NEWS LETTER
Welcome to Pyng Medical Corporation’s newsletter. Published quarterly, our objective is to better provide our investors, clients and partners with information related to our award winning F.A.S.T.1™ Intraosseous System and other developments at Pyng Medical (TSX:PYT).
Investor Relations
One question we receive from investors is, “Why doesn’t Pyng’s share price reflect the value of the company and trade higher?” Although we cannot answer for the stock market, we can tell you some steps we are undertaking to increase the share price.
We are in the process of strengthening Pyng’s management, starting with the BOD and executive management of the company. We have added new directors at our last AGM and hired new managers (below) and are undertaking an executive search for a new CEO, utilizing the assistance of one of Canada’s leading agencies. This CEO will add experience and leadership to our management team and be responsible for implementing our business plan and communications to the investor community.
We must diversify the company’s sources of revenue by increasing market penetration of the F.A.S.T.1™ (civilian pre-hospital and international markets) and by adding additional products to our offerings. You will have witnessed several key announcements related to the increased market penetration of the F.A.S.T.1™ and will see other aspects of this strategy unfold over the near and medium term. Bringing new products to the market is an ongoing task and we have looked at several new opportunities this last year, but have not found an opportunity that is strategically positioned and satisfactorily leverages our core competencies and existing infrastructure.
One important aspect for any company is media and analysts coverage and the development of a strong communication plan to investors. To this end we are engaged in a series of interviews with media and will continue these communications to the general market. We also have met with several brokerage houses and analysts to communicate the Pyng story. We will continue and improve on our communication with regular news releases and this quarterly newsletter. We are also investigating the listing requirements of more senior exchanges.
Lastly all of our plans require capital to be realized. Although Pyng is cash flow positive and profitable, we can do much more and do it faster with appropriate capitalization. The Board is looking at various options to increase our working capital, including private placements and strategic alliances, amongst other options.
Q3 Sales Results
As reported in our July 10 news release, total sales for Q3 2006 were $987,761 ($942,782 Q3 2005), a 4.8% increase over Q3 2005. FY 2006 YTD sales were $2,107,288 ($1,957,416 2005 YTD), a 7.7% increase over the equivalent FY 2005 period. Full third quarter financial results will be available on SEDAR in early August 2006. Pyng continues to be profitable and in an ever strengthening financial position.
We have recently made dramatic increases to enlarge our distribution channels to address the civilian market. “Doc” Clinchy has been traveling to the various distributors’ facilities to train their sales teams. These recently appointed distributors are starting to show results and more than 50% have placed initial orders for F.A.S.T.1™ units and training kits.
From the Field
Pyng is collecting case studies from EMS personnel who have used the F.A.S.T.1™ in the field. Please submit your stories to info@pyng.com for possible inclusion in one of our upcoming newsletters or as a separate case study.
Often we focus only on the business aspects of Pyng Medical and maybe forget just how important a task we are actually involved in: saving lives. Then someone will take time to thank us and let us know just how important a contribution the F.A.S.T.1™ is making. We recently received an e-mail, copied below.
“I was recently in Iraq and provided my medics with the fast one system as standard stock in the black hawk bags they carried on missions. On many occasions the systems were used in the combat environment, I just want to thank you for a well working system that saves lives.”
SSG R. L. Wright, Medical NCO
New Hires
We are proud to announce some recent additions to our management team. Dr. Maya Butterfield has joined us as Quality Assurance and Regulatory Affairs Manager and Jon Strong has joined us as Operations Manager.
Maya has a Ph.D. in Mechanical Engineering from The University of Leeds in the UK. She has been working in the medical device industry for the last 18 years and has experience in Research and Development and Quality Assurance in both Europe and North America. This experience, to date has been in implantable medical devices, mostly bioprosthetic cardiac valves, but also in prosthetic hips and knees. In addition, to being responsible for maintaining, updating and continually improving Pyng Medical Corporation’s Quality Systems and ensuring compliance with all medical device regulations in all the countries we provide product to, Maya will be managing various related projects and F.A.S.T.1™ device trials.
Jon holds a Bachelor of Science in Electrical & Electronic Engineering from the University of Paisley & brings with him over 20 years experience working for manufacturing and customer service organizations in both Europe & North America. During his career he has held senior positions in the Quality, Operations and Engineering fields.
Jon will be overall responsible for Pyng operations with particular emphasis on continual expansion and enhancement of the production of the F.A.S.T.1™ and implementing the manufacture of new products.
Come Meet Us
Pyng Medical staff and representatives will be at the following upcoming conferences:
CLINCON, Orlando, Florida, 13-15 Jul 2006.
ATACCC, St. Petersburg, Florida, 14-16 Aug 2006.
91W Training Conference, San Antonio, Texas 21-25 Aug 2006.
NAEMSE Conference, Pittsburgh, Pennsylvania, 05-10-Sep 2006.
EMS Expo, Las Vegas, Nevada, 24-27 Sep 2006.
Vital Signs, Syracuse, New York, 29 Sep - 1Oct 2006.
Canadian Cardiovascular Congress, Vancouver, BC, 21-25 Oct 2006
EMS Midwest, Oct 3-4 2006
San Francisco Paramedics Conference, San Francisco, Oct 6-7 2006
MEDICA, Dusseldorf, Germany, Nov 15-18 2006
Special Operations Medical Association, Nov 27 – Dec 1 2006
Come see the F.A.S.T.1™ in action and meet our team.
Training Tips
Over the past year, Pyng has been working with two leading companies that manufacture and distribute training aids to the medical community. NASCO and Simulaids are now both offering a F.A.S.T.1™ -specific training aid. The development of these device-specific training products are significant events in that it indicates that companies who sell into the training market believe that the F.A.S.T.1™ is the leading IO device and with such significant market potential as to warrant their developing a trainer just for the F.A.S.T.1™.
The trainer from NASCO is quite comprehensive in that it's a full torso and the individual being trained can actually infuse IV fluids into the training device as well as, using the artificial blood product supplied, aspirate "blood" from the "patient". The Simulaids trainer is more compact and provides the anatomic landmarks for the user to appropriately apply the F.A.S.T.1™ target patch and insert the infusion catheter utilizing the F.A.S.T.1™ demonstrator device. The Simulaids product is already in production and will sell at a MSRP of US$95.00.
At the just-concluded Emergency Cardiovascular Care Update in Orlando, Florida, there was a tremendous "buzz" over both of these trainers and orders for them were taken immediately after this bi-annual conference. If you are involved in training personnel to use the F.A.S.T.1™, you should seriously consider acquiring one or both of these trainers for use in your in-service programs.
New USA Distributors
One of our strategic objectives is to increase and diversify the sources of revenue for our flagship product, the F.A.S.T.1™. Previous to the ILCOR guidelines changes the major market opportunity for the F.A.S.T.1™ was primarily military trauma such as we witness daily in Iraq and Afghanistan. Although the F.A.S.T.1™ was always used in civilian pre-hospital emergency services, the ILCOR changes created a much more significant market opportunity in cardiac intervention, a larger and more sustainable business opportunity in the longer term.
To address this opportunity we have significantly expanded our US distribution channels and are embarked on an aggressive campaign to identify and appoint international distributors. We have recently expanded our US distribution from 3 to 11 distributors (May 1, 2006 news release).
European Distribution Update
We are also aggressively moving on developing the European market for the F.A.S.T.1™. We recently attended the Eight Congress of the European Resuscitation Council in Norway and will attend Medica in Germany in the Fall (Medica is regarded as one of the premier international conferences and a major venue for identifying and establishing worldwide distributors). We are receiving sales from our UK, German, Austrian and Swiss distributors. All have reported great interest in the F.A.S.T.1™ and significant opportunities.
New Distributors Appointed for Australia, Latin America, Asia and Africa
Some unique and significant distribution channels are opening up for the F.A.S.T.1™. We have recently brought on board MidMed Pty. Ltd. of Australia. MidMed Pty. Ltd. has made a major commitment in the promotion of the F.A.S.T.1™ and are aggressively pursuing sales opportunities. We expect to see great things from MidMed Pty. Ltd. and will be meeting with their principals both in Pyng HQs and subsequently at the upcoming ATACCC Conference.
Latin America and Asia are both markets where Pyng has yet to establish distribution channels. This has changed with the recent appointment of WorldPoint as a distributor for the F.A.S.T.1™. WorldPoint is a leading distributor of cardiovascular care education and training materials worldwide. Dr. Clinchy conducted intensive training sessions for all WorldPoint representatives at the Emergency Cardiovascular Care Update conference in Orlando, Florida, and we expect that we will begin to see increased activity both in Latin America and Asia in the months ahead from WorldPoint.
We have also recently appointed Prosurgical C.C as our distributor in South Africa. Training kits were shipped in early June and Prosurgical is expediting the necessary import licenses and utilizing Pyng Medical’s existing international regulatory approvals. Prosurgical has placed initial orders for the F.A.S.T.1™ systems and these will be shortly deployed. In Johannesburg & Pretoria.
Pyng Medical has made major advances in 2006 in establishing a global distribution network for the F.A.S.T.1™. We expect these new distributors and others we are appointing, to lead to increased sales.
Remover Enhancement
Initiated at the request of our military clients, the “DOME-Remover Tool attachment enhancement” to the F.A.S.T.1™ System has been completed and is now part of our standard product. Products have been shipping to all our clients since March 2006. This enhancement ensures the Remover Tool travels with the patient to the health care facility for later removal of the infusion tube from the patient’s manubrium. Early feedback of this enhancement has been very positive.
We continue to investigate and implement changes and improvements to the F.A.S.T.1™ and will update you regularly on our progress.
New Advertising Campaign
Pyng has significantly increased our marketing, specifically advertising, initially in the USA, to take advantage of the opportunities created by the ILCOR changes. Included among the key publications in which this advertising will appear are:
Military Medical Technology
Journal of Emergency Medical Services
Emergency Medical Services
The Journal of Prehospital Care
NAEMT New, the magazine of the National Association of Emergency Medical Technicians
An example of our new advertisement is below.
Clinical Trial Underway in The Netherlands
A critical aspect of any medical device marketing is the creation of a body of scientific work demonstrating the effectiveness of your particular product. To this end Pyng Medical Corporation is pleased to announce that the F.A.S.T.1™ will be included in a clinical trail being conducted by the "Mobile Medical Team of the Trauma Centre, South West Netherlands, part of the Erasmus Medical Centre, Rotterdam, The Netherlands.". We will continue to investigate other opportunities for clinical trials to prove the effectiveness of the F.A.S.T.1™ to the medical community.
USA IO Registry Results
Working with noted EMS author and lecturer, Bryan Bledsoe, DO, FACEP, the results soon will be published of the adult IO registry that Dr. Dick Clinchy has been maintaining since August 2004. This registry study has taught us much about the real life uses of adult intraosseous infusion as an interventional tool, and, at least preliminarily, has shown that the adult intraosseous device and specifically the F.A.S.T.1™ should be the FIRST means of vascular access in the cardiac arrest patient. It's not too late to submit patient data into the registry as the data will be updated up until the time the final article is submitted for publication. Any care giver submitting a registry form will receive one of the "I DO IO DO YOU" T-shirts developed to promote adult intraosseous use.
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