Kinetic Concepts, Inc., or KCI®, is a leading global medical technology company devoted to the discovery, development, manufacture and marketing of innovative, high-technology therapies and products that have been designed to leverage the body’s ability to heal, thus improving clinical outcomes while helping to reduce the overall cost of patient care. We have an infrastructure designed to meet the specific needs of medical professionals and patients across all healthcare settings, including acute care hospitals, extended care organizations and patients’ homes, both in the United States and abroad. Our primary business units serve the advanced wound care, regenerative medicine and therapeutic support system markets.
Our Active Healing Solutions™ business, or AHS, is focused on the development and commercialization of advanced wound care therapies based on our Negative Pressure Technology Platform, or NPTP, which employs negative pressure to elicit a bioresponse in a variety of wound types to promote wound healing through unique mechanisms of action and to speed recovery times while reducing the overall cost of treating patients with complex wounds. NPTP comprises three primary product categories: Negative Pressure Wound Therapy, or NPWT, Negative Pressure Surgical Management, or NPSM, and Negative Pressure Regenerative Medicine, or NPRM. NPWT, through our V.A.C.® Therapy portfolio, currently represents the primary source of revenue for the AHS business. We continue to develop and commercialize new products and therapies in NPSM and NPRM to diversify our NPTP revenue streams.
Our Regenerative Medicine business is primarily comprised of the operations of our wholly-owned subsidiary, LifeCell Corporation, or LifeCell™. LifeCell is focused on the development and commercialization of regenerative and reconstructive acellular tissue matrices for use in reconstructive, orthopedic, and urogynecologic surgical procedures to repair soft tissue defects, as well as for reconstructive and cosmetic procedures. Existing products include our human-based AlloDerm® Regenerative Tissue Matrix and porcine-based Strattice™ Tissue Matrix in various configurations designed to meet the needs of patients and caregivers. The majority of our Regenerative Medicine revenue is generated from the clinical applications of challenging hernia repair and post-mastectomy breast reconstruction. We continue our efforts to penetrate markets with our other current products while developing and commercializing additional tissue matrix products and applications to expand into new markets and geographies.
Our Therapeutic Support Systems business, or TSS, is focused on commercializing specialized therapeutic support systems, including hospital beds, mattress replacement systems and overlays. Our TSS business is comprised of three primary surface categories: critical care, wound care and bariatric. Our critical care products, often used in the intensive care unit, or ICU, are designed to address pulmonary complications associated with immobility; our wound care surfaces are used to reduce or treat skin breakdown; and our bariatric surfaces assist caregivers in the safe and dignified handling of patients of size. We also have products designed to reduce the incidence and severity of patient falls in the hospital setting.
KCI was founded in 1976 and is incorporated in Texas. Our principal executive offices are located at 8023 Vantage Drive, San Antonio, Texas 78230. Our telephone number is (210) 524-9000.
KCI is committed to consistently generating superior clinical outcomes for patients and caregivers using our products and therapies. Our differentiated products, competencies and know-how continue to drive trust and recognition of superior performance among our customers, which we believe translates into strong stakeholder value. We intend to execute on our strategic vision of sustaining leadership positions in each of our AHS, Regenerative Medicine and TSS businesses by delivering unparalleled outcomes with compelling economic value for our customers and focusing on innovation, globalization and diversification. We are also focused on organizational readiness and are making a concerted effort to enhance our management systems and business processes through a corporate global business transformation initiative to enable us to effectively and efficiently carry out our strategic vision.
Innovation. We continue to focus on our core technologies as platforms for growth through the development of new products and clinical data. In our AHS business, we plan to leverage our highly successful NPWT franchise, now with its third generation V.A.C. Therapy System, into a more expansive NPTP portfolio based on the successful development and commercialization of next generation NPWT systems and dressings as well as new NPSM and NPRM products to diversify our AHS revenue in the future. We are currently developing our fourth generation NPWT portfolio of products including our V.A.C.Ulta™ and V.A.C.Via™ Therapy Systems, for which we anticipate market launch during 2010. In 2009, we launched our first NPSM product, ABThera™ Open Abdomen Negative Pressure Therapy System, which is used primarily for management of the open abdomen, and we plan to launch a second product, Prevena™ Therapy System, for the management of higher-risk surgical incisions, in 2010. In the future, our goal is to commercialize advanced NPRM therapies for the treatment of chronic wounds and hard tissue defects. In our Regenerative Medicine business, we are currently launching products for use in new clinical applications such as stoma reinforcement and mastopexy and are continuing development of additional applications for lumpectomy and inguinal hernia. At the same time, we are investing in advanced technologies in tissue engineering, genetically-modified animals, and new tissue types to address unmet clinical needs and to improve outcomes through regenerative medicine. In our TSS business, we are investing in the development and commercialization of enhanced products designed to meet the needs of ICU patients and to reduce or prevent “never” events such as hospital-acquired pressure ulcers, nosocomial infections and injurious falls. Over the long term, we will continue to make significant investments in innovation to strengthen our competitive position in the markets we serve.
Globalization. We continue our efforts to increase penetration in existing geographic markets while we expand availability of our product offerings in new countries. Currently, the majority of our revenue from each of our business units is generated in North America, while we have notable operations in Europe, the Middle East and Africa, or EMEA, and the Asia Pacific, or APAC, regions. The goal of our globalization efforts is to increase the share of our revenue generated outside the United States over time while growing our business overall. In our AHS business, we are now entering the large and unpenetrated Japan market with our core NPWT product, the V.A.C. Therapy System and related disposables. In 2009, we received approval to begin market development activities in Japan, where we have submitted applications to relevant reimbursement bodies for coverage determination of our V.A.C. Therapy products. We expect to receive such coverage determination in the first quarter of 2010, followed by commercial launch shortly thereafter. In other countries, we have identified several opportunities for our NPWT products that may be best served initially by distributors. We are working aggressively to construct appropriate networks to launch NPWT products in other countries including Brazil, Russia, India and China. We have also recently expanded our NPWT dressing portfolio with the Simplace™ Dressing and GranuFoam™ Bridge products, which are now widely available in the countries where we operate. In early 2009, LifeCell launched Strattice Tissue Matrix in the United Kingdom and Germany, and we are currently expanding further in other European markets. In the future, we plan to commercialize our tissue matrix products globally. Our TSS business currently operates primarily in the United States and Europe, and we are evaluating opportunities for further geographic expansion.
Diversification. Beyond expanding our product offerings and revenue streams through innovation and globalization, we plan to seek additional opportunities to diversify our business through continued technology licensing and strategic acquisitions. We intend to build on the leadership positions held by our AHS, Regenerative Medicine and TSS businesses through the evaluation and investment in adjacent or enabling technologies and synergistic growth opportunities, supplementing our continued organic innovation efforts. Our strong balance sheet and liquidity position should enable us to take advantage of growth opportunities as they arise.
Organizational Readiness. In an effort to implement our long-term strategy, our management team is focused on organizational readiness, with a goal of improved operations and management systems which transform us into a more agile, progressive and global enterprise. We are currently undertaking a global business transformation initiative designed to improve efficiencies in our systems and operations through standardization and automation which translate into reduced costs and more effective decision-making. As a result of ongoing improvements to our manufacturing operations through improved sourcing and automation, as well as global consolidation of certain shared services, we look forward to substantial and permanent cost reductions exiting 2011. We are also making significant progress in the rationalization of our service center and distribution infrastructure for our AHS and TSS businesses, yielding additional cost savings. As we improve our management systems and operations over time, we will continue to look for new opportunities to augment our business processes and make infrastructure enhancements to improve our efficiency and agility as a company.