Interview with: David Christie, President and CEO - featuring: their proprietary FAST1 Intraosseous Infusion System, that penetrates into the bone marrow space very safely, allowing drugs and fluid to be delivered  into the heart, by emergency room doctors and nurses, paramedics and any first responders, in the battlefield, ambulance or in any hospital during “Code Blue” trauma.

Pyng Medical Corp. (PYT-CDNX, PYNGF-OTC: BB)

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Pyng Medical’s FAST1™ is offering paramedics, Emergency Medical Services, emergency room personnel and military medics an exciting new way of rapidly delivering fluids and drugs to the heart

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Healthcare
Emergency Medical Devices
(PYT-TSX.V, PYNGF-OTC: BB)


Pyng Medical Corp.

Unit 7, 13511 Crestwood Place
Vancouver BC Canada V6V 2E9

Phone: 604-303-7964

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David Christie
President and CEO

Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published - February 15, 2007

BIO:
David Christie, BSc (Biology), MBA
David Christie is President and Chief Executive Officer of Pyng Medial Corp., bringing considerable experience in commercializing medical devices to Pyng. David has over 25 years of sales, marketing, operations and general management experience in the medical device and high technology industries.

In his most recent role as Chief Executive Officer at InnerVision Medical Technologies Inc., he was instrumental in raising $2 million, assembling an international team of professionals, and leading the development of Flash Ultrasound™ technology. In his previous role as Chief Operations Officer at VSM MedTech Ltd, David was responsible for manufacturing, regulatory, quality assurance, and service of functional brain imaging systems and blood pressure monitors, contributing significantly to the growth of VSM from a company with no revenue and 12 employees to $15 million in revenue and 175 employees.

In prior roles as Executive Vice President and General Manager, David led the engineering and business development initiative on ground-breaking blood pressure technologies and prior to that as Vice President Sales and Marketing, successfully launched their proprietary blood pressure monitor (BpTRU™) and established international distribution. David was Vice President and Regional General Manager, BC and Alberta, for Medigas, Canada's leading respiratory care company. David held increasingly senior management positions with American Hospital Supply, which was acquired by Baxter Corporation, the world's largest supplier of medical-surgical supplies to hospitals.

David has his Masters in Business Administration from the University of British Columbia, and a Bachelor of Science in Biology from the University of Montana.

Company Profile:

Pyng Medical Corp is uniquely positioned to command a leading market position in the resuscitative urgent care market. Building off the strength of our proprietary FAST1™ Intraosseous Infusion System, Pyng is poised to expand internationally, penetrate in to all clinical applications, and diversify with complimentary product lines. We are focused on serving the needs of emergency room doctors and nurses, paramedics and any first responders, in the battlefield, ambulance or in any hospital during “Code Blue” trauma. By building a strong core high-margin business that is profitable, keeping our overheads low and under control, and with a very clean balance sheet, we have all the fundamentals for a strong, sustainable investment. Our loyal customers think FAST and save lives with our innovative solution. We believe that savvy investors should think PYNG to enhance their market portfolio.

CEOCFO: Mr. Christie, you are relatively new at Pyng Medical; what attracted you to the company?
Mr. Christie: “What attracted me is the unique position that PYNG is in, in emergency medical services and pre-hospital care as well as the emergency room and on the crash carts of the hospital. Our innovative product, the FAST1™ intra-osseous infusion system, has been proven in the battlefield and on the ambulance to save lives. It is unique in terms of its capabilities and we have a very strong market position.”

CEOCFO: What is your vision for Pyng?
Mr. Christie: “Our vision is to take it from the strength that we have today, which is principally in the defense market and expand that into emergency medical services to all of the first responders, such as ambulance and firefighters. In addition, we want to get it into the hospitals in the emergency rooms and the crash carts. We also want to expand internationally into Europe, which we have already initiated, Australia and Asia as well as add complimentary products to our core product, the FAST1™.”

CEOCFO: Tell us about the F.A.S.T.1™; what does it do?
Mr. Christie: “The FAST1™ is our brand name for the intra-osseous infusion system that Pyng has developed and marketed internationally.  By intra-osseous we are referring to the bone marrow space. The FAST1™ is unique in that we access the space in the sternum and the sternum is well suited for emergency care for a couple of reasons. First, because it is one of the best-protected sites on the body and second, it is closest to the heart. With our proprietary product, we penetrate just exactly into the bone marrow space very safely. We can deliver drugs and fluid into the heart within 25 seconds from the time of insertion.”

CEOCFO: How does your offering improve on the current method?
Mr. Christie: “What is happening now is a clinician will try to start an intravenous (IV) line, which is quite often time consuming and difficult especially for a patient going into cardiac arrest because peripheral vessels tend to shut down; all of your blood goes to the heart and the core of the body in an emergency situation. The alternative is intra-osseous infusion, which was recently adopted by a group called the Interdisciplinary Liaison Committee On Resuscitation, which has said that if you cannot get an IV line started within your standard protocol, you should go immediately to intra-osseous infusion. The only alternative up until now would be what is known as a central line, which is quite an involved procedure to get into a major vein like the subclavian or the internal jugular vein.”

CEOCFO: Who is using F.A.S.T.1™ now?
Mr. Christie:FAST1™ is widely used in the battlefield by medics throughout the US military, so it is being used in theater in Afghanistan and Iraq. It is also being used by ambulance attendants and firefighters, who are the first responders and paramedics. For example, San Francisco Fire has recently contracted to put FAST1™ on all of their ambulances. In addition, the emergency rooms and the hospitals are starting to use them. It is probably most adopted by the defense establishment, secondly by the paramedics and lastly by the hospitals for use on their crash carts and in the ER.”

CEOCFO: Do you see a point down the line where the current intravenous approach would be replaced?
Mr. Christie: “That is exactly right. We are already seeing that the medics in the battlefield are going immediately to our product; wherever you have a situation where speed is of the essence in saving lives, FAST1™ has its name for just that reason; it is very fast. From the point of insertion it is only 25 seconds to get drugs to the heart. It only takes inside of a minute to insert the FAST1™. Therefore, it is a minute and a half from the moment that you start the procedure until you have fluid and drugs to the heart. That is a rapid response that can literally make the difference between life and death for patients in critical condition.”

CEOCFO: What is your plan for more widespread use of the F.A.S.T.1™?
Mr. Christie: “It is pretty straightforward in a lot of respects. The emergency medical services market is a clear and obvious target that we can reach through publications like the Journal of Emergency Medical Services, as well as attending the relevant conferences and we are doing that. Expansion into new geographic markets like Europe and Asia and Australia, we are picking the right distributors, and we are in the process of doing this in countries that we have not entered yet. In the hospital market, it is appealing to the medical doctor and the critical care nurses, which is a process that we have also begun to initiate.”

CEOCFO: Tell us about the device itself.
Mr. Christie: “The device is classified under the FDA and other regulators as a hypodermic needle; it is actually a proprietary hypodermic needle assembly. It fits comfortably into any average-sized hand. It is delivered intuitively with all the required peripheral components to make a complete assembly. Once it is properly inserted, you can hook it up to the same kind of lines that you would hook up an IV, the fluid and drug lines. In addition, you have got dressings to protect the site from infection and it is all a complete system.”

CEOCFO: Is it a disposable item?
Mr. Christie: “Yes and it needs to be, because with any kind of needle assembly, there are always aspirated fluids. Therefore, there is a risk of cross contamination if you were to try to clean and reuse a device like this, so it is a single-use device.”

CEOCFO: Is the cost a factor for potential customers?
Mr. Christie: “The cost really is not a factor. These are retailing in the domestic market for $165 dollars. If you compare that to an IV line, an IV line might only cost one tenth of that, but the other alternative, which is the central line, can cost hundreds of dollars and it is also a very time consuming procedure. When you look at your combined cost of labor and product, this is very affordable especially for a device that saves lives.”

CEOCFO: Do you have other products you would like to add as well?
Mr. Christie: “We do, but none that I can disclose at this time. We have some product line extensions in development and we are pursuing complimentary products in what we call the resuscitative care market. Any instance where you have a patient in urgent enough need of critical care that requires the FAST1™, there are other products that are also going to be used. Therefore, we are both developing and procuring complimentary devices that we will introduce to the market as appropriate.”

CEOCFO: Do you have your own sales force?
Mr. Christie: “We are very small. We are certainly a manufacturing and development company. We have about six professional staff in-house here in Richmond, B.C. in western Canada as well as about half-a-dozen specialized assembly personnel who work in our Class 1000 clean room. We partner for our distribution and our most significant partner domestically is Bound Tree Medical Products, Inc., which is the leading domestic supplier to the EMS and defense market. They are well positioned with over fifty sales representatives on the ground throughout the US. We have comparable distributors in Australia, the UK, Germany, Austria, and other countries where we are currently establishing distribution.”

CEOCFO: Do the emergency room people realize how much of a problem getting the intravenous in is, or does that have to be pointed out to them?
Mr. Christie: “Paramedics, EMS and emergency room personnel are aware of the difficulty of IV administration and there have been many attempts at solving this problem. However, to date it is a problem that has not been solved. Some people just do not have veins that are obvious or easy to locate. The other part of the problem is that when you have somebody in a shock or trauma situation, their peripheral vessels basically shut down, therefore the veins are literally not there. They are well aware of the problem and the difficulty for them in the hospital has been that the alternative is the ‘cut-down’ procedure that they use to access a central line, and it requires quite a level of expertise and it is usually done by an anesthesiologist or possibly a critical care nurse. Those people have to be called to the emergency room, which is time consuming in and of itself. Therefore, to have a rapid alternative that anybody can use is very desirable for them.”

CEOCFO: Will you tell us about the financial picture of the company?
Mr. Christie: “The financial picture is very solid. We have an incredibly healthy balance sheet. We have $650 thousand cash in the bank. We have a $500 thousand line of credit, but we have not drawn down one penny. We have no debt and we are in a good equity position. We have about 10 million shares issued, free, and outstanding; quite a small market capitalization for a company at our age and stage. The shares are trading at about 47 cents, which is about the mid point of a 52-week low and high. We just came off of a very strong 1st Quarter. We just announced our record-breaking sales number close to $ 1 million, which is the strongest first quarter we ever posted coming off of a very strong year where we recorded $3 million in revenue and netted out about 10% of that on our bottom-line income.”

CEOCFO: Why should potential investors be interested now and what should people know about Pyng Medical that might not jump off the page?
Mr. Christie: “There are a few reasons, but number one is that our stock is undervalued, but by how much undervalued is for the investors to decide. We can say it is under-valued because all of the financial fundamentals are in extremely good shape. We are a company that has maintained very low overhead. We enjoy high gross margins, which are in the order of 70%, which in the medical device industry is pretty rare. I mentioned the change in the market place with the so-called ILCOR guidelines, by the Interdisciplinary Liaison Committee On Resuscitation. It was just a year ago in November 2005, when they recommended intra-osseous infusion as the first alternative to infuse fluids in the event that you cannot start an IV. That change in the market is beginning to build momentum toward the FAST1™. Finally, we are seeing those results starting to materialize now. We sold over 80 thousand F.A.S.T.1™ devices in just three years and the momentum is starting to build on the revenue line.”

CEOCFO: Any final thoughts for our readers?
Mr. Christie: “I am excited about the opportunity. I have been involved in over a dozen medical device product launches that have gone very successfully. I worked in all different areas of the business and I know a good opportunity when I see one and this is it. I am excited to be here and I am excited to create some real value for shareholders as we take the company forward.”


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“We are already seeing that the medics in the battlefield are going immediately to our product; wherever you have a situation where speed is of the essence in saving lives, FAST1™ has its name for just that reason; it is very fast. From the point of insertion it is only 25 seconds to get drugs to the heart. It only takes inside of a minute to insert the FAST1™. Therefore, it is a minute and a half from the moment that you start the procedure until you have fluid and drugs to the heart. That is a rapid response that can literally make the difference between life and death for patients in critical condition.” - David Christie

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