Richard Hughen Presents Linshom Medical at LSI USA '23

Transcription

Richard Hughen  0:05  

Hi, my name is Rick Hughen and I'm the CEO of Linshom Medical and we are the first to deliver an operating room quality respiratory profile to the patient bedside and the patient home. This delivers a 12 to a 70 minute advance notice of respiratory decline to the clinical care team. That advanced notice is hugely valuable. It avoids costly, avoids costly, rapid response activation, rescue events, and ICU transfers. The problem that we're addressing is quite simply the lack of respiratory monitoring in the vast majority of healthcare, there is no respiratory monitoring on the general care floor, the emergency room, the post Anesthesia Care Unit, and the patient's home, or an intensive care unit technology works great, fantastic technology. But it's not transferable to the patient bedside, it's too big, too complex, much too expensive. The current standard of care, everything about it is 100%. Responsive, we respond when the patient is in trouble. It's not predictive, it's not getting in front of or in advance of the problem. 75% of rescue events are respiratory in origin. 60% of patients tell you they're having problems, we just either don't watch it or don't pay attention to it. And the one monitor that's ubiquitous across healthcare the pulse oximeter is has 90% false positives, which renders it effectively useless. So all of this results in about 2 million avoidable codes and rescue events per year. So we saw this Linshom Medical solves this with the sensor. You see on the left hand side, it's about the size of a quarter. And we embed that sensor in a supplemental oxygen mask or a nasal cannula. We're agnostic to the plastic that holds our sensor. And then we send that signal that operating room quality respiratory signature, we send that signal to a monitor any monitor, we're equally agnostic to the screen that displays our device. And the reason you see tidal volume and minute venue ventilation in a big red box there is that is the key differentiator, that's what we deliver. We're the only device on the planet earth that can get tidal volume practically to the patient bedside, or the patient's living room. That tidal volume is a measure of the volume of air that you move with each breath. It solves the false alarm problem, and it's not available anywhere outside of the OR or the ICU. You can't get it with capnography you can't get it with pulse oximetry. Here's an example of our FDA cleared device today. In supplemental oxygen mask, it's a disposable center with a cable that attaches a reusable cable that attaches and sends the data off to a monitor that's currently cabled and will be flipped to a wireless device. We have peer reviewed publications from some of the best places available Cleveland Clinic and Brigham and Women's have compared the Lynch on device to the gold standard capnography. Not only do we have nearly identical data, Cleveland Clinic found out that we're actually more sensitive at the low end less than 10 breaths where the sick people are then capnography. But you can't get tidal volume from capnography. So we had to compare that to a ventilator, in this case, a ge ge ventilator at the University of Mississippi. And again, we just line up nearly perfectly. We're entering a gigantic market $20 billion, growing at almost 10% per year to 31 billion in a few years. But more importantly, the question is what can we sell our product to? So our first device our FDA cleared sensor in a supplemental oxygen mask addresses and almost half billion dollar served market. We're working on a miniaturization of that sensor to get it into a nasal cannula that quadruples the market to about a $1.9 billion served market. And that's just us. Beyond that, the miniaturization allows us to get into the home market. And you can see that just expands the market potential greatly. So our product pipeline is very straightforward. The the 2023 Nasal supplemental oxygen mask with sensor is available now we installed our first account last week at Ohio State University. And we will then with the miniaturization effort next year move into a nasal cannula and then that miniaturization enables the whole monitoring market. So how do we get to market? Well we start last week with the installation at Ohio State University. We're doing a clinical and medical economics study comparing two standard of care that's funded by a $2.4 million grant we got from NHLBI a few months ago. And that data will be assembled later towards the end of this year. And then we expand with a soft launch a revenue producing soft launch to for more institutions. We continue to collect data at those five institutions now. And that data is what arms us to put the product in the hands of distributors. And we're in active discussions with all of these distributors currently. And they're very interested, as you can imagine, to get their hands on a differentiated product versus largely commodity products. And then around the $5 million revenue. Target is when the strategics have told us that they'd be very interested in taking a deep look at this device. We're in six month updates with pretty much everybody you see here currently. So the business model is very straightforward. We've done dozens of iCore style interviews with physicians in our three market entry points, the emergency room, the pacu, and the general care floor. And they've given us an idea of the type of usage that they would expect to see. And we've cut that in half, run the numbers across and you can see a department generates anywhere between a half a million dollars and a million dollars of revenue for us. Keep in mind that every hospital is three customers for us. So we have a lot of customers out there 16 6000 hospitals 18,000 customers, our revenue projection puts us around that $5 million mark in 2025. And that's the magic point that the strategics have told us that they would like to deeply engage, because we present a tremendous offensive opportunity, as well as a pretty significant defensive threat. The competitive landscape is very straightforward. There's lots of devices out there, but quite simply, there is no device that can deliver title, volume and minute ventilation, to the patient bedside. And that is the magic and the patent foundation that allows us to differentiate ourselves and drives the value proposition. I've been in the medical device business my whole life with j&j, Abbott, Cordis, BD, but more importantly, subsequent to that with CSA medical where we built a company that exited to Steris in 2019. Prior to that, learn were with some tech license out of Johns Hopkins, we built to an exit to a private equity firm. The Computer Science Engineering and the electrical engineering brains behind this device have literally put no failed devices on sounding rockets and the US Space Shuttle. Our Advisory Board are basically the evangelical lead for continuous predictive respiratory monitoring. Dr. Kahana for the general care floor at Wake Dr. Collins in the emergency room at Vanderbilt, and Dr. Price at Harvard, Brigham and Women's in the pacu. And they are anxiously awaiting to put this device to work in their departments. We are patented worldwide. These are all issued patents with no university license or overhang. We're here today because we're filling out a 3.0 million Series A round. Our use of funds is the study, expansion and our soft launch and miniaturisation nasal cannula development. We have 1.6 million of that closed, and we're seeking 1.4 million and about 18 months from now we'll do a $6 million Series B. So if you're interested, I'd love to talk to you at the end of the show in the hall just tracked me down and we'll chat Thank you