Revolution Medical’s products include the Rev Vac safety syringe (FDA Approved), safety blood drawing device and safety IV catheter. The world market for safety-engineered medical devices (SEMDs) is projected to exceed 2 billion this year and is forecasted to maintain a 20% annual growth rate in the near term. Revolutions Medical also provides software solutions and proprietary tools that are compatible with standard MRIs and standard PACS. The software includes sorting of images, color, 3D, and automatic segmentation of images. These tools will enhance the physician’s diagnostic confidence in an industry that is growing at 10% – 15% (more than 25 million procedures) per year with a worldwide market potential for these tools that exceeds $3.5 billion.
WSR: Good day from Wall Street, this is Juan Costello, Senior Analyst with The Wall Street Reporter, and joining us today is Ron Wheet, the Chief Executive Officer for Revolutions Medical Corporation. The company trades on the Bulletin Board, ticker symbol is RMCP, and they are a safety medical device and software application company. Thanks for joining us today, Ron.
Ron Wheet: Thank you for having me.
WSR: Any time. Now starting off, talk to us about the recent contract from MIS for the 5 million syringes.
Ron Wheet: We are very excited about that. We are in a situation that we have different opportunities to choose from. This group was formed and put together an investment amount of money to go ahead and manufacture our safety syringe, and we feel at their facility, which we are starting off with 5 million syringes a month, they can escalate up to 20 to 50 million syringes per month. So, we feel that we are in a situation where if demand increases, we don’t have to change manufacturers.
WSR: Certainly, and why don’t you walk us through a little bit about some of the other products in your pipeline. You have the FDA approved RevVac safety syringe platform, and talk about some of the other products, applications and the market opportunity there?
Ron Wheet: Okay, let me start off by saying the company has two distinct products, our MRI software tools and our safety syringe. First, let me speak about our MRI software tools. We introduced our business model, software-as-a-service, at the RSNA Show last December in Chicago. It was a complete success, and so we moved on to our next step before launching our product. This next step is to validate our product’s first application through clinical studies. We identified head trauma, brain tumors and concussions as our first clinical application that we wanted to validate. With all the recent news regarding concussions, especially with the NFL, and the links of Lou Gehrig disease and Alzheimer’s to head trauma, we felt that validation of the use of our MRI color and 3D software tools could make an impact immediately. We are proud to be a part of a clinical study with Dr. Keith Brown, the pioneer of color MRI and are confident that our proprietary MRI software tools will be helpful and validate the use for detecting old blood versus new blood, the physiological composition of tumors, and in severity, and eventual clearance of concussion symptoms, especially with athletes. As the clinical study gets closer to completion, we will launch our software-as-a-service business model to the marketplace with our RevDisplay, RevColor and Rev3D software tools. If everything goes as planned, we will launch early next year. Now, let me speak about our RevVac safety syringe. We just announced this five-year manufacturing agreement to produce 5 million syringes per month, and we can escalate that between 20 and 50 million syringes per month depending on demand. This product is protected by two US patents, seven international pending patents and received FDA 510 clearance. We also made manufacturing design changes, which do not affect the integrity of our patents, but we have been able to reduce the parts from 12 to 8, reduce the price to manufacture, and even improve the overall performance, which I thought would be impossible because our earlier syringe performed at the highest standards. Our RevVac syringe is the best safety syringe in the world and will eventually be the replacement of the standard high-quality syringe in my humble opinion.
WSR: Well, good, and so talk to us a little bit about some of the trends right now in your sector Ron, and how well positioned you believe RMCP is to capitalize on them?
Ron Wheet: That’s a great question. Let me start by stating that the United States of America is the greatest country on earth, and we have led the world in healthcare safety. Back in 1999 and 2000, a Republican Congress passed the Needlestick Safety Act and President Bill Clinton signed it into law. I am sure we could use some of that bipartisanship in today’s government leadership. Just in the last year, we have seen other countries stepping up and presenting similar legislation, Brazil and England for example. The world is recognizing that the use of safety syringes has major health benefits that we have positioned the company by producing one of only a handful of safety syringes that automatically retracts, only needs one hand to operate, and that can only be used once. Out of the few safety syringes that have all these important features, our RevVac costs less and performs better.
WSR: Great, and so what else would you say makes the company unique from some of the other players in your sector?
Ron Wheet: Well, we have two distinct products in two areas that are growing tremendously. So, what we really have is, both of our products will bring down the cost of healthcare and save lives, and not too many companies can say that.
WSR: Well, good answer, Ron. Perhaps you could walk us through your background and experience and talk a little bit about the strength of the management team now?
Ron Wheet: That’s one of our pluses. I mean, we have Tom O’Brien as our President. Tom O’Brien launched magnetic resonance imaging back in the 80s to the world, working for Johnson & Johnson Technicare division, and he has worked with many larger companies as well. He has been on the management team of Palomar Medical that did extremely well in the public market, and I am very proud to have him on our management team. My background was investment banking. I was 14 years in that business, did some consulting work. I did a lot of work with small medical companies, and I kind of had a knack for finding simple products that made sense. So, when eventually I was asked to come in and take over this company back five year ago, I acquired Clear Image, and now we have our MRI software tools, re-capitalized the company, moved the company forward from the Pink Sheets to the Bulletin Board, got our FDA approvals, got our patents, and now we are growing from a R&D company to a sales and manufacturing company. So, it is a very, very exciting time.
WSR: Good, and what are some of the goals, milestones, and objectives that the team is hoping to accomplish over the course of the next year?
Ron Wheet: That’s a great question as well. Over the next several weeks, Revolutions Medical, we, are putting together global distribution for our 3cc safety syringe. We have had considerable interests from individual countries, governments and militaries, state and local municipalities, and global distributors since our FDA approval. Tom O’Brien, our President has narrowed the list down to 50 and we will be sending out market samples and forming commitments of preliminary sales figures for distributors to make our final decision of which companies we would like to represent our syringe throughout the world. We should be shipping before the end of the first quarter, our first five million syringes, and we are very excited about the demand so far. So, our growth strategy is simple. We will introduce different sizes to the marketplace of our safety syringe, the 1cc, 5cc, 10cc. We will introduce an interchangeable needle system for our syringe like a Luer Lock. We will move on from this current clinical study and look to validate our MRI software tools for breast, abdomen, heart and other applications, and we are just getting started.
WSR: Certainly, and so when it comes to investors and the financial community Ron, do you believe that the Revolutions Medical story and message, and ultimately your upside potential are completely understood and appreciated by our members of the financial community and investors?
Ron Wheet: No, I don’t. Not at all. I think we are just getting started. I guess, are you asking like why should someone buy the stock today, are we undervalued? Is that the question that you are asking?
WSR: Before we get to that, what I am asking is, what do you believe that investors are missing from the story, or what do you wish they better understood, which if they did would result in a higher stock valuation?
Ron Wheet: Well, I think we are just kind of getting started. We haven’t done that much PR work. We have just been minding the store, getting things done fundamentally, and now we are starting to run. We started getting the word out there and I think the stock has just started to move recently. So, I do think we are starting to get more eyes on us, and more people are starting realize the two huge markets we are addressing, and I think that’s very important.
WSR: Right, and so once again, joining us today is Ron Wheet, CEO of Revolutions Medical Corporation. The company trades on the Bulletin Board. Ticker symbol is RMCP, currently trading at $0.90 a share. We were just discussing the recent five-year contract from MIS to produce 5 million syringes per month for its safety syringe platform, as well as some of the trends right now in that sector and some of the other company plans for the upcoming year. So, before we conclude Ron, just to recap on some of your key points here, why do you believe that investors should consider Revolutions Medical Corp., RMCP, as a good long-term investment opportunity?
Ron Wheet: I would say that there are two reasons why an investor should purchase our stock. Number 1 is fundamentals, and they last for long term, and the other would be a technical reason. But we believe we have two superior groundbreaking products that will reduce the cost of healthcare and save lives that we have been going for many years as a research and development company and moving right now into manufacturing and sales. Now compared to other safety syringe companies and MRI software tool companies that trade publicly, our market capitalization is a fraction of theirs. So, long term, it’s a great investment. In the short term, since we came out of our quiet period just a few weeks ago with our registration statement and have access for the first time to consistent capital, we have been implementing our plans and putting out press releases and the stock has been trading up in more volume. During this time, the short position has grown substantially and has been a significant part of the volume on the way up. Now, these shorters have become more and more desperate, bringing up all kinds of negative rumors and the like. So, from a technical standpoint, the stock could see a significant short squeeze.
WSR: Well, we certainly look forward to continue to track the company’s growth as well as report on your upcoming progress, and I would like to thank you for taking the time to join us today Ron, and update our investors on Revolutions Medical.
Ron Wheet: It was my pleasure.