Access Pharmaceuticals to Host North American MuGard Commercialization Update Conference Call for Investors

Access Pharmaceuticals to Host North American MuGard Commercialization Update Conference Call for Investors

3rd party OutsideIn Research findings on VEMICS Inc

http://www.outsideinresearch.com/vemics-inc-otcbb-vmciob-dba-im/

www.iMedicor.com

Michael W Sweeney - OutsideIn Research

July 27, 2010

BUY Recommendation

Current Price - $0.035

Shares Outtanding - 150 million

Market Cap - $5.2 million

Six Month Outlook - $0.18

VEMICS INC (OTC BB: VMCI.OB) dba iMedicor is the only HIPAA-compliant solution for interoperable medical information transfer that is offered at no cost to healthcare providers and patients. The two core platforms are:

1. iMedicor, HIPAA compliant secure messaging and transport system coupled with a Health Information Exchange and a social community portal for physicians and other healthcare providers, and
2. ClearLobby, the next generation in on-line pharmaceutical marketing that directs educational resources and marketing materials to specific targeted medical populations.

Investment Highlights

• $17 Million Invested – iMedicor has invested $17 million to date in the technology, and the Company is now poised to take advantage of the changes in the healthcare marketplace.

• ObamaCare – Market needs has been mandated in Washington. iMedicor is now placed front and center in the administration’s healthcare initiative (started during the Bush Administration) focused on the transition from a paper to an electronic medical records system. iMedicor solves the security and disclosure issues that restrict physicians and other healthcare providers from using the Internet as a communication system.

• Groundbreaking - With the launch of a single, secure HIPPA-compliant network, iMedicor stands to revolutionize an entire industry, offering a unique ground floor opportunity to maximize shareholder value.

• Industry-First Offering - iMedicor is the first and only HIPAA-compliant solution that overcomes the long-standing hurdle of electronically accessing disparate medical records, practices and health systems. The interoperable components of the iMedicor secure messaging sysyem allows one EMR (electronic medical record) to communicate with any other EMD with patient specific messaging, file transfer, medical records attachments and transmission of medical images.

• Three Revenue Streams – The three revenue models are each beginning to generate the predicted revenue in the Company’s three year proforma’s. The revenue models are:

1. iMedicor has transitioned from a free service to a subscription based service;
2. The deployment of the Company’s Electronic Medical Records System;
3. iMedicor's pharmaceutical on-line marketing platform, ClearLobby.

• Leveraging the Network – The iMedicor portal has direct access to roughly 90% of all physicians in the U.S., creating a highly-targeted marketing and advertising platform.

• Leadership Expertise – Managers and directors comprise influential doctors, IT professionals, healthcare and public company executives and thought leaders that can institute change in the U.S. health care industry.

The iMedicor portal enables doctors, administrators and other qualified healthcare workers to send and receive medical records, files and images in a secure, HIPAA compliant environment. The portal allows disparate EMR systems to communicate, collaborate and exchange records in real time, and it allows pharmaceutical companies to deliver customized marketing programs to healthcare providers nationwide in a highly targeted, cost-effective and non-intrusive manner. Within iMedicor, health information can be exchanged across disparate EMR’s to communicate, collaborate and exchange medical records for referrals and patient consultations. The iMedicor portal operates via secure messaging specifically designed to complement clinical workflow, and it delivers on the Obama Administration's mandate for an interoperable health information infrastructure allowing healthcare providers to become interconnected.

The Company’s ClearLobby product allows physicians to interact with pharmaceutical companies and to review information on new drugs offered by these companies at a time of their choosing. ClearLobby changes the relationship between the Doctor and the Pharma company by placing control in the hands of the physician. The net effect of ClearLobby is a more effective interaction between Pharm and the physician, a win for both sides.

Financials

On the subscription side of iMedicor’s revenues, the Company has secured contracts with:

1. Physician’s Alliance Network of America (20,000 physicians);
2. One of the largest Managed Care Organization in the country (350,000+ physicians), and
3. A soon to be announced national dental organization representing more than 135,000 dentist.

Each organization will launch a campaign in September informing their membership that iMedicor will become the primary communication network for the respective organizations. The subscription fee will be $19.95 per month of which iMedicor keeps approximately $10.00. At full membership of 100%, iMedicor is looking at $5.0+ million PER MONTH in subscription revenues from these three networks. At 20% early adopter rate (first 90 – 120 days), it is $1.0 million per month.

Physicians’ Alliance - The Physicians’ Alliance group will focus on using the iMedicor system to move medical records to specialists, hospitals, imaging centers and labs. Most of their network are General Practitioners, so it stands to reason the major flow of patient information starts at the family GP and has great potential for viral growth. The 20,000 members of the Physicians' Alliance network represent the early adopters of a monthly subscription model in which iMedicor will deliver a wide range of features and services to the healthcare community. The iMedicor subscription-based service is scheduled to go into effect September 8, 2010.

This deployment will provide one of the key components addressing the "Meaningful Use" requirements developed by the Federal government under the Department of Health and Human Services, specifically in the area of interoperability. The system will provide participants with affordable, secure health information technology solutions with a HIPAA-compliant communications network and the benefits of a social community portal. In addition, doctors participating in the PAA Communications Program will have access to the latest educational and product resources through iMedicor's ClearLobby service.

The iMedicor subscription-based model will enhance healthcare delivery by providing a number of critical services, including:

• A HIPAA-compliant secure messaging service that allows physicians and their staff to attach files, medical records and images and transport patient-specific information in a secure environment;
• A social community in which physicians can invite peers into their community, expand collaboration and referral networks and the invited physicians can create their own community;
• Access within the iMedicor portal to one of the most extensive libraries of Continuing Medical Education programs available, by specialty, offering credit hours, skill development and product specific information.

In a recent press release, Robert Chalmers the Executive Director of the PAA network stated, "PAA recognizes the opportunity to work with iMedicor as a big step toward upgrading and providing a secure, HIPAA compliant interoperable communication system for the entire healthcare community. We see the iMedicor service as a key component of any national healthcare communications initiative, and we are excited by the potential this alliance represents in benefiting our members."

Announcements regarding the MCO project and the Dental project will be forthcoming.

Other Contracts - On the Electronic Medical Records front iMedicor has secured contracts with:

• Sun Coast Regional Health Information Organization (RHIO) with 500 physicians,
• iMedicor expects to close 2 to 4 RHIO's in the Southeast during the month of September with over 1500 participating physicians.

A single RHIO generates approximately $900,000 per year in net revenue once it gets to full capacity per 500 physicians, which iMedicor estimates will take 6 months.

SunCoast RHIO - This program combines the services in the recently announced partnership between iMedicor and MedLink, the Electronic Medical Records and Practice Management partner. SunCoast Health Partners is a Joint Venture between the SunCoast RHIO, and for profit partners offering services to the healthcare community in the Southwest Region of Florida. The participation by SunCoast will include offering products and services by MedLink and iMedicor to the more than 500 Healthcare Providers in the SunCoast RHIO area of Southwest Florida. "This venture will provide affordable health information technology solutions to participants while providing financial benefits to support the adoption of Electronic Health Records. The agreement is a significant milestone for MedLink as well as iMedicor; five hundred healthcare practices are expected to generate sales of more than $4 million in the first year and in excess of $7 million over the subsequent four years," said Ray Vuono, President of MedLink in a recent press release. In addition, the physicians participating in SunCoast will have access to the latest educational and product resources through iMedicor's Clear Lobby. This service will contribute to a unique sustainability model designed to support the SunCoast RHIO and reduce the overall cost to the medical practice to adopt and implement Electronic Medical Records as part of the day-to-day clinical workflow.

ClearLobby – iMedicor’s third revenue model is the pharmaceutical online marketing system, ClearLobby. The first pharma product is already in the sampling stage and generating revenues at this time. Later this quarter, iMedicor will launch a national campaign whereby they will receive a percentage of all sales for the product MuGard that is generated through ClearLobby and our strategic partners. MuGard is a potential breakthrough treatment for Oral Mucositis, an extremely harsh side effect of chemo or radiation therapy for the treatment of cancer effecting more than 500,000 patients per year. iMedicor estimates that first year revenue to iMedicor will be approximately $15 million dollars, which they will begin to see later this year. During the first quarter of next year, MuGard sales are expected to generate close to $1.0 million dollars per month in revenue for iMedicor.

iMedicor

iMedicor is a full service network platform/portal for the healthcare sector which includes:

1. An online social media/referral network for physicians, healthcare professionals, and patients to share personal health information;
2. Free HIPAA-compliant email, secure messaging services for small and large clinics as well as hospitals;
3. An integration driver for use with Electronic Medical Records (EMR) and Personal Health Records, which currently exist largely on a stand-alone basis with incompatible technology platforms and an inability to communicate with each other; and

Today iMedicor’s powerful web portal allows physicians, patients and their office staffs to:

• Share files and images for referral purposes;
• Streamline workflow;
• Conduct e-consults with patients and other physicians;
• Utilize state-of-the-art online and mobile applications on their “smart phones”;
• Provide patient wellness and disease management information at the point of care;
• Interact electronically within the office or from the hospital / other remote location in a secure environment;
• Refill prescription renewals electronically;

ClearLobby

ClearLobby enables pharmaceutical companies and their representatives to more efficiently communicate and interact with physicians. ClearLobby allows pharmaceutical companies to distribute timely product-specific educational resources, peer reviewed journals, white papers, clinical research studies, webinars and audio programs in an easy-to-use, portal-based service. In addition to reducing the need for live visits by pharmaceutical salespersons to physicians' offices, ClearLobby increases the number of physicians that pharmaceutical companies can market to. The cost of in-person marketing is reduced by as much as 80% per encounter, The cost of a big pharma sales rep to visit a doctor is estimated at $500-750 per visit. The average length of interaction between a sales rep and doctor is 90 seconds! ClearLobby also will allow the physician, on his or her own timetable, to instantly access updated information on new and existing products, order samples, access real-time technical assistance from a live, qualified pharmaceutical company representative, and make specific appointments with pharmaceutical sales representatives.

What ClearLobby does:

• Increases cost effective reach, sampling, and product education to “no see” and difficult access customers,
• Drives positive conversation between physicians regarding your brand,
• Increases effectiveness of communication & interaction with physicians, their peers, and your organization,
• Works when a doctor is most accessible, off hours and weekends,
• Allows doctors to initiate individualized access to sales representatives or product experts on demand,
• Compiles an expanded and deliberate customer universe through syndication partners,

Marketing

iMedicor's signed an agreement in January 2010 with Direct Medical Solutions (DMS) where iMedicor will utilize the DMS national sales reps to market to physicians, hospitals, regional and state Health Information Exchanges (HIEs), and other organizations in the healthcare field. DMS will initially focus on enrolling oncologists, oncology related fields, neurologists and neurology related fields as the Company begins to launch several contractual initiatives.

ObamaCare

The Obama Administration, through The American Recovery and Reinvestment Act (ARRA), has brought a sense of urgency to the deployment of a comprehensive healthcare information infrastructure throughout the entire health care system. Approximately $19 Billion has been committed to expedite the adoption of a nationwide electronic health record system by 2014. According to The New England Journal of Medicine, less than 2% of U.S. hospitals use electronic records and only 17% of physicians have functioning digital systems.

The move to paperless systems is expected to accelerate over the next several years as the federal deadline for the adoption of digital medical records grows closer. Many believe that the delay is being caused by the hundreds of disparate EMR systems that will not be able to communicate once they go digital. In addition, many physician practices see no benefit in going electronic because they know there is currently no way to exchange information outside of their own system. iMedicor solves the problem.

The iMedicor solution represents the first critical step in achieving the goals of the Administration by facilitating interoperable electronic communication among physicians, healthcare providers and patients. iMedicor also offers an imperative HIPPA-compliant communication link that provides the market's first meaningful use of digital information and online sharing. The systems offered through iMedicor are priced below the market and are one of only eight certified systems in the U.S. For the first time, this type of technology is accessible and affordable for every health care organization in the country.

Based on several recently announced strategic partnerships, iMedicor has increased its positioning within the National Healthcare Initiative by offering a fully functional HIE and EMR system. These systems comply with all aspects of the “Meaningful Use” regulations that will qualify physicians and healthcare facilities for the stimulus funding that will underwrite the transition from a paper-based system to an electronic one.

Business Model

The Company's business model is established on the three core strengths of its network, including:

1. Physician Network: iMedicor has access to over 95% of physicians in the U.S., representing approximately 730,000 doctors and an associated 1.5 million support staff through its growing user base, strategic alliances and viral growth of its network.
2. Ease of Use and Level of Security: iMedicor's network provides complete seamless/encrypted interoperability between disparate EHR systems and provides full HIPAA-compliant security for encrypted document transmission - representing a disruptive technology with the potential to bring about much needed changes and improvements to the current system of EHRs which are not connected and do not communicate with each other.
3. Medical/Social Networking: The network is designed as a physician-centric social network that is similar to Facebook or LinkedIn with a growing feature set of programs/applications that make it attractive to physicians. In addition, the portal/applications will be made available this fall on handheld devices with voice activation software. iMedicor also offers a full range of social networking services, specifically designed to support physicians such as specialized emails, advertising, blogging with peers, and referral network-building.

iMedicor provides targeted marketing to physician networks for selected products from medical device/diagnostic and bio-pharmaceutical companies while also providing point-of-care disease management/medication adherence messaging on behalf of health insurance plans, pharmacy benefits managers and pharmaceutical companies. iMedicor can target specific physicians and deliver focused messages and content in an unobtrusive manner from a trusted source. The message content will offer a complete range of action items for the product being advertised while providing the physician with flexibility with regard to accessing the information presented and then measuring the outcomes/responses in real-time.

To date, there have been no internet based advertising programs that have produced an acceptable ROI to the industry and iMedicor expects to change this while targeting a significant market opportunity in the tens of billions of dollars for pharmaceutical advertising.

Strategic Partners

MedLink (OTC.BB: MLKNA) is a leading healthcare IT provider of Electronic Health Record (EHR), practice management, and clinical integration software to the medical community. The partnership provides a natural synergy of combined solutions that will enable enhanced information exchange capabilities by integrating the iMedicor information exchange portal and MedLink TotalOffice solution to facilitate secure messaging. In addition, TotalOffice users will have access to iMedicor's ClearLobby platform that will provide informative, product specific content on new drugs and medical devices. This enables users to directly communicate electronically with the manufacturers to order samples, ask questions and set up onsite meetings.

The partnership provides a natural synergy of combined solutions that will enable enhanced information exchange capabilities to increase the efficacy of the RHIO Financial Sustainability Model by integrating the iMedicor information exchange portal and MedLink TotalOffice solution to facilitate secure messaging and CCR/ CCD exchange for its users. ClearLobby establishes an additional revenue driver to the RHIO sustainability model, allowing for RHIOs to minimize their reliance on grant funding to provide a comprehensive health information exchange to its members.

MedTrust Online - In January 2010, iMedicor entered into a strategic alliance with MedTrust Online, a portal that helps cancer doctors practice the most precise medicine for their patients by linking them with the latest diagnostic and treatment strategies. The alliance will leverage MedTrust's user base of oncologists with iMedicor's ClearLobby profiled marketing technology. MedTrust Online will also offer iMedicor's health information exchange (HIE) functionality to its members. MedTrust's proprietary technology allows clinicians to investigate treatment options, research evidence, and to collaborate electronically on challenging cases.

iMedicor's pharma marketing platform, "ClearLobby," offers the first of its kind physician / pharma electronic communication system resulting in interactions that are much more meaningful and efficient. ClearLobby changes the dynamic of these relationships by placing control squarely in the hands of the physician. At the same time, the interaction between the physician and the pharma becomes more cost effective because ClearLobby is able to distribute critical product information and samples directly to the targeted user base.

Management Team

Fred Zolla, CEO and Chairman, is the former CEO and Chairman of Vemics-Delaware, which was acquired by Vemics in 2005. Previously, Zolla served as COO of Educational Video Conferencing, Inc., a publicly traded technology and distance learning company. Prior to that, he served as president of Distance Learning Associates, the first content aggregator in the K-12 and corporate learning distribution space. In 1996, Zolla served on the White House Committee for technology in education chaired by then vice president Al Gore. Zolla has taught and lectured throughout Europe, Korea and nationwide on the integration and importance of distance learning.

Craig Stout, COO and Interim CFO, has over 20 years of operational and corporate finance experience across multiple industries. Before joining Vemics, Stout consulted to the international reinsurance firm, Renaissance Reinsurance, based in Bermuda.

Tom Dorsett, Senior VP, Business Development, is a 10-year veteran of the healthcare IT market. He is the co-founder of NuScribe, which was acquired by Vemics in 2006. Prior to founding NuScribe, Dorsett founded Channel Management Software, a reseller of medical voice recognition and EMR applications. He has served as a sales manager for MD Productivity, a manufacturer of voice recognition documentation, and was founder and CEO of Industryworks Software.

Brian Howell, CTO, contributes more than 20 years of video, voice, data and network technology experience. Before joining Vemics, Howell was a senior manager for Video Systems and Solutions at Cetacean Networks, where he worked on applying real-time routing technologies to the Internet. Previously, he spent 16 years as a member of the start-up team at PictureTel Corporation (now Polycom) and is named three patents.

Summary

iMedicor has developed a revenue sharing model that mutually benefits customers and partners. SunCoast RHIO represents what is expected to be the first of many similar opportunities for the iMedicor/MedLink partnership, as the RHIO community continues to adopt this unique model that encourages sustainability beyond current federal, state and local funding. iMedicor provides the foundation for a transition from a paper to digital medical records system, mandated by ObamaCare, and it merges with iMedicor’s sustainability concept. It is designed to allow healthcare organizations to function well into the future after federal funds start the process but eventually run out.