Elliot Street, Inovus Medical - Surgical Training Technologies | LSI Europe '22

Transcription

Elliot Street  0:06  

Well, good morning everyone, first of all like to say thank you to Scott and his team for inviting me to speak today. For those who don't know me, my name is Elliot Street's. I'm the co founder and CEO of Inovus Medical. And I'm gonna be talking to you today about connected surgical training. First, a little bit about the business. We're a purpose led organization. And our purpose is to improve surgical care through connected training. And we're on a mission to become the world's partner for surgical training technologies. And we know we can deliver on these by sticking to our core values of developing affordable, accessible and incredibly functional surgical training technology. Terms of the business today, we're strong operational business, we supply over 70 countries worldwide that's from our factory based here in the United Kingdom, which has a significant headroom for onwards growth, we've raised over $10 million of outside capital, and we're enjoying over 200% year on year revenue growth. And this is all thanks to a patented novel augmented reality technology that is already in use of over 70% of NHS Trusts, and is underpinned by our digital surgical training platform. Now, I wanted to give an update on progress since we last spoke at LSI in Dana Point. So since then, we've raised $7 million of growth capital in a round led by Nausheen ventures. And we've deployed that capital into building a direct commercial team across the United States and doubling the size of our development team. So taking a step back then to the problem that we're solving as a business. And this problem is the antiquated approach to surgical training that we still have today, this idea of see one Do One, Teach One, where the majority of the early learning curve is still at the patient bedside. And as a business, we looked at this and said, Why has there not been a paradigm shift? Such the early learning curve is now in the simulated environment safer for patients. And we realized that the existing technologies, there were four main barriers to that paradigm shift having happened. The first of these is cost pre existing technologies very expensive over $120,000, a piece of capital that leads to access issues. Also, a lack of scalable distance learning platforms, was another issue for access. Most importantly, one of the major drawbacks is lack of functionality. pre existing technologies utilize virtual reality. So these use software and motors to tell us how soft tissues and things should feel in surgery are simply not fit for purpose when it comes to training surgeons. And finally, these technologies are not integrated into the busy daily lives of the modern day surgeon. Until today, innovus. We see ourselves as guiding the way to surgical success. And we're doing this with our digital surgical training platform. Now this platform underpins a growing ecosystem of surgical training technologies or simulators for teaching surgeons. The platform itself has multiple features, including a cloud based learning management system, the ability to capture and debrief on video, issue certificates remotely, and importantly, gather very rich objective data through powerful computer vision algorithms. And this is how our ecosystem looks. So we have a hub and spoke model for our hardware. This is all manufactured in the UK. And sitting over the top of our hardware is, of course, our digital surgery platform. As I've just mentioned, I think the best way to understand this, however, is seeing this technology in action. So this is what our simulator looks like when you're looking on the screen. This is our novel augmented reality, this is sitting inside a plastic box going into that box you're going to see and hopefully that hopefully that projects Okay, that's not the technology of the simulator. That's just the technology of the stream. What you would be seeing here when it catches up awesome laparoscopic instruments inside a simulator. These are real laparoscopic instruments, they're not avatars. And what those instruments are able to do is that operating on synthetic soft tissues giving us what we call natural haptics. And if we weren't running behind with the with the stream here, what you're also going to see is our technology has the ability to put surgeons under duress in the training environment. So we're able to trigger complications. In this case, this is a synthetic bleed. And then we're able to manage those complications using synthetic or simulated electric cautery. So this is all about decision making process of steps. And of course, gaining that feedback of natural haptics so So at the risk of now, having two videos in a row go wrong. I think it's important that we also hear from some of our customers not just hearing from me about how good it took.

Video playing  4:35  

 I'm a consulting gynecologist in Cambridge University Hospitals. I'm also an adjunct professor of gynecology in the south and University of Denmark. And I'm the president of the Middle East Society of gynaecological endoscopy. We used to train our trainees, especially in laparoscopy on the old model, so that you You see, you do you do assisted and there is no simulation. But obviously, with the standards of care that we are obliged, and are very keen to offer now, training before operating a patient is more than essential. So before that lap universal trainer, we used to train our trainees either on box trainers, or on virtual reality simulators. And, to be honest, what I liked in the lopinavir system is that it's a hybrid between both of them, apart from the other things that it offers, but it's a hybrid between the virtual reality simulation and having a real, let's say, or near real touch of the tissues, which obviously helps in.

Elliot Street  5:55  

Brooke is actually he's not an avatar, he's a real humans, regardless of what that video looked like. So he's really giving a good description there of how our accessible, affordable, functional and highly connected training platforms are the future of surgical training. I think importantly, though, has that future got any evidence? And I'm pleased to say it does. This is evidence from a multicenter study we'll be publishing next year. And it shows that our technology leads to a 41% reduction in time to operate, and a 60% improvement in operational efficiencies. Now, this is already leaving, leading to over 117 million pounds a year in cost savings to the NHS through one surgical procedure alone. And the next question is, how are we delivering this to market so we have both a hardware and a software solution from the hardware that's a razor razor blade model, and the software is effectively a SASS platform sitting over the top of that. And the markets we play in a two fold. So the primary market is the Healthcare Simulation market. This is a $2 billion market a year growing at over 17% annually. It's highly fragmented. And as you can probably imagine, We're disrupting that heavily with our technologies. And with our digital surgical training platform, we are now sitting in the digital surgery market, which I'm sure everyone is well aware is incredibly exciting and fast growing part of the sector. And we've assembled a great team to allow us to address these markets. So we have a chairman with over 100 million pounds worth of exits under his belt. CFO who's raised over 250 million. The company is driven for by myself and my technical co founder. And we've assembled most importantly, an incredible team of operational development and commercial talent. And that talent is helping the business move forward by pulling on five main levers. And since our raised earlier this year, we've addressed three of those. So we've expanded our team into the USA commercially, we've increased our recurring revenues by double digits this year alone, and we've doubled the size of our development team. Now we've also got two very exciting announcements coming unfortunately, I can't make them here. But if you keep your eyes on the wires over the next couple of weeks, you'll see how we're addressing these other two levers as well. And finally, to our ask for the strategics in the room, we're already working with many of you, you're able to take your instruments, put them in our simulators, and get incredibly rich data on how people are operating with them. It's been incredibly powerful for many your teams here in the UK for professional education, market entry and development. And we'd love to extend our working relationship with you both here in the UK, and internationally. And for the investors in the room. We have a truly differentiated technology, regardless of whether or not the video actually showed that I'd be happy to show you outside of this room. But we'll be raising a series B later this year and into the beginning of next year and we'd love to speak with you now. So all that remains is for me to say thank you very much for listening to how inovus medical or remastering surgical training