2. Every year 11.5 million1
people
are treated for shoulder injuries,
yet the products available for
resistive shoulder exercise are
very limited
ShoulderRx | Investor Presentation 2016 2
1
SOURCE: Department of Research & Scientific Affairs, American Academy of Orthopaedic Surgeons. Rosemont, IL; AAOS; November 2013. Physician Visits: Reason for Visit ‐ Based on data
from the National Ambulatory Medical Care Survey, 2000‐2010; National Center for Health Statistics.
3. The Shoulder Situation
Most flexible joint in the body
Extremely vulnerable for injury
Ranked #2 in musculoskeletal disease/injuries 1
Annually 11.5 million people seek treatment 2
4.1 million doctor visits for rotator cuff problems every year 3
1.2 million ER visits for shoulder problems every year 4
Shoulder injuries among workers are costly, requiring average of 21 days for employee to return to work 5
Limited portable, affordable, resistive exercise/rehab devices available
ShoulderRx | Investor Presentation 2016 3
1
U.S. Department of Health and Human Services; Centers for Disease Control and Prevention; National Center for Health Statistics.
2
Department of Research & Scientific Affairs, American Academy of Orthopaedic Surgeons. Rosemont, IL; AAOS; November 2013. Physician Visits: Reason for Visit ‐ Based on data from the National
Ambulatory Medical Care Survey, 2000‐2010; National Center for Health Statistics.
3
American Academy of Orthopaedic Surgeons
4
Centers for Disease Control and Prevention (CDC)/National Center for Health Statistics (NCHS), National Hospital Ambulatory Medical Care Survey. National Hospital Ambulatory Medical Care Survey
5
American Congress of Rehabilitation Medicine, Bureau of Labor Statistics
5. A $29.6 billion industry with limited products
for shoulder rehab/exercise
ShoulderRx | Investor Presentation 2016 5
6. ShoulderRx
Portable, affordable, resistive exercise/rehab
device that improves patient compliance and
promotes better outcomes.
• Stabilizes patient’s arm during
exercise
• Prevents incorrect positioning
• Isolates the muscle groups
• Provides exceptionally smooth,
adjustable, bi-directional hydraulic
resistance
• Adjustable resistance, ROM and
elevation settings
ShoulderRx | Investor Presentation 2016 6
7. ShoulderRx Key Benefits
Improves Patient
Compliance
• Portable
• Easy-to-use
• Enables at-home rehab/exercise
• Affordable – manufacture device in plastic
Promotes Better
Outcomes
• Stabilizes arm to minimize involvement of non-shoulder muscle groups
• Prevents incorrect positioning
• Exceptionally smooth, adjustable, bi-directional resistance using
hydraulic pressure
• Controls motion and loading
Demonstrable ROI
(P/T Clinics)
• Solid, reliable product
• Replaceable parts available for purchase
• Patients can use this device for at-home therapy
• PT clinics are using the same ShoulderRx device daily for 8+ years
Demonstrable ROI
(Patient/Consumer)
• Pays for itself in savings
• Average consumer out-of-pocket spending for one P/T session is $120
• At-home rehab/exercise for chronic injuries
• Injury prevention
ShoulderRx | Investor Presentation 2016 7
8. ShoulderRx: Different & Defensible
Best solution for injury-free, resistive shoulder exercise/rehab
Controls motion & loading
Patented
Trademarked
Concept proven: Product based on clinical study results
MVP validated through focus groups and clinical trials
Product currently used at 7 PT/rehab facilities
Solid product testimonials
Demonstrated ROI
ShoulderRx | Investor Presentation 2016 8
9. Industry Trends
U.S. outpatient rehab is a $29.6 billion industry with projected annual growth rate
of 7% through 2022
1
Global therapy equipment market size is expected to reach $24.7 billion by 2022
2
Growth in PT employment – 36% increase from 2012 to 2022, much faster than the
average for all occupations
3
Increased use of at-home rehab products for convenience, cost savings & better
outcomes
Consumerism in healthcare
Outcomes-based reimbursement models
ShoulderRx | Investor Presentation 2016 9
1
IBIS World, Harris Williams & Co., Physical Therapy Market Overview, Feb 2014
2
Report published by Transparency Market Research “Home Rehabilitation Products and Services Market - Global Industry Analysis, Size, Share, Growth,Trends and Forecast, 2015-23
3
U.S. Jobs/Labor data
10. Trends Fueling Demand in
Orthopedic Products Market
• Aging population
• Active baby boomers
• Increasing incidence of osteoporosis and arthritis
• Sedentary/obesity contributes to greater incidence of
injuries
• Rise in sports injuries
• E-commerce and online retail
• Nearly nine out of 10 Americans now have health insurance
ShoulderRx | Investor Presentation 2016 10
11. Market Opportunity
Total Addressable Market (TAM) Size
Businesses:
Physical Therapy Clinics 142,631
Hospitals 5,627
In-Patient Rehab Facilities 1,165
Physical Therapy Schools 228
Universities w/Sports Programs 3,026
2-Year Colleges w/sports programs 1,700
Professional athletes 13,700
Consumers:
Patients seeking treatment for shoulder pain every year 11,500,000
ShoulderRx | Investor Presentation 2016 11
Source: ReferenceUSA Research Database, March 2016
15. Timeline
2016 Q2/Q3
Secure funding
2016 Q4 thru 2017
Vet/redesign device
in plastic, setup
manufacturing,
production and
distribution
Launch e-commerce
website
2016 Q4
Hire key business
development
executive to
establish lead
generating
partnerships with
distributors, vendors
Develop
sales/marketing
strategy
2017 Q2/Q3
Setup operations/
customer service for
online sales
Strong focus on
sales/marketing
initiatives
ShoulderRx | Investor Presentation 2016 15
16. Funds Needed to take ShoulderRx
to the Next Level
Re-design, vetting, tooling and manufacturing of the
device (plastic) for a unit cost of $200-250
$300,000
First production run (1,000 devices) $200,000
Marketing/Sales $150,000
Setup inventory/distribution, operations and
launch e-commerce website
$150,000
$800,000
ShoulderRx | Investor Presentation 2016 16
18. Leadership Team
Partners
Strong engineering background
with 50+ years combined
experience in industrial design,
manufacturing and product
engineering
Strong knowledge of fabrication,
materials and processes
Expertise in overseas production
and manufacturing
Expertise in business, product
development and strategic
planning
Medical Advisor
• Fellow of the American Physical
Therapy Association & American
College of Sports Medicine
• 40 years experience as a Physical
Therapist with extensive
rehabilitation publications
• Appointed to the Statewide
Health Coordinating Council
ShoulderRx | Investor Presentation 2016 18
