INTERNAL FIXATION SYSTEMS, Inc.
(OTC.QB IFIX)
Bringing Superior Value to
Orthopedic Implants
Forward Looking Statements
This presentation contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such forwardlooking information can include without limitation statements based on current
expectations involving a number of risks and uncertainties and are not guarantees
of future performance of Internal Fixation. There are numerous risks and
uncertainties that could cause actual results and Internal Fixation’s plans and
objectives to differ materially from those expressed in the forward-looking
information, including: (i)Internal Fixation’s inability to remain current in its
reporting obligations with the SEC; and (ii) Internal Fixation’s inability to secure the
financing necessary to continue its operations. Actual results and future events
could differ materially from those anticipated in such information. These and all
subsequent written and oral forward-looking information are based on estimates
and views of management on the dates they are made and are expressly qualified
in their entirety by this notice. Except as required by law, IFS does not intend to
update these forward-looking statements.
Superior Value
Quality, U.S.-made Orthopedic Implants sold for 40-50% less
than the competition.
Value is created through innovative set design, flexible
distribution pathways, responsible inventory management, and
standardization of instruments and components across
multiple products.
IFS Product Development Process
Identify Product
Evaluate
Competitive
Products
IFS National
Advisory Panel
Suggests
Enhancements ,
Improvements
Manufacture
Redesigned
Product
Currently FDA Approved Products
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2.0 / 2.4 cannulated screw system
3.0 cannulated screw system
4.0 cannulated screw system
5.0 cannulated screw system
6.5 / 7.3 cannulated screw system
Phalangeal Fixation Systems 1.5/2.0/2.7
cortical screws
Modular Locking Small Fragment System
Basic Ankle System – Bi-Malleolar Set
Comprehensive rear foot reconstruction system
Pilon Fracture plate system
Volar Distal Radius / Forearm FX System
Clavicle Fx System
Proximal Shoulder Plating System
Elbow Fx Plating System
Acetabular FX and Plating System
MPJ Fusion System
Lapidus Plating System
Midfoot Fusion System
• Locking Large Fragment System
Periarticular FX and Plating System –
Proximal Tibia
Periarticular FX and Plating System –
Distal Femur
• Locking Mini Fragment System
Metacarpal FX and plating system
Metatarsal FX and plating system
These products will cover over 70% of the Orthopaedic Fixation Market
Market Overview
Healthcare Reform and Existing Industry
Trends Position the Othopaedic Implant
Market for Change
Current Market Leaders
Cannulated Screws
Plate and Screw Systems
Synthes
4.1% 6.9%
7.4%
49.7%
Zimmer
8.7%
Smith &
Nephew
9.7%
Stryker
4.3%
Synthes
1.2% 2.5%
3.4%
7.9%
8.2%
61.3%
DePuy / Hand
Innovations
Smith &
Nephew
Zimmer
11.2%
Stryker
13.5%
DePuy
Biomet
© iData Research Inc
Orthopaedic Implant Market Summary
• The U.S. market for Orthopaedic Implants is large and continues to
grow. It is expected to reach $34 Billion by 2014.
• The market is dominated by companies that employ premium pricing
strategies.
• There is downward pressure on prices from hospitals and ASCs for
products used to treat common fractures.
• Many Healthcare Facilities are limiting the number of vendors and
using Group Purchasing Organizations and Accountable Care
Organizations to help control costs.
• No longer is the physician in exclusive control of implant decisions.
Increasingly purchasing decision makers are looking at cost.
Effects of Health Reform on
Implant Industry
• As of 2010 Medicare no longer reimburses
separately for implants
• The cost of implants now part of the overall
fee
• Commercial payers will follow Medicare
• Facilities seeking lower cost alternatives
IFS is positioned well for these changes !
Bimalleolar Ankle Fracture
$1226 - $1354*
$1645 - $1877*
$630-$710*
Average Cost Savings Per Procedure:
Standard Implants Used
• 1/3 Tubular Plate
• 4-6 3.5-4mm Cancellous or Cortical
Screws
• (2) 4.0 Cannulated Screws
• 1-2 Drill Bits, 2-3 K-Wires
48% Less than Synthes ($596-$644)
62% Less than Stryker ($1015-$1167)
Management Team
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Stephen J. Dresnick, MD – President and CEO
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Former Founder and CEO of Nasdq listed Sterling Healthcare
Well respected healthcare innovator and entrepreneur
Laura Cattabriga – Chief Financial Officer
Laura has a Masters of International Business from George Washington University. She has worked on
start-up companies, market expansions and has managed companies and organizations going through
restructuring . She has been responsible for aggressive growth plans that include developing
organizations as well as increasing revenues
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Kenneth C. West – Vice President, Sales.
Ken previously served as Sales Representative, Regional Sales Manager and Distributor for many of
the top Orthopaedic and spine surgery companies such as Stryker Corporation, J&J – DepuyAcromed,
Synthes USA, NexaOrthopaedics, and Trans1 Inc
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Arica Finnieston, Vice President, Product Management
Arica has over 16 years of experience in the medical device industry, specifically in orthopedics. Prior to joining
IFS, Ms. Finnieston held positions as Global Marketing Director for Maramed Orthopedic Systems, Global
Marketing Director for BioSculptor Corporation, and Global Product Manager for Trulife. Her experience in
orthopedics combines manufacturing, R&D, marketing, strategy and product management.
IFS management team has extensive experience in the
orthopaedic, medical device, and healthcare industries
combined with a track record of starting and growing successful
companies.
Modular Set Design
Sales Since Launch of
Small Fragment Systems
140000
120000
100000
80000
60000
40000
20000
0
Q1 11
Q2 11
Q3 11
Q4 11
Current Distribution
Current Distribution
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Florida
Georgia
Arizona
Indiana
New Hampshire
Massachusetts
Connecticut
California
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Louisiana
Wyoming
Montana
Oregon
Washington
Maine
Rhode Island
Alaska
Projected Sales Growth
Sales
Gross Profit
Margin
EBITDA
2012
$5,268,365
2013
2014
$16,411,318
$31,489,641
60%
60%
60%
$1,022,131
$6,226,819
$13,276,131
Company Milestones
October 2011 – Initial Release of modular locking plates
January 2012 – Release of Straight plate module
March 2012 – Initial Release of Large Cannulated
Screws
March 2012 – Initial Release of Temporary External
Fixator
Capital Needs
Build new inventory/surgery sets for existing products
Inventory and sets for new products
Additional manufacturing capacity
Develop Overseas markets
Enter Veterinarian Market
Working Capital
Build-out Distribution Network
Marketing
Product Licensing
Advantages
• Use existing 510K
• Can get sets consigned
• Only need to file as repackager
• Can expand territory much quicker
Barrier to Entry for New Players
• Requirements for Market Entry
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FDA approval
Distribution network
Significant capital
Depth of product to gain attention in the market place
• Additional Factors:
– Difficult to gain surgeon support
– Manufacturing takes significant trial and error to get it right
• There are a few companies trying to offer lower cost products
manufactured outside of the U.S. Quality of both the raw materials
(e.g. surgical grade stainless steel) and the products themselves,
has been inconsistent.
• This is a business where quality is VITAL and lesser products, even
if attractively priced, will not be accepted.
IFS Investment Highlights
• Surgical Implant Costs have been rising 8-10% per year
• By focusing on every-day products instead of block-buster products,
IFS has much lower R&D costs
• Implant Industry is $35 Billion market in US
• Innovative set design, new distribution pathways, use of
standardized instruments and components across product lines,
and aggressive inventory management mean lower costs to the
consumers while maintaining industry margins
• IFS preferred by leading surgeons
• Based on early market experience IFS is seeing a 90% conversion
rate from existing products to ours (including major academic
centers)
IFS delivers doctor preferred designs at a superior value
(40-60% less than competitors)
Stock Overview
Symbol - OTCQB: IFIX
OTC.QB (IFIX)
For more information:
786-268-0995
Stephen Dresnick, MD sdresnick@ifsusa.net
Laura Cattabriga laura.cattabriga@ifsusa.net
5901 SW 74th Street, Suite 408
South Miami, FL 33143
www.ifsusa.net
OTC.QB (IFIX)
For more information:
786-268-0995
Stephen Dresnick, MD sdresnick@ifsusa.net
Laura Cattabriga laura.cattabriga@ifsusa.net
5901 SW 74th Street, Suite 408
South Miami, FL 33143
www.ifsusa.net