Exhibit 99.1
FROM: FOR:
BlueFire Partners MEDTOX Scientific, Inc.
150 South Fifth St., Suite 1300 402 West County Road D
Minneapolis, MN 55402 St. Paul, MN 55112
Contact: Doug Ewing (612) 344-1036 Contact: Richard Braun (877) 715-7236
FOR IMMEDIATE RELEASE
MEDTOX RECEIVES PATENT FOR "On-Site Drug Testing Method"
UPDATE ON POC DEVICE AND SYSTEM SALES
ST. PAUL, Minn., June 13, 2002- MEDTOX Scientific, Inc. (AMEX-TOX),
announced today that the United States Patent and Trademark Office granted to
MEDTOX a business method patent for its on-site drug testing method, U.S. Patent
No. 6,376,251. According to the abstract for the patent:
"The invention described herein includes a method of testing an analyte
such as urine to determine whether the analyte contains specific substances such
as drugs of abuse. An on-site screening test provides a preliminary test result
either by visual or machine analysis of a screening test device, and the result
and user data are entered on a provided form. An electronic image or the form is
sent to a central data location, where it is received and the data on the form
is recognized by machine and stored, if the on-site screening test provided a
nonnegative result a sample is sent to a laboratory for further testing, and if
the test provides only negative results no further testing is done. The testing
laboratory performs further testing for verification of nonnegative screening
test results, and all data is collected at the central data location. Results
are then reported to the client or whoever the client designates to receive test
results."
MEDTOX believes this patent to be a significant addition to its growing
intellectual property portfolio. Currently, there are approximately 25 million
laboratory screens for drugs of abuse (DAU) performed annually in the workplace
market. In 2001 MEDTOX performed over 2 million of those lab based DAU screens.
Dick Braun, MEDTOX chief executive officer, said, "In the last three
years we have seen an increasing transition from laboratory screening for
workplace DAU to on-site or point-of-collection (POC) screening with disposable
devices.
"In 1998 MEDTOX identified the potential for this transition. We then
developed a method to replicate and improve upon the controls and data
management of the laboratory model in a POC model-the PROFILE-II(R) Test
System(TM). The growing transition to POC screening will increase the value of
this patent to MEDTOX and its strategic partners. Additionally, MEDTOX is unique
in that it has both a federally certified laboratory and a POC device maker.
This allows us to provide a seamless transition for clients moving from one
model of screening to the other.
"Delivery of the PROFILE-II(R) Test System(TM) is further enhanced by
WebTox(TM), MEDTOX's recently launched web platform and interactive program
management system. WebTox will set a new standard of customer service excellence
in our industry. By placing the power of information directly in the hands of
our customers, through the Internet, WebTox integrates point-of-collection
screening, and rapid laboratory confirmations with a feature-rich data reporting
and tracking system. WebTox provides customers with testing results and
tracking, chain-of-custody verification, supplies ordering capability,
statistical reporting, and sample collection site location information," Braun
said.
MEDTOX Scientific, Inc.
June 13, 2002
Page 2
MEDTOX also said that demand for its POC devices and on-site system
continues to increase. Device unit sales year to date through May since
introduction in 1999:
o 1999 sales through May 65,027 devices
o 2000 sales through May 287,691 devices
o 2001 sales through May 686,636 devices
o 2002 sales through May 968,729 devices
"In addition to the growth in our POC device and system sales, MEDTOX
continues to have success in our esoteric clinical laboratory testing, pediatric
screening, and Clinical Trials Services. The Company is adding new laboratory
clients in the corporate drug testing market, an important trend since volume
from existing workplace clients continues to be negatively impacted by the
economy and lower levels of employment hiring. To support future growth MEDTOX
continues to increase investment in R&D, sales, and information systems," Braun
said.
The patent contains 21 claims applicable to a system for screening
(testing) of other sample types in addition to urine, such as oral fluid, blood,
and serum. MEDTOX also believes the patent may have application beyond workplace
drugs of abuse testing. MEDTOX is currently working with its intellectual
property counsel to implement its strategic approach to maximizing opportunities
for itself and its business partners surrounding this patent. In addition to
patent protection for the on-site testing method, the United States Copyright
Office has issued a registration for MEDTOX's copyright in materials relating to
the method. MEDTOX has sought the broadest protection possible for its
proprietary on-site testing method.
MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a
provider of high quality specialized laboratory and on-site/point-of-collection
(POC) devices. The company also supports customers with complete logistics, data
and program management services. MEDTOX develops and manufactures diagnostic
devices for quick and economical on-site/point-of-collection analysis for drugs
of abuse, therapeutic drugs and biological and agricultural toxins and provides
employment drug screening and occupational health testing. MEDTOX is a leader in
providing esoteric laboratory testing services to hospitals and laboratories
nationwide. This includes both central laboratory and bio-analytical testing for
pharmaceutical clinical trials. To be automatically alerted by e-mail about
company information, please go to
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=tox&script=1900 and
follow the directions on the page. For more information see
http://www.medtox.com/.
Note: Forward-looking statements contained in this press release are made under
the Private Securities Reform Act of 1995. Actual results may differ due to a
number of factors including a change in the employment pattern of client
companies, the ability of MEDTOX to acquire new business, and changes in the
competitive environment. Fuller discussions of factors that may cause such
results to differ are identified on page three of the company's 2001 annual
report on Form 10-K and incorporated herein by reference.
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