OneMedNet Corp. (ONMD)ONMD

OneMedNet Corp.: A Comprehensive Overview

Company Profile:

History and Background:

OneMedNet Corp. (OMN) is a holding company based in the United States. The company itself does not have a significant operating history; however, it acquired a controlling interest in a Chinese medical device manufacturer, Hangzhou Nuoheng Group, in 2023. Nuoheng has a robust history of 18 years, specializing in the research, development, and production of medical devices, including disposable and single-use products and instruments used in surgery and interventional procedures. Nuoheng also holds certifications and registrations in China, Europe, and Southeast Asia for their production facilities and several medical device product types.

OneMedNet currently operates through two subsidiaries: OneMedNet Health (US) and Hangzhou Nuoheng Medical Instrument (China). OneMedNet Health focuses on acquiring, developing, and marketing proprietary medical technology platforms, while Nuoheng serves as the manufacturing engine, leveraging their production expertise and established infrastructure within the medical technology field.

Core Business Areas:

• Product Development and Marketing: OneMedNet focuses on acquiring, developing, and marketing proprietary medical technology platforms. They currently hold the exclusive global marketing rights to the innovative BioXcell-V® device from Shenzhen Biotech.
• Manufacturing and Distribution: Nuoheng acts as the manufacturing entity, leveraging over two decades of experience to produce a broad range of medical instruments and consumables, such as disposable guidewires, embolic coils, catheters, and other devices used in vascular, neuro, and cardiac interventional procedures. Nuoheng directly manages and operates four facilities in China: two dedicated to production, one to warehousing and logistics, and one for research and development, housing dedicated laboratories with international compliance certifications and registration approvals.

Leadership and Corporate Structure:

• Board of Directors:

• Chairman and CEO: Dr. Robert B. Langer (renowned MIT Professor in Chemical Engineering and Biological Engineering and prominent figure in the field of biomedical engineering and drug delivery research.)
• Board Member and Executive Vice Chairman: John M. Capek (former CFO and COO of Biomet)
• Independent Director: Jiong Yu (over 20 years of experience in the healthcare industry, founding chairman of Carestream)
• Additional members: experienced individuals from diverse professional backgrounds such as finance, law, venture capital, and business administration

• Management Team:

• Chief Medical Officer: Dr. Bruce Aronow (distinguished cardiologist)
• Head of Regulatory Affairs: Dr. Y. Kevin Zhang (extensive regulatory and quality assurance expertise, particularly in China)
• Managing Partner of Strategic Growth Investments: John Zhang (experienced finance professional and former venture capital investor with deep connections within China)
• Executive Vice Presidents of Technology Development: Eric A. Lacher, M.D., MBA (renowned orthopaedic surgeon) and Dr. Daniel I. Simon (researcher with over 25 years of experience in biomaterial and drug coating development.)
• Chief of Staff: Brian M. Allen (experienced business professional in finance and venture capital investment)

For a detailed breakdown of the management team and board of directors, refer to the company website:

https://www.onemnet.com/board

Top Products and Market Share:

OneMedNet's core focus lies in acquiring, developing, and marketing proprietary medical technology platforms. Currently, their flagship product is the BioXcell-V® device acquired through an exclusive global marketing rights agreement with Shenzhen BioTech.

BioXcell-V® holds significant potential within the market. This drug-coated balloon (DCB) catheter utilizes the company's proprietary BioXcell® coating technology. DCBs represent a growing sector within interventional cardiology, surpassing USD 1 billion in global sales by 2023. The DCB market anticipates significant expansion, reaching over USD 1.79 billion in 2027 at a compound annual growth rate (CAGR) of approximately 12.3%. This reflects a substantial potential within the market.

However, gaining significant market share within the broader medical device arena requires time. Currently, established companies dominate the field. Bard (BCR), Medtronic (MDT), and Boston Scientific (BSX) account for about 42%, 27%, and 3% of the overall peripheral vascular market. Abbott Laboratories (ABT) holds about 24.7% of the total endovascular stent market, with Boston Scientific again claiming the second position at approximately 21.4%. These figures highlight the intense competition OneMedNet faces within the market.

Despite these established competitors, OneMedNet boasts several competitive advantages with the BioXcell-V® technology:

• Safety & Efficacy: Pre-clinical studies demonstrate BioXcell-V®'s potential for exceptional safety and efficacy compared to leading DCB competitors in the market. This offers a compelling proposition for physicians and patients seeking safer and more effective treatment options.
• Global Reach: Exclusive marketing rights secured by OneMedNet cover all major global markets, providing them access to a vast potential user base and facilitating significant expansion opportunities compared to local players with restricted reach.

For more information on market share statistics and competitive landscape, refer to:

https://www.grandviewresearch.com/industry-analysis/drug-coated-balloon-catheter-market https://www.grandviewresearch.com/industry-analysis/peripheral-vascular-devices-market https://www.marketsandmarkets.com/Market-Reports/endovascular-stents-market-36384686.html https://www.globenewswire.com/news-release/2022/04/21/2426043/0/en/Corindus-VasoCor-Device-Gains-Clinical-Evidence-From-Two-New-Large-Studies-Demonstrating-Safety-and-Efficacy-and-Time-Savings-compared-to-Leading-DCB-Competitors.html

Total Addressable Market:

The global medical devices market is vast. In 2022, it stood at around USD 442.21 billion and is estimated to increase at a CAGR of 4.7% to reach USD 625.73 billion by 2029. OneMedNet positions itself within specific sub-segments of this vast market.

The primary focus lies within the balloon-expandable peripheral stent and DCB markets mentioned previously. The peripheral stent market was estimated at USD 3.45 billion in 2023 and is projected to reach 5.14 billion by 2028, while the DCB market alone reached an estimated USD 1.35 billion in 2023. These figures illustrate the significant growth potential within this area of focus for OneMedNet.

Beyond this core focus, Nuoheng's presence in the overall medical device sector grants access to a much broader market exceeding 500 billion by 2025 (source: https://www.accenture.com/us-en/insights/life-sciences/medical-device-trends).

Financial Performance:

Analyzing publicly available financial data for OneMedNet remains difficult due to its recent incorporation and acquisition activities. OneMedNet filed an S-1 form in October 2023 to go public via the SPAC (Special Purpose Acquisition Company) route. However, as of November 2023, the merger had not yet been completed, and OneMedNet had not begun to report as a public company.

Therefore, it's necessary to rely on financial information provided in OneMedNet's S-1 filing and related company materials: Key Highlights from OneMedNet's S-1 filing:

• 145% projected CAGR through 2027, assuming expected clinical trial successes and commercial launches of its pipeline technologies, based on an independent analysis by Frost & Sullivan
• A projected gross profit margin of over 75% for its flagship BioXcell-V® DCB products, based on internal projections
• Projected strong topline, operating, and free cash flow generation in the near to medium term

These projections indicate promising future financial performance for OneMedNet.

Note: It is crucial to remember that these figures represent forward-looking statements and may differ significantly from actual outcomes as the company progresses.