Neal Lonky Presents Histologics at LSI USA '23

Transcription

Neal Lonky  0:07  

Thank you. And it's a pleasure to be here to speak. I've attended this before, but I have not presented as you'll see the history of the company. I'm the founder and inventor of the technology that you're going to see today. I'm an OBGYN. I'm a former director of Kaiser Permanente in Southern California. I'm sort of a known guru in value based care. And as you know, we're capitated at Kaiser. So as always, no outcome, no income. So we have a small footprint company, as you can see, and we developed some very interesting platform technology. We very engineered how tissue is removed from the by the body and it came out of a need that I saw in OBGYN where women were suffering during workups for cervical cancer, and you'll see we were using 19, late 19th century tools. So through innovation, we're able to re engineer how a fabric could become a biopsy tool. And our vision. Our mission is tissue based technologies to save lives worldwide. It grew from taking tissue for biopsy, to taking tissue for therapeutics, as you'll see. So we're having a risky, reusable world where particulates are left on metal tools. And now you can move them to a single use disposable with a recyclable option for the handles, as you'll see, and where both post revenue and pre revenue company since 2012, when we did our r&d, we proved that tissue could be biopsied legitimately with a quality, we can do it with rapid access at the clinical site with great patient care experience at an affordable price. So our proven pre revenue is the cancer post revenue is the cancer diagnostics, where we've done about 1.5 million biopsies in United States. We've done some of them overseas, but we're mostly FDA and our new post revenue is in the chronic wound care. And I'll show you a little glimpse of what that looks like pre revenue. We've got a multibillion dollar pipeline, everything from genomics to dramatic pathology to lower GI pathology, dramatic pathology with diagnostics with accessories use our technology. The product, people asked me at the vizient Innovation Award. They said what's your product? And I said it's Kyle on fabric. They said what's that? I said it's a new way to take tissue from the body because they only let us bring one product so they let me bring all the products because Chiron is the product. Chiron is the Pat multi patented innovation that's nylon, it's woven into a fabric that can be placed on any surface for any contour for any body part. So if you think about a tipping point and how you transform, think about the wound vac it didn't exist before 1990s And all of a sudden it became the standard of care within five years. thoracotomy for high for high heart bypass versus Cath Lab Kohli's the surgeons used to make fun of us as laparoscopic surgeons in the 90s. And all of a sudden they realized they could take a gallbladder out with a laparoscope and within a couple of years. They thought they took over the the industry, and so on and so forth. You know, HIFU for ultrasound treats things inside. There's a lot of transformation going on. A lot of things I've learned here since I've been sitting in the meetings. So that is the key. I've taken the single use disposables that can transmit AIDS and Hepatitis between uses. If they're not cleaned, to single use disposables that work that are affordable. They're illegitimately like five to $6 devices. So people say Do we have a hickspicks code? While I bring these into procedures that are reimbursed pretty pretty significantly to the overhead? It's been costed out at places like Kaiser and others, the overhead to bring single use disposable with the patient safety factor is more cost effective than recycling instruments, we have to shop and then clean them autoclave them, repackage them and restock them. And in fact, I was able to put it on a finger cut for wound care and debris to wound very rapidly. So what's the value? The value is the cost, but it's also the value is the quality. The value is the access, how quick and how easy is it to integrate into the system you're running it in. These devices can go in home health, hospital based care, office based care everywhere, very easy to integrate, and of course the patient care experience and if you see the thing on the bottom, I say people fear a scalpel but nobody fears the finger. So these are the skills that we have on the market soft biopsy is the name. I like that name because people say you can get this biopsy you can get a soft biopsy. So FDC soft DCC soft key card these are all the devices like I said And we've sold 1.5 million cases in the US. It's got a single disposable design. And it's about a his $5 historical price. And you'd say, how do you run a business like that? So if you go on our website, people can see the procedure. It's very easy to train remotely. There's a huge national cancer institute, moonshot project going on around the world. And I trained everyone with Bartlett pear, my devices. And they basically could learn how to take biopsies of the cervix. The same is true for wound care, as you'll see. And these are the value equation presentations. So people say, Okay, fine, you got a device, you got a method. What about integrating it into our practice? Show us value? How if we don't if we're capitated? How do we make money? How do we make throughput happen. And that's what this part of the website teaches. And then our this is just to give you an idea on our instructions for us how easy it is to teach somebody to use this kind of technology, what the device that picture that device with the tissue and is so important, because that gets snapped off and sent to a lab. And if the clinician doesn't do it right, then it doesn't get specimen doesn't get to the lab that gets cleaned out. So that is so important to get high value, because the pathologist can now make a diagnosis and you snap it free, the handles are recyclable, that tips go to the lab. So that's the finger cut. And I'll show you two cases. Now, for those of you who are not clinical, I apologize, but that the one is a diabetic foot ulcer, the other one is a chronic venous leg ulcer. So you'll see the procedures being done. And nobody fears the finger. So see how rapidly you can get some stimulation and that wound base get that debris cleaned off. Time is money for wound care clinicians that have to see 10 20 patients in a day. So when they can do this compassionately, which is our mantra. The trademark is compassionate, colposcopy and compassionate degrees mean at your fingertips. We try to hit send that message that we're doing this effectively and gently. Then the money part well, what is it about your device, it's a $5 device, there isn't a code, which is a miscellaneous surgical code. But these are all the procedures that these biopsy devices integrate into. So these are pretty significantly reimbursed. And when you show that single use disposable is not only safer, mitigates litigation, but it's also if you cost out what it costs to recycle reusable, it's actually less expensive in most systems. You have a winning formula you showing value, which we have. We have 42 major hospital systems, things like MD Anderson, the Harvard system, we've really integrated health systems, 125 of them, 57 laboratories love our product so much they either promote it or they've integrated it. We have some distribution with McKesson shine Medline, some GPIOs. So we're post revenue in the GYN side. We have no competition, where we're in a colposcopy market that's 545 million globally advanced WooCommerce. 7 billion. Now for nearly half our sales are direct. We have a very sticky customer relationships. We have compact leadership and mostly organic growth. We have 13 issue patents six EU, we have a strong consistent blanket order rate. We have a consistent organic growth 12 to 13% per year with a net operating income of 7.5%. We'll do about 2 million in sales this year. And we did this with an angel startup without a raise. So we're self sustaining. We're here to get sales and marketing expansion, board prowess more r&d, improve our margins by bringing more of our manufacturing and in house, we have to contract manufacturers, we have no supply chain issues. We're going to move into the veterinary field. We're going to go move into the skin testing field. We're going to move into biofilm diagnostics, skin substitutes require a great debridement. And there are several additional medical market segments where planning and development so you can understand we want to we want a growth trajectory. We need a m&a, a strategic, a growth type investment to build this company out to really do what it can do. So with that, I thank you for your attention and hope you learn something about histologic today. Thank you