Stuart Simpson Presents THINK Surgical at LSI USA ‘23

Transcription

Good morning everyone. My name is Stuart Simpson. I'm the CEO of THINK Surgical. THINK's an orthopedic robotic and digital surgery company. We're a privately held company. We've had one major shareholder who's patiently been investing in the company through the last eight years of technology development. While we've been working with an innovation partner or development partner Syngenta innovation in September last year, the company raised $100 million from a private equity firm. And that was a, what I consider to be a quite a realistic valuation allowed us to clear out the balance sheet and the cap table. So that will give us the fuel that we require to move into our commercialization phase. And our breakout product, which we call T Mini and I'll explain more about it this morning is within the final stages of FDA review at the moment, and we anticipate that we'll be commercializing in the second quarter. So in only a few weeks or a month or so. Going back in time to 2013. I put my long career in the orthopedic industry on the line a little bit when I lead strikers acquisition of medical surgical Corporation for a whopping $1.7 billion. Back then, many people thought it was a crazy decision. But with hindsight, it was one of the big moves positive moves made in the orthopedic industry. And that really has fueled the adoption of robots for joint replacement surgery, particularly here in the United States. But there are two major barriers to adoption, which THINK Surgical are addressing head on. And when we do that, we believe that we will create increased momentum and adoption of robots for joint replacement surgery and see this technology become a standard of care used by the majority rather than just the early adopters and innovators in the market. We've assembled an impressive executive team starting with our executive chairman Mr. David DeVore, AKA former CEO of Zimmer Biomet, David and myself have put together a team which includes Paul Weiner, CFO who took conformers public and Chris Funk, who was one of strikers leading navigation, enabling technology and robotics salespeople over the last 20 years. Another a whole host of other very talented and experienced people, and we feel strong about the the experience and depth of our executive leadership team. So, increasingly, the market is accepting that robotic surgery for joint replacement is a better way of doing it than the old way the manual surgical procedure, the clinical evidence is improving significantly, and even the cost benefit equation is trending in a very positive direction. However, there are two major barriers to more widespread adoption. First of all, the current business model, there are four dominant companies in the joint, the multibillion dollar joint replacement market, those four companies account for 90% market share in the US and about 80% worldwide. And all of them have now got a robot they all followed strikers lead. And they all offer the robots is a closed model, a razor and a razor blade. If you use my robot, you have to use my implant. And increasingly that is causing our frustration within the customer environment, whether that's surgeon or executives, which is preventing faster adoption. They're literally just using this technology as a way to leverage and protect their very large profitable market share of implants. The second barrier to more widespread adoption is the form factor. Their market leading robots are 900 pound pieces of equipment. They're very intrusive in the operating room. They're hard to maneuver and they take up a lot of space around the operating table where the surgeon and their assistants are trying to provide the best possible care to the patient. We believe that if we can address both of those those things those barriers, will by addressing them, you will see faster adoption of this technology. To give you an idea of where we're at right now, at the end of 2022, the adoption or penetration of robots into jobs, knee replacement surgery specifically, was only 12% in the United States, and low single digits when you look outside of the United States. And the biggest single reason for the the slow are some of the slow adoption is this commercial model. The customers are increasingly competing with one closest and against another closed system. And the customer is increasingly becoming frustrated, because they don't want to spend money and invest in several multimillion dollar robot programs. They want to invest in one and allow it to support all surgeons, and all patients. We believe that this is unsustainable. And it's the core of what we're all about here at THINK Surgical. Being an open platform provider. To give you an idea of how this plays out. In an average hospital, there are eight to 10 surgeons performing this type of surgery, and you have 25%, almost of the surgeons supporting either strikers, or the pure Smith and Nephew. And they're all asking executives to buy them a million dollar robot to support their choice of implant and the executives just want the surgeons to agree on one, we'll invest in one, and we'll support everyone. Secondly, these implant robots are, as I said, 900 pound pieces of equipment, they take up a lot of room. These are schematics from the company's brochures themselves. And you can see that not only are the large intrusive piece of equipment, but they have to have a camera system across the other side of the operating room table, which creates this no fly zone where nobody can step into. It's a dead zone around the operating room table. And that is precious space. So we're solving this with a product called T Mini. It's a miniature handheld robotic device. And I'll show you how it solves this. These particular issues is a CT based solution. Once you have acquired the CT for the patient, the surgeon has the option to plan a surgery using whichever implant they believe is right for that particular patient, not the only one that's available on the system, the camera is moved overhead. So there's no field of view restrictions. And the robot itself is a seven pound miniaturized robot that performs all the same functions that those 900 pound robots perform. We're offering this to the market at about a 50% discount compared to the cost of acquiring one of the current robots. And with our system, you get two miniature robots, which allows the the hospital and the surgeons to do back to back surgery, something which is all but impossible with these much larger, heavier pieces of equipment. Were believed that that product will appeal to the masses. But we're not stopping there. We're bringing our fully autonomous, larger robot into the market at the end of this year. So that we're offering both levels of technology, one at the lower end of the complexity and one at the very high end of complexity, one are appealing to the majority and the other appealing to the innovators and early adopters because they will always be there. But our system will be based on a single planning solution and a single patient and physician workflow. irrespective of which level of technology the choose. Our business model is all about offering choices, choices of technology level choices of implants and tailoring the solution to the individual hospital, the individual surgeon and their individual patients. We believe that there's a strong opportunity to grow this business, starting with them capital installations, but increasingly over time shifting to recurring revenues from the service and the consumables that go with each procedure because we're appealing to a wider customer base, we believe that the utilization levels will be significantly higher than the what's been experienced with the current systems. And that's what fuels our long term growth. We believe that we get to cashflow positive and 2026 and we're looking in 2024 to bring in some US based investors in a crossover round. Thank you for your attention.