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TenthGate Offers Early Stage Developers Of
Life-Changing, Healthcare Technologies A Viable Opportunity To Reach The
Marketplace
Medical Diagnostic Device
Healthcare - Biotechnology
(TGTI-OTC.PK)
TenthGate International, Inc.
1900 Campus Commons Drive, Suite 100
Reston, VA 20191
Phone: 703-766-6556
Tim Novak
Chairman, President and CEO
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published – February 8, 2008
BIO:
Tim Novak, 45, TenthGate’s Chairman, CEO & CFO, is the
Senior Member of Core Concepts, LLC, a provider of strategic consulting to
public and private growth companies. Previously, he has served as Chairman,
President and CEO of Power 3 Medical Products, Inc. a public company through
May 2004. His professional work experience has centered on corporate
organizational development, compliance and stakeholder value creation in
both the public and private settings. He has held license with NASD and
worked as an independent agent building custom financial programs designed
to assist clients in building net worth.
Mr. Novak has an extensive healthcare background working at the senior
executive level and served as a board member for many public and private
companies as well as non-profit organizations. He is a panel judge for the
TIME (The Integration of Management and Engineering) Business Launch
Competition and International Nano Technology Competition at Case Western
Reserve University. He was a founding member of The Hardin County Education
Foundation, Inc., and served as an advisory board member for South Central
Bank & Trust. He is a Hardin County Schools Distinguished Alumni and a
graduate of Bowling Green State University with a Bachelor of Science degree
in biological science and holds a Master of Science in Administration from
Central Michigan University.
Company Profile:
TenthGate International, Inc. is
focused on the acquisition and development of life changing, health related
technologies. The range of acquired technologies includes biotech/life
sciences, diagnostic and unique medical devices. The Company has acquired
several intellectual properties and licenses to date, two of which have
obtained FDA approval and are currently selling commercially. The Company
has obtained exclusive license for an emerging melanoma diagnostic and
prevention technology utilizing Electron Paramagnetic Resonance (EPR)
technology. TenthGate has identified several additional technologies for
acquisition.
CEOCFO: Mr. Novak, what is your vision
for TenthGate?
Mr. Novak: “The vision for TenthGate is
to create a disciplined growth company specifically designed to assist
biotech sector ventures in moving from proof of concept into development
stage and then ultimately into the commercial marketplace. We are looking to
acquire innovative life-changing technologies under reasonable terms and
then apply adequate and appropriate mix of funding, management and expertise
in order to advance th product and/or technology. Our business focus is
centered on creating value for our shareholders while moving quality
healthcare products into the marketplace.”
CEOCFO:
Biotech is a huge field with thousands of ideas; what are the criteria for
your focus?
Mr. Novak: “TenthGate is starting out
with three major venues in the biotech sector. Our thrust is going to be
what we consider life-changing technologies. We are not just looking for a
better band-aid or another product that has already been out there, we are
looking for things that can change the very way healthcare delivery is done
and has the opportunity to enhance public health and wellness. Our first
focus technology in that category is a melanoma diagnostic and prevention
technology that we acquired form STU.UNM at the University of New Mexico.
What we are initially looking to do with these technologies is to literally
change the way that sunscreens and any skin product are evaluated, providing
a more accurate way of describing protection levels with this new
technology. It can be used by formulators to help ensure that products
actually do what they are supposed to do with UBA and UVB sun protection.
This actually dovetails nicely into the FDA’s current thrust on trying to
enhance guidelines associated with sunscreens. They recently came out with
guidelines and have called for comment of which TenthGate did comment
directly back to them on how we feel our technologies can be helpful to them
in helping to protect the public.
The other applications for the melanoma technologies would be diagnostic
used for in physician offices and in the operating room taking a look at
sentinel lymph nodes and suspicious moles, as well as offering possible
interventions post exposure. We have two FDA approved products already in
line, one is a natural solution, this would be under innovative product and
services category, and it is a natural intervention for hemorrhoid
treatment. Millions of people suffer from that condition in this country and
internationally and it is one of those illnesses people do not talk about.
We found this company in England, acquired intellectual property rights for
it and we are retailing it currently through icebaton.com. What it does is
it offers people, especially pregnant women and nursing mothers that cannot
use topical creams, an effective treatment option in a safe, comfortable and
private way. We are just beginning retail our sales of the Ice Baton product
and are also in talks now with distributors as far away as northern Africa,
Morocco and we see this product being international in scope.”
CEOCFO:
What is it made from?
Mr. Novak: “It is specifically design;
it is called Ice Baton. It a natural ice therapy. It is a designed patented
plastic injection molded cap and stem, which create a tapered ice delivery
system used to relieve both internal and external hemorrhoids. What makes
this product so unique is the fact that it is so simple. Literally, it is a
product to be used in the privacy of your home, filled with clean tap water
and prepared in your freezer. When frozen, it is ready to use and you simply
remove the cap and then you apply it to the area that is affected. Within 60
seconds, you would have reduced the size of swelling of hemorrhoids and
experience relief. You then discard both cap and stem. Ice Batons are
currently available in two-packs currently and at a nice retail price.
People can go buy it privately on our website for $4.95 for a two-pack. For
somebody who is suffering with hemorrhoids and may not have another viable
solution, this is a very safe, cost-effective intervention and we believe is
going to be a strong commercial product.
The other FDA approved product is a product called SutureMate, which we
acquired; it is a safety device used by healthcare providers during the
suturing process to help prevent needle sticks. Such safety products are
mandated under the Needle Stick Prevention Act of 2000, which requires
healthcare institutions to implement specifically engineered solutions to
help healthcare providers avoid needle sticks. There are nearly as many
needle sticks caused during suturing as there is with hypodermics. It is
important with hepatitis B and AIDS and everything else that is out there
now, that we take good care of our healthcare providers and help them to
avoid exposure. It is very simple and a cost effective product that we
manufacture through Tuthill Plastics in Clearwater, Florida and distribute
through DeRoyal Medical in Powell, Tennessee.
TenthGate is where people who have a great idea and product, but no idea on
how to enter the market can come. We can evaluate the technology and see
what options may exists. Some companies have great management, great
organizations and are ready to go. Others may need more help. This is the
unique niche that separates us in the biotech sector. We are not looking to
be Pfizer or Merck. What we want to be is a springboard that allows
life-changing technology, that may otherwise never get chance, to actually
be developed and commercialized and ultimately helping people.”
CEOCFO: How
do you reach the companies and the people with the ideas that do not know
where to go?
Mr. Novak: “We currently have existing
relationships with technology search partners. We use Adjuvant, LLC out of
the DC beltway who is currently working on our melanoma technologies and
partnering events associated with that. STC.UNM at the University of New
Mexico is the Science and Technology Corporation, they have wonderful
technologies coming out of there and they are constantly showing us
different things that make sense. We have also worked with UTEK Corporation
out of Tampa Florida who actually help place the Ice Baton product into the
company. Just years of being in the industry and having contacts are very
effective. We feel the pipeline for new technologies is not only full but
also currently overflowing. There are currently more ventures and high
quality products that need TenthGate assistance than the current industry
capacity can handle. Let’s face it; if you have a small product, you are not
likely to approach the large pharmas to help you figure things out. You are
going to have to start somewhere else. Our biggest challenge now is that we
have more products and services that are interested in doing business with
us than our existing capacity can handle which is a fantastic problem. Our
challenge now is going to be to scale to properly develop what we have and
to continue to add products and services over the years.”
CEOCFO: How
are you funded for development?
Mr. Novak: “Initial funding for the
company came from our consulting firm out of DC called Core Concepts, LLC.
We incubated the company and put in the initial seed resources of cash, time
and expertise to get it started. Since then we have raised money with both
debt and equity within the company to finance both our acquisition and
operations. We put together an excellent board of directors that we are very
proud of that are going to be instrumental not only now during our
development stage but as we grow bigger. We have a vice president of
Syracuse University, we have general counsel of Lockheed Martin, former
president of Eaton Industries, aerospace, prominent physician internist up
in Pennsylvania. Core Concept’s Managing Member, Paul Gray and I are also on
the board. We have taken our time to make sure that the company was built
right. We call it our ‘Four Circles of Good Business’, which was developed
by Mr. Gray and myself and recently made into a business book published in
November 2006, describing our business philosophy. We want to make sure we
have good products and services, we have solid operations, a good capital
structure and solid governance. The Four Circles of Good Business provides a
methodology of building out quality companies that enhance the chance for
success.”
CEOCFO: Why
should potential investors look at TenthGate now?
Mr. Novak: “TenthGate is undervalued at
this point; it is a little Pink Sheet company because we have been focused
on building the company. A lot of people start with trying to get the sizzle
under the steak with the companies and what happens is it never gets
companies built and going. TenthGate is a value play; it is in a great
sector that really rewards investors that have a disciplined approach. We
have four companies, one is a parent and three subsidiaries have all been
fully audited and therefore have the ability to move to larger markets if
this strategic direction make sense. It is a development stage company and
therefore should be considered a high-risk venture. For those who are
looking to look for a value play and want to get at the ground floor, that
is where we are.”
CEOCFO: In
closing, do most people that have ideas and technologies realize that they
need someone like a TenthGate, as opposed to going it alone?
Mr. Novak: “We do a lot of education.
Usually when we meet folks we send them a copy of The Four Circles of Good
Business and ask folks to read it. The book is a hundred pages that you can
read in an hour. If it makes sense, we probably can help; if it does not,
then you probably do not share the priorities that we feel are needed to
move forward. The reality is there are so many different types of people;
you have scientists that are just brilliant, but have no interest many times
in the business aspect of it. Therefore, the challenge for TenthGate is that
we just need to harness skills and align the motivations of all of the
parties. You do not have to be good at everything as long as you understand
how the big picture works. People do realize you are going to need some help
eventually and you are going to have to share with somebody if you are going
to be successful. We have seen many ventures go south just because these
projects or sciences become like children to people, and if they are not
willing to share or they have an unrealistic valuation of what it is worth.
What I always share with people is that unless your product actually gets
out into the marketplace and can help people, there is no value. That is the
TenthGate solution, let’s be practical about it, figure out what you have,
harness and put around as many smart people and resources as we can and
let’s get it out where it can help people. The rest of it will take care of
itself; share prices, value, return on investments and making money have a
way of taking care of themselves when you practice good business.”
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