So thank you, everyone, for joining today's call. What 2025 has in store for Kane, including the acquisition of FB Dermatology. Today's call should be about 15-20 minutes. If you do have any questions, we'll try and field the questions at the end of the call. Ideally, you would enter them into the chat, and we'll take a brief two-minute pause after our comments and come back to you with the questions. Now, before we begin, I think it'd be great if you introduce yourself to our listeners or shareholders here, Rob. They've had the immense pleasure of hearing from me quite a few times over the past little bit. And we did see you when we were in Italy and we announced the FB Dermatology acquisition, but I don't think you've been formally introduced. So now I think would be a great time to do that.
Sure. No, thanks, Marc, for the opportunity. And thank you to the shareholders for dialing into the call. For those of you who I have not met before, I'm Dr. Rob Huizinga. I'm the executive chair of Kane Biotech. I came onto the board in February of 2024. Prior to that, I was one of the co-founders of Aurinia Pharmaceuticals, where I developed a drug along with my colleagues from bench to bedside and saw through the first-year commercial sales in the U.S. So experience in both FDA and other jurisdictions getting drugs approved. And my reason for really coming onto the Kane board was really for Marc and the team, what they had put together, and really what the Revive and other technologies stand for. And so excited to be part of the board, excited to be working with you, Marc. And yeah, thanks for letting me be here.
It's been fantastic having you part of the team, Rob. You've been really keeping my feet to the fire, and I think we're making you proud here, and I think one of the things that we first did that you were really a big instigator of was the sale of our STEM Animal Health business to Dechra Veterinary Products. I think we did that very well. We realized a lot of value for shareholders in the sale of that business and really highlighted the value of our technology, our coactiv+ technology in particular, that we had proven many times over in our pet dental water additive. Now, shortly after that, we completed the scale-up manufacturing of our Revive™ antimicrobial wound gel to ProGeniCare. That was, I think, a huge milestone. It was now really a commercial organization, no longer an R&D company or a product development company.
We're really a product commercialization organization. Now, and then very quickly after that, we received our ISO 13485 Medical Device Single Audit Program quality certification, which was the result of many, many months of hard work before and since receiving that certification and led to eventually, in December, our Health Canada approval for Revive Wound Care. The number of amputations leading from chronic wounds in Canada is dramatic, and I think a product like Revive can really help. We're excited to be bringing this product to the Canadian market. I think there's a big opportunity to improve the quality of care, as I mentioned, but also a huge commercial opportunity for Kane, as our products aren't only innovative, but really, really fit well into the single payer programs there that we have in Canada and in so many other jurisdictions.
The other big milestone that is going to bear fruit very shortly is the FDA agreed to increase the dosage allowance for our Revive antimicrobial wound gel, which really paved the way for our spray. Now, a bit of a scoop here today, we've actually completed the scale-up manufacturing of our spray and should be shipping those out very, very shortly. I personally received my own samples there, but the scale-up manufacturing is completed, and we're very, very excited. Rob will tell you more, but he's going to be introducing that next week at the Boswick Burn Conference. Then one that probably went a bit under the radar a little bit, but we got funding from NRC-IRAP, Rob, for two main reasons and one that I really want to highlight.
The first one was to support the expansion of the Revive antimicrobial wound gel family, but we then got included in the multinational corporate collaboration program, again, by NRC-IRAP, which is a CAD 75,000 grant with some guidance from NRC-IRAP. And that was awarded because we were able to show our collaboration with actually one of the biggest wound care companies in the world when it comes to the development of our Dispersion B wound gel. So I think Dispersion B has so much potential, and the support of this multinational corporate partner is huge for Kane. Then we announced a few distribution agreements with Rizan Medical in the UAE and Qatar Datamation Systems in Qatar. And that's great partners and really a lot of commercial potential in those markets as well.
Rob and I actually traveled to Kuwait, and the most common chronic non-healing wound in the world are diabetic foot ulcers, and the onset of diabetes in the adult population in Kuwait is 25%. So that's huge. I think the North American average, correct me if I'm wrong, Rob, is about 10%.
Yeah, it's around there.
Yeah. Finally, more big news where we agreed to acquire, we came to an agreement with the owners of FB Dermatology for Kane to actually acquire FB Dermatology. Now, this is fantastic news for Kane. It not only provides us with revenue from day one, and we're very, very close to, we've got a great plan to make that business cash flow positive business there. So really well on our way to making that happen. We've got some great technology as well as, sorry, great technology, and will really allow us to expand our commercial reach in markets like Australia and New Zealand, where we've got some great potential, and as well as in Europe. So that's a great, and then we ended the year with the announcement from ProGeniCare that they were actually being acquired by a much larger commercialization organization.
So that's great news for Kane and for Revive, as the sales organization there should be going from 10 people to over 100 people. So that should really accelerate the commercialization of our Revive wound gel. Now, Rob, I've been doing all the talking. It may be great if you highlight for our audience today what your expectations and what the board's expectations are of me and our team as we move into 2025 and what we're expected to deliver as we move forward.
Yeah, no, thanks, Marc. One of the things that we love as a board and both as individuals, we love companies that say what they're going to do and then do what they're going to say, what they said, and kudos to you, Marc and the team, for really delivering on those objectives you laid out right at the beginning of 2024, so 2025 is no less packed with objectives for Kane, and that's good for shareholders, just like the people on the call. I too am a shareholder. Marc, you're a shareholder in the company, and we want to see the company advance, and so we have some very specific guidelines given to the management team. One of them is commencing the Dispersion B acne clinical trial, so we're just responding to the IRB questions that came in just at the beginning of this year.
We'll respond to those, and we expect to see the commencement of that trial. That trial is important to shareholders and to patients because, as you remember, we're looking at acne. While biofilm plays a huge role in chronic wounds, including venous stasis ulcers and diabetic foot ulcers, as Marc has mentioned, there also is a role for biofilm in acne. So we'll start that clinical trial. Really exciting to see that kick off based on the data that we've seen so far preclinically. Marc, you mentioned that you started with the opening of the FB Dermatology acquisition, and we expect to see that close earlier this year as well too. In 2025, it expands the geographic territory of Kane, allows us to put stuff from our arsenal into their bag, the sales bag of people in different jurisdictions. That's great as well.
We're planning to obtain the IDE for the Dispersin Wound Gel and commence that clinical trial. And I want to just bring investors back and people back just for a second. Remember that the U.S. Department of Defense has been really invested in the development of our products. Biofilm is in chronic wounds. Biofilm is in acne. Biofilm is also in these traumatic wounds that happen in the battlefield. So this is a far-forward type of technology. And so they've been investing into that. So we expect to see that trial start. And one of the lines that we use consistently throughout Kane is that we can get an injured soldier from the battlefield into an OR in less than an hour, but somewhere around a third of those soldiers end up with a chronic infection due to biofilm.
So if we have a product that will prevent biofilm from forming and a product that treats already formed biofilm, that's a great win for the military services. Then, Marc, I want to key on something you said. I'm presenting at the Boswick Wound Conference next week. That's exciting because that's really the key KOLs, the key opinion leaders in burn care in the U.S. So I'm presenting data on the seven-day efficacy of the Revive family of products. You had the spray gel canister there. That's something that burn physicians, exactly that. That's something that burn physicians and surgeons will want to use when they have a patient with a large surface area wound. They can spray that same gel. It has the exact same properties of Revive in the tube. So I'll be presenting seven-day efficacy data across multi-species biofilms.
And then two other things that are probably important to mention. First is the very aggressive objective that will be cash flow positive by the end of 2025. I think that's a key objective for the company and for shareholders. We've been using the money carefully from shareholders to develop the products, and we think we're at that inflection point where we can see cash flow positive at the end of 2025. And maybe one last thing, Marc, and I'll turn it over to you, is you'll notice as a shareholder, we're really ramping up IR efforts in the latter half of 2024, and that will continue through 2025. We appreciate the value and the trust that you put in us to develop these products, and we just want to continue to inform you where you are so you have comfort with what we're doing and the development program.
So that's a busy 2025 for you, Marc, as you're leading those efforts. So kudos to you and the team again, and excited to be part of this process. It's a cool thing.
Yeah, and I'm looking forward to having your support, Rob, as we increase our investor outreach. And really, I think that's how we're going to. We've agreed on what we're going to accomplish. You're going to share that with our investors and as we accomplish it, and I'll make sure that we're delivering it. I'll take two seconds here to share a quick snapshot of our product family now, our one-ounce, our three-ounce, and our five-ounce spray boxes there that I thought I would share with everybody.
The other point, Rob, that I just want to dig in on is that why this commercialization is such a great inflection point for Kane is that, as you know, a lot of biotech companies such as ours will invest a very, very large sum of money into the development of the product, as we did, into the scale-up manufacturing, the FDA approval, the Health Canada approval, and then bringing it to market is also very expensive, but we're really using a strategy that allows us to, where we're commercializing ourselves in key markets, but those investments are very modest and reasonable, and in other markets, in the bigger markets, we're actually adding our product to the bag of our distribution partners, which really allows us to minimize cost, but still achieve our objectives.
Our commercial partners don't have products that overlap in their bag, and so that really makes sure our product gets the attention that it needs. But we're not putting a hundred boots on the ground to get this to go knocking on doors and spending tens of millions of dollars to get the product launched. We've got partners that have relationships that are bringing this to market. So it's very, very exciting. And I truly believe that our Revive gel is the best in class, and we've priced it within reimbursements in the U.S. thereby Medicare and Medicaid, and we'll make our Revive gel a hot commodity. And the great thing is that our manufacturing partner can produce these in very, very large scale. So we won't have any stock issues. So that's a very exciting time for Kane. So go ahead. Yes, please.
I was going to say, Marc, I mean, I know the pain of trying to start a commercial organization and trying to build that within the U.S. infrastructure system, and it's cost inefficient, and it's a lot of effort, and I like the model that you proposed early on with using distributors, but using those companies that have an investment into seeing these products succeed because it will help them as well, and so I think it's a great model. It makes a lot of sense, especially for our Canadian company, so again, great model for us.
Fantastic. No, Rob, it's been a very exciting 12 months. I mean, I know you've been an advisor to the company since I joined, but it's been a great 12 months, and I want to thank you for all your help, and I'm excited to continue to work with you as we move into 2025, so we're right at the 17-minute, 18-minute Marc, Rob. I'm going to take a quick pause, and then we will come back and see if there are any questions in the chat, and if not, we can wrap it up. We can wrap up the call, so great. Thanks a lot. Welcome back, Rob.
Thanks.
So we have a number of questions here from Dwayne. Thank you for your support, first of all, on our disciplined approach. We're pretty excited and proud of everything that we've achieved. It's been great. The Dechra manufacturing will end in Q1 of 2025. And there is a $750,000 USD milestone that is due when they hit a sales milestone. And we're hoping that that will be in 2026. So I wouldn't expect that in 2025. I'm guessing that'll be in 2026. How will the Q1 and Q4 revenue from Revive compare to revenue in Q3? We're expecting significant revenue growth in 2025 as ProGeniCare transitions to BioStem. There was a little bit of a delay in the Q4 ordering.
We did receive, actually, we worked very hard and did receive an order from ProGeniCare slash BioStem at the end of the year for the spray that would have made Q4, again, a bigger quarter than Q3. However, we agreed with them to delay that into Q1 to make sure that everybody's happy with the transition of this agreement and that we wanted to make sure that everybody's living up to the agreement we had with ProGeniCare and that there was no that we had cleared that up in Q4. Closing of FB Dermatology is going very, very well. There are some patent transfer matters there within FB and the FB holding company that need to be reorganized. Although we had targeted January 31st, we'll probably be closer to March 1st, so probably 30 days delay there.
We're expecting that the FB Dermatology revenue for 2025 should be north of 2 million CAD, hoping that'll be and putting together a good plan to make that well north of 2 million CAD for 2025. The wound gel trial, so to be clear, with the sorry, I'll read the question. Are you able to give an update on Dispersity wound gel trial with a large multinational that was announced in October? So the Dispersity wound gel trial is progressing. As I mentioned, we've got a great designation from the FDA. We're working on our IDE. And in parallel to that, we're working with a multinational, a very large multinational. We're not working with a very large multinational on the actual clinical trial. Dwayne continued that bedsores are expensive, debilitating, and painful problem in long-term care facilities. Do you have a product suitable to speed healing when bedsores occur?
Yes, absolutely. I think another word for bedsores is pressure ulcers, which is a clear indication in our product label. And really, the spray that we have really makes that ideal for bedsores and pressure ulcers. You can cover large surfaces. It's easy to get in there. You can put a fair amount of product. I completely agree. And one of the areas we talked about, Rob, that we forgot to mention is the surgical application of our product. So we've got the gel in a tube, which we're really aiming at chronic infected wounds. That's really the target market for that: diabetic foot ulcers, venous leg ulcers, pressure ulcers. We've got the spray. And the spray will be, we believe that the target market there will be acute injuries such as burns, such as acute traumatic injuries, burns, car accidents, road rash.
Strong military applications as well for the spray. We're taking the same gel and filter sterilizing that gel for it to be used in the OR. Surgical site infections are a big, big problem in the U.S. When somebody acquires an infection in the hospital, the hospital is responsible to treat and to heal that infection at their own expense. Being able to have a product like Revive or surgical gel, which will go under a different brand than Revive for a variety of reasons, but will be a huge asset there as well, or really get us a full range from chronic infected wounds to surgical wounds. That'll be a great product line. The margins on the product, they vary by territory. They vary by products, but anywhere from, I'd say, 65%-90%.
And the beauty there is that we get that full margin. We're not building a big, big salesforce, a big commercial organization to bring that to market. So we're leaving a little bit of margin on the table, but letting our commercial partners do well with it and be motivated to grow that as well because our margins are already very, very good. JD is asking what our spend will be in 2025. Our spend is about $300,000 a month. We should be maintaining that level of spend there as we move into 2025. How's the private placement going? Full subscription, and oversubscription expected. And when do you anticipate the final closing to take place? So raising money, Rob's been doing a fantastic job. Rob's really been the one doing the heavy lifting there for us on that. We still believe it'll be slightly oversubscribed as we get close.
A lot of our investors or people have indicated their intent to invest. It was just a question of timing there, the delay. That should be done early September. Sorry, sorry. Early February. I apologize for that slip there. The I-MED product be ready for sale. We're still working on the development of that product. No, unfortunately, we're not giving any guidance as to how big the market that might be. Then Colm asks me, thank me for the good work, and asks what I'm personally most excited about for 2025. For me, it's the Acne clinical trial. I mean, I'll let Robert speak up afterwards. I'm going to put you on the spot to wrap that up. I think that's the last question, Rob. But for me, it's really like asking me, I have four kids, and you're asking me which one is my favorite.
I think I'm very, very excited about the spray applications for our Revive gel. There's great margins. We've patented that. It's a one-of-a-kind product there. There's no other spray gel on the market today, and that's really going to be a huge product for us. I'm absolutely convinced there. In the burn market, they desperately need something like this. I'm also very excited about the acne trial. I think all the in vitro data that we have tell us that this will be very, very significant in terms of how people treat acne there, the introduction of a Dispersity skin cleanser. So that's also very exciting, and then I have to say the FB Dermatology acquisition is also very exciting. We've been talking with the team in Europe.
We've been talking with the team in Australia and New Zealand, looking how we bring these great products to market and the huge potential there. So I'll stop rambling, Rob. What are you most excited about as we move into 2025?
Because I feel compelled to give different answers than you. But I will say this for the people on the call, and you talked about this, the spray is really important. And I'm excited to talk about that in front of burn clinicians because for them, this is their first time seeing eyes on a product like this. So I think it'll be very cool to see their reaction. Like you, I like the Acne trial as well too. The data is very solid in terms of why this should work well. And that's a huge advance in acne care. When I talk to investors, I remind them, I was one of those kids with horrible cystic acne. And I tried a plethora of products that were out there, all with either huge toxicities or non-efficacy. So this is up.
I think the other things I'm excited about for Kane and for the people on the call as well too is we're now starting to see a lot more eyes on Kane and what Kane is doing, and it's really a nice niche for them as well too as investors. So doing a little bit more time talking with our U.S.-based investors about what we're doing as a biotech company and how they can support us as well too. So a really cool sign, things coming up that you've already talked about, Colin, that you've mentioned as well too. And maybe actually for me, which is really cool, is the interaction directly between you as investors and us as a company is a real joy. We are certainly available for meetings and that you can contact Marc.
Certainly, we're here to answer your questions and get your thoughts as well too. I enjoy that as well too.
Fantastic. So thanks again, everyone, for tuning in. The recording will be available there. We'll make sure we put it online if anybody missed it. And thank you, Rob, for all your support and all your work. Raising money for a small Canadian biotech right now is certainly challenging. And you're doing a really good job. And it's exciting to see the response that we've gotten from investors. Although it's taken a little longer than we hoped, it is still a lot of confidence we'll get it done. So it's great. Fantastic. Thanks, Rob.
Thank you.