Marc Zemel, Retia Medical - Advanced Hemodynamic Monitors | LSI USA '24

Marc Zemel  0:03  
Our vision is to provide actionable cardiovascular data and insights to protect all high risk patients. And I'm going to talk to you about our current product, Argos hemodynamic monitor and our next generation product Argos to infinity. We're commercial stage, we're in 50 hospitals and raising our series we see to be at least 15 million. So proactive. Data driven care is the key to preventing costly complications, whether it's an acute kidney injury, cardiac injury, these are terrible outcomes for patients and extremely expensive to the healthcare system. One of the primary causes of these complications is circulatory shock. In these high risk surgical patients, and critically ill patients up to 70% of them experience shock, the longer a patient is in shock, the worse the complication risk. Turns out, a lot of that shock is actually hidden from the clinician. Today, most clinicians wait until the patient experiences hypotension, right? The bedside monitor alarms, and then they practice what I would call reactive medicine, because that's an emergency. Some clinicians use hemodynamic monitoring, but many do not. The people that use hemodynamic monitoring, use it because over 90 Studies show that using this data can help reduce complications by 50%. Shorten the stay in the ICU by one to two days and save 1000s per patient. So why don't they use it on every pirate patient, the problem is the following. There's 20 million patients every year, they get an arterial line for beat to beat blood pressure monitoring to detect that shock, right to detect that hypotension. But there's only one player Edwards Lifesciences, in this market today, and they're only serving about 15% of the patient population, because their product doesn't work for everyone. So our thesis to grow this market was to provide a system that provides consistent accuracy for all patient types, streamline the setup and use and make it affordable for every patient. So we're eliminating those barriers to getting the data that clinicians need to make better decisions. So this is the Argos hemodynamic monitor, we provide 10 parameters to detect shock guide the diagnosis and the treatment. Our multi beat analysis algorithm developed by an MIT PhD has been proven in two studies to be 50% more accurate than the Edwards product, protected by 10 patents that we licensed exclusively from MIT and Michigan State. It's the only monitor that's considered accurate for cardiogenic shock, low flow, low blood flow and arrhythmia. Join us now and over 25,000 patients. Accuracy matters. So the types of accuracy that we're talking about first is low flow cardiogenic shock 50% more accurate, statistically significant changes in cardiovascular performance. So we're talking about the change in your resistance of your circulation during vaso puja, which is common in post cardiac surgery, sepsis, patients, again, large swaths of patient populations where we are valid, and arrhythmia, which is commonly seen in cardiac patients, and also trauma patients. accurate detection of low flow matters. We've talked, you've heard other folks talk about the fact that the longer a patient is in shock, the worse the outcome, right? Typically, the studies are showing that duration of hypotension matters. Three weeks ago, we got results from Dr. League Adele and Johns Hopkins who uses our monitor, they examined 1300 noncardiac surgical patients, presumably who have healthy hearts, right. And the periods detected by the Argos monitor where their cardiac index, their blood flow was below normal, where they were in cardiogenic. Shock was statistically proven to be an independent predictor of acute kidney injury, cardiac injury and mortality. And these were all periods where we saw hidden shock, the blood pressure was normal. So the evidence base is there that accuracy matters. That's piece one piece two I talked about was streaming the setup. streamlining the setup. What we do is every one of those patients that has an arterial line, that blood pressure sensor is connected already to a GE Philips mind rainy uncoding monitor. So what we do is we connect one on cable, just like you'd plug in your headphones on an airplane, right? No doctor's orders needed. So one cable, one minute, you're up and running. Any nurse can do this. Compare that to the Edwards monitor, you have to change the transducer flow to new pressure bag, you're talking half an hour setup, you lose the blood pressure signal during that time, lot of infection risk, because you're manipulating blood contacting sensor, right? Risk back orders. So we've made this easy. But I'm not satisfied, I want to make it easier still. This is our new product, we call it Argos infinity. It's an AI driven cardio respiratory care platform. So I came up with this idea a few months back, we were sitting at coffee with the head of a virtual ICU for top 20 Hospital. And I showed him this sketch and he said, Great, first two minutes, let's draw it up and make this happen. So you signed on for a pilot, the way it works, is every one of these bedside monitors is sending that arterial signal and there are their vital signs to a central station. So we're going to pick off those signals and run our algorithm in a massively parallel way across all the beds simultaneously, right, and then send it back to the bedside, to your smartphone to the EMR to a central station. So you can make those decisions. Wherever you are, and not have to do any cable hookup, it's instantly at your fingertips. The beauty of this, right? The doctors want it right, they want that data and all the barriers, all those all those frictions get eliminated, it's already there for them. There's nothing for them to do except look at the data. So our first pile will be 250 beds, it's actually across 17 hospitals, we will switch from a capital business model to a software subscription model. So we get that nice recurring revenue. And this then becomes a platform for future AI algorithms through this same engine. So we'll be giving you AI assisted shock diagnostics, and other AI algorithms that we have patented, including measurement of ejection fraction and other parameters. So here's an example. So working with Dr. Burns salvo, one of the experts in hemodynamic monitoring in in Germany, we identified there are actually several different subtypes of shock. So this plot here you see in the green, there's all the normal blood pressure, and all the other colors are different shock states. And what you notice is that when a patient goes into shock, sometimes they need fluids, sometimes they need vasopressors, sometimes they need another intervention. And what our monitor is telling you with this algorithm is what you can do, right? That you're veering off course, right? You the doctor decide what to do, but we're telling you this is the type of problem that you should be fixing. So think of this as like Lane deviation assist, right for your car, right? Hey, if you know that you're deviating for a particular reason, no problem, you know, on your merry way. But hey, if you're that rookie nurse that's maybe not so fluent in advanced human dynamics yet, right? This will help you, right, I do it for my kids, I like them have all the safety features on their car, right? Same thing here. And as a director, right? Typical ratio for intensivist. For all the ICU beds, maybe 30 or 50 beds, you cannot be everywhere, that model is not going to work. So this is a way for you running a unit to ensure that you're getting a level standard of care across all your high risk patients. So that's the direction we're going on the Argos infinity platform. We have a growing network of hospitals using our product. And I'm especially proud of the fact all those with an asterisk are repeat customers were used all across all the different ICUs, cardiac and general or any high risk patient can benefit from this advanced information. Just past six months, we got on premier vizient And we're now in the federal contracting system. As I mentioned, repeat customers repeat business. So last year, we had record unit sales, five times the sales we did in 2022 increased our account base, over 50 hospitals now up 50% over last year. So these are all hospitals that are going to come back to us in order more when we get those at bats. With the hospital we win nearly every time vs Edwards. And our monitors are heavily used down in Cleveland Clinic in Weston. They're using them 20 times a month.

With the $15 million that we're raising for this series. See that will get us to profitability by the end of 2025 where we'll be approaching 10 million in sales and continuing to ramp even more With this target that we're talking about 140,000 beds, we're be only hitting 10% of the total available beds, the targets, and this is a profitable business. Our current gross profit 85% with a cost reduction of our technology will even improve that to north of 90%. Our vision with this technology is to provide AI assisted cardiopulmonary care to help protect vital organs, right? Knowing the hemodynamics right where blood is carrying that oxygen across to every single organ, right that allows clinicians to take an integrated systems approach to maintaining patient safety. It's the key data needed for closed loop control and automating fluid infusions. And it completes the parameter bundle that strategics needs to adequately serve their patients. Then experienced team leadership and our clinical advisors some of the top experts in critical care in anesthesiology, I'll just mention Jerry Corton ran a ventilator company brought it to 20 million in sales and then sold it to ge. The next steps in our journey of making hemodynamic data ubiquitous in this $4 billion market. We already have FDA and CE mark, we're in 14 countries. In 2022, we had our series B which was a $15 million dollar round led by present IOUs and Medtronic they will participate in this series. See, now that we're on these contracts, we are poised to accelerate our commercial ramp. Launch the new Argos platform Argos infinity to make this data ubiquitous at every ICU bed and additional AI algorithms to further reinforce the insights and provide simple information that doctors and nurses can act on. Thank you for your attention. I appreciate your interest, and I welcome the opportunity to discuss with you any questions you might have about our company.