Healthcare:

Sanuwave Health, Incorporated

Deal Size:

$1,000,000

Equipment:

Medical Equipment

Industry:

Healthcare

Completing a deal with NFS Leasing was easy and uncomplicated for Richardson and his team. He said, “They clearly laid out the deal and terms. They were direct and honest with what they were and were not able to do. No nonsense, no trickery. That allowed us to build a relationship based on trust and the process was simple and fluid because of it.”

SUMMARY
Sanuwave is a medical device company that manufactures novel devices that utilize a specialized method for the treatment of Diabetic Foot Ulcers. This treatment would enable Sanuwave the chance to save the lives and limbs of patients across the U.S. It had just spent six years and significant funds obtaining FDA approval for its devices. Consequently, Sanuwave was cash constrained and needed a financial partner to support its manufacturing costs of $20 million to enter the market.

  • The new devices would help prevent 2,000+ amputations, but delayed revenue recognition made securing traditional funding impossible
  • Securing financing with NFS enabled Sanuwave to enter the market right away and begin saving limbs and saving lives earlier than expected

THE CLIENT
Sanuwave’s flagship device, dermaPACE®, uses Extracorporeal Shock Wave Technology (ESWT) and is the only device of its kind to be FDA approved for treatment of Diabetic Foot Ulcers in the U.S.

Sanuwave has been in business for fourteen years and a large portion of that time has been spent conducting clinical trials and gaining approvals from the FDA. The FDA approval process is a long and very expensive one. However, the company is dedicated to finding solutions to help save the limbs and lives of those living with diabetes. The last hurdle that Sanuwave had on its way to FDA approval, was a 336 patient, six-year trial that cost upwards of $60 million.

THE CHALLENGE
Sanuwave was faced with a critical go-to-market challenge: it needed to manufacture 2,000 devices costing a total of $20 million. Having just spent six years and $60 million on a clinical trial to obtain FDA approval, its balance sheet was not able to support the full $20 million manufacturing price tag and needed financing for a portion of that.

In addition, once manufactured, Sanuwave’s device revenue would not be realized for up to three months post production. Sanuwave wanted to reduce the obstacles in the way of generating revenue and was in need of a financial solution to accommodate its unique situation.

THE SOLUTION
As Sanuwave contemplated how it would pay for the devices to be manufactured, CEO Kevin Richardson recalled meeting a fellow parent at a school fundraiser that worked at an equipment leasing company, Richardson decided to discuss the idea of equipment leasing with his team.

Richardson’s contact turned out to be NFS Leasing’s CEO, Cliff Rucker. As soon as Richardson began interacting with the NFS Leasing team, he knew he made the right decision. The NFS Leasing team spent the time to do its due diligence; talking to the doctors and suppliers in the industry, as well as visiting Sanuwave to examine the device in person and to witness its capabilities. This proved NFS Leasing’s dedication to seeing Sanuwave succeed in its business development strategy.

EXECUTION
Completing a deal with NFS Leasing was easy and uncomplicated for Richardson and his team. He said, “They clearly laid out the deal and terms. They were direct and honest with what they were and were not able to do. No nonsense, no trickery. That allowed us to build a relationship based on trust and the process was simple and fluid because of it.”

Keeping the lines of communication open during the implementation of the project allowed Sanuwave the opportunity to move quickly when entering the market. “What would have taken ten to fifteen years will now take four years thanks to NFS Leasing. This is allowing us the opportunity to save limbs and lives now.” said Richardson.

RESULTS
The number one cause for concern when it comes to Diabetic Foot Ulcers is amputation. With the completed NFS Leasing deal, Sanuwave is expected to roll out one hundred new devices this year alone. These initial devices will treat twenty patients per month per device, 240 patients per year per device, and altogether, treat 24,000 patients this year. Nearly 2,000 amputations will be avoided thanks to Sanuwave’s dermaPACE® device.

The Sanuwave partnership with NFS Leasing is aiding in accomplishing this feat in four years rather than ten to fifteen. The number of lives that will be saved and families impacted for the better, is remarkable and not measurable in number.

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