may 2015. about the company international patents have been granted on a platform implant technology...
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May 2015
About The Company
International patents have been granted on a platform implant technology that addresses three markets:
The global dental implants market is forecasted to grow at 6% (CAGR) from $3.2 billion in 2010 to $4.2 billion in 2015 (Sandler Research, Nov., 2010).
The Global Dental Implants MarketThe Global Orthopaedic Implant Market
Veterinary Implantology
Stemmed Implant Technology (SIT)
A life sciences product development company that identifies, develops and adds value to a diverse portfolio of promising and innovative implant products.
Product # 1 – SIT dental implants and placement system .
Value Proposition – Dental Implant
SIT Implant Current Implant
• Uses existing comparable metals• Less prone to failure (double
stem)• Lower Cost• No damage to bone (no cutting
or crushing)• Angled rings simplify insertion
and fixation• Superior in resisting torque
(turning)• Removes less tissue • Easily Installed / single
precision placement• Enhanced opportunity for
dentists (GP’s)
• Prone to failure (falling out)
• Rotates due to single post• High costs of screw
implants• Complex process for
dentists (GP’s)• Lengthy patient waiting
time
(Double Stem design)
(Single post design)
Mal-positioned implants with implant axis tilted severely lingually (British Dental Journal )
Market Needs and Assessment
- Only screw-less implant
- Professionals concur quick adaptability rate
- Greater profit margin for practitioners and manufacturers / distributors
- Improved patient outcomes and recovery
- Savings in procedure costs and time
- Game-changing lead product
- Aging population boosting market
- Rising awareness for oral health and improved dental treatments
- Growth rate of 6-20% globally (Sandler report)
- Rising edentulous population worldwide
- Patents issued in six countries - Short time to market (minimal
clinical trials) - Certified Health Canada
manufacturer ) in place with metal specifications
- Extension / replacement of current product line for Manufacturers and Distributors (Big Four hold > 60% of market) or new
- Bone implants patents can be used for a family of products, procedures, and processes for the Orthopaedic and Veterinary markets
- Tooth restoration market under-penetrated globally
- Increased practitioner usage = revenues
Competitive Advantage Growth Market
Limited Entry Barriers
Market Expansion
Funding Requirements and Uses
Uses of Funds *
Clinical (Trials & Strategy)
Intellectual Property
Regulatory
Engineering (Prototype)
Research & Development
Salaries & Benefits **
General & Administration
Consulting
Fees & CAPEX
• Funding to Q4 – 2015, all other costs offset by cash flows from future revenues** Consists of 5 personnel at average $132K per annum (base)
Funding Amount:
$3.77 million total equity funding sought
Ideally in tranches of $500K to $1.0M from each investor to coincide with cash flow timing.
Partial funding from warrants exercised Residual funding by non-dilutive
government grants
Means: Preferred Shares (convertible) with
common share purchase warrants @ $10.00 per share
Warrants – 2 common shares for each Preferred share @ $7.50 per share
Warrants are detachable and transferrable Bonus Shares – 1 common share for each
Preferred Bonus Shares – 1 common share for each
warrant exercised and common share purchased
Critical Path
Financing
Pilot Clinical, 20 patients
Regulatory Pre-Submission / Meetings
Clinical Trials
Regulatory Submissions / Approval
Q1-Q4 2014 Q2-Q3 2015| Q4 2015 Q1 2016 - Q4 2016 Q4 2016 CanadaQ2 2017 FDA
* Licensing discussions begin Q2 2016
Projected ROI & Exit Strategy
(000’s)Preferre
dWarrant
s* Total
Investment Dollars $500 $375 $875
Year 3 – Dividends ** 763 763 1,526
Year 4 - Dividends 536 536 1,072
Year 5 - Dividends 209 209 418
Year 5 – Capital Appreciation 4,076 4,076 8,156
TOTAL 5,666 5,586 11,252
IRR% 74.7% 83.71% 78.8%
Multiple 11.3X 14.9X 12.9X
Payback (in years) 2.75 2.75 2.75
% ownership 6.6% 6.6% 13.2%
Return on Investment
NPV of $47.7M (independent valuation) <upon regulatory approval>
Projected Value per share of $40.78 (on regulatory approval )
Possible IPO in five years
Possible divesting of whole company or just dental asset as development continues on the orthopaedic and veterinary applications
* Assumes 50% of warrant shares exercised** Anticipated distribution of Licensing revenues
Professional Team
Management Team
Christopher Ostrovski, President & CEO
Dr. Michael Lococo, Director Innovation
Doug McNaughton, CFO Martin Lococo, Director Marketing
& Sales Diane Kalina, Director Licensing
Corporate Consultants Dr. Scott Proctor - PG Business
Growth Advisors and Certified Public Accounts, LLC
Wendy Hill - GAP Strategies
Daryl Wisdahl – EMERGO Group
Diane Kalina – BioCatalyst Yorkton Ltd.
Bonnie Loubert – Loubert Brown Consulting
Scientific Advisors Dr. Emmanuel Rajczak, DDS
Dr. Greg Wohl, Ph.D. – Biomedical Engineering, McMaster University
Dr. Karl Stobbe, M.D., Regional Assistant Dean, Michael G. DeGroote, School of Medicine, McMaster University
Dr. Robert Josefchak – Orthopaedic Surgeon, McMaster University
Corporate Advisors Gowling, Henderson, LeFluer
(Patents)
Berreskin & Parr - patents
Gardiner-Roberts LLP (Corporate Attorneys)
Deloitte Touche – (Auditors)
Randy Gillen - Licensing
Contact information
• Christopher Ostrovski, President & CEO [email protected]
Tel. 416.626.1835 ( Canada )
• Douglas McNaughton, CFO
Tel. 289.213.8886 ( Canada )
• www.stemmedimplant.com