furthermore, it costs companies about $30,000 per subject in a clinical trial. The reduction in subject numbers saves thousands if not millions of dollars.

In which therapeutic areas do you provide services?
Presently, we work in the areas of oncology, musculoskeletal diseases (including osteoarthritis, rheumatoid arthritis, psoriatic arthritis, osteolysis, muscular dystrophy and others), CNS (central nervous system), and cardiovascular. We will expand our services to other areas as the market dictates.

How do I purchase VirtualScopics stock?
The company is listed on Nasdaq and can be purchased through on-line traders (E-Trade, Ameritrade, etc.) or through your broker.