TS03 Inc Trust Units TSTIF

Canaccord Genuity Medical Technology & Diagnostics Forum

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0. TSO3 (TOS : TSX : C$2.57 | BUY)*
   Company overview: TSO3 is a medical technology company focused on improving the standard in healthcare sterilization processes. The low temperature sterilizers are commonly used in hospital and other medical facility sterilization departments, with TSO3 additionally providing services related to both the maintenance of sterilization equipment as well as compatibility testing of medical devices with these processes. The company’s main platform, the STERIZONE VP4 Sterilizer, is a low temperature sterilization system that utilizes hydrogen peroxide and ozone. The STERIZONE VP4 Sterilizer currently holds CE Mark and received FDA 510(k) clearance in December 2014. TSO3 was founded in 1998 and is headquartered in Quebec, Canada.

   Presentation highlights:

Expanding market opportunities and 2017 focus: With growing demand in MIS and endoscopy procedure markets (currently >30M MIS procedures on an annual basis in the US), and now further augmented by VP4’s expanded indication, TSO3 is targeting two multi-billion dollar market opportunities (traditional low temperature sterilization and flexible endoscope sterilization). In the company’s newer target market of endoscopy/GI, TSO3 now has the ability to address 55M+ annual procedures in the US (almost half of which are colonoscopies – none of which receive terminal sterilization today). Heading into 2017, we view the company well positioned to lay the groundwork for future market growth via increasing marketing spend to grow its current customer base.

STERIZONE VP4 Sterilizer: Management highlighted the benefits of its platform over alternative options, with VP4 simplifying operator ease of use while offering a faster, higher throughput process capable of addressing mixed loads. VP4 represents the only FDA-approved device indicated to terminally sterilize colonoscopies and gastroscopes (FDA cleared expanded indications in July 2016). 
 

Expanded claims: The company is currently in the process of performing testing in relation to duodenoscopes for future FDA submission. TSO3 previously signed an exclusive global distribution agreement with Gertinge Infection Control, with the Gertinge Group currently preparing to launch VP4 in Europe and other select markets.