Investor Presentation Nov
Transcript of Investor Presentation Nov
Kevin DavidsonPresident & CEO
Operative Fluid Management
The issues… • Safety• Cost
• OR Efficiency • Regulatory Compliance• Environment
Operative Fluid Management
The evolution……
andthenwhat?
The STREAMWAY™ System
Fully automated, wall mounted, for the safe suction, containment, measurement, visibility and disposal of operative fluids
• 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
Existing Disposal ProcessStart
EndEnd
STREAMWAYTM Disposal Process
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
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
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
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
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
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
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.
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.
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
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
Join the New Movement
• Safer• Less Costly• More Efficient
• Regulatory Compliant• Environmentally Friendly
Kevin DavidsonPresident & CEO