Lantis Laser: A Quantum Leap in Dental Imaging

July 31, 2007 - By: Lee Anderson, J.D., M.L.S., Staff Analyst

     What would you do if you knew someone had an exclusive lock for use in the dental field on technology produced by the leading research facility in the United States – the one that does the highest level research for our country, Livermore National Lab?

     What would you do if you knew this research had been used to develop lasers that had been incredibly successful in other fields such as ophthalmology and gynecology?

     What would you do if you knew this company was developing a new means of detecting periodontal disease and decay that was exclusive to them and affordable by all dentists?

     Would you at least study the facts? We think you should.

Lantis Laser - What Is a Reasonable Value?

There are a group of questions that are very reasonable to ask in determining the value of a Lantis Laser.

Current Value: $0.39 per share
Sixth Month High: $0.92
Sixth Month Low: $0.25

Estimated Gross Revenue from 2008 to 2012 with five percent market penetration: $150 Million USD

First: How revolutionary is the Lantis Laser?
Second: Is there a definable need for the Lantis Laser?
Third: Will the target market find Lantis Laser cost effective?
Fourth: What is the competition for the Lantis Laser?
Fifth: Can Lantis Laser market effectively to the dental profession?

First: How revolutionary is Lantis’ OCT Dental Imaging System?

   Lantis Laser Provides a New Standard in dental imaging as its OCT System provides high-resolution real-time imaging, chairside, for early detection of decay and periodontal disease. The resolution is up to 10x x-ray and as it is light-based, there is no harmful radiation.

Dental Imaging Ready for New Approach: Lantis Laser offers a new standard in imaging oral tissue as information is specific to site and extent and is shown on a chairside monitor in real time and can be stored in the patient digital file or transferred for consultation or insurance purposes. The current mainstay of diagnostic imaging is the x-ray, which was first introduced into dentistry in 120 years ago and has severe limitations for the early detection of oral diseases. Dentistry clearly needs an update in diagnostic technology and the OCT System clearly meets this need.

Phase II Development: Lantis' OCT Dental Imaging System(TM), is currently in Phase II development. Five clinical systems will be deployed at beta sites by the end of 2007 to gather clinical experience on the user interface before final specification of the pre-production system and transition to manufacturing and marketing in Phase III.

Direct Computer Recording Big Plus: Dentists are moving to input patient information clinical information into the patient digital file at the dental chair. Universities are already training students to move to digital record keeping. Lantis’s in the OCT imaging system records directly to the patient’s computerized record.

Second: Is there a real need for Lantis’ OCT Dental Imaging System?

    Lantis’ OCT System provides a means of early detection of decay and periodontal disease that is currently not available by any means.

The Need for Lantis’ OCT System: Lantis Laser believes their OCT System has the potential to be deployed in most dentists office as dentists need a chairside advanced and affordable diagnostic system for the early detection of oral diseases. OCT is additionally appealing because it is light-based and does not emit any radiation (like x-rays) which means it is safer for the patient and the dental staff. The System allows the dentist to catch early-stage tooth decay and early stage periodontal disease before they progress and require more invasive treatment. Currently, by the time decay shows up on x-ray it usually requires surgical intervention (“drill and fill”). Early detection enables reversal of the condition with non or minimally invasive treatment such as fluoride rises and varnishes.

Imaging and Detecting Tooth Decay: Today the standard for detecting tooth decay is through manual probing and x-rays, both of which are of limited use if the decay is below the surface of the tooth. A device called DIAGNOdent® is used to detect decay below the enamel but it does not provide an image for the patient file or for insurance claims. In addition there needs to be a larger amount of decay to trigger the detection system and it is not to specific as to location and amount of decay. Detecting early demineralization, a precursor to decay is not possible with any device currently used. Once a cavity has formed and exposed itself on the surface or has penetrated dentin it is too late - it has to be cleaned out and filled. OCT System early detection will enable demineralization and early decay to be treated and reversed before it becomes a cavity.

Imaging Periodontal Disease: The standard for detecting periodontal disease is probing and x-ray to the extent of viewing boneless in more advanced stages of the disease. Once gingivitis turns to periodontal disease it can be maintained and the condition improved but it is never cured.

Improved Imaging: Lantis' OCT Dental Imaging System(TM), provides a new option for earlier detection of tooth decay and periodontal disease. Lantis through the application of the newest most danced bio-medical imaging system, optical coherence tomography. It is ideally suited for dental diagnostic imaging because of its high resolution, safety and quantitative and qualitative image capture. OCT is able to detect tiny, below-surface lesions in teeth without exposing a patient to potentially harmful radiation.

Third: Will the Target Market Find Lantis’ System to be Cost Effective?

Number of Dentists Increasing and Their Income Increasing
     Lantis is targeting its OCT System through major distributors that have worldwide distribution. The target retail price for the OCT System is under $20,000 which puts it within reach of the majority of dentists. According to the Bureau of Labor Statistics Occupational Outlook Handbook, 2006-07, there are 150,000 licensed in the United States practicing in an estimated 100,000 dental offices and clinics.
     Lantis' management is highly confident that a minimum market penetration of 5% can be achieved within four years of commencing marketing in the third quarter of 2008. Projected sales for Lantis, at ex factory price, would amount to nearly $150 million over this period with sales in 2012 estimated at $70 million.
     Dentists today are enjoying unequalled prosperity as the demand for services expand and the number of dentists per thousand decreases. The OCT System will enable dentists to find more procedures that require attention as until now they could not detect many of these situations. Dentists could also receive reimbursement from insurance and Lantis has already initiated and extensive effort to obtain CDT codes for OCT diagnostic imaging. Dentists earn more than primary care physicians and will be able to afford the initial investment in an OCT system. Most dentists lease equipment as this is usually cost effective as they weigh the monthly leasing cost against revenue generated by the equipment. Ninety-two percent of all dentists are in private practice which makes them a candidate for the OCT Dental Imaging System ™

Potential for Health Insurance Reimbursement Expanding Daily

     Health insurance carriers are recognizing additional cleanings, gum treatments and prescription mouthwashes, can reduce the incidence of other health problems down the road. The emphasis on preventive care is the result of an increasing number of studies linking oral health to general health and well being. This means prevention will become a top priority in dental offices and the Lantis Laser has the potential to be the first line of defense where prevention is concerned.
     Cigna Corp.'s Oral Health Integration Program, implemented earlier this year, covers additional deep cleanings known as scaling and root planing during pregnancy at no extra cost, or an additional regular cleaning (over the usual two a year) for pregnant women who don't require scaling and root planing. A similar benefit is available for patients in Cigna's diabetes and cardiac-care disease-management programs.
     In March, Washington Dental Service, a member of the Delta Dental Plans Association, introduced enhanced benefits, including coverage of antimicrobial mouthwashes for pregnant women, to its members in 2,000 companies in the state. Aetna Inc., with 8.8 million members who have both dental and medical coverage, has conducted pilot programs designed to get pregnant women and people with chronic disease to visit a dentist. The company expects to offer a third regular cleaning each year, or additional deep cleanings as needed, to all such at-risk patients next year.
     Blue Cross Blue Shield of Michigan in Detroit, Glenn Melenyk, dental consultant noted that medical costs could be conserved by getting people to have dental care at the right time in their lives. The insurer, with 1.1 million dental members, started pilot programs in 2005 that cover an additional regular cleaning per year for diabetics and heart patients. In July, it expanded the pilots to include pregnant women who obtain a coupon from their obstetrician.
     The enhanced benefits come at a time when many employers are under pressure to cut medical costs. But big employers are signing on. Some health plans are offering the extra coverage at no additional cost to employers or employees. Washington Dental says it achieved this by cutting back coverage of other services for which there is less evidence of benefits, such as routine X-rays. Currently, insurers say, dental care makes up only about 4% of employers' overall health-care budget.

     Insurers who offer both dental and medical-care coverage say they expect that spending more on preventive dental care will yield big savings on the medical treatment of costly chronic illnesses. Insurers that offer only dental coverage expect to save money on periodontal surgery. Stand-alone plans also say they want to be more attractive to workers, who increasingly have to pay all or part of their dental-insurance costs themselves as more employers make group dental a voluntary rather than an employer-paid benefit.

Four: What is the Competition in this Industry?

Exclusive License for Technology for Dental Industry

     Lantis Laser has an exclusive right to commercialize the application of Optical Coherence Tomography, OCT, in the dental field, under its license Agreements with Lawrence Livermore National Laboratory and LightLab Imaging. OCT, discovered in the early 1990s at MIT, has been very successfully commercialized by Carl Zeiss Meditec in the ophthalmology field and for cardiovascular imaging by LightLab.

     The genesis for Lantis Laser began with research at the The Lawrence Livermore National Laboratory (LLNL) which is a United States Department of Energy (DOE) national laboratory. LLNL is a "a premier research and development institution for science and technology applied to national security." These capabilities are also utilized in programs in non-defense areas such as basic science, energy, environmental science, and biosciences.
     The DIAGNOdent® caries detection device, a small handheld instrument, has been extensively embraced by the dental profession in recent years. The device uses fluorescence to detect decay below the enamel and which is usually not visible. The device requires a minimum amount of decay to be present and this amount is typically more than is defined as “early detection”. In addition, it does not capture an image to support insurance claims or for placement in the patient file. The exact area and extent of decay is not clearly defined and the literature shows it can show false/positive. Adoption of this device, despite its limitations, clearly indicates that dentists want a means of detecting hidden decay and this would certainly include early decay.
     Laser fluorescence is suitable more for research than clinical use as it is not suited to image uneven surfaces such as the occlusal topography.

Five: Can Lantis Laser Get this to Market?

Lantis Laser is in Phase II Development
Lantis recently completed a private placement for $2.5 million.

   This round of financing enable Lantis to complete Phase II development of its OCT (Optical Coherence Tomography) Dental Imaging System ™ and transition to Phase III, manufacturing and marketing. In Phase II Lantis is building the OCT Dental Imaging System(tm) to specifications that will allow clinicians to image in the mouth and obtain high resolution scans showing the characteristics of oral diseases. Lantis expects to have five sites working to establish a body of experience in the mouth by the end of 2007 and to use this experience to determine the final specification of the pre-production system.
   The Beta Systems are being built at Lantis’ Tampa, Florida facility under the management of Doug Hamilton, VP R&D. Lantis is working with highly specialized strategic partners and consultants to finalize the upgrading of system components from the Phase I bench top system to enable real time scanning, chairside, in a clinical setting.

   Marketing the Lantis Laser to the Dental Profession: Marketing the Lantis Laser system through established dental sales distributors will enable Lantis to reach maximum customer penetration with minimum overhead.

Disclosure: Pentony Enterprises LLC was compensated $27,000 and 70,000 restricted shares directly from the company and 55,000 free trading shares from a non controlling third party for profile coverage. Pentony Enterprises LLC is not a registered investment adviser or broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. It is the policy of Pentony Enterprises LLC to sell all shares of this and any company featured. Anyone considering any company we feature in consideration for free trading shares should consider this. Pentony Enterprises no longer holds shares.