TAVR gains interest at JPM, page-43

Hi Sbarret,

Your $5000, is that for a TAVR Valve or a TMVR valve?

Its important to remember that without licensing our IP, our tissue isnt worth the large amounts. The current gold standard TAVR valve is made by stitching the 3 leaflets together - the underlying raw tissue isn’t worth all that much.

Same for 4C Medicals TMVR valve - as I understand it they use 3 Cardiocel patches.
If they for FDA approval tomorrow, our CC sales would go the through the roof, but I don’t think we have the price elasticity to start charging considerably more for it than we already do.

If however, we do agreements with these companies where we supply a bespoke one peice valve, then I can certainly see higher prices.

To me the likely options seem:

1. Exclusive partnership agreement with a major to develop the TAVR device and take to market (manufacturing staying in house with AHZ)

2. We produce the one peice valve only and sell it to 3rd parties for their TAVR or TMVR device (can’t see it happening due to WP’s comments about being the masters of our own destiny)

3. We sell the a price of Adapt treated tissue big enough for them to cut & make their own shaped & curved patches or one peice valves - again doesn’t seem like the best commercial option so I can’t see it happening.

Price premiums are achieved by having a) better products b) Limited products (no one else can copycat due to IP protection). That leads me to believe that the most likely scenario is good old fashioned point 1 - a fairly ‘standard’ partnership deal with a med-tech giant.

A ~$40M-$50M upfront payment and a double digit royalty.

It will bring credence to the entire company and we will benefit from increased sales of our existing product and future pipeline.

Interesting to speculate, and I suspect we’ll find out within this Calendar year.