Crystal Diagnostics

Company Focus

Company Focus

It is virtually impossible to read or watch news reports that do not include reports about serious and growing food safety issues. A new strain of E.coli appeared in Germany early in 2011, sickening many and killing some. Millions of pounds of turkey, hamburger and other foods have been recalled, at huge cost in dollars and reputation to industry. In mid September, Listeria in melons caused 4 deaths. FDA’s Director reported that it is “overwhelmed” by issues related to globalization.

The dimensions of the problem are simply summarized: the Centers for Disease Control estimates that there are 76 million cases of food-borne infections annually, resulting in 325,000 hospitalizations and 5000 deaths, with healthcare and other costs to the economy over $150 billion. Annual testing for pathogens in food by government and industry combined, though already a large and fast-growing market is still nowhere near commensurate with the health hazards or economic costs.

For example, since 1994, the USDA has only required meat companies to test for the O157:H7 strain of E.coli, and on a quite limited basis. However, in light of the growing depth and breadth of food safety issues, USDA has just announced that beginning in Spring 2012 it will require expanded testing for six additional strains of E.coli capable of causing food poisoning. By itself, this new regulation will represent a vast expansion of testing requirements.

FDA is responsible for setting testing regulations for most other foods.  The agency currently does not require testing of produce, a highly vulnerable food category.  However, the Food Safety Modernization Act recently empowered the FDA to require more tests for dangerous food pathogens. This authority has not yet been implemented, but the company expects that it will do so in the relatively near future, particularly given the action by USDA.
In the developing and underdeveloped world, the problems related to food safety are equally evident.

The company presently plans to announce its capabilities related to the food industry this fall, and is prepared to place equipment with food industry partners for field use and further enhancement shortly after. Partners would likely include a very large lettuce producer (already identified and secured), plus at the minimum a large meat producer and a large international testing organization.

This intense focus on the food industry should not obscure the fact that the company has developed a powerful platform technology with value in a variety of channels and end use applications.