Combat Medical Ltd is an innovative and passionate company; leading the way in the development of hyperthermic (heated) cancer treatments. Combat is running an ambitious clinical trials program, currently 5 trials on-going with 862 patients across 30 hospitals in UK and Spain led by top key opinion leaders. The lead 2 trials with 598 patients will complete recruitment by mid 2017 and publish results in 2018. If the results are comparable to what we have achieved in 15,000 treatments thus far this will enable our treatment to become the new standard of care. Having already established a solid sales network in 33 countries we expect to grow exponentially once clinical evidence is published.
Combat has 2 hyperthermic drug delivery systems for the treatment of bladder cancer and cancers within the peritoneal cavity. These systems are simple, robust, CE marked, and the subject of 5 patent application families (some granted). Having placed over 15,000 kits on the market, Combat’s systems effectiveness has been validated. Its patented technologies enable the accurate control of temperature, flow and pressure. This allows for up to 10 times more drug to be absorbed, creates a natural immune response, and by delivering temperature within a tightly controlled range, it disrupts the cancer cells while leaving the good cells unaffected, leading to the death of the cancer cells.
Other hyperthermia solutions have shown excellent clinical results, but failed commercially because they are too expensive, have patient tolerability issues (40% burns), are difficult to use and take up significant amounts of clinician’s time making them unscalable for mainstream use. Through Combat’s IP and know-how a technology platform has been created that has solved this and is easy to use. Its patented aluminum heat exchanger controls the temperature delivered within ±0.2°C, fluid flow rates and pressure delivered to the patient and the cancer (Duke Uni, USA). Hyperthermic drug delivery results in improved survival rates and significantly reduces recurrence rates and treatment cost.
To speed our market entry and keep costs to a minimum Combat sells through well-established medical device and pharmaceutical distribution partners, who in turn sell to the end users/hospitals. Combat gross margin will exceed 80% in next 12 months and its distribution partners achieve 40%-65% gross margin, making Combat an attractive business to them. Typically Combat’s distribution partners provide the electrical system free of charge and make their return selling the single use disposable kits. The systems are quickly paid off and it means no time is lost in discussions over capital equipment purchases, a process that can take up to 1 year.
The overriding objective of Combat’s shareholders is to achieve an exit by trade sale with medical device or pharmaceutical companies in the next 3-5 years at a valuation greater than £250m. We could also consider an IPO due to the rapidly growing number of technical and clinical solutions we are able to offer across a wide range of treatment areas, which creates a strong and diverse stand alone business.