Executive Summary
“The MPR technology will be the first quantitative tool developed for assisting in the diagnosis of the presence or absence of a musculoskeletal dysfunction (sprain/strain injuries) in a patient population. The availability of such an evaluation tool to a healthcare provider for patients with soft tissue, non‐surgical neck or back complaints will substantially improve the accuracy of diagnosis, rehabilitation and case management decisions.”
Dr. Alan Goldman Vice President for Clinical and Medical Affairs iTech Medical.
The Company iTech Medical is a public medical technology company that is engaged in the research and commercial development of healthcare information systems and technology. To date, the Company has focused on developing a proprietary information technology platform called Muscle Pattern Recognition (MPR). Muscle Pattern Recognition (MPR) The MPR System is a unique clinical tool that uses the principles of Pattern Recognition to analyze muscle function in patients presenting with back pain. MPR analyzes patterns of muscle recruitment ‐ the engagement of muscles in order to perform specific body movements ‐ and provides detailed, objective physiological information on muscle function that can assist in the diagnosis and treatment of back and neck injuries and illness. The results of an MPR test are presented in a comprehensive report that provides detailed information on muscle function incorporating site, nature and severity of dysfunction. The Back Pain Market According to the U.S. National Institute for Occupational Safety and Health (NIOSH), back pain is one of the most common and significant musculoskeletal problems in the world. In the U.S., it is estimated that the annual direct and indirect cost of diagnosing and treating back injuries is $50 – $100 billion. Back pain is the leading cause of disability in the U.S. for people younger than 45; the most expensive health care problem for those in the 20 to 50 year‐old age group, and; accounts for over 24% of all occupational injuries involving days away from work. Musculoskeletal disorders account for $1 of every $3 spent for workers’ compensation. The Company estimates the target market for MPR to be in excess of $1 billion per year worldwide. Corporate Videos: Wayne Cockburn, President & CEO ‐ Dr. Alan Goldman, Neurologist
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Executive Summary Target Commercial Markets Within the medical community, the target markets include those health care providers who treat patients with back pain ‐ Neurologists, Orthopedic Physicians, Physical Medicine and Rehabilitation (PM&R), Occupational Medicine, General Practitioners and Chiropractors. There are over 450,000 of these practitioners in the U.S. alone. The largest market for MPR outside the medical market is the self‐insured employer market which represents between 35 ‐ 40 million workers in the U.S. This market is acutely aware of the economic cost associated with back problems and is highly motivated to adopt new technologies to help save on employee health care costs. Other significant markets include Health Maintenance Organizations (HMOs), Workers’ Compensation Carriers and Insurance Companies. Product History IMS acquired all the intellectual property rights covering the MPR System in September 2003. A prototype version of the MPR System was market‐tested by the developer and was successful in receiving reimbursement from more than sixty organizations including several large self‐insured employers and some of the largest insurance companies in North America. Some of these organizations include: Aetna SAFECO Marriott Corporation Blue Cross/Blue Shield
State Comp. Insurance Fund
Martin Boyer Company
CA Compensation Fund
Transamerica
Metropolitan Life
Chicago Tribune
Travelers
Ohio Casualty
County of Orange (CA)
U.S. Department of Labor
Prudential
Disney Corporation
Kaiser Permanente
Royal Insurance
Fireman’s Fund
Kemper
Hartford Specialty Risk Services
Garden Grove United School District
Liberty Mutual
ITT Hartford
Results from the early market testing of MPR clearly demonstrated a demand for the product and a willingness to pay for the test. Equally important, many of the previous customers stated that they would be willing to expand their usage of MPR if the test was supported by an independent clinical trial and appropriately priced to encourage broader use. Scientific Validation The recording hardware used by the MPR System has received Food and Drug Administration (FDA) 510(k) clearance as a recording device and satisfies CE Marking requirements for the European Union. Additional submissions will be made leading up to, and following the independent clinical trial of the MPR System. Dr. V. Reggie Edgerton of UCLA (Irvine) and Dr. Steven Wolf of Emory University reviewed the technical aspects of the MPR System and confirmed the validity of the science in three peer‐reviewed articles. 2
Executive Summary Legal Validation A legal precedent was established through the California Workers’ Compensation Appeals Board when it issued a decision that confirmed the validity of the MPR methodology and mechanism. The decision found that Muscle Pattern Recognition ‐ MPR was a “valid and useful diagnostic medical tool” when used in the proper case. Business Model The Company’s primary source of revenue will be based on a per‐use basis of the MPR test. By providing services through this model, the Company is able to eliminate one of the most common objections in medical device sales – the cost of capital equipment. Equally important, the Company is able to maintain control over its data analysis software and intellectual property. By maintaining this level of control over the data and data analysis, IMS will be able to build a database of back injuries larger than any other database of its kind. The Company expects this database to open up a number of new business opportunities including the development of unique clinical models that can be used to further reduce the cost of health care. Experienced Management Team CEO Wayne Cockburn has extensive experience in the medical device and biotechnology industry. Mr. Cockburn has experience in the areas of strategic planning, operations, corporate finance, corporate partnering and mergers and acquisition. He also has corporate governance experience and currently serves on the board of directors of four companies. Collectively, the IMS management team has decades of experience in the medical device field and has been involved in developing new medical products and successfully bringing them to market. Dr. Alan Goldman joined iTech Medical as Vice President of Clinical and Medical Affairs in September 2003. Dr. Goldman was a practicing Board Certified neurologist for 27 years and an Associate Clinical Professor of Neurology at the University of California (Irvine). Dr. Goldman is also a member of the American Academy of Neurology, the California Medical Association, the Utah Medical Association and a Past‐President of the Orange County Neurological Society. IMS has an independent board of directors experienced in matters pertaining to insurance reimbursement, corporate finance, national distribution and corporate governance. The Company has also established a Medical Advisory Board (MAB) whose members include the leading experts and opinion leaders in the area of back pain. Capital Structure As of June 1, 2009, there were 20,761,799 shares of common stock issued and outstanding. The common shares of the Company are traded on the OTCBB under the symbol IMSU and on the Frankfurt Stock Exchange under the symbol OIM (ISIN number US45257K1007). Further Information For further information about iTech Medical, please visit: www.itechmedical.com or contact: Wayne D. Cockburn, CEO Bus: +514‐843‐5959, ext. 110 Cell: +905‐505‐0770 Email: Wayne Cockburn Form 10K‐2008 (Annual Report) ‐ Impact Medical Solutions Form 10K ‐ December 31, 2008.pdf
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