Partnerships with 5 year terms:
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Growth Strategy
We intend to grow our business and product lines internally and through strategic acquisitions.
Sales, Marketing and Distribution
Our sales, marketing and distribution plan for our products is to align with medical device manufacturers and their distributors, and manufacture the products to their specifications.
Our current customer for our UDI breast implant chips and readers is Establishment Labs S.A., which sells its breast implants under the name Motiva Implant Matrix®. The general terms under our development and supply agreement with Establishment Labs are:
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5 year term, with extension as agreed to by the parties;
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Purchase price - for microtransponders -$9.00 each;
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Purchase price - for RFID readers/scanners - $600.00 each, subject to volume discounts; and
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Revenue share – Establishment Labs will receive a 10% revenue share payment in any year where the sale of microtransponders to third parties exceeds 100,000 microtransponders.
(So that right there tells you Motiva is marketing the product for VTEQ) (100K x $10 = $1M revenue - 10% profit share = Possible $900K)
The RFID readers/scanners we sell are used to identify the direct mark contained on the microtransponders, which is unique identification number. We buy our readers from a manufacturer and resell them at a mark-up. We do not yet have an agreement in place with the manufacture of the RFID readers/scanners.
We also are party to a development and supply agreement with Medcomp, dated April 2, 2009, which we acquired under the terms of the stock purchase agreement for PAH in January 2012. We have not yet generated any revenue under this agreement, which relates to the development and sale of our vascular port products. The general terms of the agreement are
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5 year term, with extension as agreed to by the parties beginning upon the last to occur of either 510K approval or production of the product; and
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Purchase price for units -$10.00, $9.00 and $8.50 each depending on the volume of product purchased.
Other targeted customers are:
UDI Products
Breast Implant Manufacturers-Allergan, Mentor, Sientra, among others;
Vascular Port Manufactures – CR Bard, Smiths;
Artificial Joint Manufactures- Stryker, Zimmer, Synthes, Wright, Boston Scientific, among others;
Heart Valve Sizers, Endo/ Surgical Equipment – Medtronic, St. Jude Medical, Welch Allyn and Cook Medical; and
Scope Manufacturers – Pentax, Olympus and Fujinon.
Dosimeter Products
Our potential customers are radiation oncologists. Potential distribution partners are: Varian Medical Systems, BSD Medical, Calypso, Siemens, Henry Schein, MedComp, Elekta, McKesson, Standard Imaging, among others.
Competitive Condition
As it relates to UDI applications for reprocessed medical devices that adhere to the FDA Rule for a UDI System, VeriTeQ believes that the Q Inside Safety Technology is the only FDA cleared technology that serves as a direct part marking with AIDC features and, therefore, meets the AIDC recommendation for reprocessed medical devices under the FDA Rule. There are 2D and 3D barcodes and etching that could technically be AIDC for the direct part marking recommendation on a reprocessed device. The direct part marking can be in the form of plain text and/or AIDC.
Several competing technologies to VeriTeQ’s OneDose exist that support radiation dose monitoring via the surface of a patient’s skin. However, OneDose is unique in terms of the combination of its ease-of-use and ability to automatically archive patient dosage data. OneDose is a disposable, pre-calibrated technology that can wirelessly report radiation dose delivery on demand in real time.
VeriTeQ’s DVS SmartMarker is the only FDA cleared and CE marked implantable radiation dosimeter technology able to measure radiation dose at the tumor site. We recently announced that we would rebrand our DVS Smart Market as Q Inside SmartMarker. VeriTeQ is unaware of any alternate technology that can be used to both locate the patient’s tumor and confirm delivery of the prescribed radiation dosage at the site of the tumor
