David Kuraguntla Presents Alio at LSI USA '23

Transcriptions

David Kuraguntla  0:05  

Behind me is one of the world's most incredible people. Maddie has been a banker with Goldman in London, she's run the London Marathon. She skydives wind walks the thing that she would never want you to describe her as a kidney patient. And this is because she takes really good care of herself. And even though she's had to go home every night for the past 20 years, hook herself up to a dialysis machine and have it do the work that her kidneys otherwise would do. And even Maddie as well as she takes care of herself, she understands that bad things can happen to kidney patients. For example, a couple of years ago, Maddie was hiking up and Ben Nevis up in Scotland started to feel a little lightheaded and thought, and maybe he's just haven't done this in a while, what's going on, she went home. Thankfully, the front that I took her home was still there, because as soon as she got home, she passed out. And the reason for that is that the vascular access that's in her arm that allows her to get the dialysis that she needs had started to fail. Her Potassium had spiked. And it had led to a potentially fatal heart rhythm abnormality. And it's great that she was able to get to an ER in time. But unfortunately, that doesn't happen for enough people. If you look at here in the US, despite being only 1% of the Medicare population, dialysis patients are almost 10% of the overall Medicare budget. And a large portion of that is not really spent on the services, it's spent on completely preventable hospitalizations to the tune of about $14 billion each year. Because of that, we know we have to do something. And in most countries around the world monitoring is federally mandated for this patients. This is because on average, these patients are going to spend two, they're going to go to the hospital twice a year, they're going to spend almost two weeks in an ICU, they're going to cost about $45,000 a year per patient, resulting from basically more or less three issues. One, their potassium might be too high or too low, their hemoglobin might be too high or too low, and maybe their their vascular access has started to fail. And this happens to an incredible number of patients each and every year. What we've seen in the old world is the ability and maybe try and send 5-10 different devices, an entire toolbox, these patients who will Leo's really excited to bring to this patient population that has been often underserved. And neglected is an all in one tool. That's not only getting your basic vitals and your hemodynamics. But it's also getting things that really matter and is clinically actionable for this patient population. So we're excited to announce here at LSI that just last at the end of last week that not only do we get our second FDA clearance for being a non invasive wearable for hemoglobin hematocrit, but also to be the world's first company be able to get potassium non invasively. And that sets us up on an amazing trajectory where we're going past that. Upcoming next is something like blood pressure where as compared to a radial arterial line, we're already within plus or minus five millimeters of mercury, with zero calibration and just placing it on their arm and being able to let them go about their day. And that all starts off with the the underlying technology it exists for both are not invasive wearable that has no wires, no needles, nothing else inside of it. It's completely non invasive and sitting on the arm. And the ability to alert those clinicians when something's going wrong for that patient population. There's over a dozen sensors inside of that wearable. Once again, zero calibration. We've seen a lot of interesting things in the news recently around pulse oximeter do they correct for different skin colors? We absolutely do. And we think it's important to get the most accurate data be clinically actionable for each and every patient population. And that's because we don't just get the data from the interstitial or just underneath the skin, the capillary bed, we actually get that from the major vessel, it's free to go hunt for oil, go where the oil well is and get what you actually need. The same time for the clinician, we understand that they get a lot of data, they don't want to have to go back and sift through it. That's what we found with the kidney disease population. They're already used to getting this data, maybe it's via a fax from a LabCorp, or whatever else it might be. And look at those alerts that they get already. And now we're just giving them instead of a single photo, maybe once a month, a video of that entire patient and what might be happening. We certainly stand on the shoulder of giants. But I think there's a really interesting opportunity here to go. We're into a really neat era in terms of chronic cardiovascular monitoring, once again, not just one metric, but clinically actual metrics that are all in one around just in one simple, easy to use wearable. Why we picked dialysis and why we picked this as an incredibly amazing launch market is not only the patients under serving, neglected, but if even if you look at the physicians, the providers and the payers, there's been a massive shift over the last three years in terms of the value based market. It's gone from less than 10% in 2020 to almost over 60% as of this year. And what that's meant is as other it's a payer or the provider has taken on more risk for the patient, almost 50% of their costs is an entirely due to preventable hospitalizations. Once again driven by things like higher low potassium, my access is failing. And that's what a Leo's able to help them tackle. If we look at what people have tried to solve People are taking on incredibly, potentially labor intensive solutions. For example, one of our partners is the National Health Service out in the UK. And they actually sent nurses up to 50 miles each way to patient homes to do a point of care blood draw multiple times a week. And while they're able to see that they could reduce hospitalizations, we all know that's not a very scalable, easy to use solution for their patients. And they turn to a Leo to allow them to be able to help scale and meet their patients needs. Well that's meant for us is not only do we get our clearance last week, we are excited to start converting this into a commercial relationship. We've got an amazing pipeline of over 200,000 patients, we already signed our first contract as well, that's resulting in about $20 million of annual recurring revenue for the company. So we're excited to be able to go service that and there's a real exciting opportunity as we continue to build the market and into its adjacencies. So not just your end stage kidney disease population, but also your chronic kidney disease, your heart failure population as we continue to grow, we've raised $53 million to date so far, we're really excited to get on some more growth capital partners to allow us to not only scale through the outsize customer demand that we're seeing, but allow us to hit some inflection points to continue to help as many patients as possible. Thanks again for your time. Appreciate it.