Patrick Treacy Presents Onkos Surgical at LSI USA '23

Transcription

Patrick Treacy  0:00  

We're going to shift gears a little bit from probably a lot of the presenters that via the manaan already or that you'll see. And we're going to speak this morning about Onkos Surgical and how we're addressing an unmet market need and a market opportunity. Really, if you look for too long patients with bone cancer, and the surgeons that treat them had to rely on solutions that weren't specifically designed to meet their needs. And if you look at where the orthopedic marketplaces so the major orthopedic companies are focused on arthritis, primary joint replacement. And with this focus, it's left a real unmet need and opportunity and other more complex joint procedures or complex orthopedic procedures. So Onkos Surgical as a medical device company, we were really founded with our with our true roots in orthopedic oncology, but understanding that there is also a great opportunity in these other more complex orthopedic procedures. So over the next few minutes, I'll take you through how we founded the company, how we're addressing this, what this underserved market is, and how it's just ripe for disruption through innovation. And quite frankly, just the maniacal commercial focus. So not a lot of focus on an individual products. But if we look at we look at the world today, there's just a lot of headlines about primary joints migration outpatient surgery center whose robot is better than whose robot. But if we look at the complex orthopedic conditions, including musculoskeletal oncology, there's a very large opportunity that has been left on address. And it's quite a large burden to not only patients, but to the cost of the health care system. Not very well understood. But one in every $5 spent on cancer care goes to musculoskeletal related events. So big big number not appreciated and a lot of opportunity to do better for patients. If we look at revisions or redos. So there's there's a wave coming as patients were operated on earlier and earlier in their life. And when you look at the maturity of the hip and the knee marketplace, patients are being revised earlier. And unfortunately, a big part of the revision reasons are infection. Again, not not talked about a lot, but by 2030, almost $2 billion will be spent on treated deep joint infections here in the United States alone, right, big, big problem. But what's really underappreciated is the human condition. So again, one in four patients that are diagnosed with a deep total joint infection will be dead in five years. So it's deadlier than prostate cancer, melanoma, breast cancer and actually, in some studies, it's as deadly as colon cancer. So big, big problem. So look at what we're doing at Onkos Surgical, we're focusing in an area within orthopedics that we then categorize really, and stratify into musculoskeletal oncology and other complex conditions. It's a big market opportunity. We can sum it up lots of ways, but you can see, you know, probably over 3 billion and that's conservative of TAM that we can address. And these procedures, they're not done. These are quite the opposite of minimally invasive, these are done still in the the classical major academic medical center and the major cancer centers. And we've opened up that channel, since we found that the company and doing business and supporting some of the most prestigious institutions within the country. So if we start to look at how we stratify this business, so first off, again, musculoskeletal oncology and these other complex conditions, we can think about revision, we can think about deformity correction, but we further categorize it down into metastatic disease, limb reconstruction, quite literally reconstructing a limb, whether it's for cancer, another reason and advanced reconstruction, you can see some of the some of the types of things that we look at there. But here what we're the point I wanted to get across is whether it's for cancer, or whether it's not for cancer, there's a lot of overlap and what we do, so everything here, yellow would be cancer related metastatic disease, cancer that spreads to the bone, there's just a big opportunity that nobody has focused on there. So 80% of patients that die from cancer will have had it spread to the bone. And when you look at the improvements in targeted geno therapies, immunotherapies patients are living longer and longer with their disease and no longer will that care only be palete of people want a quality of life while they're living with their disease, limb reconstruction. I'll show you a couple of products here. But it kind of is what it is. If we look at the first thing, there are Helios lower extremity system, you can think of that as a very sophisticated joint replacement system for the hip and knee. But what's really exciting if we look at over on the advanced reconstruction side and some of the foundation we've already begun to build, you can see that these here are, again in yellow would also address cancer. But all built on a foundation of an antimicrobial technology that we're developing. Patient Specific applications are not going away with the improvement of digital planning and digital manufacturing, the ability to provide bespoke solutions are becoming more and more cost effective and scalable every day. And we've recently vertically integrated all of our manufacturing, so just the shift, so that was the cancer opportunities. And if we look at the complex condition opportunities, you can see this, you know, shaded in gray, same product, same segments, different patient population. Now, just to put that in a little bit of perspective, and combine it all, so you can see which are pure cancer, which solutions address both. And the checkmarks are an areas that we've already launched, and that we already have revenue in the marketplace. Now, I do want to call attention to the column under Advanced reconstruction. So under pelvic reconstruction, so we've got the the first FDA cleared, 3d printed, pelvic reconstructive implant was a heavy lift a lot of work through FDA. But now that we've got that foundation, we can begin to march into things like shoulder bone loss foot and ankle bone loss, very complex conditions, that are really going to start to see revisions and reduce as those markets mature. Just you know, wouldn't wouldn't be good right in device without pictures. So if we look in the upper left, that is a an example of how to replace the knee or replace the knee joint with our Illios branded reconstructive system down below that we can now through very precise planning, remove just the cancer and don't have to go with a complete knee reconstruction. And we've also in that, in launching that product, we launched the world's first commercially available virtual bone bank so that we can provide in a planning session what the replacement piece of bone or cadaver bone will be. And I'll just move over to the right, that's the pelvic implant. And the way that that is manufactured is we would get on a planning call with a surgeon they say where they want to remove either diseased or compromised bone. And we then 3d print the solution and ship that to the big part that we talked about is infection control and an infection control strategy. This is a hideous, hideous problem to the patient population. So we've already addressed this through preoperative planning, bringing less equipment into the operating room, speeding up the procedure, taking the planning, you know, as opposed to in the operating room outside the operating room to allow that to go faster, and very excited about a technology we're currently developing not yet to market, that will be a treatment for our implants that has antimicrobial properties. So on the timeline of innovation, again, I'm not going to be going through a lot of products. But we've had a steady drumbeat of new technology and product innovation since our founding at the in the fourth quarter of 2016. We've probably introduced more innovation into this space, since we've been in existence than in the last 20 years in the industry. And that that's really is through through focus. If you see all the way on the right, that we that is a that is a growing prosthesis. So that is for a juvenile that would have a cancer removed. So it's it's non invasively expandable, we recently recently acquired that technology from from Stryker corporation. So the message I really want to share is that, you know, we're not a one product company, we're really looking holistically at this marketplace. And building not just the innovation, but the commercial team to to address it. So in summary, I would say we're executing on a winning playbook. And you've seen this before, whether its focus in spine, whether it's focused on extremities, whether it's focused in pediatrics, we're doing the same thing in an underserved market that quite frankly needs needs this focus. And we've we've built out the commercial organization, we've got 15 Direct salespeople about 115 distributor partners, you can see the financials there. So we've been growing between a 40 and 50% CAGR since since Foundation, and when if you go back to the chart with some of those market segments, we've got our opportunities laid out easily for the next three to five years as to where where our revenue is going to be coming from. So with that, I will end with four seconds left Thanks