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Biotech / Medical : ORTC Ortec International -- Ignore unavailable to you. Want to Upgrade?

To: cornbread who wrote (255)	2/24/2000 9:59:00 AM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 272

Cornbread -- Yes, Slide #4 did indeed say that the skin replacement applications for CCS represent a $3.5 billion U.S. market. vcall.com But it's important to refer to slides #16 and 17 in order to keep this in perspective. Slide #16 gives the projected FDA approval timeline for the medical indications incorporated in that $3.5 billion figure. Slide #17 breaks down the $3.5 billion cumulative market into its components. Here's a summary: (1) In the first half of 2000, ORTC expects to get approval to use CCS for EB, EM, TEN, and SJS; these conditions have 2,900 patients for a $22 million U.S. market. Obviously, that's miniscule. But competition in this area is minimal, and approval will achieve ORTC's goal of delivering "proof of commercial concept" and generating cash flow to help it support ongoing research and development. (2) FDA approval for donor-site wounds is not expected before the third quarter of 2001. The U.S. market for this indication is 81,360 patients for $224 million. (3) FDA approval for venous ulcers is not expected before the first half of 2002. The U.S. market for this indication is 350,000 patients for $1.345 billion. (4) FDA approval for diabetic ulcers is not expected before the first half of 2003. The U.S. market for this indication is 400,000 patients for $1.56 billion. (5) There is not, as yet, a stated timeline for FDA approval for partial thickness burns. The U.S. market for this indication is 430,070 patients for $381 million. Bottom line: the $3.5 billion market will, for the most part, not be accessible to ORTC for a few years yet. But the fact that a $90 million company is within striking range of entering an accessible $3.5 billion market is tremendous. vcall.com vcall.com It's worth noting that what makes ORTC such a great "story" is its ability to leverage the CCS technology platform for tissue-engineering applications beyond skin replacement: heart muscle, nerve, bone, tendon, cartilage, ligament, neural tissue, and so forth. This looks ahead a number of years, but ORTC is already making concrete strides to realize this vast potential: the research alliance with M.I.T. and Tufts University, the extension of its patent. Skin replacement is the tip of the iceberg, if the company can continue to finance itself and leverage its technology platform as successfully as it has to date.