OrthoLogic Takes Aim at ENTIRE Growth Factor Market
BY ROBIN R. YOUNG CFA, MAY 3, 2004
Taking a quote from Butch Cassidy and the Sundance Kid, 'Who are those guys?' Tom Trotter's OrthoLogic could eventually possess more 'growth factor' indications than Medtronic, operate at significantly lower costs than Medtronic and have obtained a drug approval for its 'growth factor' (ergo: more comprehensive approval than either device or biologic approvals).
Who are these guys?
They are OrthoLogic. They operate out of a Phoenix suburb, unencumbered by proximity to such Medical Device or Pharma hot beds as Minnesota, New Jersey, Boston, Memphis or Warsaw, Indiana. And while InFuse® is posting $1 million a day in sales and, arguably has built a billion dollar business in growth factors, little OLGC has just purchased ALL the rights to Chrysalin. Furthermore, the Company is deep into a 500 patient, Phase III clinical trial for fracture repair, is simultaneously driving a spine study (due to complete in late summer 2004), is planning to launch an interbody study before 2005 and will launch human trials for ligament, tendon and cartilage in 2005.
And that's just orthopedics. Medtronic might want to take note.
Orthologic has also just acquired ALL the rights to the cardio applications of Chrysalin. Which means angiogenesis, and urology, and, frankly, every conceivable indication for tissue growth in the body.
Chrysalin is a peptide that stimulates cellular growth - like a growth factor. Only, it is significantly cheaper and works in the human body using a different mechanism of action. Does Medtronic have the rights to cardiovascular growth factors? Urology? If growth factors are a billion dollar business in spine, how much would it be worth in these other areas?
Finally, with $120 million in cash, no debt and modest $20 million annual burn rate, OLGC has everything it needs to bring Chrsalin to market.
