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LAGeT, Inc. was formed in 2001 and through its subsidiary, LAGeT Musculoskeletal, LLC (the Company) has developed a technology process, termed LAGT (Light Activated Gene Therapy) for articular and meniscal cartilage repair, ligament and tendon healing and enhanced spinal fusion.

The LAGT technology process was developed at the University of Rochester under the scientific leadership of Dr. Edward Schwarz, a team of orthopedic surgeons, and an optical engineer retained by the Company. The University of Rochester has filed patents on the LAGT process and its applications.  The Company has received a worldwide exclusive license to these patents in exchange for certain considerations including a 5% equity interest in the Company by the University.
 

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The Company has successfully completed the initial stage of proof of principle of the LAGT technology process and is seeking $3M in equity capital to fund the next phase of product development. This funding will permit the Company to hire 3 Senior Scientists, 3 Technicians and to retain an optical engineer to build the commercial LAGT device during the next two year period. The Company will extend the scientific research to large animal studies beginning in year three and will require $7M in equity capital to complete these studies.

The successful completion of these large animal studies in 2010 will place the Company in a position to begin clinical trials in humans, which will continue into 2013. The Company estimates that $20M will be required to fund the clinical trials and intends to obtain these funds through additional equity financing, the issuance of debt or through the sale of specific intellectual property.

The Company anticipates the successful completion of the clinical trials in 2013 and to be in a position to begin the commercial phase of operation with the LAGT technology and its applications after obtaining the required regulatory approvals from the Food and Drug Administration.
 

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The LAGT technology process is ideally suited for the treatment of articular cartilage defects and the related osteoarthritis (OA), which affects over 40 million Americans. No treatments are available to halt or reverse the progression of the disease and this chronic degenerative condition. The cartilage repair market in the United States is expected to grow over 400 percent during the next two years. The Company’s approach to articular cartilage repair is being developed so that it may be delivered completely by arthroscopic means and should reduce the overall time and costs associated with the therapy. The Company believes that the LAGT technology can be coupled with standard tendon and ligament reconstruction procedures to enhance the speed and efficiency of repair. There are over 75,000 ACL reconstructions in the United States each year and numerous rotator cuff shoulder surgeries. Faster and stronger patient healing through the LAGT process would significantly improve each patient’s quality of life.

The Company’s technology is also applicable to spine fusion. Over 200,000 spine fusion surgeries are performed each year in the United States and the number is expected to grow as the population ages and less invasive surgical treatment options evolve. The Company believes that the LAGT approach coupled with existing technology in the bone growth process will enhance this technology application.
 

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The Company will have three revenue generating elements:

>  The LAGT laser device

>  Disposable laser tips specific to each LAGT application

>  The rAAV biologic specific to each LAGT application

The Company intends initially to market its product to over 2500 major Medical Centers in the United States for use in the surgical procedures described above. The sale or licensing of the LAGT laser device and the disposable laser tips together with the rAAV biologic is expected to generate royalty revenues through licensing agreements. The Company intents to actively market its products in areas outside the United States through similar licensing agreements.
 

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