Julius Heil Presents Sterile Processing Express at LSI USA '23

Transcription

Good morning, I'd like to talk to you today about delivering patient care capacity. We're in the sterile processing business. And we operate and build facilities that are cookie cutter to go into about 10,000 square feet that service and entire market. This makes the model significantly more efficient. In today's problematic world related to this, if you look at what's going on with the ASCs in the hospitals, there's a significant issue related to sterilization capacity, the ASC is can't perform the number of surgeries that they need to perform the hospital's because of equipment downtime, and also having employees not show up for work. There's a significant amount of delay, and also a lack of surgeries that are able to be completed. If you look at the OEM suppliers, they have a significant issue related to their utilization on their equipment, which leads to a lower degree of sales. We solve all these problems, SPD departments, if you think about it, in a hospital, these people work in the basement. And ultimately, that's not a fun place to go to work every single day. Varying field processes, if you want to look at the efficiency of why this is a problem in a given market. The back of that pickup truck, there's about a half million dollars worth of surgical equipment that's being delivered in an open conveyance. And you see this a lot of times to moving in the back of an SUV. But the reps deliver these trays from surgical center to surgical center or from surgical center to hospital. And the middle picture, what you see is the utilization challenge around the fact that that's multiple surgeries stacked together, the trays are commingled. And if you look at the number of increasing care sites, this becomes a huge problem, you have to build that an infrastructure to be able to support that. So basically, as the patients decide where they want care in a safe environment closer to home, and decide they want to go to the ASC is because they're a low risk patient. These become the challenges. So joints are going to grow significantly over the course of the next few years. If you look at these numbers by 2040, there's a massive influx. But the important graph on this is the one here on the right, if you look at that, it's where these surgeries are being performed. They're moving to an outpatient basis, and more and more procedures every single day are moving to that outpatient basis. It requires infrastructure to be able to support this. spdx is the solution, we build a factory, around sterilization that serves an entire market. We are completely agnostic with regard to where the surgery is performed, or whose implant is actually being used. This is what actually facilitates our model, we have the capability to sterilize anything for anyone, and move it to the right place and store it in sterile storage. So that's not moving from a rep for a surgery tomorrow. Today, we actually pull it from sterile storage, and we deliver it on time every time to make sure that the patient is able to go through the surgery and there are no delays. Every single This is an altruistic model from the standpoint of every single stakeholder in the model benefits. This is not a value shift, we're not moving value from one to another. And the case of the ASC is we improve revenues, they're able to perform more surgeries per ASC. And also, we facilitate ASC growth in the marketplace with new procedures. Patient benefits, they get the choice of where they get care, they get to go somewhere where there are no h AIS from the standpoint or a reduced number of H AIS, they're not going to a hospital, they're going to an ASC where there's a lower gear, that's not where the nurses and the other cases are being treated. Pair benefits, lower cost. Okay, patient optimized. So basically, the payers want this moved out to the ASC environment because it's a less expensive environment we're in which perform that surgery, and then the OEM benefits, okay. vendors need transparency to where their equipment where their trays are. Then they can turn around and measure where and how everything is moving. Well, if you measure it, then you can manage it. So basically, with the increasing sites of care if we don't put a more efficient logistics model in place, ultimately what we start driving is the need for more and more surgical equipment to be put into the network. That's cost prohibitive, that is not a benefit to anyone. There are three flows in any supply chain that have to be optimized. In order for the logistics model to work. You have an information flow, you have a financial flow, and you have a physical product movement. We optimize all three of these two primary systems, a footprint that can be reproduced in any 10,000 square foot facility anywhere or upsized. If we decide we want more sterile storage for a particular market based on the number of facilities, we're actually servicing, but we provide a full service logistics program, sterilization services is the basis. But the sterile storage is ultimately the key it is moving from being sterilized. It happens every single night, and it sits in inventory to move to the next location, so it's ready to go. We can even turn around same day, certain surgical sets with the right type of information flow into our system. So this is our Phoenix processing center. And if you look at this, this is a state of the art facility based on three rooms. It launches in early April, actually, it's coming within the next two weeks. It's fully built. It is a completely engineered facility for factory level efficiency and sterilization. The management team has 90 years of SPD experience. And also ultimately we have a system that is designed specifically for logistics around sterilization. And we meet or exceed every regulatory standard, both from a government perspective and also from the OEM perspective on sterilization of equipment. total addressable market, if you look at this as 3.2 1 billion back in 2021, growing at a CAGR of 8.2%. It's huge. And ultimately, the fastest growing segment of that is vendor trace. And the part that the hospitals don't want to deal with and the FCS don't want to deal with is the vendor trace. So basically, this becomes a program of convenience for them to help them grow revenues, but also to take a lot of the headaches out of it and ensure that the patients get what they need when they need it. So if you look at the 24 point, or 24 point 7 billion by 2027 4% of that is spent on logistics and final mile, we can reduce that significantly. In some cases, we can cut it in half. spdx does not have a significant competitor that checks all of these boxes. We are coming into the marketplace with something that is brand new, it can go into an existing hospital, it can go into an existing facility. Like I said, all we require is 10,000 square feet because everything after that a standardized spdx Business Plan as Phoenix goes live next month, next two to three sites will come up and 23 and early 24. Then moving forward, our only limitation is funding, we can put these in any market. We're looking at 30 different markets, and ultimately can drive this model into any market to service all of the sterilization capacity for that market. Our market strategy, we look at 35 different variables. We look at all of course all the traffic congestion. We look at the labor pool, we look at a lot of different things in order to ensure that we're as efficient as possible. We go out and we pre sell this we're are actually being invited to come in to a lot of these markets right now. So we have hospital systems. We have ASC owners, and most of our seed capital comes from an incubator cultivate. And ultimately the seed capital comes from ASC owners themselves, who are losing surgeries because they do not have this capability. Our facilities are cashflow positive and nine to 12 months from the time they open. Our management team, I've been doing this for over 30 years, I scale and build logistics businesses all over the globe. Buy and sell them. Deke Winokur has been in orthopedics for 30 years. Jerry Brown has been in for 30 years and he is in medical device and biologics and candy has 17 years. And with the military spdx expansion of services, we're going to move across and eventually get all the way to the OEMs. But we're going to start with the ASC s because that's where the vendor trays are the biggest problem today. We also backup subscriptions to a hospital if your sterilizer goes down or your employees don't show up. We can take that capacity from you on a we'll call basis. 44 point $5 million over the course of next four years is what we're going to generate revenue with six facilities fully operational and to under construction. We are currently seeking a Series A are raising a Series A of $15 million in order to open these facilities. Thank you very much.