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AMxTek LLC
  Antimicrobial Medical Device:
Product Development & Regulatory
      Consulting Services

                                 Presented To:
                        Presented By: Jim Walls
                                      President
                                  AMxTek LLC
Overview

   Hospital Acquired Infections [HAIs] &
    The U.S. Healthcare Burden
   AMxTek Background
   AMxTek Experience
   AMxTek Business Model
   AMxTek Corporate Client Activities
HAIs & The U.S. Healthcare Burden
         HAI             Total   (1)+(2)      Mortality         Ave. Attributable
                                                                  Cost/Patient
  CAUTI                       449,334              0.72%(3)             $1,007   (6)


  CLA-BSI                      92,011              25%    (5)         $29,156    (6)


  VAP                          52,543              46%    (4)         $28,508    (6)


  SSI                         290,485            1.91%(3)             $34,670    (6)


  Other                       386,090            2.48%(3)               $1,617(3)
  Total                    1,737,125             2.70%(3)               $2,100(3)


Other Salient HAI Factoids :
• 4.5 HAIs per 100 admissions(1)
• 9.3 infections per 1,000 patient-days(1)
• 99,00 deaths annually associated with infections(1)
•$45 B/yr. in direct medical costs(2)
A Business Case for
Antimicrobial [AMx] Medical Devices
AMx medical devices reduce HAIs; resulting in:

1. Improved patient quality of care
     Reduced patient morbidity & mortality
2. HAI cost avoidance
    Reduced Antibiotics [ABx] use:
    Reduced preservation stress on microorganisms;
     believed to lead to ‘Multi-Drug Resistant
     Organisms’ [MDROs]
3. Improved hospital profitability:
    Reduced patient-bed days; improved bed
     utilization
A Business Case for
     Antimicrobial [AMx] Medical Devices
4.    Reimbursement; CMS „No Pay‟ HAIs:
       2009 – No CMS Reimbursement for the Following
       HAIs:
         CAUTI
         Pressure Ulcers
         Vascular Catheter-Associated Infections
         SSIs re Mediastinitis
      Proposed CMS „No Pay‟ HAIs:
        VAP

        Staphylococcus aureus Septicemia
        MRSA

        Additional Types of SSIs
A Business Case for
Antimicrobial [AMx] Medical Devices
   5. Mandatory Reporting:
A Business Case for
 Antimicrobial [AMx] Medical Devices
5.   Mandatory Reporting:
AMxTek
BACKGROUND
AMxTek LLC

    AMxTek was founded in 2008 by Jim
    Walls, AMxTek‟s President

   Jim has over 25 years of medical device
    product development & regulatory
    experience:
     > 15 years of which is directly related to
      „Combination Medical Products‟
   Jim possesses a Master of Engineering
    Science degree in Biomedical Engineering
    from Rensselaer Polytechnic Institute & a
    Bachelor of Science degree in Mechanical
    Engineering from the University of
    Connecticut
AMxTek LLC
   Jim‟s biofilm competency comes from over 15
    years of tutelage at the Center for Biofilm
    Engineering at Montana State University &
    being personally responsible for the
    development & commercialization of 4
    generically different AMx medical devices:
     Kendall Healthcare (2), Div. of Covidien, LLC
     Bard Medical (1), Div. of C.R. Bard, Inc.
     Bacterin International (1)
   Jim possesses Clinical Engineering Internship
    Certification from Hartford Hospital & has
    taken courses towards his MBA at the
    University of New Haven
EXPERIENCE
Kendall Healthcare
                Div. of Covidien LLC
As V.P. of R&D, Jim was the strategic architect &
product champion behind Kendall‟s entrance into
the infection control [IC] business. During Jim‟s 10
year tenure his strategic and P&L IC contributions
included:
 Recognition of the enhanced business model &
  P&L opportunity AMx technology provides for
  quasi-commodity oriented medical devices:
    New product life-cycle
    Enhanced ASP & GP
    Cannibalization or market share penetration
     significantly improves P&L performance
Development of a suite of in-vitro AMx assays to
 enhance internal competency & assessment of
 efficacy of new AMx technologies & products
 under development
Kendall Healthcare
        Div. of Covidien LLC

   Development & commercialization of the
    Kerlix™AMD line of Antimicrobial Gauze
    Dressings: 510(K) # K990530
     Identified & sourced IC technology:
         PHMB - Polyhexamethylene Biguanide

     Developed manufacturing process methods to bind
      PHMB to cellulose (i.e. cotton)
     Developed PHMB formulation to optimize AMx
      efficacy vs. cytotoxicity
     Developed & executed in-vitro, animal & in-vivo
      product trials in support of FDA 510(K) submission
      & new product launch
Kendall Healthcare,
        Div. of Covidien LLC
   Development & commercialization of Dover®
    Silver, Kendall‟s silicone IC Foley catheter;
    510(K) # K024010
     Identified & sourced IC technology:
        Ag3PO4 inorganic polymer

     Developed & executed in-vitro assay data in support of
      FDA 510(K) submission & new product launch
        Poster entitled: “Novel Anti-infective Coating

         Prevents Biofilm Formation in In-vitro Assay”; won
         APIC„s ‘Bard UTI Research Award’, June 2003
        Chaired Kendall‟s „Pre-submission‟ (a.k.a. Pre-IDE)
         meeting with FDA
Bard Medical
              C.R. Bard, Inc.
    As Bard‟s V.P. of R&D, Jim‟s strategic IC
    contributions included:
   Vetting 2nd generation „home grown‟ IC technology
      Colloidal Silver Salts; R. Terry, Pat. #s 6,716,895 &
       6,949,598
   Advancement of Bard‟s technical competency & self-
    sufficiency re. AMx in-vitro assay testing
   Management of Bard‟s Agento® IC Silver-Coated
    Endotracheal Tube clinical trial: 510(K) # : K071365;
      The „NASCENT‟ Clinical Trial included: 54 sites & 2,003 patients;
       outcome results indicated Agento®:
             Reduced the incidence of VAP by 36%
             Reduced the incidence of VAP by 48% for patients intubated
              ≤ 10 days
             Delayed the onset of VAP
Bacterin International, Inc.
    As V.P. of Business Development, Jim‟s
    responsibilities included directing AMx medical
    device product development for both Bacterin &
    „Corporate Alliance Partners‟ [CAP]. Jim‟s
    medical device IC contributions included:

   Development & FDA approval of Elutia, the first
    antimicrobial surgical wound drain; 510(K) #: K063245
      IC Technology – PVA/SSD; Pat. Applic. # 20080063693
      Negotiated with FDA re „Product Classification‟; in-
       vitro test methods; & Claims/Indication for Use
   Managed CAP AMx product development programs;
    including:
      FDA Pre-IDE Meeting re AMx Vascular Access Device
QuoNova, LLC


As V.P. of Product Development for this early stage
 „Quorum Sensing Blocking‟ [QSB] technology
 [AI-1 pathway], Jim was responsible for
 increasing asset value by converting IC „science‟
 into commercial, value-added IC products.
   Transitioned QSB lab „science‟ into IC Wound Care
    Dressings
      Managed „partial-thickness‟ wound healing animal trial
       at U.S. medical research university
   Regulatory – Drafted Request For Designation [RFD] re.
    FDA submission
AMxTek LLC
CONSULTING SERVICES
  PRODUCT DEVELOPMENT
  REGULATORY
AMxTek Consulting Services
     AMxTek consulting services:
1.   Manage/oversee „in-house‟ AMx Product
     Development programs
      Benefit: Partner builds core technical
       competence in AMx product development &
       technology assessment
      Benefit: Partner gains objective vetting of in-
       house AMx technologies &/or programs
2.   Sources AMx technology/IP
      Benefit: Partner maintains anonymity
      Benefit: Partner benefits from AMxTek‟s
       objectivity, experience & technology resource
       network
AMxTek Consulting Services
3.   Partner out-sources AMx Product
     Development program directly to AMxTek
            Benefit: A „Phase-Gate‟ Product Development
             approach ensures Partner‟s oversight & control over
             project management & expenses
            Benefit: Partner off-loads constrained or
             inexperienced technical resources onto AMxTek
            Benefit: AMxTek‟s AMx medical device product
             development experience reduces Partner‟s TTM/FDA
             submission
4.   AMxTek consults with Partner re. FDA
     Regulatory submission; filing strategy; &
     IFU/Claims development
            Benefit: Partner gains AMxTek‟s „Combination
             Medical Product‟ experience with FDA.
              RFDs
              Pre-IDE Meetings
              510(k) submissions
              IFU/Claims-supported product testing
AMXTEK
CORPORATE CLIENT ACTIVITIES
   Major Medical Supply Companies:
       Technology ‘due diligence’; In-vitro test methods & in-situ
        protocol development & data review; 510(k) submission review;
        FDA Pre-IDE Meeting response strategy; Regulatory pathway
        assessment
   Small Medical Supply Company:
       Product development – AMx wound care dressing
   Orthopedic Implant Companies:
       Technology ‘due diligence’; Regulatory pathway assessment;
        FDA Pre-IDE Meetings;
   Food Industry:
       Technology ‘due diligence’; Assessment of FCS regulatory
        pathway; COGS analysis
How To Reach
      AMxTek LLC

Jim Walls
President
49 Farm View Rd.
Bethany, CT 06524
Email: amxtek@comcast.net
Office: (203) 393-1387
Mobile: (203) 859-2997
References
1.   Klevens, Edwards, Richards, et al. Pub Health Report 2007; 122:160 – 6
2.   Weber, DJ et al. Comparison of Hospital-wide Surveillance and
     Targeted ICU Surveillance of HAIs. Infect Control & Hospital
     Epidemiology 2007;28:1361-1366
3.   Martone, WJ, et al. Incidence and Nature of Endemic and Epidemic
     Nosocomial Infections. II Endemic and Epidemic Hospital Infections;
     Table 27- 4 p593
4.   Ibrahim, EH, et al. The Occurrence of VAP in a Community Hospital:
     Risk factors and Clinical Outcomes. Chest 2001 Aug; 120(2):555-561
5.   O‟Grady, NP, et al. “Guidelines for the Prevention of Intravascular
     Catheter-related Bloodstream Infections”. CDC, Aug. 9, 2002, Vol. 51,
     No. RR10, pp1 – 26
6.   Scott II, R.D. The Direct Medical Costs of HAIs in U.S. Hospitals and the
     Benefit of Prevention. CDC; March 2009
THANK YOU
FOR YOUR ATTENTION

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Antimicrobial Medical Device Consulting & Product Development

  • 1. AMxTek LLC Antimicrobial Medical Device: Product Development & Regulatory Consulting Services Presented To: Presented By: Jim Walls President AMxTek LLC
  • 2. Overview  Hospital Acquired Infections [HAIs] & The U.S. Healthcare Burden  AMxTek Background  AMxTek Experience  AMxTek Business Model  AMxTek Corporate Client Activities
  • 3. HAIs & The U.S. Healthcare Burden HAI Total (1)+(2) Mortality Ave. Attributable Cost/Patient CAUTI 449,334 0.72%(3) $1,007 (6) CLA-BSI 92,011 25% (5) $29,156 (6) VAP 52,543 46% (4) $28,508 (6) SSI 290,485 1.91%(3) $34,670 (6) Other 386,090 2.48%(3) $1,617(3) Total 1,737,125 2.70%(3) $2,100(3) Other Salient HAI Factoids : • 4.5 HAIs per 100 admissions(1) • 9.3 infections per 1,000 patient-days(1) • 99,00 deaths annually associated with infections(1) •$45 B/yr. in direct medical costs(2)
  • 4. A Business Case for Antimicrobial [AMx] Medical Devices AMx medical devices reduce HAIs; resulting in: 1. Improved patient quality of care  Reduced patient morbidity & mortality 2. HAI cost avoidance  Reduced Antibiotics [ABx] use:  Reduced preservation stress on microorganisms; believed to lead to ‘Multi-Drug Resistant Organisms’ [MDROs] 3. Improved hospital profitability:  Reduced patient-bed days; improved bed utilization
  • 5. A Business Case for Antimicrobial [AMx] Medical Devices 4. Reimbursement; CMS „No Pay‟ HAIs:  2009 – No CMS Reimbursement for the Following HAIs:  CAUTI  Pressure Ulcers  Vascular Catheter-Associated Infections  SSIs re Mediastinitis  Proposed CMS „No Pay‟ HAIs:  VAP  Staphylococcus aureus Septicemia  MRSA  Additional Types of SSIs
  • 6. A Business Case for Antimicrobial [AMx] Medical Devices  5. Mandatory Reporting:
  • 7. A Business Case for Antimicrobial [AMx] Medical Devices 5. Mandatory Reporting:
  • 9. AMxTek LLC AMxTek was founded in 2008 by Jim Walls, AMxTek‟s President  Jim has over 25 years of medical device product development & regulatory experience:  > 15 years of which is directly related to „Combination Medical Products‟  Jim possesses a Master of Engineering Science degree in Biomedical Engineering from Rensselaer Polytechnic Institute & a Bachelor of Science degree in Mechanical Engineering from the University of Connecticut
  • 10. AMxTek LLC  Jim‟s biofilm competency comes from over 15 years of tutelage at the Center for Biofilm Engineering at Montana State University & being personally responsible for the development & commercialization of 4 generically different AMx medical devices:  Kendall Healthcare (2), Div. of Covidien, LLC  Bard Medical (1), Div. of C.R. Bard, Inc.  Bacterin International (1)  Jim possesses Clinical Engineering Internship Certification from Hartford Hospital & has taken courses towards his MBA at the University of New Haven
  • 12. Kendall Healthcare Div. of Covidien LLC As V.P. of R&D, Jim was the strategic architect & product champion behind Kendall‟s entrance into the infection control [IC] business. During Jim‟s 10 year tenure his strategic and P&L IC contributions included: Recognition of the enhanced business model & P&L opportunity AMx technology provides for quasi-commodity oriented medical devices:  New product life-cycle  Enhanced ASP & GP  Cannibalization or market share penetration significantly improves P&L performance Development of a suite of in-vitro AMx assays to enhance internal competency & assessment of efficacy of new AMx technologies & products under development
  • 13. Kendall Healthcare Div. of Covidien LLC  Development & commercialization of the Kerlix™AMD line of Antimicrobial Gauze Dressings: 510(K) # K990530 Identified & sourced IC technology:  PHMB - Polyhexamethylene Biguanide Developed manufacturing process methods to bind PHMB to cellulose (i.e. cotton) Developed PHMB formulation to optimize AMx efficacy vs. cytotoxicity Developed & executed in-vitro, animal & in-vivo product trials in support of FDA 510(K) submission & new product launch
  • 14. Kendall Healthcare, Div. of Covidien LLC  Development & commercialization of Dover® Silver, Kendall‟s silicone IC Foley catheter; 510(K) # K024010  Identified & sourced IC technology:  Ag3PO4 inorganic polymer  Developed & executed in-vitro assay data in support of FDA 510(K) submission & new product launch  Poster entitled: “Novel Anti-infective Coating Prevents Biofilm Formation in In-vitro Assay”; won APIC„s ‘Bard UTI Research Award’, June 2003  Chaired Kendall‟s „Pre-submission‟ (a.k.a. Pre-IDE) meeting with FDA
  • 15. Bard Medical C.R. Bard, Inc. As Bard‟s V.P. of R&D, Jim‟s strategic IC contributions included:  Vetting 2nd generation „home grown‟ IC technology  Colloidal Silver Salts; R. Terry, Pat. #s 6,716,895 & 6,949,598  Advancement of Bard‟s technical competency & self- sufficiency re. AMx in-vitro assay testing  Management of Bard‟s Agento® IC Silver-Coated Endotracheal Tube clinical trial: 510(K) # : K071365;  The „NASCENT‟ Clinical Trial included: 54 sites & 2,003 patients; outcome results indicated Agento®:  Reduced the incidence of VAP by 36%  Reduced the incidence of VAP by 48% for patients intubated ≤ 10 days  Delayed the onset of VAP
  • 16. Bacterin International, Inc. As V.P. of Business Development, Jim‟s responsibilities included directing AMx medical device product development for both Bacterin & „Corporate Alliance Partners‟ [CAP]. Jim‟s medical device IC contributions included:  Development & FDA approval of Elutia, the first antimicrobial surgical wound drain; 510(K) #: K063245  IC Technology – PVA/SSD; Pat. Applic. # 20080063693  Negotiated with FDA re „Product Classification‟; in- vitro test methods; & Claims/Indication for Use  Managed CAP AMx product development programs; including:  FDA Pre-IDE Meeting re AMx Vascular Access Device
  • 17. QuoNova, LLC As V.P. of Product Development for this early stage „Quorum Sensing Blocking‟ [QSB] technology [AI-1 pathway], Jim was responsible for increasing asset value by converting IC „science‟ into commercial, value-added IC products.  Transitioned QSB lab „science‟ into IC Wound Care Dressings  Managed „partial-thickness‟ wound healing animal trial at U.S. medical research university  Regulatory – Drafted Request For Designation [RFD] re. FDA submission
  • 18. AMxTek LLC CONSULTING SERVICES  PRODUCT DEVELOPMENT  REGULATORY
  • 19. AMxTek Consulting Services AMxTek consulting services: 1. Manage/oversee „in-house‟ AMx Product Development programs  Benefit: Partner builds core technical competence in AMx product development & technology assessment  Benefit: Partner gains objective vetting of in- house AMx technologies &/or programs 2. Sources AMx technology/IP  Benefit: Partner maintains anonymity  Benefit: Partner benefits from AMxTek‟s objectivity, experience & technology resource network
  • 20. AMxTek Consulting Services 3. Partner out-sources AMx Product Development program directly to AMxTek  Benefit: A „Phase-Gate‟ Product Development approach ensures Partner‟s oversight & control over project management & expenses  Benefit: Partner off-loads constrained or inexperienced technical resources onto AMxTek  Benefit: AMxTek‟s AMx medical device product development experience reduces Partner‟s TTM/FDA submission 4. AMxTek consults with Partner re. FDA Regulatory submission; filing strategy; & IFU/Claims development  Benefit: Partner gains AMxTek‟s „Combination Medical Product‟ experience with FDA.  RFDs  Pre-IDE Meetings  510(k) submissions  IFU/Claims-supported product testing
  • 21. AMXTEK CORPORATE CLIENT ACTIVITIES  Major Medical Supply Companies:  Technology ‘due diligence’; In-vitro test methods & in-situ protocol development & data review; 510(k) submission review; FDA Pre-IDE Meeting response strategy; Regulatory pathway assessment  Small Medical Supply Company:  Product development – AMx wound care dressing  Orthopedic Implant Companies:  Technology ‘due diligence’; Regulatory pathway assessment; FDA Pre-IDE Meetings;  Food Industry:  Technology ‘due diligence’; Assessment of FCS regulatory pathway; COGS analysis
  • 22. How To Reach AMxTek LLC Jim Walls President 49 Farm View Rd. Bethany, CT 06524 Email: amxtek@comcast.net Office: (203) 393-1387 Mobile: (203) 859-2997
  • 23. References 1. Klevens, Edwards, Richards, et al. Pub Health Report 2007; 122:160 – 6 2. Weber, DJ et al. Comparison of Hospital-wide Surveillance and Targeted ICU Surveillance of HAIs. Infect Control & Hospital Epidemiology 2007;28:1361-1366 3. Martone, WJ, et al. Incidence and Nature of Endemic and Epidemic Nosocomial Infections. II Endemic and Epidemic Hospital Infections; Table 27- 4 p593 4. Ibrahim, EH, et al. The Occurrence of VAP in a Community Hospital: Risk factors and Clinical Outcomes. Chest 2001 Aug; 120(2):555-561 5. O‟Grady, NP, et al. “Guidelines for the Prevention of Intravascular Catheter-related Bloodstream Infections”. CDC, Aug. 9, 2002, Vol. 51, No. RR10, pp1 – 26 6. Scott II, R.D. The Direct Medical Costs of HAIs in U.S. Hospitals and the Benefit of Prevention. CDC; March 2009
  • 24. THANK YOU FOR YOUR ATTENTION