C G Surgical Limited
Registered Office Address
C/- Polson Higgs & Co
139 Moray Place
Dunedin
Directors
CLEMOW, Alastair
PATERSON, Howard James
CATHRO, Richard
BROUGHTON, Phillip
GILLETT, Grant
GARDINER, Roger
SMALLBONE, David
History
Incorporated: 21-JUL-1997
Major Shareholders
Website
www.cgsurgical.co.nz
News
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February 2002 - From the office of the CEO
Things have moved along since the AGM on all fronts and are gaining momentum, although the
journey has still a way to go.
New Premises
The company was given notice by the Polytechnic in November. We had to be out in time to
make way for the redevelopment programme that will see the consolidation of some off-campus
units into A and D Block. Short-term premises could have been made available, but we wanted
a more permanent home. The Centre For Innovation beckoned. We moved into temporary offices
in the CFI, while a suite is built for us, in December. The new offices should be completed
by the end of March. It is a really good place for us to be, close to the Hospital & Medical
School, on the University Campus, with access to all the advantages that go along with that.
The CFI also supports the image and credibility of CGS in its quest to become a world leader
in laminoplasty systems and the research that is required to become this.
Research Programme
Our research programme is on track; the Cadaveric study (using bodies donated for science)
has been completed, with preliminary results looking good. A publishable paper will be
written and we have the start of a new body of scientific support for the single level clip.
We have started the animal part of our programme. I would like to point out that work with
animals is very strictly controlled by a separate animal ethics committee, as animals can't
speak for themselves. The programme starts with one animal to prove feasibility and this
animal, that we have named Dolly, has been an outstanding success and is released to the farm
where she has been, with a clip in her neck, leading the normal life of a sheep, including
head-butting with other sheep. Scans have shown us the progress of the first single level
clip in living tissue and the results are very exciting. The animal trial will continue for
six more months, and will have considerable implications for the design and development of
the clip when it is used in humans.
International Relations
As you will know from the AGM, we have been in discussions, with a view to a partnership,
with a major international orthopaedic company. The dialogue continues and the company
remains interested, but will not commit. We feel that the development programme is not far
enough along for them, but the door is not closed and the value of the company just increases
as we hit more milestones and our understanding of our process increases. It is their loss
and our gain if they wait.
Company Direction
The development of the single level clip has meant a reappraisal of the company's outlook and
goals. The single level clip was developed to meet a changing market that required canal
expansion to be done on an individual vertebra rather than across two or three as our
original design did. The single level device is a definite move forward for the company and
incorporates new safety measures in it's design and improves patient flexibility. The new
single level design compares very favourably with other products used for laminoplasty and we
are still a head of the market. A new business plan has been developed to define the way
forward for the next 3 to 5 years. Put simply, we have the only device specifically designed
for cervical decompressive laminoplasty. Devices dominate all areas of spinal surgery, but
they are all supported by well developed operating aids and procedures, and give up to a 90%
success rate. At the moment, cervical laminoplasty gives only up to 60% success. Our goal
is to develop a cervical laminoplasty system (device, operational procedures, etc) to deliver
90% success rate and own the cervical laminoplasty market. It is a small step from this to
other spinal laminoplasty, which is substantially larger than the cervical market and is not
catered for with specifically designed devices. By the end of the year we will have the C G
Laminoplasty System, the first laminoplasty system to be developed.
To fully develop this system and get it to market is a 3 to 5 year programme and, even with
an international partner, will require more funding than we have available at the moment. The
Directors will be considering the funding options available to meet our requirements in the
immediate future - a future that is looking better with each step of the development
programme.
Outside Development
The I2M (Innovation to Market) idea is still alive and we are involved in two ongoing design
and development programmes, with "Shocktop" developing an innovative rugby headgear and with
Kawarau Jet on a top-secret project. We have also been approached to develop a gynaecology
tool and an artificial insemination device for sheep. These are certainly innovative and
quite exciting, but we are just allowing things to expand by word of mouth at this stage
until we have a clearer view of how we want it to develop.
Website
A new website is being developed, as many of you will know. It is being pitched at medical
professionals to promote the science behind the clip. The site will still have news and
general company information on it and links to other areas of interest. We will have a
registration point for shareholders and other interested parties so we can send electronic
updates to them of new developments.
That's it for now. My intention is to make this a quarterly event, if our progress is
eventful enough to report on.
John Galvin
Chief Executive Officer
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