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BioDrain Medical, Inc. (BIOR)
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Monday, June 28, 2010 – After Market Close Green Baron New “Stock Pick”
BioDrain Medical, Inc. (BB: BIOR - $.20 per share) Common Shares Outstanding / 12,834,859 Current Market Cap / $2.56 million 52-Week High / $.90 per share 52-Week Low / $.15 per share Average Price / $.31 (50-day) Average Volume / 18,356 (50-day) FDA Clears BioDrain’s Streamway™ System BioDrain’s Fully Automated, Patented, Recently FDA-Cleared Product Improves Safety in Operating Rooms, Reduces Costs, Improves Efficiency, and is Eco-Friendly The Green Baron believes BIOR stock is an absolute steal at this level near year-low as Company’s much needed product is ready for commercialization; Latest private placement completed at $.50/share Real-time Level 2 Quote Montage for BIOR from OTC Markets: http://www.otcmarkets.com/stock/BIOR/quote Hospitals and surgical centers are always focused on ways to cut costs, become more efficient and improve safety. Insurance companies also benefit from improved safety and lower costs. Many new FDA cleared products face a big hurdle to climb because the benefits do not outweigh the costs. The Green Baron Report has identified one Company with a FDA cleared product that we are convinced will be widely accepted by hospitals and surgical centers across The United States and beyond because its benefits far outweigh the costs. The Green Baron Report is proud to announce that BioDrain Medical, Inc. (BB: BIOR) has been officially selected as our 89th “Stock Pick” since inception and will be added to our storied list of previously profiled stocks on our home page. Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at www.thegreenbaron.com. Although we have very aggressive short and long term expectations for BioDrain Medical, we still suggest our members try to accumulate as close to the profile price as possible. TRADING NOTES: BIOR is a fully reporting Company that trades on The Bulletin Board and U.S Registered on the OTCQB. Soon after BioDrain went public in early April this year, BIOR rallied viciously in the first weeks of trading from .15 to as high as .90 per share. When the general market sold off in May, so did BIOR and over time, the stock drifted all the way back down to settle near the year-low. A small float should likely allow the stock to rally a big percentage on moderate volume. The story behind BIOR has not been widely told so we are believed to be among the first to introduce it to investors. As more investors become aware of its potential, we believe BIOR will gain huge in price and volume. Again, we find the best real-time level 2 montage to be located at http://www.otcmarkets.com/stock/BIOR/quote. BioDrain Medical, Inc. has a fully automated, patented, FDA cleared, surgical fluid management system that virtually eliminates Operating Room workers' exposure to blood and irrigation fluid including any related germs, viruses and diseases that are potentially coincident with the surgical environment. The revolutionary STREAMWAY™ System (System) automatically collects, measures and disposes of suctioned fluids throughout a medical procedure. The Streamway System provides a technological and ecological advantage over today’s manual handling and disposal of surgical fluids. The Green Baron Report believes BioDrain Medical (BB: BIOR) is attractive at or near the current price per share for a long list of reasons. Below, we have listed our top reasons for accumulation: 1. FDA Cleared and Patented – BioDrain’s Streamway™ System has already been cleared by the FDA and the System is ready for scaled up manufacturing now. There is no waiting on the FDA to approve the product. The Company has also received patents from both the European Patent Office and the US Patent & Trademark Office. 2. Reduced Costs to Users – The Streamway System cuts expenses by eliminating costly canisters, their handling and disposal costs including related hazardous material disposal fees. Since the System also delivers uninterrupted, continual performance, use of the System increases operative efficiency and decreases time for set-up and clean up. 3. Improved Safety – Since the System virtually eliminates surgical fluid handling, the reduced potential exposure to germs, viruses and diseases vastly improves safety for healthcare staff. 4. Considered Best on Market – The features and benefits of its Streamway™ System make it the best product available among its competition and peers. BioDrain has both US and European patents with claims relating to the constant and continuous suction of surgical fluid, and its visualization capabilities that are desired by doctors as they can see the color of the surgical fluid removed. Additionally, unlimited volumes of surgical fluid can be collected, measured, and disposed of by use of the System without interruption. 5. Razor / Razor Blade Model - BioDrain Medical will sell the wall-mounted Streamway System, as well as a procedure filter and proprietary cleaning fluid that will be utilized to clean the System after each surgical procedure. This “razor/razor blade” business model will allow the Company to obtain an annuity-type of revenue stream from the placement of each System. 6. Government Mandates Addressed - BioDrain Medical’s System address issues raised by government and institutional mandates and guidelines. OSHA, EPA, DOT and other agencies have addressed the appropriate, recommended handling of infectious fluids by hospitals and institutions. Separately, hospitals and state and local governments also have addressed the need for safer handling of these fluids. Such mandates include recommendations for the use of automated controls. The BioDrain Medical Streamway System fully automates the collection, measurement, and disposal of surgical fluids. 7. Environmental Benefits – Currently, management estimates that approximately 50 million bloody, potentially disease filled, fluid canisters go to landfills annually in the United States alone. With BioDrain's System, that number could be zero. 8. Attractive Valuation – The Green Baron Report believes BioDrain should realistically turn profitable in 2011 with an operating profit of nearly $2 million, and over $10 million for 2012. After the stock touched $.90 per share in April, BIOR is now near its year low with a market cap of less than $3 million. The Company’s most recent private placement to accredited investors was much higher at $.50 per share with a $.65 warrant. About BioDrain Medical, Inc. BioDrain Medical, Inc. has a fully automated, patented, FDA cleared, surgical fluid management system that virtually eliminates Operating Room workers' exposure to blood, irrigation fluid and the related germs, viruses and diseases that are potentially found in the surgical environment. Today's manual surgical fluid handling methods of hand-carrying filled surgical fluid canisters and emptying these canisters is an exposure risk and an antiquated approach to the handling of surgical fluid waste. BioDrain's Streamway™ System fully automates the collection, measurement and disposal of surgical fluids resulting in: 1) reducing overhead costs to hospitals and surgical centers, 2) improving the Occupational State and Health Association (OSHA) and other regulatory compliance, and 3) improving the efficiency of the Operating Room (and thereby making surgeries more profitable). BioDrain's Streamway System is eco-friendly as it contributes to the cleaning up the environment. Currently ~ 50 million bloody, potentially disease filled, canisters go to landfills annually in the United States. ~50 million canisters tainted with surgical fluids that can remain in the landfill for years to come. With BioDrain's System, that number of canisters could be zero. BioDrain Medical, Inc. makes the Operating Room and our planet safer, cleaner, better. BioDrain products are currently being represented by ~ 30 independent professional sales representatives that cater to the needs of hospitals across the country. Learn more about BioDrain Medical, Inc. by visiting www.biodrainmedical.com. Collect, Measure and Dispose of Operative Fluid–with No Interruption Never before has there been a surgical fluid handling system like this—a system that eliminates the need for canisters and fluid transport—to give unlimited surgical fluid disposal capacity and reduced risk of exposure. Now there is—the revolutionary STREAMWAY™ Automated Surgical Fluid Control System.
The STREAMWAY™ System The STREAMWAY System is installed on the operating room wall, so it’s off the floor and out of the way, yet always there when it is needed. Because it’s connected directly into the facility’s existing plumbing, the STREAMWAY System automatically collects, measures and disposes of suctioned surgical fluids throughout an operative procedure—with no intervention. Set-up is as simple as connecting standard surgical suction tubing and a BioDrain Medical procedure filter to the STREAMWAY System’s suction port. Unlike other canister-based products, the STREAMWAY System has unlimited capacity for uninterrupted performance in all surgical cases. The benefits are clear since it: · Provides automated collection, measurement and disposal—virtually eliminates handling · Reduces exposure risk-—increases safety for staff and patients · Cuts expenses—eliminates costly canisters, handling and disposal · Delivers uninterrupted performance—increases operative efficiency · Decreases time for set-up and clean-up—improves utilization of staff · Frees valuable floor space near surgical field—improves operating environment How It Works Operative fluid is suctioned directly from the surgical field into the STREAMWAY System, which automatically measures and displays in real-time the suctioned surgical fluid volume before it disposes of the surgical fluid directly into the facility’s existing plumbing system. The STREAMWAY System is covered by the following patents:
US
Patents: US7469727 Other patents pending Large Served Markets BioDrain Medical is targeting two large, related markets for its products. The first addresses the actual installation of the Streamway System. This market contains all hospital operating rooms, surgical centers and other sites where surgeries are performed. The second is a related market which pertains to the Company’s cleaning solution that will be utilized to clean the internal fluid pathways of the Streamway System after each procedure is performed. Each of these markets represents a billion dollar-plus opportunity, as the number of operating rooms and the numbers of procedures both represent very large and growing segments. Government Mandates BioDrain Medical’s products address issues raised by government and institutional mandates and guidelines. OSHA, EPA, DOT and other agencies have addressed the appropriate and recommended handling of potentially infectious surgical fluids by hospitals and institutions. Separately, hospitals and state and local governments also have addressed the need for safer handling of these fluids. The Company’s products provide for a safer means of handling of these fluids, thereby allowing hospitals and healthcare institutions to be more compliant with these regulations. Management believes that assisting our customers in becoming more compliant with these regulations will enhance the growth and market penetration the Company’s products and provide a safer healthcare working environment and enhanced environmental responsibility through the reduction of cannisters being delivered to landfills across the US. Benefits to Hospitals Beyond any regulatory compliance benefits, BioDrain believes that its products will provide significant additional benefits to hospitals and healthcare institutions, which will assist the Company in penetrating the served markets. The Streamway System will create a safer work environment, through the automated handling of infectious fluids (compared with the manual handling process used today). This will be a key benefit for operating room nurses and other staff who currently handle the fluids. In addition, the Company believes that it will provide hospitals with cost reductions, as the current manual fluid handling and shipping process is cumbersome and expensive. BioDrain’s products will also make operating rooms more efficient through the freeing up of floor space and the reduction of time needed for tear down and set up of the room for the next procedure. The Company is confident that these benefits will allow it to make significant inroads into its targeted markets. Strong Management and Professional Team BioDrain Medical is led by Chairman, Lawrence Gadbaw, President, Chief Executive Officer and Interim Chief Financial Officer, Kevin R. Davidson, Chief Operating Officer, Chad Ruwe, Vice President of Sales and Marketing, Jess Carsello, and Corporate Secretary, Alan Shuler, who collectively have substantial experience in health care and medical device manufacturing, development, finance, and sales and marketing experience. Under their leadership, the Company’s products are at the brink of commercialization. The Board of Directors includes seasoned medical technology managers with vast, cross-functional experiences. The Company has utilized external consultants and organizations to assist in getting it to its current status. BioDrain Medical has also identified and spoken with additional managers who are poised to join the organization as soon as its current round of funding is completed. Product Uniqueness BioDrain’s Streamway System is differentiable and the Company has received patents from both the European Patent Office and the US Patent & Trademark Office. The Company believes its technology provides a significant competitive advantage – which is covered by the patents – over other companies in the segment. BioDrain Medical has utilized existing technology and applied that known technology in a novel way, to ensure the differentiability of its product. The Company is confident that its technology will provide significant benefits to its customers, above and beyond current or future anticipated competitive products. “Razor and Blades” Business Model BioDrain Medical will sell the wall-mounted Streamway System, as well as a procedure filter and proprietary cleaning fluid that will be utilized to clean the System after each procedure. This “razor/razor blade” business model will allow the Company to obtain an annuity-type of revenue stream from the placement of each piece of equipment. The Company anticipates that the revenue from the relatively high-margin fluid will bypass the equipment revenues within a few years of entering the market. BioDrain has an exclusive arrangement with a proprietary supplier of cleaning fluid to distribute the fluid for a broadly defined surgical room use. Environmental Benefits Industry estimates state that approximately 50 million canisters containing potentially infectious fluids from operative procedures go to landfills in the US each year. Since the Company’s surgical fluid handling process significantly reduces the use of canisters, the number of contaminated canisters sent to landfills can be greatly reduced. The automated process resulting from the use of the BioDrain Streamway System will serve to reduce this waste and thereby will have a visible, positive impact on the environment. April 1, 2009 - BioDrain Medical, Inc. Announces FDA Clearance to Market the STREAMWAY™ System - BioDrain Medical, Inc. received clearance from the Food and Drug Administration (FDA) to market the STREAMWAY System in the U.S. for the collection and disposal of fluid waste in medical and surgical areas including operating rooms. BioDrain is now able to commence sales and marketing activities for the STREAMWAY System. The company is currently developing a domestic sales distribution channel comprised of experienced surgical sales representatives with strong relationships in the operating room. Management Kevin R. Davidson, President & CEO, Chief Financial Officer, and Director - Mr. Davidson has served as President and CEO since 2006. His experience encompasses several years in the medical technology sector including appointments as CFO of three medical technology companies. In 2003, he joined OrthoRehab, Inc. as CFO and VP Business Development where he led the successful sale of the company. Mr. Davidson also has an investment banking background in medical technology and served as Managing Director with the Arthur Andersen Global Corporate Finance Group from 1998 to 2002. Prior positions include corporate development roles at St. Jude Medical, Inc. Mr. Davidson holds a BA in Economics from Gustavus Adolphus College and an MBA from the Colgate Darden Graduate School of Business Administration at the University of Virginia. Chad A. Ruwe, Chief Operating Officer, and Director - Mr. Ruwe was appointed COO in 2009, after joining the Company as EVP of Operations in 2008. He has over 20 years experience in global business leadership in critical fluid management industries focused on containment, management, and delivery of highly toxic and corrosive fluids. From 2002 to 2007 he held several senior management positions with Entegris, Inc., including GM of NT International, VP of the Fluid Handling Systems business, VP of the Semiconductor business and VP & GM of the Liquid MicroContamination business. From 1996 to 2002, Mr. Ruwe was with Tescom Corporation serving as VP & GM of the High Purity Controls Division. Prior positions include several management positions at Parker Hannifin Corporation from 1987 to 1996. Mr. Ruwe holds a BS in Mechanical Engineering, specializing in Fluid Dynamics, from the Ohio State University and an MS in Management, specializing in Operations Research, from the University of Alabama. Jess R. Carsello, Vice President of Sales. Mr. Carsello became our Vice President of Sales in 2010. He has over 20 years of sales and management experience in the medical industry, the majority of which has been in selling single-use disposables and capital equipment for operating room applications. From 2004 to 2009 Mr. Carsello served as VP of Sales for Aspen Surgical with primary focus on sales into distribution concentrating on Private Label sales for large distributors nationwide. From 2002 to 2004 Mr. Casello served as VP of Sales for Sterion Inc. where he was responsible for managing worldwide sales of Sterilization Container Systems and Wound Care products. Mr. Carsello served as the VP of Sales for Barriermed Inc, from 2001 to 2002 where he introduced a new technology in Polyisoprene Surgical Gloves. From 1991 to 2001 he was with Regent Medical/SSL Americas, (now Mölnlycke Health Care) where he was Director of Distributor Relations for North America, Regional Manager covering 13 Midwest states, Sales Rep and Sales Trainer. He began his career as a Sales Representative for Vital Signs selling products into Anesthesia, Respiratory Care and all Critical Care areas of the hospital. Mr. Carsello holds a Bachelor of Science degree from the University of Wisconsin, Eau Claire. Alan G. Shuler, Secretary - Mr. Shuler was appointed Secretary in 2009. He has 30 years of senior executive experience working with large and small, public and private companies. His experience includes 18 years as CFO of three public companies in the high tech arena including 12 years as CFO at Datakey, Inc. Additionally, for over five years Mr. Shuler served as President and CEO of a financial services division of Carlson Companies. He holds a BS in Business and Applied Engineering Science from the University of Idaho, an MBA in Accounting from Santa Clara University and passed the CPA exam in San Francisco. David J. Dauwalter, Director of Product Management - Mr. Dauwalter joined the company as Director of Sales in 2008. He has over 8 years experience in sales and marketing. Prior to joining the company, he founded and managed Clean Door Systems, Inc. and served as CEO from 2005 to 2008, gaining valuable experience in selling infection control products in hospital settings. Mr. Dauwalter held prior sales positions at PC Solutions, Inc. from 2003 to 2005, Wagers Business Systems from 2001 to 2003 and Cellular One, LLC from 2000 to 2001. Mr. Dauwalter holds a BA in Marketing from University of Wisconsin, Eau Claire. Board of Directors Lawrence W. Gadbaw, Chairman of the Board of Directors - Mr. Gadbaw served as the Chairman of the Board since the company’s inception in 2002, President and CEO from 2002 to 2006 and Executive VP of Business Development from 2006 to 2008. He has also served Chairman of Health Care Marketing, Inc. since 1992. From 1990 to 1992, he held the position of President, Chief Operating Officer and Director of Augustine Medical, Inc. Prior positions include President and CEO, Treasurer and Director of Bio-Vascular, Inc. from 1985 to 1989, Director of Sales and Marketing for Medical Incorporated from 1979 to 1981 and GM of Sween Corporation from 1977 to 1979. Mr. Gadbaw also held numerous positions in marketing and sales with Medtronic, Inc. from 1967 to 1977. Thomas J. McGoldrick, Director - Mr. McGoldrick has served as a Director of the company since 2005. He previously served as CEO of Monteris Medical, Inc. from 2002 to 2005. He has over thirty years experience in the medical device industry and has held positions of CEO of Fastitch Surgical Inc. in 2000, President and CEO of Minntech Corporation from 1997 to 2000 and senior marketing, business development and international positions at Medtronic, Inc., Cardiac Pacemakers, Inc. and Johnson & Johnson, Inc. Mr. McGoldrick holds positions on the Board of Directors of two other medical device companies. Peter L. Morawetz, PhD, Director - Dr. Morawetz is a consultant to development stage companies in the medical and high technology field. He has served as a Director since the company’s inception in 2002. From 1985 to 2002, he provided consulting services in the fields of technology and product positioning for various corporations including Medtronic, Inc., EMPI, Hutchinson Technology Inc., Minntech Corporation, Bauer Medical, Inc., American Medical Systems, Inc., Lectec Corporation and Walker Reading Technologies, Inc. Over his career, he held positions of increasing responsibility in engineering and R&D management. James E. Dauwalter, Director - Mr. Dauwalter has served as a director of the Company since July 31, 2009. Mr. Dauwalter served as a director of VeraSun Energy Corporation from April 2008 to May 2009. He served as a director of US BioEnergy from July 2006 until April 2008, and served as chairman of the board from November 2007 until April 2008. Mr. Dauwalter also served, from August 2005 until May 2008, as the chairman of the board of directors of Entegris, Inc., a materials integrity management company. Prior to his appointment as chairman of Entegris in August 2005, he served as the chief executive officer of Entegris since January 2001. Mr. Dauwalter joined Entegris in 1972 and held a variety of positions prior to his first executive appointment in March 2000 as chief operating officer. Mr. Dauwalter was also instrumental in founding Metron Technology, B.V., a supplier of semiconductor products in Europe, and served on their board of directors from their date of formation until May 2008, and served on the boards of several subsidiaries and affiliates of Fluoroware, Inc., a predecessor company to Entegris, Inc. Mr. Dauwalter holds a bachelors degree in business management from Bemidji State University. Andrew P. Reding, Director - Mr. Reding has served as a director of the Company since 2006. From 2007, he has held the position of President and CEO of TRUMPF Medical Systems, Inc. Prior positions include Director of Sales at Smith & Nephew Inc. Endoscopy and VP of Sales and Director of Marketing with Berchtold Corporation. Mr. Reding is an executive with extensive experience in sales and marketing of capital equipment including architecturally significant products for the operating room, emergency department and the intensive care unit. He has successfully developed high quality indirect and direct sales channels, implemented programs to interface with facility planners and architects and developed GPO and IDN portfolios. Green Baron Conclusion BioDrain Medical, Inc. (BB: BIOR) is ready to commercially launch its FDA-cleared Streamway™ System now. We believe it will soon be recognized as the preferred surgical fluid management system in all operating rooms. The benefits in healthcare safety, reduced cost to users and its friendly environmental impact should win over decisions makers who consider this system. The Green Baron Report finds BioDrain’s razor – razor blade model to be particularly attractive. The wall mounted Streamway System, the procedure filter and proprietary cleaning fluid utilized to clean the Streamway SYSTEM after each procedure will allow the Company to obtain an annuity-type of revenue stream from the placement of each piece of equipment. The valuation of BIOR stock at this point appears to be at a fantastic entry point for new investors. Due to recent softness in the general market and a lack of immediate exposure, BIOR has dropped considerably below the price per share of even its most recent private placement completed at .50 per share. We find the current price at about .20 per share does not reflect the huge growth potential and strong projected sales. Members are strongly urged to accumulated anywhere near the current profile price, and we look for gains of over 100% near-term, and many times that longer term. Company Contact Information:
BioDrain Medical, Inc. For additional requests, please visit:
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