The Next Intuitive Surgical?
Visionary Innovations vision lies in finding little known microcap companies that have the ability to change, disrupt and or create multi-billion dollar industries. A few years ago, we discovered a microcap stock with a breakthrough medical instrumentation robotic surgery/device. We felt this company’s technology could revolutionize surgical procedures. At that time Intuitive Surgical (ISRG) www.IntuitiveSurgical.com was a single digit microcap. Visionary Innovations sensed their robotic surgery/device could revolutionize the operating room. It did! Share price grew from $8 to over $200 in 4 years
We think we found the “Next Intuitive Surgical”
Intuitive Surgical’s Robotic surgery has revolutionized the operating room. However bodies still need to be stitched, stapled, and you know, “sealed up”.
Every surgeon would like to close up an incision like a ZipLock bag, without stitches, eventually leaving no scar. Revolutionary technology will soon be available that offers the “stitch-less” seam.
Visionary Innovations discovered revolutionary medical technology that uses radio frequency (RF) bonding human tissue without the glues, sealants, sutures, and staples. This disruptive technology platform will revolutionize surgery because it eliminates the need for sutures, staples, glues and sealants, a $3.5B a year mkt. Over and above the $3.5 billion market for sutures, staples, glues and sealants, the time and cost savings for hospitals, doctors, insurance companies, and patients, will be significantly larger.
It doesn’t get more disruptive than that.
Live Tissue Connect uses patented radio wave technology to bond and reconnect living soft biological tissue. The visible/cosmetic benefits are obvious.
The medical and economic advantages could make Live Tissue Connect the “Holy Grail Of Surgery”.
Radio frequency is mainly used now in surgical procedures as a method of incision and removal of tumors. However, the current RF surgical methods/devices lack the ability to determine tissue/organ specific frequency and the ability to control the temperature. Burning precious tissue is an issue, not with Live Tissue Connect.
LTC’s revolutionary device and patented methodology allows surgeons to use radio frequency as a faster (under one minute), tighter, virtually bloodless, smokeless (sterile OR) wound seal that doesn’t burn or kill tissue, virtually leaving no scar in 60 days.
LTC’s “secret sauce” is worldwide patented technology that has the ability to deliver predetermined energy to a specific body tissue. It does not kill the tissue (necrosis).Their software platform determines and delivers the specific frequency (temperature) required by various tissues/organs. A specific radio frequency energy (via heat), plasmatizing the collagen fibers and untangles them. When the tissue/organ cools, the collagen fibers “reentangle”/tangle/bond, forming a leak-proof bond. .This leaves virtually no scar in 60 days.
The current FDA approved tissue methods use radio frequency to cauterize and coagulate tissue/organs, but they don’t “weld”. Without temperature control, there is necrosis (killing of cells). The LTC method is more sophisticated and specialized. It allows surgeons to “control” the temperature, thus eliminating tissue burn.
U.S. Surgical www.ussurgical.com (a division of Tyco) and Ethicon www.ethicon.com (a division of Johnson&Johnson), the two largest medical device companies in this market, have been trying to do this for years, unsuccessfully.
Live Tissue Connect filed their first U.S. 510k medical device application with the Food and Drug Administration (FDA) on June 26, 2007. The duct and vessel sealer is expected to be the simplest surgical procedure, and most widely used device. They have identified an additional 13-15 applications for these instruments. Each application has the market opportunity between $100m to $4b.
They expect to file for European CE Mark certification (U.S. FDA equivalent) in the 4th quarter of 2007.
Frank D’Amelio, a medical device industry icon, has successfully launched more than 200 new medical device products, including several “industry first” technologies. He is the sole or co-author of over 40 medical technology patents or patent pending applications worldwide. Frank D’Amelio was brought on board to bring this platform to marketing the U.S. and worldwide. His involvement will likely accelerate the timetable for needed regulatory approvals.
Because a predicate device for duct and vessel sealing of radio frequency is already being used for other surgical procedures, LTC could receive FDA approval by the 4th qtr of 2007.
The company’s Ukraine partner just recently received approval for their surgical device that includes most procedures for Ukraine and Russia, and is already projecting revenues.
They are negotiating with major medical device distributors for multiple licensing opportunities.
Not only is their technology “cutting edge”, but their potentially recurring revenue makes this a highly attractive investment and should attract the interest of major medical device companies.
Each surgery requires instrument replacement.
Bullets:
-over 7000 human surgeries have been performed in the Ukraine.
-In the Ukraine, 86 procedures have been identified for these medical devices
-CSMG Technologies has identified 14 immediate licensing opportunities
-CSMG Technologies has 6 patents issued (U.S. and Int’l) and 34 pending (U.S. and Int’l)
Medical Advantages:
-seal time takes under one minute (in majority of cases)
- shortened operating room time –up to 30%
-Smokeless/odorless- NO airborne diseases in OR
-leakproof—better seal than sutures, staples, glues and sealants
-almost bloodless
-reduced anesthesia/pain medication
-healing time reduced--- a Live Tissue Connect seal is equivalent of 3 days with sutures
-scarless- non burning of soft/live issue
-less transfusions
-fewer complications
-no foreign matter left in body
Economic Advantages:
-shortened OR time
-shorter hospital stays
-reduces medication
-elimination of sutures staples glues sealants
-no need to revisit Dr to remove
On June 21, 2007, the Russian Federal Service of Health Care and Social Development (US FDA equivalent) approved the tissue welding electro surgery generator and eight (8) instruments for commercial use. Live Tissue Connect’s parent company CSMG Technologies believes sales in Russia and Ukraine could reach $7-10m in 2008 and grow at a rate up to 50% per year. Subsequent to this approval, Live Tissue Connect is moving from prototype to production with their manufacturers in the United States. Currently CSMG Technologies has an international website www.csmgtechinternational.com for international activities and in the U.S. www.livetissueconnect.com for U.S. activities
Currently the only way today to own a piece of this revolutionary technology/company, is to own the parent company CSMG Technologies www.ctum.com (CTUM). CSMG Technologies is a technology management company, that acquires, licenses and markets innovative/revolutionary/emerging technologies. With a 510K FDA approval, CSMG Technologies is expected to segregate Live Tissue Connect through an Initial Public Offering IPO.
At Visionary we constantly look for companies with disruptive technology. Our vision sees a risk reward ratio similar to the one we sensed with Intuitive Surgical.
Live Tissue Connect (a wholly owned subsidiary of CSMG Technologies) with their revolutionary medical technology that has the ability to revolutionize the medical industry and represents a “life-changing” opportunity…in many ways.
Medical device makers tend to carry rich valuations based on revenue expectations for many years going forward. We see no other major competitor to Live Tissue Connect. There is an influx of venture capital in medical device companies, and with increased merger activity in this sector, this leads us to believe that Live Tissue Connect (through an investment in CSMG Technologies) offers an extremely attractive investment opportunity for risk-oriented microcap investors.
CSMG Technologies Inc As of 8/1/2007
500 No. Shoreline # 701 no. Shs Out 35m Mkt Cap $24m
Corpus Christi, TX 78471 Float 20m Price .70
(361) 887-7546 Insiders own approx 7-8m shs
OTC BB: CTUM YL .25 YH 1.17
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