Arch (ARTH) CEO Dr. Norchi UP CLOSE AND PERSONAL
Arch CEO is a MD, MIT MBA and Former Portfolio Manager at Putnam $4 Billion Healthcare Fund.
Terrence W. Norchi, MD; President, CEO, Director, Co-Founder
Terrence W. Norchi, MD is President and Chief Executive Officer of Arch Therapeutics, a company he co-founded in 2006 and led from an early stage of research to its current stage of development.
Prior to Arch Therapeutics, Dr. Norchi was a portfolio manager, and pharmaceutical analyst, and head of the healthcare team at Putnam Investments. Previously, he was the senior global biotech and international pharmaceutical equity analyst at Citigroup Asset Management. Prior to that he was s sell-side pharmaceutical analyst at Sanford C. Bernstein in New York City.
He earned an M.B.A. from the MIT Sloan School of Management in 1996. Dr. Norchi completed internal medicine residency in 1994 at Baystate Medical Center, Tufts University School of Medicine, where he was selected to serve as Chief Medical Resident. He earned an M.D. degree in 1990 from Northeast Ohio Medical University.
Here are conference notes from call with Dr. Terrence Norchi
Regarding CEO “I teach diversification but for me ARCH is my PORTFOLIO”
“Never seen anything like AC5…..”
Goal in Life : “Get product out in market and make a difference in lives” “Profit for all especially investors who have supported the Company”
“I rely on my perserverance….beat people by my perserverance…”
“does not rely on being smarter…”
“Run faster, harder and longer than the next guy…formula for my success”
‘Work ass off until you get it done”
“Listen before respond….” END
Regarding AC5
AC5-“not sticky or gunky”
Anytime an incision or hole is made in the body one must worry about…..
Must worry about bleeding, leaking and contamination…. Try to mitigate infection
Goal is normal healing….bleeding stresses organs so AC5 would reduce/eliminate and thus enhance healing
Stops bleeding in seconds as opposed to competitors minutes
AC5 goes away in 10 to 14 days…AC5 amino acids breaks down.. Most excreted other absorbed
Very High Margins for AC5--$ 400 -$500 typical Revenue application --2cm by 2 cm area typical app ½ ml to 1 ml Normal AC5 package sizes 3ml to 5 ml “ A lot of money for little product”
“When you save time by Surgeon and time in Operation Room (OR) you save substantial dollars. Saving 10 to 15 minutes in OR means hundreds of dollars savings. “
Cost to get to market as medical device “not a lot of money”
CEO has come up with a list of 200 applications of AC5 of which one of the more interesting:
Bigger than surgical bleeding.. Bowel surgery
3-15% chance of leakage…feces, etc etc
Of this 15% will die
Of this 50% need another surgery at a cost of $100,000
AC5 could be gestational intestinal sealants …gut ..to prevent above
Here is copy from internet of above:
“Anastomotic leakage rates following colon resection range on average from 3-15%.1 Such leakage is considered the most serious complication of bowel repair, causing one third of mortalities occurring after colorectal surgery. There is a high clinical and economic need for a product that effectively reduces anastomotic leakage rates, due to the following:
• Leaking anastomoses double the length of stay and increase mortality rates as much as ten-fold
• Reoperation rates after leakage can be as high as 87%
• Beyond the initial mortality risk, overall five year survival rates for patients with anastomotic leakage are reduced by 20%
• Anterior rectal resections have the highest leakage rate, up to 24%
• Crohn’s disease patients carry a significant risk of anastomotic dehiscence (12%) even when macroscopically normal margins are obtained”
Also target hard to heal skin such as foot ulcers…..
Also for burn victims…
AC5 very different than competition
Biogradable
Biocompatible
Non-clotting (most are clotting)
Creating barrier instead of a Clot
Clear / See Through so no barrier to surgery
Liquid or powder
Builds a barrier
Product Safe
Operate Through
Slash Operating room times (also need for preoperative blood transfusions)
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Small sampling of the best biotech site on the planet:
“For Norchi as a physician it is the most amazing reagent or substance he has ever seen (I agree…I feel the same way). He wants his life’s work to be getting this to market.”
“Norchi is NOT going to prove to be some dark actor or bad guy in this. Quite the opposite. You need to understand his psychology. Physicians tend to be rather hung up on where each other went to medical school, and sometimes, such as when residencies start, graduates of state medical schools can almost feel unworthy to be in the same room as Ivy League med school grads.
Norchi is a product of a small unknown medical school in eastern Ohio, not a good one. Doesn’t mean he’s no good, but rather that he may have been a late bloomer in college. If he went to this school, it’s because he had no other options. Since that time, I feel Norchi has been desperate to prove himself in the form of successively higher accomplishments.
He got into the best medical residency he could under the circumstances, and busted his backside, and made it to chief resident—-hard to do. Then he grabbed an Ivy MBA. Then he buddied up with Dr. Ellis-Behnke, who is a hot and respected academic property in materials science, and got his name on a patent. He ran a healthcare mutual fund.
At every stage, Norchi is trying to add to his stature and respectability, and he has the personality type that if he did something to fleece or scam people, I don’t think he could face himself in the mirror. He wants to be a star and to be regarded as honest. And as I see it, he is. I like him….he is decent and real, and fun to brainstorm with. He has a good head. He loves to laugh at good jokes.”
Elevator Summary of ARCH
www.archtherapeutics.blogspot.com/
