Bryan Lord, Pristine Surgical - 4K single-use endoscopes | LSI Europe '22

Transcription

Bryan Lord  0:02  

Well, good morning, everybody really delighted to be with you today to present Pristine Surgical. I think everybody understands the basic framework of minimally invasive surgery. So certainly on the left, you've got a picture of open surgery. And on the right you got a picture of minimally invasive surgery, so called keyhole surgery, it's been a surgical procedure that's been around for decades, and it's really revolutionary. To perform a minimally invasive surgery, you need a device to look inside the body to perform a keyhole surgery. This is what's called a rod lens scope, it's one of the mechanisms to be able to see inside the body, aptly named, because it's a stainless steel rod with a bunch of lenses down the shaft. It used to be that the, the surgeons would actually look inside this telescope with their eye. But today that eye coupler actually is connected to a camera, that camera actually displays an image on the screen. And you can see here what the picture looks like of the device inside the joint displaying that, that that image on the screen for the surgeon widely used today in arthroscopy certainly in sports medicine, but also throughout the body. You can see here a picture we call our dementia man with all kinds of different surgical instrumentation, visualization that's used actually to look inside the body, minimally invasively. The problem with these systems is that they're expensive, and they're complex. So you see here a picture on the left, a rod lens scope tower, this cost about $100,000 to purchase one of these devices. And there's a whole asteroid belt of activity and components that have to be in the right place at the right time. And in tip top working shape in order to perform the visualization that the surgeon needs. These lenses require consistent consistent service and repair as well after every 30 procedures or so you have to take the scopes out of service and repair them and also pay typically for service service plans in order to perform this, the servicing. So if you look here on the on the screen, you can see a picture from a LinkedIn post of a rep that was talking about what happens when devices come in contact with the tip of the scope. They get chewed up. And they have to be sent out for process. In fact, she reported that 50% of the scopes that she services in the field actually suffer from some type of degradation. We hear the same thing from our physicians as well. So these scopes are difficult to clean also, after every procedure 99% of scopes in the field are durable devices that need to be processed and cleaned after every procedure. So you can see here with a simple magnifying glass debris and damage it's found in the tips of the of the scopes. So you see rusting you see debris and other types of of, of matter 71% Of endoscopes as well contain bacterial growth of them after reprocessing. So on their best days, these scopes look kind of like this like a 57 Chevy and on a good day. On their bad days, these scopes look kind of like this. So our view is that endoscopy is primed for disruption, it's ready for a shift into a new phase. And that's what we're working on here at pristine surgical excited to share with you three features of pristine, the first the only and the largest. So I'll talk about each of those in detail. So first, I want to make an announcement, pretty exciting thing that we're doing here today at LSI. Delighted to be here in London. Also our colleagues getting up a little bit early, they're going to be sharing also this announcement in Boston at the same time. We are the first single use endoscope with 4k Ultra HD. We're really excited to share that with you today. And it's something that we've been working on for a long time visualization from an instantaneous point of view, it's measured like a lot of our TVs and things that we see sort of in, in shopping for our homes, pixel density matters and pixel density improves the visualization for a particular surgeon HD is something that we're really excited about launching on our on our initial launch product. People see hear other sound in the background. All right. So in addition to the high quality pixel density in that 4k image that we talked about, we also like to talk about the fact that with a single use device, we deliver a consistent image quality as well. So if you think about the visualization that occurs when you have degradation on a scope, you get this sort of sawtooth pattern of the quality of the image that you see over the lifetime of the scope after it's brought into service and then brought back into use with a single use device. We like to say it's a new scope every time, right, so you get that consistent image in each one of the procedures that you perform. And so you have not only instantaneous image quality in terms of pixel density, but also consistent visualization with that brand new scope. So second, the only feature first and only here, we're the only subscription based digital scope platform in the market as well. So we use our single use scope and we deliver it in a single use kit like you see here. Simply pull back the tie back covering, I've got an example of it here. And inside, you've got everything that you need to perform the visualization. For the surgery, you simply plug the scope into what we call our image process processing unit. And just like a rod lens scope, you display the image on the screen. With that single use device, we have connected that to a digital platform that we call pristine Connect. Pristine Connect has a number of different features to it, the first of which is to manage your inventory. So we're able to actually track the scopes from manufacturer to sterilization, to shipment to receiving and then use. And we display all that inventory on a digital dashboard for all of our different constituents, doctors, for our facilities, as well as our salespeople and as well as our manufacturers. And what that allows us to do is change the business model. So rather than this capex oriented type of environment where you're paying that $100,000 up front, where you're paying for service expenses, and what you're paying for sterilization, we deliver our scopes with a subscription business model. And that's all powered by the pristine Kinect platform. This also helps us improve economics and reduce costs. So I touched on this a little bit earlier, minimally invasive visualization today, there's three components to the cost factor, the capex up front, the service expense, it's typically paid with monthly service fees, and then sterilization expense that, of course occurs after every procedure. So with our subscription business model, we deliver our devices with zero upfront costs. Instead, we charge a monthly subscription fee. And then we charge on a per kit basis. What that allows us to do is actually reduce costs. So typically people as I'm talking about what we're doing a pristine say, okay, I get it, I really liked the idea of the single use device. I really liked the convenience of it. I like the consistency of the visualization, but they wait for that other shoe to drop and say, but this is going to be more expensive, right? No, actually, we're going to save people money on top of being faster, better, we will also be cheaper at the same time. So we've done a very extensive cost calculator, we're we're confident that with every procedure, and every device that we deliver, that will reduce costs from between five to 10%. hard costs alone, if you actually dig deeper and include soft costs into that analysis, we'll reduce costs by as much as 30 to 35%. The second aspect of our pristine Connect platform, I talked about the logistics component of it, but we also deliver a whole suite of additional digital health services as well. So we said, Okay, we've got this cloud based platform, what are ways that we can do to support the simplification of endoscopy through software, as well as our single use hardware. And so we've integrated a whole suite of different digital technologies, think about them sort of like widgets that we've integrated into into our cloud based platform that allows for the integration of the software services to be simple and easy for our customers. And then the last big, big idea here is the largest total addressable market of any company in the single use visualization space. So we're not just a one trick pony, we're going to be launching on our single use arthroscope. We're founded by a couple of Sports Medicine surgeons in in Greater Chicago. So a sports medicine and arthroscopy will be our initial launch product. But we already are developing this into a platform of technologies. We have a advanced prototype of single use laparoscope that's in current development, as well as a flexible endoscope as well. So if you look sort of at the taxonomy of the space, you start with minimally invasive visualization at the top and you've got on the on the one hand rigid or surgical endoscopy, re actually trying to penetrate into the body, look into a joint or into the abdomen, and then you've got flexible or diagnostic endoscopy on the other side of the equation. So we're going to be launching in sports medicine, then moving into general surgery, and then moving into flexible industry after that. And the really exciting factor of this from certainly an investment perspective is the magnificent tam that we can pursue as a result of that 125 million procedures across the board. $56 billion total available market. So as mentioned, commercial launch here, ready in q4, so we'll be be filing with the FDA for an updated 510 K in November, and we'll be ready to commercially launch in December functional prototype completed on the laparoscope functional prototype completed in the flexible endoscopy as well. So as a result, and to summarize first for case single use endoscope, the only subscription based digital scope platform and the largest total addressable market in the industry. So what we're doing is taking this device if you will follow my metaphor, and we're bringing it into the 21st century. It was kind of fun to search for this actually to find an orange Tesla to be able to put up on my screen for you to match. Match your branding, so we're pristine surgical. Our mission is to simplify endoscopy. We've got about 30 personnel a patent portfolio of over 100 to 510 K clearances another coming commercial launch in q4 and we're currently raising a $10 million extension so I look forward to chatting with more of you through the course of the of the event Thank you