Monday, August 10, 2009

Medizone International, Inc. (OTC: MZEI) Getting Real about Potential

STOCKGURU PROFILE FOR MEDIZONE - CORPORATE WEB SITE

Bio-tech has an important place in your portfolio.

In Biotech a long-term approach to investing is key. A biotech stock can achieve enormous value in a short period of time if a trial is successful.

I want to evaluate MZEI in terms of the classic bio-tech test.

The important issues to address for a potential bio-tech product candidate would include:

Question: Does the product address a medical need either unmet with existing therapies, or with the potential to offer superior efficacy or reduced side effects?

Answer: Yes --- Canada has come out of the closet with regard to hospital infections that kill basically well patients and the United States is beginning to demand action as well. (We're not taking this any more -- we are questioning our sacred cows --- and about time.) In the U.s. the Centers for Disease Control and Prevention reports that hospital-acquired infections account for an estimated 1.7 million infections and approximately 100,000 associated deaths each year in the United States. Additional treatment costs for more common infections, such as central venous catheter-related bloodstream infections, can reach upwards of $30,000 per infection.

Question: Is the published pre-clinical data suitably compelling to progress the product to the next stage of development?

Answer: All recent testing has produced results that exceeded expectations.

Question: Is the product aimed at markets for new products that are large and under-serviced?

Answer: Not only is this area under-serviced -- it is NOT serviced and the United States Congress in demanding that this issue be addressed as are individual states.

Antibiotic-resistant superbugs like methicillin-resistant Staphylococcus aureus, known as MRSA, and Clostridium difficile, a virulent strain of common intestinal bacteria, wreak havoc on patients' health. Hospitals that have typically kept quiet about their infection rates will soon be a thing of the past and they will be FORCED to find solutions. C. diff causes tens of thousands of cases of diarrhea and at least 5,000 deaths each year in the United States. Health experts say the problem is getting worse. The number of infections doubled between 1993 and 2003, with most of the increase happening after 2000.

MZEI brings a solution to the table.

This is happening quickly and as in many areas California is leading the way. Pending state legislation would require California hospitals to reveal their antibiotic-resistant infection rates, giving rise to a new level of public scrutiny that state hospitals have become accustomed to in recent months.

SB 1058 and SB 158 would establish a state oversight program and require hospitals to screen for, prevent and report hospital-acquired infections.

Beginning Oct. 1, California state hospitals will no longer receive Medicare reimbursements for eight hospital-acquired infections: bed sores; objects left in a patient during surgery; in-hospital falls; blood incompatibility; air embolism; mediastinitis, an infection of the area between the lungs after heart bypass surgery; catheter-associated urinary tract infections; and central venous catheter-related bloodstream infections.

Public Awareness

Increased public awareness of adverse events has put California hospitals in a unique situation since last July, when a new state law requiring hospitals to report any adverse events within five days of discovery, or within 24 hours for more serious events, took effect. State health officials began issuing fines to hospitals involved in cases of "immediate jeopardy," or mistakes that caused, or were likely to cause, serious injury or death to patients. The state Department of Public Health also began posting notifications about hospital penalties on its Web site.

All of the attention surrounding hospital safety and patient care has led to increased public scrutiny.

When you have a product for which there is a pent-up demand you have shareholder value.

In terms of passing my Bio-tech test MZEI does. The company has a commercial viable plan for a product that is being demanded by the United States Congress -- FINALLY.


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