Andrew Morris Presents Total Joint Orthopedics at LSI USA ‘23

Transcription

Good afternoon. Thank you for having me here. I'm excited to be opportunity to introduce you all the Total Joint Orthopedics. This talk today is it's about expanding on a mission. It's about scaling what is sustainable, it's about thinking differently. It's about delivering total value. 5 billion patients lack access to surgery. That's nearly two thirds of the world's population. Of those 5,242,000,000 people are limited by osteo arthritis. But I want to get away from statistics. You've been hearing those all all week. Every face you see on the screen here are patients that we've treated on a recent mission trip to Cuba. Every one of these patients has a story. Each patient has a family. Each patient has the opportunity to be overlooked. That's where we come in. They're not overlooked anymore. Founded in 2009, by Dr. Larry Dor, Dr. Aaron Hoffman, for every 10 joints implanted we reserve one for donation. We are not overlooking these patients. Dr. Dor at best himself, there's nothing more rewarding than helping a person without expectation of receiving anything in return, especially when that person would have no shot at getting help. Unless you acted. Dr. Dor was the best. This mission driven approach is best illustrated probably on a recent trip we had to Pakistan. By the way, that table you see with implants there, that's enough implants to do 75 total joints. For those of you that don't know we partnered with Indus hospital population of 234 million people in Pakistan, they provide care to their patients at zero cost, no cost to their patients. Because of that, because of the socio economic limitations in Pakistan, they have huge waitlist nearly 10 years, we performed 70 total joints in a week, we brought over our implants four trays and suitcases. And we reduce their waitlist by nearly a year. This is impact. This is mission driven. This is what it looks like. Now, what is the market we plan? Most of you know this $16.8 billion today $27 billion expected by 2030. Large market doubled the the traditional growth. But that's not all that's happening. We're seeing this rapid migration over the last few years to the outpatient setting, see in 2029. And really, this is probably a short, short forecasts, but over 75% of these procedures will be done in the outpatient setting. So what does that mean? Well, we've got reduced reimbursement. We've got increased cost pressure you've been hearing. So we've got staff shortages, supply chain constraints, all of these things, how are we going to take care of this rapidly increasing demand? And more worrisome? These are the stats that should frighten you they do me married to an orthopedic surgeon 5000 shortfall of surgeons 34%, surgeon burnout rate, how are we going to take care of this demand, and the most frightening stat physicians are 2.3 times as likely to commit suicide. This is unsustainable. So at TJO, we've set out to solve these real problems for our stakeholders with real solutions. We do this through our human centered design process. Again, trying to develop real solutions to real problems. I want to introduce you to our value equation, the total value equation when we design systems, it must go through this value equation. Is this system innovative? Is it truly differentiated? Is it safe? Does it improve outcomes? Can we provide the level of service required for the system? And can we deliver all of this at a decreased cost to our customers, this is a challenge no trade offs here. It can't improve outcomes and improve costs. It has to hit every single bucket. We've done that. And I want to introduce the classic nice system. The simplicity and this design is what you should take home today. No charts, no graphs, our industry lives with left and right implants. This is a universal implant that achieves the same outcomes strategics in the room should take notice half the inventory cost the ASCs half the shelf space. These are real solutions for real problems. It's all driven by this model universal femur patent protected this 90 degree double Q angle enables us to deliver 90% of total knee replacements with one tray. I was in a room earlier. There's an industry being built around Sterilizing Sterilizing trays because of this issue. While we've solved At one tray and we're doing that by continuing to deliver total value. There's no hidden cost. No patient customization, patient specific customization, no additional imaging required. No disposables. No templating. There's no secret here. So the question you should all be asking is, well, if the entire industry is using left and right implants, how how did you do? How could this work? Does it work? The answer is yes, we've been commercial for 10 years 25,000 knees have been implanted in the United States, we've had zero implant related recalls. And a recent study out of JIS in New Albany showed 99.6% survivorship at over six years, this implant design works. So what does that look like by the numbers, if we account for just the time to open additional trays, and the processing and handling of these trays, a facility that does 1000 total knees can save a million dollars by adopting our technology. This is real, they have to change nothing, zero change of their workflow just by adopting our technology. So let's extrapolate that we know that there's this high growth 3.5 million total knee replacement procedures expected in 2030. If we adopted this technology, we could pull $3.4 billion out of the US healthcare expenditure. This is real, this is what it looks like. This is what efficiency looks like. It's not a buzzword. So again, solving efficiency and total joint replacement, we could have stopped there. But we didn't, and we won't. The next problem we're aiming to solve is the problem of material and cobalt chrome. Chris Pelt from the University of Utah said it best, it's time to remove cobalt chrome from the human body. We're working hard to do that with the launch of our warm femur in 2022. We've implanted more than 600 of these already. We're matching all of the efficiencies mentioned in this design with state of the art material, without getting too into it now. But basically, we've got a titanium femur that undergoes a surface transformation application in the knee, we have applications in the hip, we have several products that will be coming out soon that will reduce the burden of cobalt chrome. So I mentioned we were founded in 2009. We are 100% privately funded $9.4 million of friends and family, we've implanted over 35,000 joints, that equates to 3500 joints being donated. We couldn't have achieved any of this impact without these powerful partnerships. You can see many of the top academic centers and these are just a few. There's many more. We're also aligned very well with the top health care partners specifically USPPI SCA health you see as everything moves to the ASCs we have to be aligned. And we are the one other powerful partner I should mention. We are aligned with enabling technology partners, so our implants are fully compatible with robotics or navigation, any technology you'd like to use. We've had a compound annual growth rate of 42% since inception, over the next seven years with a modest 24% growth and $50 million of capital investment. We expect to reach $100 million in top line revenue and drive an annual revenue of $25 million. Our impact for our size has not been by mistake. We were founded by visionaries, those in the orthopedic world know these two names Dr. Dor and Dr. Hoffman. We have a great blend of universal developer team. Jason hearse, Michael Morris, Chris Peled, Dr. Bolognese, and our executive team is also very, very strong. So I thank you so much for your time, and I truly hope that you all consider joining our mission. Thank you.