Investor Presentation Nov

19
Kevin Davidson President & CEO

Transcript of Investor Presentation Nov

Page 1: Investor Presentation Nov

Kevin DavidsonPresident & CEO

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Operative Fluid Management

The issues… • Safety• Cost

• OR Efficiency • Regulatory Compliance• Environment

 

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Operative Fluid Management

The evolution……

andthenwhat?

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The STREAMWAY™ System

Fully automated, wall mounted, for the safe suction, containment, measurement, visibility and disposal of operative fluids

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• Filter used to keep instrument clear of debris

• Fluid cleans unit after each use• Removes all bacteria • Prevents formation of bio-films

which can host viruses• Prevents cross-contamination• Biodegradable

“Razor Blade”

Disposable Kit

Filter / Cleaning Fluid

Patented Instrument

• Fully automated, continuous suction system

• Unlimited processing • Processes all fluids, tissue and

bone chips • Visibility & measurement • Frees up OR floor space• Rapid OR turnaround time

“Razor”

The STREAMWAY™ System

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Existing Disposal ProcessStart

EndEnd

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STREAMWAYTM Disposal Process

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U.S. Market Opportunity

Patented Instrument

• United States market has in excess of 40,000(1) ORs and surgical centers

• 5% to 8% annual growth of new facilities(3)

Market opportunity exceeds $650 million

Disposable Kit

• United States has approx. 50,000,000 hospital and ambulatory surgical procedures annually(2) 

Market opportunity exceeds $850 million

(1) All data from AHA Hospital Statistics, 2008 edition(2) AIA Consensus Construction Forecast

Total US Only market opportunity

> $1,500,000,000

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Competitive Overview

• Continuous flow• Fully automated

Improves Regulatory Compliance

Minimal Waste Disposal

Fully Automated Self Cleaning

Continuous Suction

Environmentally Friendly

STREAMWAY Yes Yes Yes Yes Yes

Stryker Yes No No No No

Dornoch Yes No No No No

DeRoyal Yes No No No No

Cardinal (1) Yes No No No No

Bemis Yes No No No NoMD Technologies

Yes Yes No No Yes

(1) The Cardinal  Orwell system recent obtained FDA clearance it is expected to be on the market by Q4 2009

STREAMWAY System is “the” superior solution to operative fluid management

• Ultimate in compliance• Green solution

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Operative Fluid ManagementRegulatory Overview

• Enables compliance to state and federal regulations– OSHA, EPA, DOT, CDC

• Reduces cost of infecting hospital staff

• No requirement for a specialized handling/transportation department or hazardous materials compliance

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BioDrain vs. The CanisterPouring BioDrain(1)

(1)In addition, BioDrain creates OR efficiencies that could add significant revenue!

WE IMPROVE HOSPITALS’ FINANCIALS!

Canisters and Lids $8,000 $8,000 $0

Solidifier $12,000 $0 $0

BioDrain System $0 $0 $17,000

Biohazard disposal costs $12,800 $1,600 $0 

Processing Labor  $17,500 $12,500  $2,500 

Processing Consumables $5,000 $5,000 $0

Spill Costs $10,000 $30,000  $0 

Filter / Cleaning Solution $0 $0  $15,000Total Year 1 $65,300 $57,100 $34,500 Total Year 2 $65,300 $57,100 $17,500

2 Year Total $130,600 $114,200 $52,000

Cost Per OR - Per Year Solidifier

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Short Term Milestones• Secure patent - done

• Produce 5 production-ready units - done

• Complete UL/TUV testing - done

• Submit FDA 510K - done

• FDA approval – done

• Product launch – done

• Beta site installation – done

• Pass FDA audit - done

• Complete SEC registration – done

• Establish distribution channel – 16 states covered

• Secure additional financing – ~ $500 K bridge raised

• Trade on OTCBB - pending

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BioDrain Financial Forecast ($000)

2010 2011 2012 2013 2014SalesHardware 2,066           11,145           16,440         22,215        28,425       DisposablesService

1,390            7,841           21,082         39,636        63,943        

Total     323,488

                16919,155

              33137,852

              46162,312

               601  92,969

      

Gross Profit 1,753        11,410                         

24,488        

43,176       

65,141        

Operating Income (1,738)            

1,967          

 10,121        

23,293       

38,491        

Net Income - After Tax (1,738)            

1,180          

6,072          

13,976        23,094

        

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Management

Kevin Davidson, President & CEO, DirectorMr. Davidson has over 20 years experience in the medical technology sector. He has been the CFO of three medical technology companies and as an investment banker led and closed several transactions in this sector.  

Chad Ruwe, COO, DirectorMr. Ruwe has over 20 years experience in critical fluid management industries focused on containment, management, and delivery of highly toxic and corrosive fluids.  Mr. Ruwe has extensive experience managing international joint ventures, wholly owned foreign entities and outsource manufacturing partners. 

Kirsten Doerfert, VP of Sales & MarketingMs. Doerfert has a long history of medical technology sales and marketing successes, has been a senior-level executive in medical device companies and is a licensed nurse, which will improve communication with our OR customers. 

Alan Shuler, Acting CFO Mr. Shuler has over 30 years of financial experience. Mr. Shuler has been the CFO of publically traded companies, is SEC knowledgeable, provides Investor Relations expertise, and has lead and completed several funding efforts with several different entities.   

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Board of DirectorsLarry Gadbaw

Served as BioDrain President and CEO and Executive VP Business Development ● President and COO  and Director of Augustine Medical, Inc. ● President, CEO, Treasurer and Director of Bio-Vascular, Inc. Dr. Peter Morawetz

Director of BioDrain since inception ● Consulting experience with notable corporation including:  Medtronic, EMPI, Hutchinson Technologies, Minntech, Bauer Biopsy Needles, American Medical, Lectec  and Walker Reading Technologies  Tom McGoldrick

CEO of Monteris Medical Inc. ● CEO of Fastitch Surgical ● President and CEO of Minntech ● Senior  marketing, business development and international positions at Medtronic, Cardiac Pacemakers, Inc.  and Johnson & Johnson Andy Reding

President and CEO of TRUMPF Medical Systems, Inc. ● National sales leader Smith & Nephew Endoscopy ● Sales, marketing, and management, Berchtold Corporation ● Significant experience marketing products for the OR, ER and ICU Jim Dauwalter

Former CEO and Chairman of Entegris, Inc., with broad functional background and experience including  sales & marketing, operational, and financial experiences.  

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Key Points for Investment

• Addresses real customer needs – safety and saves $$• Market – established, large & growing, room for penetration• Product – differentiable• Intellectual Property – strong and secured• Management – experienced, proven liquidity events• Low investment / near term results (already in market)• Business model – razor / razor blade • Attractive valuation • Addresses government regulations• Provides “Green” solution

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Investment Opportunity

• $500,000 bridge round• $.50 per unit

Unit = 1 share common + warrant to purchase 1 share common at $.65• $25,000 minimum• $5.0 million pre-money valuation

Use of funds:Manufacturing $150,000 Market Expansion $150,000Working Capital $100,000Product Development $25,000 Legal $25,000Expenses $50,000

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Join the New Movement

• Safer• Less Costly• More Efficient

• Regulatory Compliant• Environmentally Friendly

 

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Kevin DavidsonPresident & CEO