When you read this, it looks like they are already gearing up to sell to the VA and then looking further ahead.
This alone should make shareholders perk up reading this.
• Convert our existing bulk inventory of Excellagen Wound Conforming Gel Matrix into final fill finish and will be shipping product to AvMedical from our partners in England, BSM. We have enough existing bulk inventory to create approximately 25,000 syringes with 70% converted into our .08 cc syringes and 30% into our 3.0 cc syringes for larger wounds. This process is expected to take 60-90 days to have inventory in place to sale. We believe these runs will support our sales forecast up to approximately $30 million.
• We believe our forecast for this slimmed down focus on just VA will yield, at the end of month 12, an annualized run rate of approximately $10,000,000 while achieving a positive EBITDA in Month 6 of this rollout and an EBITDA projected north of 70%. Years 2 and 3 is forecasted to have $39 million and $92 million of revenue, respectfully, with EBITDA forecasted at $32 million and $65 million, respectfully.
• Begin our sales initiative with outsourced VA specialized sales groups.
• We will also need to create more bulk inventory as the current inventory runs out. With timelines of 90-120 days to create the bulk and 60 days for each fill finish run. We have to balance our inventory to sales to ensure we have shelf life on the product. Once fill finished, Excellagen has a two-year shelf life.
• Once we get a foothold in the VA System which is now open for business, we will immediately start with Managed Care and Insurance Systems. This is an important point because insurance companies spend a lot of money on wound care, hard to close wounds, and surgery where our 17 FDA cleared uses allow us to sell our product. If a large insurer pays out a billion dollars, approximately $3 million is for suturing with our competitors’ products at $1,200 per patient. Now we can save them this cost because our best-in-class product is non sutured. We believe insurers will be jump at the chance to save this money and achieve a less costly procedure with better outcomes. This is an advantage as we pursue this market.
The description given is our restart of just the VA. Once we achieve our milestones and secure funding, we will consider more aggressive plans:
• The VA has over 160 centers, and over 1,000 outpatient centers. We will move more aggressively as it makes sense so as not get ahead of our cash flow and controls.
• Managed Care is next up, and we are already engaged in discussion with a few as a test. This market is considered low hanging fruit given we believe we can save over $1,000 per procedure by converting from current practices to Excellagen.
• Our Physician Network and entities are considered a third leg of sales with Medicare reimbursement test underway by our Sales leaders
• We announced recently that Olaregen signed its first Asian Distribution Agreement with NexGen Medical for exclusive distribution rights in Malaysia. This starts out slow, but they have paid their own way for their equivalent FDA approval and believe they will have such approval at the end of May. We see this as a foot hold into the Asian market and NexGen has created their own Fill finish capabilities and stand to open up Malaysia while we retain the license for the product. This partnership could expand as we move forward.
• We have also obtained a new order for Excellagen in a NYC Hospital that recently cleared us through the Value Analysis Committee.
• In addition, Mount Sinai Hospital is in the process of completing their quality study of 10 patients using Excellagen in post OR debridement cases, preliminary results have been “extremely positive”.
In conclusion, we are excited for this restart amidst the negative impact of the pandemic and will provide further updates as necessary.
This alone should make shareholders perk up reading this.
• Convert our existing bulk inventory of Excellagen Wound Conforming Gel Matrix into final fill finish and will be shipping product to AvMedical from our partners in England, BSM. We have enough existing bulk inventory to create approximately 25,000 syringes with 70% converted into our .08 cc syringes and 30% into our 3.0 cc syringes for larger wounds. This process is expected to take 60-90 days to have inventory in place to sale. We believe these runs will support our sales forecast up to approximately $30 million.
• We believe our forecast for this slimmed down focus on just VA will yield, at the end of month 12, an annualized run rate of approximately $10,000,000 while achieving a positive EBITDA in Month 6 of this rollout and an EBITDA projected north of 70%. Years 2 and 3 is forecasted to have $39 million and $92 million of revenue, respectfully, with EBITDA forecasted at $32 million and $65 million, respectfully.
• Begin our sales initiative with outsourced VA specialized sales groups.
• We will also need to create more bulk inventory as the current inventory runs out. With timelines of 90-120 days to create the bulk and 60 days for each fill finish run. We have to balance our inventory to sales to ensure we have shelf life on the product. Once fill finished, Excellagen has a two-year shelf life.
• Once we get a foothold in the VA System which is now open for business, we will immediately start with Managed Care and Insurance Systems. This is an important point because insurance companies spend a lot of money on wound care, hard to close wounds, and surgery where our 17 FDA cleared uses allow us to sell our product. If a large insurer pays out a billion dollars, approximately $3 million is for suturing with our competitors’ products at $1,200 per patient. Now we can save them this cost because our best-in-class product is non sutured. We believe insurers will be jump at the chance to save this money and achieve a less costly procedure with better outcomes. This is an advantage as we pursue this market.
The description given is our restart of just the VA. Once we achieve our milestones and secure funding, we will consider more aggressive plans:
• The VA has over 160 centers, and over 1,000 outpatient centers. We will move more aggressively as it makes sense so as not get ahead of our cash flow and controls.
• Managed Care is next up, and we are already engaged in discussion with a few as a test. This market is considered low hanging fruit given we believe we can save over $1,000 per procedure by converting from current practices to Excellagen.
• Our Physician Network and entities are considered a third leg of sales with Medicare reimbursement test underway by our Sales leaders
• We announced recently that Olaregen signed its first Asian Distribution Agreement with NexGen Medical for exclusive distribution rights in Malaysia. This starts out slow, but they have paid their own way for their equivalent FDA approval and believe they will have such approval at the end of May. We see this as a foot hold into the Asian market and NexGen has created their own Fill finish capabilities and stand to open up Malaysia while we retain the license for the product. This partnership could expand as we move forward.
• We have also obtained a new order for Excellagen in a NYC Hospital that recently cleared us through the Value Analysis Committee.
• In addition, Mount Sinai Hospital is in the process of completing their quality study of 10 patients using Excellagen in post OR debridement cases, preliminary results have been “extremely positive”.
In conclusion, we are excited for this restart amidst the negative impact of the pandemic and will provide further updates as necessary.
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