Stockvantage Profile of the month
newsl...@stockvantage.com
NOVEMBER 1998
D-Lanz Development Group, Inc.
(A Development Stage Company)
(NASDAQ/DLNZ-Bulletin Board)
400 Grove Street
Glen Rock, New Jersey 07452
Phone: (201) 445-8862
Bid price: .5625 Offer price: .6250
To our dedicated subscribers, we thank you for believing in us
and hope you were profitable with our last profile. To our new
subscribers, we hope you enjoy and prosper in the future.
Our last profile was Wineco Productions Inc., symbol WCPD ,
profiled on November 6th,1998@ a price of $1.875. As of
today , November 20th, WCPD has closed @$2.875 for a gain
of approximately 65%. Prior to Wineco, was a company
named Research Frontiers Inc., symbol REFR. Profiled on
September 3rd,1998@ $5.75 ,since then REFR has
pea...@7.9375 for a gain of approximately 38%. We
at STOCKVANTAGE believe we can continue to be the
STOCK -VANTAGE- .
Here is what impresses us. D-Lanz Development Group
(hereinafter referred to as “DLNZ” or “the Company”) has a
non-invasive product already approved by the FDA that every
woman in the world can obtain to detect breast abnormalities
(e.g. cancer)! Rather than undergoing a mammography, a
primary care physician, gynecologist or other medical
specialist can insert this device, (sold internationally under the
trademark BreastCare and in the United States as BreastAlert),
inside a woman’s brassiere where it is left for a period of 15
minutes If the device indicated unilateral breast thermal
activity, the physician is alerted to the possibility of a
physiological condition including thermally
active cancer.
Breast cancer, one of the most common cancers among women,
is currently the leading cause of death among women
between the ages of 25 and 54, in the United States. This
suggests that a tremendous market awaits this
product as it becomes available, not only in American but
other countries as well. We project that overseas markets will
compound demand for the product accordingly. In 1997,
DLNZ acquired an exclusive license to market its
BreastCare indicator in Chile and Singapore. It has recently
been given authority to market in South Korea. Using this as a
stepping stone, the company eventually intends to market this
device in other eastern countries. We believe that in the
coming months, women all around the globe will be attracted
to this non-invasive method to detect breast cancer and other
abnormalities.
In the United States, breast cancer screening is generally
recommended as a routine part of preventive health care for
more than 90 million women. In addition, industry sources
estimate that approximately 11.3 million mammograms and
800,000 surgical biopsies were performed in the U.S. in 1994
(the last year for which such data is available from the Center
for Disease Control) so as DLNZ begins to distribute products,
we believe demand will rapidly increase, consequently
boosting revenue and earnings to impressive levels.
In conclusion, we are impressed with the results of the
research done at Sloan-Kettering Hospital, Georgetown
University School of Medicine, Anderson Hospital and Tumor
Institute, Brottman Memorial Hospital (U.C.L.A.), and
Guttman Cancer Diagnostic Institute.
Investor Relations
Contact: Roger Fidler
Chief Executive Officer
Phone (201) 457-1221
THE COMPANY
D-LANZ Development Group Inc. (DLNZ), a development
stage company, commenced business activities as a
partnership in 1947 and was incorporated in 1952 under the
name Osrow Products Company, Inc. In 1990,
the company amended its certificate of incorporation to
change its name to D-Lanz Development Group Inc. In
September of 1997 D-Lanz Development Group acquired the
assets of Health Technologies International, Inc. (HTI).
It was through this acquisition that the company acquired
exclusivity in Chile and Singapore to market the breast
thermal activity indicator (“BTAI”) device that is now called
BreastCare.
BreastCare is a primary breast cancer screening device,
sold in the United States under the trade name BreastAlert by
HumaScan, Inc. D-Lanz Development Group licenses
marketing rights for BreastCare from Scantek Medial, Inc of
Denville, New Jersey for the countries of Chile, Singapore
and (anticipated shortly) South Korea.
THE PRODUCT
BreastCare is non-invasive, easy to use low-cost indicator that
has proven to be an excellent adjunctive test used by primary
care physicians, gynecologists and other medical specialists.
As part of a breast disease monitoring program, BreastCare
should be used in some combination with breast self-
examination, palpation and (depending on a patient’s age,
family history and other factors) mammography and other
established clinical procedures, including ultrasound and/or
biopsy. An important feature of the BreastCare is that the
results are immediately available (often within 15 minutes) to
the physician while the patient is “on site” at the point of care
in the physicians office, clinic, hospital and/or mammography
center. In Chile and Singapore, the woman can obtain the
results at home since the product can be sold over the
counter through drug stores. If BreastCare indicated unilateral
breast thermal activity (i.e. in one breast only), the physician is
alerted to the possibility of an “unknown” physiological
condition that could include thermally active cancer.
PRODUCT ORIGIN
The original device was patented in 1980 by Dr. Zsigmond L.
Sagi who assigned the patents to a private company called
BCSI Laboratories, Inc. which shortly thereafter was acquired
by Faberge. In 1984, following the original devices 510(k),
(FDA authorization to market), Faberge constructed a plant to
commence commercial production. In 1985, McGregor
Industries acquired Faberge and discontinued many
Faberge products including the original breast device.
In 1986, Dr. Sagi formed Scantek Medical Corp. and
purchased the devices patent rights (including the regulatory
clearances) from McGregor Industries. In 1995 Scantek
granted an exclusive license to HumaScan to manufacture and
market the device in the U.S. and Canada under the trademark
name of BreastAlert. In 1997 D-Lanz became the licensed
marketer of the device in Chile and Singapore under the
trademark name BreastCare.
COMPETITION
Primary competition for BreastCare is mammography. The
company has not applied for any governmental approval of its
product in the territories of its exclusive license however,
strong indications are that since the product was approved for
use in the United States, its registration in those territories
will proceed rapidly. Currently, Scantek Medical
manufactures BreastCare for the company on a cost plus basis.
Sandell S.A., which distributes BreastCare for Scantek
throughout South America through a system of sub-
distributors, has agreed to distribute in Chile on behalf of
D-Lanz. The Company Anticipates that Grupo Grifols, S.A.,
an international distributor of a variety of medical
products will distribute in Chile for Sandell through its sales
and distribution company G.G. Chile. Formed in 1940 and
owned 50/50 by Spanish shareholders and
Green Cross Corporation, Grupo Grifols has over 1,000
employees and annual revenues of over 20 billion pesetas.
INDUSTRY BACKGROUND
For over thirty years, breast cancer detection has been
dominated in technically advanced countries by
mammography. In less economically developed areas of the
world, self-examination and professional palpation are
extensively used. The basic problem with mammography is
one of capital cost with equipment running from hundreds of
thousands of dollars in the millions. This fact, along with the
costs associated with expert reading of mammograms,
results in costs in the United States of between $100 and $200
per reading.
In less advantaged countries, the price is lower, but still high
in comparison with local per capita income. For example,
according to various sources, a mammogram in South Korea
costs between $30 and $40 (US). Whole BreastCare is not
expected to exceed the $20 range.
In addition to cost, mammography requires expert reading,
usually done by a physician or trained specialist. The reading
process itself is subject to a high degree of variability and
introduces a significant source of error. These errors are
compounded by problems associated with breast tissue
density. This is the cause of frequently reported controversy as
to the age at which mammography is recommended. Clearly,
women over 50 are almost always advised to have an annual
or biennial mammogram. However, for women between the
ages of 40 and 50, there is widespread disagreement as to the
effectiveness of mammograms. Below the age of 40,
mammograms are not recommended due to the difficulty in
distinguishing between tumor tissue and young healthy dense
breast tissue.
TECHNOLOGY
As breast cancer cells multiply, excessive heat is often
generated. This heat is conveyed to the surface of the breast,
resulting in the temperature of the skin of a particular area of
one breast being elevated between 2 degrees and 6 degrees
Fahrenheit in comparison to the temperature of the same area
of the other breast. Simply explained, BreastCare permits the
measurement and comparison of temperature variances
between mirror images of each breast.
BreastCare consists of two soft disposable pads, each of which
has three wafer-thin segments containing columns of “heat-
sensitive chemical” sensor dots that change color from blue to
pink, reflecting an 8.5 degree temperature range between 90
degrees to 89.5 degrees Fahrenheit. This device is placed over
a woman’s breast inside her bra for a period of 15 minutes. An
elevated temperature differential of two degrees Fahrenheit (or
more) between each breast, in the same location, may indicate
either thermal (metabolic) active breast cancer cells certain
types of heat-generating breast disease.
Because of its digitized readability, which is not dependent on
tissue density, BreastCare is very effective with younger
women. It provides a relatively easy method of reading and
interpreting the results, rendering it more useful in an “over-
the-counter” application in those foreign countries where
such distribution is allowed.
RECENT DEVELOPMENTS
On August 20, 1998, the company announced that it had
entered into a distribution agreement with Sandell corp. S.A.
to distribute BreastCare in Chile. Mr. Roger Fidler, the
Company’s president stated “This agreement should
result in the first revenues into our company before the end of
this year. It is the first step toward achievement of our primary
corporate goal of establishing distribution throughout our
countries before year end.”
MANAGEMENT
Roger Fidler Mr. Fidler has been the sole Director, President,
Chief Executive and Financial Officer of the company since
September 1989. He will serve until the next annual meeting
scheduled for May 1999, or until his successor is elected and
qualified. Since 1983, Mr. Fidler has been engaged in the
private practice of law. From 1994 to the present, he also has
been president of PPA Technologies, Inc, a private specialty
chemicals company. From 1994 to 1997, Mr. Fidler was also
President of Health Technologies International, Inc. a
private medical device company that in 1997 was
subsequently merged into DLNZ. Mr. Fidler has an MA from
University of South Carolina. He also has a Masters degree in
Physics from University of Illinois.
Jay Hait Mr. Hait has served as Secretary of the corporation
since November 1997 and will continue to serve until his
successor is elected and qualified. Mr. Hait has worked as an
attorney in Mr. Filder’s law practice since Mary of 1997. Prior
to that, from 1994 to 1996, Mr. Hait was employed as a
computer programmer at Isis Corporation of Oakland, NJ.
During 1993, Mr. Hait worked as a help desk LAN Technician
an MDY Advanced Technologies of Fair Lawn, NJ. Prior to
1993, for approximately one year, he occupied the same
capacity for Viacom in New York City.
DISCLAIMER
The statements and projections contained herein concerning
DLNZ`s business outlook or future economic performance;
anticipated profitability, revenues, expenses, or other financial
items; and statements concerning assumptions made or
expectations as to any future events, conditions, performance
or other matters are "forward-looking statements" as that term
is defined under the Federal Securities Laws. Forward-looking
statements are subject to risks and uncertainties and other
factors which could cause actual results to differ materially
from those stated in such statements. Such risks and
uncertainties are detailed in DLNZ`s filings with the Securities
and Exchange Commission.
STOCKVANTAGE MAKES NO REPRESENTATION,
WARRANTIES OR GUARANTIES AS TO THE ACCURACY
OR COMPLETENESS OFTHE DISCLOSURE OF THE
PROFILED COMPANY.
STOCKVANTAGE is not a registered investment advisor or a
broker dealer. Investment in the company being profiled is
considered to be HIGH RISK. Use of the information
provided is at the sole risk of the investor. Purchases of such
high-risk securities may result in loss of some or all of any of
the investment made. The information provided on the
profiled company may include information which came from
an outside source and may not be considered accurate.
INVESTORS SHOULD NOT RELY SOLELY ON
THE INFORMATION PRESENTED HERE. RATHER,
INVESTORS SHOULD USE THE INFORMATION
PROVIDED AS A STARTING POINT FOR DOING
ADDITIONAL INDEPENDENT RESEARCH ON
THE PROFILED COMPANY IN ORDER TO ALLOW THE
INVESTOR TO FORM HIS OR HER OWN OPINION
REGARDING INVESTING IN THE PROFILED
COMPANY. It is possible that the investor's investment may
be lost or impaired due to the speculative nature of the
company profiled. STOCKVANTAGE has been hired by
D-Lanz Development Group as a consultant for a period
of one year. In return we are being paid $100,000 cash over
the course of one year. In addition, we have been granted
options to purchase 400,000 shares at a price of $0.01 per
share, and 200,000 shares at $1.00 per share.
This Profile contains certain “forward-looking statements”
regarding future expectations and plans for sales of the
BreastCare device. Investors are cautioned that known and
unknown risks, uncertainties and other factors may
cause actual results, performance or achievements of D-Lanz
Development Group to be materially different from any future
results, performance or achievements expressed or implied by
such forward-looking statements, Factors that might cause
such differences include the Company’s limited operating
history and anticipated future losses, risks and uncertainties
related to its future profitability and ability to meet its capital
needs, government regulation, competition, market acceptance
and other factors discussed under the heading “Risk Factor” in
DLNZ Company filings with the Securities and Exchange
Commission. Any actual results may vary materially.
We would like to remind potential DLNZ investors of the
significant risks associated with a new product launch. All
investors should do their own research into the company.
Investors should not depend solely on the information
provided here. The staff of this newsletter does not guarantee
the accuracy of the information provided.
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