Bryan Lord, Pristine Surgical - Studio Interview | LSI Europe ‘22

Transcription

Nick Talamantes  0:00  

Brian, it's a pleasure to sit down with you here at LSI Europe. Great to be here. Tell me a little bit about Pristine Surgical, right.

Bryan Lord  0:06  

So we are building a platform for single use endoscopy. Our mission is to simplify endoscopy. So we're taking the complexity that's in the market today around reusable devices. And we're replacing that with a platform of single use endoscopes that we bring to our customers in kits. And then we complement that with a digital platform, a cloud based platform that brings a whole host of additional software tools. And together with that single use hardware in that that software platform, we deliver that simplification of the current visualization requirements for for minimally invasive surgery,

Nick Talamantes  0:41  

what was sort of the spark to go at disposable in the endoscopy world? Well,

Bryan Lord  0:46  

it actually was an inspired decision with our development partner a number of years ago, the founders who founded the company, were a couple of doctors in Chicago, they had a neat device that was a reusable device that had some neat sort of lenses and some capabilities for visualization. And we went to our development partner and said, Hey, this is the device that we're like to take to the next generation. I said, Well, what if we could do this for you in the single use, and the doctor's eyes got big and said, Okay, that's a great idea. So it was really, you know, out of that, since then we recognized over time that it really isn't about these sort of specialty lenses. It's more about the value proposition of single use, that has been the hallmark of what our focus in our business strategy is, and really what our technology focus has been around. So we started with the focus on single use and single use arthroscopy in the sports medicine space based upon our founding. And some people, you know, expected us to say, Okay, well, you're a sports medicine company. But what we decided relatively early on is that our real focus, if you might, if you don't mind, the pun is really on the single use platform. So we've been developing and are ready to launch now in December, on our single use arthroscope. But we already have a single use laparoscope and a flexible, single use flexible endoscope as well under development. So it's really about cutting across all of those different indications. That's our primary specialty.

Nick Talamantes  2:14  

Tell me about some of the challenges of introducing a disposal device and how you guys have addressed those challenges.

Bryan Lord  2:21  

Sure. So on the technical side of things, of course, the challenges are more substantial, I think, than people might appreciate. What we've effectively done is taken components out of the global smartphone industry, there where you got components that are being made in the hundreds of millions, that are super sophisticated, but also relatively cheap. A challenge is how do you take those components from devices that we have in our in our pocket, and put them into a surgical device has heightened obviously, concerns around safety and FDA regulation and be able to operate those in arthroscopy, for example, underwater, be able to do that in close proximity with shavers, and RF ablation devices. So the challenges there have been substantial, but we're proud that we've addressed those and have a device that's, that's ready for launch, and completely addressed all of the safety testing, of course, as you would expect, in the process. On the commercial side of things, the challenges there are interesting. And I think distinct. So we think about two different constituencies. So first of all, of course, in the medical device world, you think about the physicians that are going to be using your product. So our goal is for the physicians to basically be, you know, to not pay attention to it to be to be disinterested in what whether they have a reusable device in their hand or a disposable device in their hand and auto operate exactly the same way. Our goal from a design perspective at the outset was really not to require an ounce of retraining, or relearning or any change in the muscle memory of our physician customers. Because they've done 10s of 1000s of procedures and know exactly what they want to do with that instrument their hand, it's their paintbrush, if you will. So our goal from a design perspective is for the physician to pick up the scope and say, Oh, I get it. This is exactly the same type of functionality that I've been using my entire career to date. So we've done a lot of things where to call human factors testing to make sure that we understand that you know, looking at wrist rotation, looking at ways that people reach for parts and components to an existing rod lens scope and emulated those in our single use device. So to the physician, we want them to say great, I've got exactly the same performing device in my hand. I see a new image every time on the screen. You I have predictability in terms of my image. We just announced as well that that image that there'll be seen will be 4k which is a special edition as well to the to the to the value proposition of a pristine single use device. The surgeon says great, where do I sign up? The other half of the house are the facility managers and the technicians that manage the equipment, whether it be the owners of the facility, the technicians at the facility, the nursing staff, for example. And they're responsible today for making sure that all that equipment that is complex in a surgery center is in the right place, and at the right time serviced, cleaned and in tip top working order for the surgeon when the when the procedure is ready to start. For those folks, we're going to be a game changer. So for those folks, we take away all of that complexity, all of that uncertainty, all of that work that needs to go into getting all of those pieces in the right place in the right time and tip top shape, and instead deliver it in a single use kit. So instead of 35 steps on an instruction for use for an arthroscope, which is today, there's three, open the box, pullback, the Tyvek covering plugin to the plugin to the into the into the image processing unit.

Nick Talamantes  5:48  

There's an elegance to simplicity. 

Bryan Lord  5:50  

Yeah, look, that's our mission. Visit our website, pristine surgical.com. What's our mission to simplify endoscopy? It's a simple two word mission. So we are our vehicles. The tools that we have, as mentioned are single use hardware, and then a cloud based software. We use those two things to get together to deliver on that mission to simplify endoscopy.

Nick Talamantes  6:13  

You mentioned product launch. So where are you looking to launch first.

Bryan Lord  6:17  

So certainly in the US, we're located just north of Boston. And so it'll be a US focused launch. Our chief medical officer is a gentleman by the name of Dr. Stephen Schneider, who's generally considered to be the father of shoulder arthroscopy. So in the early days, arthroscopy was done only in the knee, the shoulder was considered to be a smaller joint, less smaller capsule and more complicated. Some folks thought, boy, it's a bridge too far to do shoulder arthroscopy. And Dr. Schneider was one of the key innovators and has continued through the course of his career to be in an innovator in this space. He was one of the co founders of the Southern California orthopaedic Institute, in just north of Los Angeles. And so we'll be launching in Southern California, first, with some key introductions from from Dr. Schneider, and some key partners there as

Nick Talamantes  7:05  

well. It's my understanding that you're one of the few innovators in med tech to also be taking part in this innovative new way of fundraising, you know, known as Regulation A or Reg A. Could you talk to me a little bit about the Reg A process and how it's been?

Bryan Lord  7:20  

Well, look, there's a lot of similar to my response to you on the on the engineering side of things, there's a lot of engineering that goes on sort of behind the scenes, right? Folks look at the Reg A plus process as being a streamlined way to raise capital, which it is. But at the same time, there's some key requirements. There's a pathway that most sophisticated companies will use called the tier two pathway that requires, for example, two years worth of audited financials. It requires you to be a C Corp requires preparation of an offering circular, those are the types of things that are rather mundane. But by the same token, very important. So we just completed actually, our first two year gap audit got that box checked. We actually were founded as an LLC. And we're in the process of converting over to a C Corp, which was something that we planned to do in any case, and then also doing the final preparations for the offerings circular, which most people I think would perhaps rather have a root canal than to go and draft a detailed Docu disclosure document for the SEC. But we actually have done similar disclosure documents as part of private capital raises. So that actually is a relatively easy process for us. And I'm a truth be told the corporate finance professional as well. So I'm able to lend a little bit of efficiency to that process.

Nick Talamantes  8:46  

You're getting all your ducks in order to announce your Reg A, when can we expect to hear the announcement of you can go and invest in pristine surgical today?

Bryan Lord  8:55  

That's a good question. Honestly, I'm still working on exactly when that date might be we've got a couple of things, as mentioned a couple boxes to check. And look, also, we're thinking carefully about market timing. We think that, you know, this is a story that will resonate with a wide audience, it's one of the reasons why I'm attracted to it because a more retail audience. You know, it's hard. For example, if you're trying to sell molecules as well as a biotech, how do you really simplify that story for that for the general public? On the other hand, look, you know, our mission is to simplify endoscopy, we better be pretty good at also simplifying the story that we tell to folks as well. So we're working on that as well. And we want to make sure that we get that right. So you've got some regulatory things as you refer to some ducks in a row that we need to get in a row. And then we also want to make sure that we're putting forth the right type of messaging so that we can communicate in that in that effective way to a new audience, right. It's one thing to talk about simplifying endoscopy with surgeons. It's another thing to talk about simplifying and data asked to be to people who are owners of surgery centers. But when you look at this from a general public perspective, what they're interested in is other attributes of the product. And you think about it through a slightly different perspective. So you have, obviously an investor lens on that. But also, look, we're addressing a market of 125 million procedures per year, there are going to be a significant number of folks that we're going to connect with, that have had a procedure that we're going to be addressing with our single use platform. And so there's an interest from a knowledge base already whether folks have had single use surgical procedure done on them or anticipate some things that might be coming in the future to learn a little bit also about the new the new capabilities and the new technologies. So we're taking some some efforts to make sure that we communicate that also in a very simple and elegant way.

Nick Talamantes  10:51  

So we're here at LSI. Europe, what brings you here?

Bryan Lord  10:54  

Right LSI. I've known Scott for a number of years, respect to Scott immensely. I can recall, he picked up the phone and gave me a ring when that LSI emerging med tech conference was kind of a twinkle in his eye and said, we'd love to have you come I said, Sign me up. And that was what it was three or four years ago at Dana Point. Actually, I've forgotten at some times that we're here just outside of London, because the LSI team has done a fantastic job of continuing to replicate something that is a secret sauce and the way you've put together your your sessions in California. You've replicated that here in London, which is masterful, and well done. So I knew what I was getting myself into. And usually, you know, when Scott says, Hey, I'm working on something, I'll say, All right, I'll be there. So the the evolution and the expansion here into Europe was an inspired decision and it's been a lot of fun. It's been a great program.

Speaker 2  11:50  

Well, that's great to hear. BrYan, thank you so much for sitting down with me and telling me about Pristine Surgical. 

Bryan Lord  11:55  

My pleasure.