Medovex Corporation Releases Letter to Shareholders
ATLANTA, GA -- (Marketwired) -- 12/16/15 --
Medovex Corp. (NASDAQ: MDVX), a developer of medical technology products, today released the following open letter to shareholders:
Dear Fellow Shareholder,
I want to personally thank you for your continuing investment in Medovex™. It's now approaching a year since our initial public offering and listing on the NASDAQ Capital Market.
As noted in my initial shareholder letter, our team fundamentally understands the importance of proactive and transparent communication. We believe that maintaining an ongoing dialogue with our shareholders is paramount to our collective success, and we will continue to provide periodic updates.
Since my last letter, we have achieved great strides in the development of our flagship product, the DenerveX™ System. The DenerveX™ System is designed to provide relief from debilitating pain associated with Facet Joint Syndrome (FJS). Lower back pain remains the second most common cause of disability in the U.S., and affects approximately 10% of adults. Studies indicate that that 31% of lower back pain cases is attributed to FJS.
The DenerveX system combines two actions into one minimally invasive device, which will potentially improve patient outcomes. The combined procedure is designed to and is expected to provide longer lasting pain relief than competitive offerings, while potentially lowering costs to the health care system.
On October 15, 2015 we conducted a very successful DenerveX System cadaver lab at the North American Spine Society (NASS) meeting in Chicago, IL with 17 spine surgeons from several European countries as part of our pre-launch strategy. One of the most recognized expert spine surgeon attendee's made the following comment after observing the use of the DenerveX device.
Dr. Ritter-Lang, advisor and leading spine surgeon from Germany stated:
"The DenerveX is a safe treatment to address facet joint disease in an easy and fast approach with a new and innovative technology. A missing link to successfully treat pain related to the facet joint."
On December 10-12, 2015, we attended the German Spine Society meeting in Frankfurt Germany where Facet Joint Syndrome was a big topic. Our DenerveX was well received by surgeons in attendance, many stating that if it were currently available, they would consider using it immediately. Advisor and leading German spine surgeon Dr. Martin Deeg was present and continues to play an active role in promoting our technology from both a clinical and surgical aspect.
Since my last communication, we have made considerable operational progress.
- On July 23, 2015, we entered into a master manufacturing, development and service agreement with ComDel Innovation, Inc. for the Streamline IV Suspension System product, as well as assisting in the development of future product line extensions in the safe patient treatment space
- On July 28, 2015, we entered into an international distribution agreement with England based EDGE Medical for the distribution of its DenerveX System throughout the UK
- On August 3, 2015, we entered into an international distribution agreement with German based Aureus Medical for the distribution of our DenerveX System throughout Germany
- On August 11, 2015, we entered into a medical advisory board member consulting agreement with a European leading spine surgeon Martin Deeg, MD in Germany
- On August 17, 2015, we entered into an international distribution agreement with Turkey based MEDS Medikal Ltd. for the distribution of its DenerveX System throughout Turkey
- On August 19, 2015, we entered into a medical advisory board member consulting agreement with leading European spine surgeon Karsten Ritter-Lang MD in Germany
- On August 26, 2015, we entered into an international distribution agreement with Sydney based Medical Innovators Pty. Ltd. for the distribution of its DenerveX System throughout Australia and New Zealand.
- On October 16, 2015, we conducted a successful DenerveX System cadaver lab at the North American Spine Society meeting in Chicago, IL with 17 spine surgeons from several European countries
- On November 10, 2015, we announced that the completion of a $2 million loan with the Company's co-founder Steve Gorlin
- On November 11, 2015, we entered into a medical advisory board member consulting agreement with leading European spine surgeon Vik Kapoor, MD in the UK
- On November 12, 2015, we executed the Company's second international distribution center agreement to serve the Asia Pacific network of country distributors with Medical Innovators Pty. Ltd.
- On November 16, 2015, we entered into an international distribution agreement with Madrid / Spain based PRIM Group for the distribution of its DenerveX System throughout Spain using PRIM's Orthopedic Division
- On December 8, 2015, we announced that the Company had successfully completed a multi-unit sale of its Streamline IV Suspension System (ISS) to a major regional hospital with approximately 1000 staffed beds.
In addition to the DenerveX System, Medovex markets the Streamline® IV Suspension System (ISS), which was acquired on March 26, 2015. Streamline's ISS technology couples a robust IV pole with a mount on a hospital bed, allowing fewer hospital transporters to move a patient and fully loaded IV pole. The product provides caregivers with a more efficient means of handling the growing amount of patient equipment that remains with patients as they are moved within a hospital.
Current methods of intra-hospital transportation require cumbersome handling and control of patient beds, mobile IV stands and equipment during the transport process. It's during these transports that patient care and provider safety can be compromised. The ISS also provides safety benefits to patients through reduction in IV line pull incidents. On May 7, 2015, Medovex entered into a distribution agreement with Hill-Rom®, Inc., the largest bed manufacturer and distributor in the world.
In addition to completing development of the DenerveX device and growing the Streamline business, we continue to look at candidates for new pipeline products. In my earlier letter, I indicated we are looking at new and exciting potential acquisition opportunities that have the potential to create measurable shareholder value. We are evaluating such opportunities on an ongoing basis, and are primarily focused on opportunities that are immediately accretive or have a near term path to revenue.
While we are pleased with fundamental progress made over the last year in terms of executing our stated business plan, being generally on track with where we had hoped to be at this point, we are admittedly disappointed by the erosion in the value of our Company's underlying stock price. While we admittedly have no direct control over short term pricing of our stock, we just like you, have a significant vested interest in the creation of shareholder value. Towards that end, you may have recently seen recent Form 4 filings made with the SEC reporting open market purchase by certain board members. These officers and directors believe in the deep value of the Company and that such value is not reflected in the Company's current stock price. They have shown belief by purchasing shares in the open market.
In closing, we continue to believe a company's best assets are its people. Our team, including a distinguished Army general, skilled surgeons, renowned physicians and experienced business executives, all remain dedicated to a concept of improving the lives of significant segments of the population in a less expensive way than current treatment options.
"Better living through better medicine" is not just a slogan; it's a philosophy that management and our board are committed to seeing through in the form of innovative new products that provide both shareholder value and a lower cost option for suffering patients. Thank you again for your invaluable support.
Chief Executive Officer
Medovex was formed to acquire and develop a diversified portfolio of potentially ground breaking medical technology products. Criteria for selection include those products with potential for significant improvement in the quality of patient care combined with cost effectiveness. The Company's first pipeline product, the DenerveX device, is intended to provide long lasting relief from pain associated with facet joint syndrome at significantly less cost than currently available options. To learn more about Medovex Corp., visit www.medovex.com.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Source: Medovex Corporation