Bruce Lichorowic Presents Galen Robotics at LSI USA ‘23

Transcription

Bruce Lichorowic  0:05  

Good afternoon. My name is Bruce Lichorowic. I'm the CEO of Galen Robotics. We come out of Johns Hopkins. So this is a robot that comes out of the Johns Hopkins lab has a quite a pedigree on this. We have 41 patents filed. We finished our Series A $20 million series A two years ago. We're in FDA submission now through a de novo. And we have partnership agreements with Integra and j&j and a bunch for holding their tools. So what this robot does, it holds the tools that the surgeons already own, these are not our end effectors. And this is the reason why we had to do a de novo if we had our own end effectors. And we could have done a 510 K. But because these are tools of another company that have been attached the robot, we're offering a 75 micron, precision radon and accuracy rate on your exact same instruments they would have used anyway. So you can kind of see how what we do we attach it. They let the computer know what's attached, as you can see in the bottom. And then they obviously go to work with their tool set, very unique robot. It really is the first cooperative robot going through FDA today. This is an example of accuracy. Left hand side, we asked 100 surgeons to touch the red dot, hook the robot up touch the red dot again, and this is what happens with the exact same tool they've been using. So obviously it can reduce fatigue, it can improve workflow. At the same time, we know at some point in time, this will help speed up the surgeons all robots do. Another drill that Dunn's out of Hopkins is we have the ability or they have the ability to drill the top of an egg off with a raw egg shell with the drill this is a go no go test at Hopkins, you have five minutes as a surgeon to do this. We can do this and pretty much 90 seconds without having the and this is very applicable to spine surgery. So where do we live we're going to start off in the EMT space is what we're in the de novo and now we'll move into neuro narrow corridor surgery. After that we'll go into his soft spine. This is a huge market that we never even thought of is the laminectomy market of taking away bony tissue off the spinal cord 500,000 cases done a year this also next we're getting hit by all the cardiologists they want to bid less to hold their instruments for an MIS procedure for mitral valve coronary replacement, things like that. This is a heat map of what the surgeons want us to hold first. So we're going right to left on this so we know what they want. We know I'm the first of four companies today coming up here. So there's a lot of robotic companies. For us, we're going where they ain't. So we are going into Neuro, spine, and cardiac where there's really no set gorilla at 800 pound gorilla in those markets. We're not even close to being a DaVinci. We're not going that way, about $11 billion tam estimate when you combine all those markets together. We're right here on FDA, we expect to be approved sometime in q3 q4 timeframe, at which time we have our hospitals lined up to go out and then we'll do our instrument rollout. So basically, it's a software change that we have to do the robot stays the same. I come from high tech. Basically we're setting a platform in place. So the future of our robot is software based. These are our collaborators who we worked with putting this together. It started in 2010. With Hopkins we did our deal with Hopkins license in 2017. So last four and a half years we've been putting everything together. Come on. This is our first set of installs. As soon as we get cleared, we will take a robot into these hospitals to get started. Soft launch, workout our kinks get things going and get our business model down on this. All of us have done this before you guys can look our LinkedIn up my board. We have Bob Langer from from Maderna on board we have crumble from Stanford Asante ventures, Brahim. He's the chief of staff at Hopkins. Froelich from Deutsch and Earl Asli, from former bizdev of Medtronic. My advisory board we have Intuitive as an advisor we have Maurice from former of Mako, Matt link of NuVasive facto from your lens and then Paducah and Marty Glick, surgical advisory board. The only thing I say about these guys is they get paid to speak These are guys that have been really great and helping us. We already have a draft abstract go into NAS conference on this of us holding an endoscope. This is the one where we'd hold the endoscope to actually be the start of what is really would be called Visual navigation. We're going to take this to market as a service. So you've heard a lot about service and software and data. The biggest issues of robots today is cost. To get past some of the VAT committees, what we'll do is that will place these robots in will charge a $750 charge. And say at the same time, we can do a disposable fee, we know that the reimbursement fees for usability fees is about $1,300. And we know the CPT codes for disposals about $356. And then from there, we have the applications in the future that we can do. We also know usability, we've done a lot of work on usability, a lot of a lot of hospital administrators complained that a lot of the robots sit in the hallway. big reason is setup time, if you're gonna do a 15, or a 10 minute setup time and a 90 minute case, you've lost half your surgeons in the hospital, they're just not going to do it. Also cost per case. So we kind of know what you can charge and we can't, if you're gonna go over the reimbursement usage does go down. And so there are things that we worked on this here. So the individual assumptions, our usage fee, disposable fee per case, maximum 160 per month, we can do average surgeon, we get some, it's about 26. And then you could have procedures months about 34. So we were starting to boil down now our projections for next year of going forward. And what we can do in revenue robots placed a number of cases. And then we break it down in our profit where this does have a steep ramp, but it's a one where it's a 747 taken off, it's not a straight, straight rocket, which I know a lot of the investors were like, but this is not the case. So it's steady as you go. So our milestones are we will put Hopkins, Harvard and Stanford up first, when we get cleared, we know how many robots are going to be putting in those things. And we know what kind of revenue we're going to have on this. Not a big, not a big push, we are opening up our series B round, we won a grant from the state of Maryland to do a matching recurring $2 million match on the first 2 million of all our rounds. So right now we're looking to do a bridge round of two to get a Maryland to two get the match, and then we'll move on forward from there. And this is another one. So this kind of works where Marilyn has been really great to us. We do have a matching grant coming in from Department of Housing of all places. We have a TIF program, worth $10 million in tax benefit. We have a and we have dry powder of 600k of grants reimbursement, and we have an opportunity to take an operating loan is 3% $10,000,000. 20 year capital expense, the first payment is due in 10 years. Not a bad deal. So the financing on this is right now we're going to split a round into two pieces. So right now we're just raising a small, a small $2 million round, not even around but just raising 2 million to get the match. And then we're going to be cleared hopefully by q3 then we can go after everything else after q3 Once we have clearance in our in our pocket. And the use of funds obviously is the first set of hospitals. Clinical on this is not very heavy lift because it's usability studies on this. If everybody says give me give me a predicate or give me a comp, so if you look at us vs ProSep, you can kind of see what pro Sep did they were a de novo they were how they went out. You can kind of see the number of cases and when they got approved. You can also see the return that they did so we anticipate to be anywhere from a seven to a nine to a 10x return at this juncture. If you follow that, that comp so that's it. Thank you very much.