IsoRay (ISR) Reports In-Line Q2 Loss of 2c/Share; Offers Commentary

IsoRay's team remains focused in diversifying its product offerings through institutional based studies designed to address various aggressive cancers that to date often fail current standard of care options. Management is hopeful that the lingering decline in the prostate market may be bottoming out. Management anticipates seeing modest gains in IsoRay's market share as well as some revenue growth in the coming quarters. We experienced a negative impact on our international sales efforts during the quarter ended December 31, 2014, with the devaluation of the Euro causing our products to become higher in price, making it more difficult to attract new adopters in this market.

Management is very pleased with the release of the third peer-reviewed publication supporting the use and success of Cesium-131 for prostate cancer. This follows on the heels of two other publications reporting significant success in treating metastatic brain cancers and gynecological cancers. The most recent report, by the University of Pittsburg Medical Center (UPMC), covers a 9 year effort to date on using Cesium-131 for the treatment of low and intermediate prostate cancer. The conclusion was: Cesium-131 seed brachytherapy offers extremely high efficacy compared to other isotopes or treatment modalities used in treating prostate cancer, with the advantage of rapid return to pre-treatment urinary function and at lower cost.

Brachytherapy treatments are now being discussed with greater frequency as evidenced by several new publications supporting brachytherapy as a financially prudent treatment as well as highly effective cancer treatment. Brachytherapy offers some of the best results for the patient, fewer and less severe side effects, faster recovery back to base line and at the lowest industry cost. This is further supported by the recent article published in the International Journal of Radiation Oncology, authored by physicians at Stanford University, titled "The Case for Prostate Brachytherapy in the Affordable Care Act Era" http://www.redjournal.org/article/S0360-3016(14)04265-5/pdf. This article concluded: in low risk prostate cancer, brachytherapy demonstrates the opportunity to benefit patients, payers and institutions, and radiation oncologists should be proactive in the reintroduction and expansion of brachytherapy for prostate cancer.

In another recent publication in the Journal of Clinical Oncology titled "Where Have You Gone Brachytherapy" http://hwmaint.jco.ascopubs.org/cgi/content/full/JCO.2014.59.8128v1, the authors cite a study by Dr. Steven J. Frank, et al. that concluded "there is no greater value for the treatment of localized prostate cancer than brachytherapy". While IsoRay remains committed to the expanding its presence in the prostate market, management will continue its strategic focus to promote the use of Cesium-131 to combat cancers in numerous other body sites. We are extremely pleased with the effectiveness of Cesium-131 as a treatment solution for brain cancer, head and neck cancer, lung cancer, prostate cancer and gynecological cancers while providing far better quality of life for the patient than other alternatives.

Management is seeing a growing awareness of Cesium-131 as more abstracts, posters and now medical journals report significant success stories using Cesium-131 in treating metastatic brain, gynecological and prostate cancer. These published peer reviewed studies have created a rise in leading medical institutions preparing to duplicate these study results independently and/or participate in an existing multi-institutional study. Outstanding medical centers continue to perform Cesium-131 cases following reports by Weill Cornell, University of Kentucky and UPMC of their experiences with Cesium-131. Some notable names now utilizing Cesium-131 in treating tumors in various body sites include Massachusetts General Hospital, Johns Hopkins, Harvard Affiliate Brigham and Women's, Princeton, New York Presbyterian, Rutgers Medical School and Barrow Neurological Institute.

With the anticipated addition of new studies being launched and the expectation of other study results being made public through future peer reviewed publications, management expects awareness of Cesium-131 to grow within the medical community.

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