Xtant Medical Holdings, Inc. · AMEX:XTNT
Xtant Medical — Bacterin International Holdings — Investor Presentation (February 2011)
22 slides from Xtant Medical's investor presentation, Feb 1, 2011
Slide 1: Investor Presentation February 2011
Investor Presentation February 2011 “Bacterin biologics provides me with a reliable, cost-effective source for allograft tissue. The quality of their allografts allows my patients to achieve the functional results my patients demand.” – Dr. David Mansfield “OsteoSponge ® has allowed my patients to h
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements in this presentation are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations that could be affected by risks and uncertainties from time to time
Slide 3: Snapshot: BIHI
SNAPSHOT: BIHI Bacterin is an accredited tissue bank and medical device company that designs, processes, manufactures and Latest News markets biological scaffolds for tissue regeneration. 1/20/11 BIHI Secures $5 million Credit Facility with Bridge Bank. HISTORY: 1998 - Company Founded. 1/11/11 BIHI
Slide 4: Bacterin Biologics Division
BACTERIN BIOLOGICS DIVISION State-of-the-Art Fully Compliant FDA Registered - 32,000 sq./ft. production facility - Four Class 100 Clean Rooms - Passed 3 FDA Audits (No Warnings or “483’s”) - Passed 2 AATB Audits ( “A” Rating) - HCP/T licensures in CA, NY, FL, MD - Throughput capacity > $ 120 Million
Slide 5: Core Technology
CORE TECHNOLOGY Human acellular biological scaffolds that can incorporate the patient’s own stem cells or bioactive agents for accelerated regeneration of bone, skin, and cartilage. Accelerates fusion, healing, and repair. 100% human donor derived minimally processed tissue. Technology preserves nat
Slide 6: Bone Scaffold: Osteo Line
BONE SCAFFOLD: OSTEO LINE OsteoSponge® is on-label for use as a bone graft substitute anywhere in the human body by all disciplines of surgeons. Total U.S. Bone Repair Addressable Market - $3.5 Billion Annually OsteoSponge® OsteoSponge® is on-label for use as a bone void filler anywhere in the human
Slide 7: Cartilage (Ex-US) Scaffold: OsteoSponge SC
CARTILAGE (EX-US) SCAFFOLD: OsteoSponge® SC U.S. ADDRESSABLE MARKET - $1.7 Billion Annually (Growth Market) Osteosponge® SC approved as subchondral bone void filler. In market today and being used. Beginning trials for approval to expand claim for primary repair of osteochondral defect (OCD). Prelim
Slide 8: Dermal Scaffold: hMatrix
DERMAL SCAFFOLD: hMatrix™ U.S. ADDRESSABLE MARKET - $2.6 Billion Annually Human acellular dermal matrix Preserves natural growth factors inherent to scaffold and supports tissue regeneration. Used in wound care repair and diabetic ulcers. Excellent handling characteristics. Processing and sales syne
Slide 9: Biologics Potential
BIOLOGICS POTENTIAL Total U.S. Addressable Market - $8.5 Billion Annual Ave Product Total Number of Revenue Per Market Product US Procedures Procedure Potential Spine ALIF Sponges, Strips, Putty, Structural Allograft 51,124 $4,000 $ 204,496,000 PLIF Sponges, Strips, Putty, Structural Allograft 25,38
Slide 10: Bacterin Medical Device and Coatings Division
BACTERIN MEDICAL DEVICE AND COATINGS DIVISION State-of-the-Art Fully Compliant FDA & ISO Registered - 12,000 sq./ft. production facility - Two Class 100 Clean Rooms - ISO Class 7 Environmentally Controlled Areas 10
Slide 11: Core Technology
CORE TECHNOLOGY Patented technology applies a micron-thin coating to medical devices creating an anti-microbial barrier against infection. Infection post-surgery is common for implanted medical devices. Institute of Medicine (Washington,D.C.) reports 44,000-98,000 deaths annually due to hospital-ori
Slide 12: Products
PRODUCTS Elutia® Coated Wound Drains InVision-Plus® CS™ Connector The Elutia® family of wound drains August 2010 FDA approval for feature a micron-thin coating that is needleless connectors. Product launch intended to inhibit microbial Q1 2011. contamination of the drain. Needleless connector market
Slide 13: Leadership – Financials Growth Strategy
BACTERIN LEADERSHIP – FINANCIALS GROWTH STRATEGY 13
Slide 14: Management Team
MANAGEMENT TEAM Guy Cook (45), Founder, CEO – 20 years managerial experience in industry, considered international expert in biofilm science; previous president of Delta Resources focused on customized image analysis solutions; confocal microscopist for the Center for Biofilm Engineering (Montana St
Slide 15: Board of Directors
BOARD OF DIRECTORS Guy Cook, Chairman, CEO, President and Chief Scientific Officer Expert in biofilm science and its application. Product specialist in the Image Analysis Department for Laboratory Equipment Company in Chicago; President of Delta Resources in Crystal Lake, Illinois(specialized in dev
Slide 16: Bacterin Quarterly Revenue Growth
BACTERIN QUARTERLY REVENUE GROWTH Revenues in US$ millions Bacterin consistently generates gross margin of 80%+ Bacterin generates 80%+ recurring revenue Bacterin turned EBITDA positive September 2010 16
Slide 17: Abbreviated Quarterly Income Statement
ABBREVIATED QUARTERLY INCOME STATEMENT * Bacterin turned EBITDA positive September 2010 17
Slide 18: Condensed Balance Sheet
CONDENSED BALANCE SHEET September 30, 2010 Cash $ 571,844 Receivables 2,560,692 Inventory 6,971,792 Notes receivable - trade 518,905 Prepaid and other current assets 221,567 Property and Equipment 3,117,439 Intangibles and other 639,257 Total Assets $ 14,601,496 Accounts Payable $ 1,749,938 Accrued
Slide 19: Capitalization Table
CAPITALIZATION TABLE As of December 9, 2010 Avg. Avg. Fully Directors and Common Exercise Exercise Diluted % Executive Officers Shares Warrants Price Options Price Shares Ownership Guy Cook, CEO 13,207,000 121,000 25,000 13,353,000 26.9% Members of the Board 1,321,000 270,000 150,000 1,741,000 3.5%
Slide 20: Potential 6 Month Milestones
POTENTIAL 6 MONTH MILESTONES Bacterin has successfully established a direct sales force to supplement a multiple call point sales initiative. Immediate results - 5 quarters of sequential revenue growth with future growth expected to accelerate. Direct Sales: 7 RVP - 21 reps (12/31/09) versus 1 NSM -
Slide 21: Summary
SUMMARY Strong opportunities for revenue high growth. Product line expansion. Increased use by existing and new surgeons. Strategic relationships and distribution partners. Geographic expansion into International markets. Business model is capable of generating superior margins (80%+ gross margins),
Slide 22: Thank You
THANK YOU Bacterin Contacts: Guy Cook, CEO 406-388-0480 gcook@bacterin.com John Gandolfo, CFO 973-768-6784 jgandolfo@bacterin.com Yvonne Zappulla, IR 212-681-4108 yvonne@grannusfinancial.com 22
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