Xcorporeal, Inc., (AMEX: XCR)

Dear Reader,

We are proud to bring you today's featured company, Xcorporeal, Inc. (AMEX: XCR), a company that is committed to dramatically improving the lives of kidney (renal) dialysis patients. From our view, this appears to be one of those Better Mousetrap stories we search for - a business model that could become popular based on need and superior technology.

The dialysis marketplace is vast and in need of innovation. Take a look at today’s comprehensive profile and see if you agree that this emergent company could be the source of that innovation. 

ROTH Capital Partners is a full service investment banking firm dedicated to the small and micro-cap market. The firm is privately owned with current principals being majority owners. The core management team has been consistent for many years. Since the inception of the firm in 1984 ROTH has been a leader and innovator in the small and micro cap markets. ROTH's exclusive focus has been, is, and will continue to offer a full spectrum of investment banking services, including raising capital, research coverage, trading and market making, merger and acquisition advisory services, and investor conferences.  View Roth Capital Partners' May 2008 Research Report on Xcorporeal Inc. HERE

About Xcorporeal

Xcorporeal (AMEX: XCR) has developed an innovative extra-corporeal platform that has been adapted to solve health issues related to kidney failure in both the hospital (acute) and home (chronic) settings.  Click here to view the latest corporate presentation.

Xcorporeal is focused on the commercialization of renal replacement devices. These devices remove unwanted chemicals, toxins and excess fluids from the blood, thus replacing many of the essential functions of the damaged kidney. Unlike other renal replacement devices currently on the market, the Xcorporeal devices are user friendly, lightweight, portable and eventually wearable, providing patients with continuous treatments (as opposed to intermittent) and allowing them to achieve a quality of life closer to that of a healthy individual.

• Hospital device for continuous renal replacement therapy /intermittent hemodialysis
• Portable device for home chronic renal replacement therapy
• Wearable Artificial Kidney (WAK) 

• Extra-corporeal medical devices that could replace the function of failing or failed organs
• Multiple initial products
• Mobile Hospital Hemodialysis device
• Portable Home Hemodialysis device – The “XCR-6”
• Wearable Artificial Kidney
• First U.S. 510(k) filing anticipated Q4, 2008
• Minimal to low risk strategy
• Prototype device tested successfully
• Well defined and straightforward regulatory strategy
• Well delineated reimbursement codes
• Multi-billion dollar, clearly defined markets

 

QUALITY OF LIFE
Any company can make a machine

But the management, advisors and engineers at XCR are driven by the needs of a growing population that have become restricted in their treatment options and have found the quality of their life constrained and expensive. XCR's unified sense of compassion for those suffering from chronic illness is a powerful tool in bringing their technology platform to market.

The Market

There were approximately 350,000 patients with end stage renal disease (ESRD) in the United States at the end of 2006 and the population is estimated to be growing approximately 6% annually. In the US, kidney disease has become the ninth leading cause of death and one of the most expensive chronic diseases, with treatment costs approaching $30 billion annually. 

The projected 2008 market opportunities for the US, EU and Asia are $1.5 billion, $1.2 billion and $800 million, respectively. The disposable market is expected to grow at 10% per year while the devices need to be replaced every five years. The prevalence of ARF in the US was 200,000 patients in 2005. In Europe, 124,000 patients developed ARF in 2004

The Wearable Artificial Kidney (WAK) Patients with chronic kidney failure could be freed from fixed dialysis machines. In a recent pilot study, British researchers said the battery powered device had proved successful when worn for periods of 4 to 8 hours. Over the next several years, Xcorporeal plans to pioneer efforts to allow dialysis patients to dialyze 24 hours a day, seven days a week, just like our own kidneys work. Currently, dialysis patients use a fixed hemodialysis machine in a hospital or clinic for 12 hours a week.  "The device has the potential to become a practical means of delivering extended and more frequent dialysis to patients with endstage kidney failure," Andrew Davenport of University College London and colleagues wrote in the Lancet medical journal. Further tests are now needed, since their small study involved only eight patients, with an average age of 52 years, who were established on regular hemodialysis before being fitted with the wearable - though rather bulky - device. The rate of blood flow and the speed at which toxic chemicals were removed from the body was considerably slower than in conventional dialysis but this was not seen as a problem, since the device can be worn for long, continuous periods. Two of the patients experienced blood clotting, due to receiving insufficient anticoagulant medication. Additionally, another patient was temporarily disconnected when a needle became dislodged.

Xcorporeal's WAK device consists of a tiny, double-channeled pulsating pump -- one circulates blood, the other water -- a fluid collection bag, a filtration system to cleanse impurities and disposable cartridges to purify the water so that it can be recirculated. The device weighs about 10 pounds, uses about 14 ounces of water and is powered by a 9-volt battery. These components are attached to a belt worn around the waist. Although not derived from the WAK technology, the same attributes (portability, size, weight, fluid and power reduction) will be applied to develop a PAK that will be able to provide Continuous Renal Replacement Therapy (CRRT) and/or acute intermittent hemodialysis to hospitalized patients with acute renal failure. This device will also be modified to provide home hemodialysis to patients with ESRD. Xcorporeal's system can also be configured into a portable ultra filtration device to treat fluid overload in Congestive Heart Failure (CHF) patients. Xcorporeal plans to focus initially on the renal replacement device applications described above, and may  eventually exploit Congestive Heart Failure applications through licensing or strategic arrangements.

• “Disruptive” technology
• Wearable, battery operated light-weight device
• Fully automated, simple to use
• Prototype tested successfully
• Successful human trials published in The Lancet & Kidney International December 2007
• 24 hrs/7 days therapy with potential to revolutionize care of ESRD patients

Acute renal failure (ARF) is defined as a rapid decline in kidney function resulting in the accumulation of excessive water and toxic waste. There are a variety of causes of ARF including ischemia, sepsis, obstruction and nephrotoxins. ARF is often asymptomatic and is diagnosed through laboratory screening of hospitalized patients.  In many cases, patients with ARF suffer from multiple organ failure and are hospitalized in intensive care units (ICU). 

The majority of patients with ARF require at least short-term renal replacement therapy. Currently, intermittent dialysis is the predominant treatment for ARF despite growing research demonstrating the benefits of continuous dialysis over intermittent dialysis in critically ill patients. Continuous renal replacement therapy (CRRT) was developed for these patients since it most closely replicates the normal functioning kidney. In addition, patients receiving CRRT do not experience the large fluid shifts that are associated with intermittent hemodialysis. However, CRRT is still an emerging therapy and the market is not fully penetrated. The Xcorporeal product is a natural fit for the hospital market of renal replacement therapy since it is designed to provide cost-effective, continuous or intermittent therapy.

Xcorporeal believes that home hemodialysis is the next growth opportunity in the ESRD market. Physicians have increasingly recognized the benefits of daily dialysis which includes decreased mortality, decreased hospitalizations, and an improved quality of life. Daily dialysis is defined as six dialysis treatments per week with each session lasting 3 to 4 hours. However, for a variety of reasons, the implementation of daily dialysis can only be practically achieved with home hemodialysis. 

Hospital Hemodialysis Device Market

• US Market Opportunity > $150 million (a)
• Growing at 10% per year
• Aging Population
• Increasing severity of hospitalized patients
• Disposable Market
• 242,000 patient hospitalizations per year estimated 2008
• $200 revenue per day for fluids and disposables for supplier
• Disposable Market = 242,000 x $200 = $49 million
• Device Market
• 2008 Market = $100 million

(a) Per William Blair & Co. LLC estimate

• Initial clinical study conducted with a prototype device at The Royal Free Hospital, London
• 8 ESRD subjects dialyzed for mean of 6.4 hrs
• Clearances of creatinine, urea, and beta-2-microglobulin achieved (chart follows)
• No adverse events reported
• Subjects were able to walk unhindered during dialysis treatment
• Presented at ASN November 5, 2007

• Portable Artificial Kidney
• 20 patents in process, company initiated
-Various processes and device components
• Wearable Artificial Kidney
• 9 patents in process, exclusive in-license
-Wearable ultra-filtration device
• Wearable, self-contained, device for continuous excess fluid management
-Wearable continuous renal replacement therapy device
• Expands on patent above to include renal replacement patients and battery-operated power source

<<<Spacer>>>

Investment Considerations

• Hospital Mobile Hemodialysis Device
• Functional Prototype (completed)  Q4, 2007
• Pre-Production Prototype   Q3, 2008
• FDA 510(k) submission   Q4, 2008
• Commercialization target   Q3, 2009

• Home Portable Hemodialysis Device
• Functional Prototype (completed)  Q4, 2007
• Pre-Production Prototype   Q3, 2008
• Home Use Clinical trial complete  Q3, 2009
• Home Use FDA 510(k) submission Q3, 2009
• Commercialization target   Q2, 2010




---

Xcorporeal Highlights




• Extra-corporeal medical devices that could replace the function of failing or failed organs
• Multiple initial products
• Mobile Hospital Hemodialysis device
• Portable Home Hemodialysis device
• Wearable Artificial Kidney
• First U.S. 510(k) filing anticipated Q4, 2008
• Minimal to low risk strategy
• Prototype device tested successfully
• Well defined and straightforward regulatory strategy
• Well delineated reimbursement codes
• Multi-billion dollar, clearly defined markets

1. Fresenius, Inc. (NYSE: FMS), the largest dialysis service provider in the world, last month announced the purchase of Renal Solutions for up to $190 million in cash plus the assumption of $10 million of debt. Renal Solutions, has less advanced technology than Xcorporeal and a smaller potential product line.

2.Xcorporeal is nearly debt free and has $13 million in cash and marketable securities.

3. NxStage Medical, Inc., (NASDAQ: NXTM), has a market capitalization of $160 Million, but only has a year or two lead on Xcorporeal. Xcorporeal will have product in approximately 1 year that, in our opinion, will be far superior to those marketed by NxStage Medical.

4. The Xcorporeal units are targeted to be half the size of the NxStage Medical unit, use minimal fluid reagents, and be more cost effective. This allows patient’s increased mobility while saving service providers money.

5. Xcorporeal has a reimbursement code for insurance and government coverage, which covers all forms of payments.

6. NxStage's unit is designed for a smaller person. Since most people on dialysis are overweight, Xcorporeal's unit is designed for both large and small framed people.

7. According to filings with the SEC, a member of Xcorporeal's Board of Directors, Marc G. Cummins, purchased 552,244 shares for $3.8 million in the last quarter of 2007.

8. Cummins was a buyer in December when the stock traded between $4.25 and $6.10.

9. Xcorporeal has a well-seasoned, experienced management team.

10.The recent downturn in the equity markets has created a tremendous buying opportunity and allows us to buy shares of Xcorporeal at a 40% discount to what insiders recently paid.
<<<Spacer>>>

Recent News From XCR

Press Release Source: Xcorporeal, Inc.
Monday June 9, 8:30 am ET

LOS ANGELES--(BUSINESS WIRE)--Xcorporeal, Inc. (AMEX:XCR - News) announced today that Dan Goldberger, Chief Executive Officer at Xcorporeal, will be presenting at the Seventh Annual Needham Biotechnology & Medical Technology Conference, at the New York Palace Hotel in New York City, on Thursday, June 12, 2008 at 3:30 p.m. Eastern Time.

The Company’s presentation will also be webcast live and archived for future reference, for 30 days, at www.wsw.com/webcast/needham25/xcor/ and also available on the Company’s website at www.xcorporeal.com.

MORE

Press Release Source: Xcorporeal, Inc. 
Monday April 7, 8:30 am ET 

LOS ANGELES--(BUSINESS WIRE)--Xcorporeal, Inc. (AMEX:XCR - News) announced today operational highlights for calendar year 2007. Xcorporeal's common stock began publicly trading on October 15, 2007. Selected highlights included: -- 

Publication of promising results in prestigious medical journal. The Lancet, a leading medical journal, published an article on the Company's Wearable Artificial Kidney (WAK) prototype device in its Journal dated December 15, 2007. The data, from a pilot study conducted by Drs. Andrew Davenport and Victor Gura, at the Royal Free and University College Hospital Medical School, London, UK, showed that the WAK's clearance rate, if sustained and used continuously, could be more effective than conventional three times weekly or daily hemodialysis treatment. Dr. Gura is a director of the Company and its Chief Medical and Scientific Officer. This proof of concept study also provides preliminary indications on the safety features of the WAK and permitted the patient to be ambulatory during treatment. The WAK is a battery-powered, wearable dialysis machine that will allow users to have their blood cleansed round the clock, instead of being tethered to conventional dialysis machines, intermittently, for many hours. MORE

ATLANTA, April 2, 2008 (PRIME NEWSWIRE) -- Amex Review announces that it has initiated coverage of Xcorporeal, Inc. (AMEX:XCR - News). Xcorporeal, Inc., headquartered in Los Angeles, CA, is a medical device company developing an innovative extra-corporeal platform technology that may be used in devices to replace the function of various human organs. The platform will lead to three initial products: a device for home hemodialysis; another device for hospital Renal Replacement Therapy (RRT); and the Wearable Artificial Kidney (WAK) for continuous ambulatory hemodialysis. These devices could dramatically improve the quality of life led by dialysis patients. The RRT markets represent multi-billion dollar opportunities. MORE 

XCR Management

Terren S. Peizer
Executive Chairman

Mr. Peizer was appointed as a Director and Chairman on August 31, 2006. Mr. Peizer is Chairman and CEO of Hythiam, which he founded in 2003. From April 1999 to October 2003, Mr. Peizer served as Chief Executive Officer of Clearant, Inc., which he founded to develop and commercialize a universal pathogen inactivation technology. He served as Chairman of its board of directors from April 1999 to October 2004 and a Director until February 2005. From February 1997 to February 1999, Mr. Peizer served as President and Vice Chairman of Hollis-Eden Pharmaceuticals, Inc. In addition, from June 1999 through May 2003 he was a Director, and from June 1999 through December 2000 he was Chairman of the Board, of supercomputer designer and builder Cray Inc., and remains its largest beneficial stockholder. Mr. Peizer has been the largest beneficial stockholder and held various senior executive positions with several technology and biotech companies. In these capacities he has assisted the companies with assembling management teams, boards
of directors and scientific advisory boards, formulating business and financial strategies, investor and public relations, and capital formation. Mr. Peizer has been a Director, Chairman of the Board and Chief Executive Officer of Hythiam, Inc., a healthcare services management company focused on delivering solutions for those suffering from alcoholism and other substance dependencies, since September 2003. Mr. Peizer has a background in venture capital, investing, mergers and acquisitions, corporate finance, and previously held senior executive positions with the investment banking firms Goldman Sachs, First Boston and Drexel Burnham Lambert. He received his B.S.E. in Finance from The Wharton School of Finance and Commerce.

"We at Xcorporeal are building an exciting new company that will commercialize extra-corporeal medical devices that can replace the function of failing or failed human organs. Our innovative proprietary platform has been adapted to solve health issues related to kidney and heart failure. Xcorporeal’s technology may be superior to that employed in current medical devices and our devices have the potential to redefine and improve therapy for patients with renal or cardiac failure."

Terren S. Peizer
Executive Chairman of the Board 
Xcorporeal, Inc.

Daniel S. Goldberger has served as acting Chief Executive Officer since February 2008. He served as our President and Chief Operating Officer from October 2006 to August 2007. Mr. Goldberger is the Chief Executive Officer of Sound Surgical Technologies, a privately held company developing ultrasonic technologies for aesthetic surgery. He has been the Chief Executive Officer of Glucon Inc., a privately held glucose monitoring business from 2004 to 2006. From 2001 to 2004, Mr. Goldberger served as President and as a Director of the Medical Group of OSI Systems, Inc. (NASDAQ: OSIS), which included the Spacelabs, Dolphin, Osteometer product lines with combined revenue approaching $250 million. Mr. Goldberger was also the co-founder of Optiscan Biomedical Corporation, where he served as Director from 1994 to 2001 and also served as its Vice President from 1994 to 1998 and then as its President from 1998 to 2001. Mr. Goldberger has over 25 years of management experience with large and small medical device companies, including Nellcor and Square One Technology. He received his B.S.M.E. from Massachusetts Institute of Technology and his M.S.M.E. from Stanford University.

Winson W. Tang, MD, FACP
Chief Operating Officer

Dr Winson Tang has over 20 years experience in academic medicine, biomedical research and the biopharmaceutical industry. Dr. Tang is a graduate of The Albert Einstein College of Medicine and completed a Residency in Internal Medicine (University of Southern California), Clinical Fellowship in Nephrology (University California San Diego) and Research Fellowship in Immunology (The Scripps Research Institute). Dr. Tang has held drug development positions of increasing responsibility at Amgen, Vertex, Tularik, and Isis Pharmaceuticals. During his biopharmaceutical career, he has successfully filed four Investigational New Drug Applications and Clinical Trial Applications, two Biologic License Applications, in-licensed a preclinical drug candidate that is now marketed (Sensipar®) and commercialized 2 drugs (Infergen® and Aranesp®). Both Sensipar ® and Aranesp® are important therapies for patients with ESRD. He was most recently the Director of Research for the Pacific Capital Group, where he managed the biotech investment portfolio. Dr. Tang is a Diplomate of the American Board of Internal Medicine and a fellow of the American College of Physicians. He has published more than 30 original research articles and book chapters.

Victor Gura, MD
Chief Medical and Scientific Officer
 

Dr. Gura became our Chief Medical and Scientific Officer in December 2006. Dr. Gura has been a member of our board of directors since October 13, 2006. Prior to joining Xcorporeal, Dr. Gura has been the Chief Scientific Officer of National Quality Care, Inc. since 2005. He was formerly its Chairman of the Board, President and Chief Executive Officer. Dr. Gura is a medical doctor who is board certified in internal medicine/nephrology. He is a director and principal shareholder of Medipace Medical Group, Inc., a medical group in Los Angeles, California, since 1980. Dr. Gura has been an attending physician at Cedars-Sinai Medical Center since 1984 and the medical director of Los Angeles Community Dialysis since 1985. Dr. Gura also serves as a Clinical Assistant Professor at UCLA School of Medicine. Dr. Gura graduated from the School of Medicine, Buenos Aires University in 1966, completed his residency in internal medicine and nephrology in Israel, and was a fellow at the nephrology departments at Tel Aviv University Medical School and USC Medical Center.

Robert Weinstein
Chief Financial Officer

Robert Weinstein was appointed Chief Financial Officer in August 2007. Prior to joining us, Mr. Weinstein served as Vice President, Director of Quality Control & Compliance of Citi Private Equity Services (formerly BISYS Private Equity Services), New York, a worldwide private equity fund administrator and accounting service provider. In 2005, Mr. Weinstein was the Founder, Finance & Accounting Consultant for EB Associates, LLC, Irvington, NY, an entrepreneurial service organization. From 2003 to 2004, Mr. Weinstein served as the Chief Financial Officer for Able Laboratories, Inc., Cranbury, NJ. In 2002, he served as Acting Chief Financial Officer for Eurotech, Lid., Fairfax, VA, a distressed, publicly traded early-stage technology transfer and development company. Mr. Weinstein received as M.B.A, Finance & International Business from the University of Chicago, Graduate School of Business and a B.S. in Accounting from the State University of New York at Albany. Mr. Weinstein is a Certified Public Accountant (inactive) in the State of
New York.
<<<Spacer>>>

Financial Highlights For XCR

AMEX Ticker Symbol: XCR
Recent Price: $1.08
Average Vol: 29,306 (3 mo)
Shares Outstanding: 14.35 Million
Market Cap: $15.76 Million
52-Week Low: $0.98 - 52-Week High: $17.78

XCR operates as a highly efficient and transparent business. It's corporate committee charters include an Audit Committee Charter, a  Compensation Committee Charter, a Nominating Committee Charter, and the highest standard Code of Ethics. 

For XCR's SEC Filings: Click Herea

Company Contacts

Xcorporeal, Inc.

11150 Santa Monica Boulevard, Suite 340, Los Angeles, CA 90025
Phone: 310-424-5668 - Web Site: http://www.xcorporeal.com

---

*** The Bull is Running. ***
There may never be a better time to feature YOUR company
to over 1 MILLION investors.

To learn more about our programs email us directly at info@stockupticks.com

Market Pathways
17595 Harvard Ave., Suite C519 Irvine, CA  92614
949-955-0107

Disclaimer: StockUpTicks.com is a property of Market Pathways Financial Relations Incorporated (MP).  The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision.  MP has been paid ten thousand dollars by Atlanta Capital for preparation and distribution of this report and other advertising services over a thrity day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.  Write or call MP for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934.  MP is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement.  Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. MP and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned.  Information contained herein may not be reproduced in whole or in part without the express written consent of Market Pathways Financial Relations Incorporated.