We are based in suburban Minneapolis, Minnesota. We are a biomedical device
company, which has been primarily engaged in the business of adapting human
biomedical technology for products to be introduced for commercial sale in the
veterinary market to treat pets and other animals suffering from arthritis and
other afflictions. Our initial product, now being commercialized, is a medical
device featuring injections of patented gel-like biomaterials into the afflicted
body parts of pets or other animals suffering from osteoarthritis. The technology
and manufacturing capability of this product was developed by Gel-Del and acquired
by us for use to treat dogs, horses and other animals, but not for treatment
of human afflictions. While working together pursuant to our initial license
agreement, we and Gel-Del determined to combine our two companies through a
stock exchange merger for the purpose of creating one combined entity utilizing
Gel-Del technology to produce, market, and sell medical products based on Gel-Del
technology for both animals and humans. After lengthy negotiations the parties
entered into a definitive agreement for this merger, which resulted in the consummation
of the merger in April, 2017.
We are an emerging biomedical device company focused on the licensing and commercialization
of innovative medical devices and therapeutics for pets, based in Minneapolis,
Minnesota. We operate in the $15 billion US veterinary care market that has
grown at a CAGR of 6.4% over the past five years according to the American Pet
Products Association. Despite the market size, veterinary clinics and hospitals
have very few treatments and/or drugs for use in pets and other animals.
The role of pets in the family has greatly evolved in recent years. Many pet
owners consider their pets an important member of the family. They are now willing
to spend greater amounts of money on their pets to maintain their health and
quality of life.
We intend to leverage investments already expended in the development of human
therapeutics to commercialize treatments for pets in a capital and time efficient
way. A key component of this strategy is the accelerated timeline to revenues
for veterinary medical devices, which enter the market earlier than the more
stringently regulated veterinary pharmaceuticals or human therapeutics.
We are planning to aggressively launch our lead product Kush™ Canine
in Q4 2017. Kush Canine is a veterinarian-administered joint injection for the
treatment of osteoarthritis in dogs. The Kush Canine device is made from natural
components that are lubricious and cushioning to perform like cartilage for
the treatment of pain and inflammation associated with osteoarthritis.
We believe that Kush Canine is a superior treatment that safely improves joint
function. The reparative Kush Canine particles are lubricious, cushioning and
long lasting. The spongy protein-based particles in Kush Canine mimic the composition
and protective function of cartilage (i.e., providing both a slippery cushion
and healing scaffolding). The Kush Canine particles protect the joint as an
artificial cartilage.
Using industry sources we estimate osteoarthritis afflicts 20 million owned
dogs in the United States and the European Union, making canine osteoarthritis
a $2.3 billion market opportunity. See Johnston, Spencer A. “Osteoarthritis.
Joint anatomy, physiology, and pathobiology.” The Veterinary clinics of
North (1997):699-723;
Osteoarthritis is a condition with degenerating cartilage, creating joint stiffness
from mechanical stress resulting in inflammation and pain. The lameness caused
by osteoarthritis worsens with time from the ongoing loss of protective cushion
and lubricity (i.e., loss of slippery padding). There is no current treatment
for osteoarthritis, only palliative pain therapy or joint replacement. Non-steroidal
anti-inflammatory drugs (NSAIDs) are used to alleviate the pain and inflammation,
but long-term use has been shown to cause gastric problems. NSAIDs do not treat
the cartilage degeneration issue to halt or slow the progression of the osteoarthritis
condition.
We believe that our Kush Canine osteoarthritis treatment is far superior to
current methodology of using NSAIDs. NSAIDs have many side effects, especially
in canines, whereas the company’s injected Kush Canine treatment has been
found to elicit no adverse side effects. Remarkably, Kush treated dogs show
an increase in activity even after they no longer are receiving pain medication.
No special training is required for the administration of the Kush Canine devices.
The treatment is injected into synovial joint space using standard intra-articular
injection technique and multiple joints can be treated simultaneously. Kush
Canine immediately treats effects of osteoarthritis with no special post treatment
requirements.
Historically, drug sales represent up to 30% of revenues at a typical veterinary
practice (Veterinary Practice News). Revenues and margins at veterinary practices
are being eroded because online, big box and traditional pharmacies recently
started filling veterinary prescriptions. Veterinary practices are looking for
ways to replace the lost prescription revenues. Our treatments expand practice
revenues & margins because they are veterinarian-administered. Our Kush
Canine device is veterinarian-administered to expand practice revenues and margins.
We believe that the increased revenues and margins provided by Kush Canine will
accelerate its adoption rate and propel it forward as the standard of care for
canine osteoarthritis.
Our product launch schedule includes at least two additional product releases
in 2018. Our Kush Equine device for the treatment of equine lameness related
to or impacting synovial joints is scheduled for launch in Q1 2018. The Kush
Equine product has similar features and benefits as our Kush Canine device.
In addition to being a treatment for osteoarthritis, the joint cushioning and
lubricity effects of our devices have shown an ability to treat equine lameness
that is due to navicular disease (a problem associated with misalignment of
joints and bones in the hoof and digits). We anticipate launching our Kush Digital
Cushion (DC) device for the treatment of navicular disease in 2018.
Based on a variety of industry sources we estimate that 1 million owned horses
in the United Stated and European Union suffer from lameness and/or navicular
disease each year, making the equine lameness and navicular disease market an
annual opportunity worth $600 million. See Kane, Albert J., Josie Traub-Dargatz,
Willard C. Losinger, and Lindsey P. Garber; “The occurrence and causes
of lameness and laminitis in the US horse population” Proc Am Assoc Equine
Pract. San Antonio (2000): 277-80; Seitzinger, Ann Hillberg, J. L. Traub-Dargatz,
A. J. Kane, C. A. Kopral, P. S. Morley, L. P. Garber, W. C. Losinger, and G.
W. Hill. “A comparison of the economic costs of equine lameness, colic,
and equine protozoal myeloencephalitis (EPM).” In Proceedings, pp. 1048-1050.
2000; and Kilby, E. R. 10 CHAPTER, The Demographics of the U.S. Equine Population,
The State of the Animals IV: 2007.
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