Rivers Club Pmd 091108

564 views

Published on

Renal Solutions-a western Pennsylvania success story.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
564
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Rivers Club Pmd 091108

  1. 1. Introductory Remarks Bob Dickson CFO-CardiacAssist [email_address] 724-272-1527
  2. 2. The Renal Solutions Story Pete DeComo, CEO Life Sciences Executives Rivers Club September 11, 2008
  3. 3. In Appreciation <ul><li>No successful entrepreneur does it alone! </li></ul><ul><li>My deepest appreciation to all who have supported me </li></ul><ul><ul><li>My wife Kate and my daughters Nicole and Kristen </li></ul></ul><ul><ul><li>The Renal Solutions team </li></ul></ul><ul><ul><li>My investors: </li></ul></ul><ul><ul><ul><li>Gary Glausser – Birchmere Ventures </li></ul></ul></ul><ul><ul><ul><li>Mike Stubler – Draper Triangle Ventures </li></ul></ul></ul><ul><ul><li>The many other individuals and organizations </li></ul></ul>
  4. 4. The Renal Solutions Vision <ul><li>To develop and commercialize a hemodialysis system suitable for the institutional and home settings. </li></ul><ul><li>In the home setting the goal is to facilitate; </li></ul><ul><ul><li>Self Administration – More Dialysis! </li></ul></ul><ul><ul><li>Improved clinical, quality of life and cost outcomes </li></ul></ul><ul><ul><li>Improved dialysis center performance metrics </li></ul></ul>
  5. 5. Renal Solutions History <ul><li>Incorporated in August 2000 </li></ul><ul><li>Moved the Company from Lafayette IN to Pittsburgh in 2001 </li></ul><ul><li>Corporate headquarters & distribution in Warrendale, PA </li></ul><ul><li>Sorbent manufacturing in Oklahoma City, OK </li></ul><ul><ul><li>Acquired SORB ™ in April 2001 ( RSI Had no cash or value at the time! ) </li></ul></ul><ul><li>Currently 65 employees </li></ul><ul><li>FDA clearance in June of 2005 and April 2006 </li></ul><ul><li>CE Marking received in November 2005 </li></ul><ul><li>Initiated a controlled product launch January 2007 </li></ul><ul><li>Basically pre-revenue through 2007 </li></ul><ul><li>RSI Acquired by Fresenius in November, 2007 </li></ul>
  6. 6. The Allient ® System - Benefits <ul><li>Treatments anytime & anywhere </li></ul><ul><li>Freedom from water purification hassles, installation cost and maintenance </li></ul><ul><li>1 piece of equipment for multiple treatment options </li></ul><ul><li>Exceptional dialysate purity </li></ul><ul><li>Gentle, customized, patient-driven therapy </li></ul><ul><li>Closed fluid circuit </li></ul><ul><li>No internal disinfection/sterilization </li></ul><ul><li>Simple single- or dual-lumen vascular access choice </li></ul><ul><li>Competency easily achieved </li></ul>
  7. 7. Sorbent Cartridge – Heart of RSI Technology <ul><li>Four Layers ( Bottom to Top) : </li></ul><ul><li>Activated Carbon & Purification </li></ul><ul><li>Organics, Middle Molecules </li></ul><ul><li>Urease Layer </li></ul><ul><li>Urea --> (NH 4 ) 2 CO 3 </li></ul><ul><li>Zirconium Phosphate </li></ul><ul><li>Cation Exchange </li></ul><ul><li>Zirconium Oxide </li></ul><ul><li>Anion Exchange </li></ul><ul><li>Regenerates >100L of high purity dialysate from 6L tap water </li></ul><ul><li>No need to be connected to water or drain source </li></ul><ul><li>Base technology for true portability and wearability </li></ul>
  8. 8. Renal Solutions Value Proposition <ul><li>There is a pent-up demand based upon a need for: </li></ul><ul><ul><li>Better clinical & quality of life outcomes </li></ul></ul><ul><ul><li>Reduced cost of care </li></ul></ul><ul><ul><li>Less technological complexity </li></ul></ul><ul><ul><li>More dialysis center capacity & improved financial metrics </li></ul></ul><ul><li>Disruptive & Transformational Technology </li></ul><ul><ul><li>Only 1 ½ gallons of tap water w/o tethered to water supply or drain </li></ul></ul><ul><ul><li>Short or Long duration, Higher Therapeutic Dose (Dose per $) </li></ul></ul><ul><ul><li>Inherent Safety – single lumen, small dialysate volume, etc. </li></ul></ul><ul><ul><li>Ease of Use – Human factor considerations, i.e., GUI, training tools </li></ul></ul><ul><ul><li>No patient investment or changes to home required </li></ul></ul><ul><ul><li>Enabler for home therapy – improved outcomes </li></ul></ul><ul><ul><li>Low Risk Investment – Established acute market while home shifts </li></ul></ul>
  9. 9. Renal Solutions - Investment Considerations! <ul><li>$50 Billion Worldwide Dialysis Market </li></ul><ul><li>Patient dialysis dose is inadequate – 24% mortality rate in the US </li></ul><ul><li>Home Dialysis is an underserved market with <1% at home </li></ul><ul><li>We’ve solved the water access challenge! </li></ul><ul><li>Domain Experienced Management Team </li></ul><ul><li>Reimbursement is Well Established </li></ul><ul><li>Low Risk FDA Regulatory Pathway </li></ul><ul><li>Current Traction in the Marketplace </li></ul>
  10. 10. Financing History <ul><li>Initiated a Series A financing in Sept. 2001 </li></ul><ul><li>Public and Private Equity Markets crashed </li></ul><ul><ul><li>Tech bubble had burst </li></ul></ul><ul><ul><li>9/11 terrorist attack </li></ul></ul><ul><ul><li>Major accounting scandal’s </li></ul></ul><ul><li>Initial target of $7.5 MM for the Series A </li></ul><ul><li>Had raised $3.0 MM in seed money </li></ul>
  11. 11. Financing Results <ul><li>Raised a total of $23.2 MM in the Series A (11/02) </li></ul><ul><li>15 months to close vs. the pre-bubble 6 months </li></ul><ul><li>Also secured (while still pre-revenue): </li></ul><ul><ul><li>$1.0 MM equipment term loan with GE </li></ul></ul><ul><ul><li>$1.0 MM line of credit with SVB </li></ul></ul><ul><ul><li>$5.0 MM in venture debt </li></ul></ul><ul><li>Raised $17.1 MM the Series B (3/05) </li></ul><ul><li>Additional $20 MM with a unique debt structure (2/07) </li></ul><ul><li>TOTAL of $40 MM in equity capital & $25 MM in debt </li></ul>
  12. 12. Financing Perspective <ul><li>A steady increase in VC backed deals from 1995 thru 2000. </li></ul><ul><li>2001-2003, private equity $$ down significantly along with M&A’s & IPO’s. </li></ul><ul><li>Recovery in 2 nd half of 2003 though less than 2002 total. </li></ul><ul><li>Q1-04 investments 5% greater than Q4-03 & up 25% over Q1-03 but deal flow was down 15%. </li></ul><ul><li>IPO activity has followed the same general pattern thru Q1-04 but has tailed off while private equity has remained robust. </li></ul>Year # Deals VC $ 1995 1,313 $6.9 B 2000 6,101 $94 B 2001 3,194 $36 B 2002 2,269 $22 B 2003 1,973 $18 B
  13. 13. So What Happened?? <ul><li>Raised a total of $40MM in Private Equity & $25MM in debt financing </li></ul><ul><li>Completed development of the Allient ® Sorbent Hemodialysis System </li></ul><ul><li>Commenced a controlled market launch & clinical study in early 07’ </li></ul><ul><li>Was acquired for $200MM in November 07’ </li></ul><ul><ul><li>200X 2007 revenue of $1.0MM </li></ul></ul><ul><ul><li>5X return for investors </li></ul></ul>
  14. 14. Why $200MM for a Pre-Revenue Co.? <ul><li>A large market of $2 billion plus with unmet needs. </li></ul><ul><li>A disruptive & transformational technology solution. </li></ul><ul><li>A strong pipeline of future products. </li></ul><ul><li>Significant patent & trade secret portfolio. </li></ul><ul><li>A strong foundation in place in order to commercialize. </li></ul><ul><li>The potential of $200MM in revenue within 5 years and a $500MM market cap within 2 years post launch. </li></ul><ul><li>Think Big, Act Big, Be Big! </li></ul>
  15. 15. Benefits for the Region <ul><li>In the beginning I was told many times; don’t do it in Pittsburgh! </li></ul><ul><li>The success of Renal Solutions enhances the credibility and visibility of the region re; economic development & future start-up funding/growth. </li></ul><ul><li>Renal Solutions will remain in the region: </li></ul><ul><ul><li>As a wholly owned subsidiary of FMC </li></ul></ul><ul><ul><li>Employment will continue to grow </li></ul></ul><ul><ul><li>Pete DeComo will remain as the CEO </li></ul></ul>
  16. 16. Pete’s “ TOP TEN LIST” of Start-up Fallacies: <ul><li>You have a great idea and raising money will not be a problem. </li></ul><ul><li>You can get it done faster and cheaper than the competition. </li></ul><ul><li>Dilution is a bad thing. </li></ul><ul><li>You have the best talent on the street. </li></ul><ul><li>You do not need patent protection, the trade secrets are significant. </li></ul><ul><li>Success in the market is totally based upon technology superiority. </li></ul><ul><li>It is a low risk and expedited regulatory pathway. </li></ul><ul><li>Scientific founders are all wonderful and should stay forever. </li></ul><ul><li>Management and VC Boards are strategically aligned. </li></ul><ul><li>Venture Capitalists like risk. </li></ul>
  17. 17. The Moral of the Story for Entrepreneurs <ul><li>Believe when others Do Not </li></ul><ul><li>Persevere when others Would Not </li></ul><ul><li>Know the market, the problem and the solution; others Will Not </li></ul><ul><li>Take calculated risk when others say you Should Not </li></ul><ul><li>Be humble when others Cannot </li></ul><ul><li>Focus, Focus, Focus …. Competitors Forgot </li></ul><ul><ul><ul><li>Foot Note: Spend Less than 5% of your time thinking Exit!!! </li></ul></ul></ul><ul><li>Have fun, love your family, friends & employees … It’s only a job and Worry Not! </li></ul>
  18. 18. The Allient ® Sorbent Hemodialysis System Questions & Answers Thank you! Peter M. DeComo Renal Solutions Inc. [email_address] 724-772-6900 x104
  19. 19. Future Presentation <ul><li>Charlie Smith </li></ul><ul><li>Chief Investment Officer </li></ul><ul><li>Fort Pitt Capital </li></ul><ul><li>October 16, 2008 </li></ul><ul><li>7:45am </li></ul><ul><li>Rivers Club </li></ul>

×