Competition
Competition in the field of electromagnetic stimulating devices is developing rapidly. Established modalities such as electrical stimulation, physical therapy, and pharmacologic therapies have been used for a number of years in the treatment of conditions that are now gaining exposure to the potential of pulsed electromagnetic stimulating devices. Direct competition takes the form of two main technologies: Electrical Stimulation (ES) and existing Pulsed Electromagnetic Stimulation (PES). While each of these technologies attempts to treat the same conditions as the EMIT system, both have severe limitations. ES devices, for example, are unable to penetrate tissues to reach deep muscles without causing skin burns and irritation. PES devices, on the other hand, can penetrate deeply and painlessly, but have been developed exclusively for diagnostic applications, such as nerve or muscle testing. As a result, these devices, while effective in a diagnostic setting, make ineffective therapeutic tools.
Competitive Advantage
Premium Therapy's proprietary position allows for the patented use of an ergonomic, body-contoured wrap and overlapping coils. These proprietary elements allow targeted anatomic regions to be blanketed with pulsed electromagnetic stimulation in a format that is user-friendly and capable of being employed by untrained users including patients in their homes. In this way, Premium Therapy's EMIT technology creates a solution to the most significant limitations of existing pulsed electromagnetic stimulating technologies—namely the difficult nature of manipulating a single coil and the cost-intensive requirement of using highly-skilled medical personnel for operation.
The competitive advantages of the EMIT system can be summarized as follows:
- Unique therapeutic application of pulsed electromagnetic stimulation
- Patented delivery device with multiple user-friendly applicators
- Two models for multiple applications in the treatment of a variety of diseases
- Reduction of healthcare costs due to home healthcare applications
Competition
To date, the company is not currently aware of any product that provides as cost-effective, user-friendly, therapeutic care as the EMIT system. The EMIT system Models MX and SX target distinct market segments. For a more detailed description of competitive technologies, see Appendix A. The main competitors within each of the market segments are listed below (see Appendix B for competitive pricing chart).
Emit Mx Market Segments
Prevention and Treatment of Muscular Atrophy: In the large market for the treatment/prevention of atrophy, existing therapeutic devices have to date involved primarily electrical muscle stimulators. The different competitors include:
- Electrical Stimulating Devices (ES): ES units, often referred to as functional electrical stimulators, employed in large clinic and physical therapy centers cost approximately $15,000. Smaller ES units for home use can cost from $3,000 to $5,000.
Important manufacturers include:
- Electrolite Products, Inc.: A manufacturer of the StimOne device, a modified exercise type cycle used by persons with spinal cord injuries in order to prevent atrophy and spasms, and to increase range of motion.
- Electro Med Services, Inc.: A provider of a range of devices and electrodes for functional electrical stimulation.
- Pulsed Electromagnetic Stimulating Devices (PES): The only significant competitors currently in the field of therapeutic functional PES are Leetonus and Top Line Stimulus. These companies have focused solely on products that involve the use of a single stimulatory coil. The use of these products requires expensive, highly-skilled operator involvement. Even with the highly-skilled operator, treatments are lengthy (greater than 15 minutes per muscle group) and inconsistent due to the constant manipulation required to achieve the desired result. As a result of these limitations, existing functional pulsed electromagnetic stimulation devices are not well tailored for therapeutic applications. Instead, they are primarily suited for the diagnostic field, in which Top Line Stimulus has captured the greatest market share.
Important manufacturers include:
- Leetonus: The LeeTone model base cost is $20,000. This unit is designed for a trained operator, such as a physical therapist or physician, to hold the stimulating coil over a specific area of the body in treatments for atrophy, muscle spasms, and decreased blood flow. The Leetonus Company is currently directing marketing focus around the LeeControl device, which is employed in the treatment of urological conditions, and the LeePulse device, which uses transcranial stimulation in the treatment of psychiatric conditions. Leetonus recently received $7.3 million in a second round of venture capital funding, bringing its total to $12.2 million.
- Top Line Stimulus Corporation: Top Line Stimulus' main offering is a hand held coil similar to the Leetonus LeeTone product for the stimulation of specific nerves and nearby tissue. Top Line Stimulus' devices find application primarily in areas of diagnostic evaluation of brain or central motor disorders and spinal injuries. The Top Line Stimulus Model 500 has a base cost of $12,500. Other models range in price from $20,000 to $30,000. As of November 2001, Top Line Stimulus had sold approximately 2,500 units worldwide.
- Electronic Medicals, SupraTimer, and Beingarden GmbH are also involved in the pulsed electromagnetic stimulation business but have only produced devices for diagnostic purposes to date.
Treatment of Neurogenic Bladder and Bowel: There are currently no devices that offer noninvasive treatment for the conditions of neurogenic bladder and bowel. Pulsed electromagnetic stimulation offers the opportunity to effectively treat these conditions without the adverse side effects. Current care options include intermittent catheterization, surgery, and functional electrical stimulation, the latter of which is still in the experimental stage and not commercially available.
Emit Sx Market Segments
Treatment of Musculoskeletal Pain: In the vast market for the treatment of musculoskeletal pain there are numerous therapeutic options available, the majority of which are based solely on pain control. There are few, if any, direct competitors with the noninvasive therapeutic potential embodied in the EMIT system. Therapies currently available, which compete only indirectly with EMIT, include pharmacologic and physical therapies.
- Electrical Stimulating Devices (ES): ES technologies have primarily been employed in the form of transcutaneous electrical nerve stimulation (TENS units). At present, there are well over 100 different models of transcutaneous electrical nerve stimulators (TENS) devices in the marketplace and an increasing number of other electrical devices.
The major manufacturer of TENS devices is:
- Rehabilicare Inc.: A manufacturer and provider of electrotherapy devices for rehabilitation, as well as products for chronic and acute pain management, consisting of small, portable, battery-powered electrical pulse generators. For the fiscal year ended 6/30/01, total revenues rose 5 percent to $62 million. Net income rose 51 percent to $3.3 million. Rehabilicare has a market capitalization of $34.8 million.
Treatment of Arthritis: In the vast market for the treatment of arthritis, existing therapies have focused on pain control issues. No therapy, aside from EMIT, has demonstrated the ability to reverse the wear-and-tear degenerative changes that cause such significant pain for osteoarthritis sufferers. A number of different therapies involved in the treatment of this condition that compete only indirectly with Premium Therapy include: nutritional supplements, hyaluronic acid injections, and pharmacologic therapy.
Strategy & Implementation Summary
