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Cannuflow, Inc.
http://www.cannuflow.com/
Recent Company Milestones:
Cannuflow has raised three quarters of a million dollars this year. Five Keiretsu Forum members invested in our Series A Preferred round, which has closed at $360,000.
Three new products will be introduced this month, all 510(k) exempt and CE-marked for European sales. Two have strong USA patents already issued; the third has its patent pending. International patents have been filed to provide foreign protection of all products.
The selection of a local full-service contract manufacturer (www.hanteltech.com) has yielded a significant reduction in the production cost of our flagship product. Utilization of their ‘fulfillment services’, beginning with the large production run now nearing completion, will avoid additional fixed overhead by outsourcing warehousing and physical order processing.
The domestic sales channel now covers 47 of 55 major metro markets, fielding nearly 100 agents. Most are agents; all offer complimentary Orthopaedic surgical products and operate in well-established territories. We view this network as a major company asset.
Our have signed our first stocking distributor (www.bormed.com). 20+ salesmen cover their Northern California/Nevada territory. Borrachia+Associates is widely considered one of the industry’s most professional sales organizations.
Sales for the first half of 2004 exceeded total FY2003 revenue. Second half 2004 revenues are forecast to quadruple, spurred by new product sales and an aggressive marketing plan.
Company Background
Cannuflow markets cost-effective devices that address chronic problems faced by surgeons during arthroscopic procedures. The company’s flagship product, the ClearVu ™ flexible cannulae provides a unique, patented solution to fluid management and enjoys a loyal clientele.
Our product credo mandates intuitive designs for single-use, high-margin, high-quality, surgical devices that orthopaedic surgeons will readily integrate into their procedure-specific armamentarium.
Cannuflow has four strategic goals: create a valuable portfolio of innovative products, gain broad brand recognition, acquire significant share of target markets, and achieve high gross and net profits that will generate the positive cash flow needed to fund continued growth.
The company’s management team is a cadre of serial entrepreneurs with a broad spectrum of talents, skills, education, and professional experience. Working together since mid-2002, the team is now executing a comprehensive business, financial and marketing plan.
Market Dimensions
Orthopedics is a $20 billion global market expanding rapidly at 15% CAGR. The arthroscopy segment is about 10% of the overall market. Our domestic market opportunity in 2005 is at least $150 million for the three product lines now entering volume manufacture.
Defined as minimally invasive surgery using video scopes and specialized instruments and devices, Arthroscopy is today so commonplace that 4 million Americans will undergo arthroscopic procedures in 2005.
Over 70% of all domestic procedures are on an outpatient basis in doctor-owned surgical centers. In the USA just 3,000 surgeons perform 75% of all arthroscopies. We know whom and where these doctors are; our marketing campaigns focus on them.
Product Directions
The forte of Cannuflow is fluid management the handling of fluids in and out of knee, shoulder and extremity joints during arthroscopic surgery. A series of new products will soon systematically enter our portfolio, each providing superior fluid control.
The patented Cannuflow fluid cannulae maintain distention of the joint, rapidly clear the surgical site of debris, and are safe, flexible, disposable and cost effective. The flagship ClearVu line of flexible cannulae now includes a larger version for applications requiring greater fluid volumes.
The new DryVu Fluid Shield is the first practical solution to chronic lens fogging, caused by unabated flow of escaping fluids during shoulder and certain knee procedures. Clearing lens fog is a frequent and time-consuming problem during such surgeries. As with ClearVu products, the DryVu pays for itself many times over in the course of a procedure.
Our third new product, the TwoVu, is a truly revolutionary innovation, with the potential to become a standard item in every arthroscopy kit. Like the ClearVu, the central purpose of TwoVu cannulae is to provide superior fluid management and reducing OR cost. Further details must be withheld prior to release to market.
Contact Information
Ralph Shaffer
Chairman & CEO
(408) 280-0359
rdshaffer@cannuflow.com
Robert Bruce
President
rbruce@cannuflow.com
Robert James
CFO
rjames@cannuflow.com
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