TAMPA, FL--(Marketwired - Mar 31, 2017) - Umbra Applied Technologies Group (OTC PINK: UATG) First Quarter Status
It is an exciting time here at UAT Group and across our servicing market segments, particularly within the biotech industry. Admittedly the biotech industry still has not completely recovered from the volatility of 2016 however, there has been a strong resurgence through-out the market place. The immuno-therapy market segment looks to be exploding, with several cancer vaccines entering clinical trials and some nearing commercialization. PD-1 inhibitors are starting to be approved for treating various cancers and with companies like Sarepta Therapeutics, UniQure and United Therapeutics making significant advancements, the market has a pretty good start. Gene therapies are also getting closer to market with, Spark Therapeutics potentially having the first treatment approved in the United States as soon as next year and the gene editing technique CRISPR-Cas 9 has begun human trials.
I expect to see more of this in 2017 as the market sector returns to the fundamentals of mergers and acquisitions with the strength of clinical data being the fundamental catalyst. While many analysts caution that the relative performance of the sector is made largely due to the binary nature of biotechnology holdings I would also add that as a whole I predict the sector to outperform initial 2017 projections based on current trends in corporate growth strategies.
Umbra Applied Technologies is well suited and positioned to capitalize on a burgeoning market segment.
This holds true for UAT Group in that we are well positioned within the medical device segment that has seen little to no innovations over the past 48 months yet has seen significant growth. Up to one third of medical device companies reported sales increases of 10% or more over the last year with many medical device companies expecting more growth from established markets in the US and Europe than in developing markets in 2017.
Regulatory changes continue to represent the biggest business challenge for most of us in this market segment however a recent survey of more than 3,000 medical device industry participants found a renewed focus among companies in US and European markets, as well as more bearish expectations for BRIC markets and greater challenges addressing regulatory compliance. More than 20% of the survey respondents reported sales increases of 15% or higher last year, and nearly 30% of firms reported increases of between 6% and 10%. The highest percentages of sales increases came from smaller firms--34% of firms with nine or fewer employees and 31% of firms with fifty or fewer employees grew sales by 15% or more. Larger respondents with two hundred fifty or more employees indicated more modest sales growth of 10% or less. This bodes well for UAT Group both as a small company and an industry leader in innovation.
Another significant indicator within the global medical device market is that positive growth expectations for the US jumped 9% between 2016 (51% of respondents) and 2017 (60%), while such expectations for Europe increased from 40% in 2016 to 51%. This leaves UATG well positioned to capitalize on a segment movement that previously was otherwise turbulent and unpredictable.
At UAT Group we believe that medical devices are beginning to capture major market share and it appears so do many other companies. We predicted this and prepared for it by creating a pipeline of innovative products to be released during the second quarter of 2017. The medical device industry has been rapidly changing, and is very dynamic. Through the rise of bioelectronics and medical technology more generally, pharmaceutical partnerships, and an increased emphasis on collaborative care, medical device manufacturers are clearing a space for themselves in the future of medicine. Pharmaceutical companies are looking for synergistic relationships that enhance their product and give their product a competitive edge in the market. It is why you see companies like Pfizer or Roche developing mobile apps to accompany their drugs and it is why GlaxoSmithKline has recently partnered with Google.
The $3.2-trillion healthcare industry is set to go through a big shift in 2017, and the medical device sector is at the heart of this transition.
The biotech transaction market appears to be robust, and we intend to be an active participant, both as a potential buyer of Intellectual property and a potential retailer within the global biotech market segment. Our improving balance sheet is an important enabler in that regard to which we seek constant bolstering of our asset base and cash position.
We continue to make progress with our evolving balance sheet which we feel will provide us with a strong liquidity position allowing us to thoughtfully pursue our growth objectives while returning capital to shareholders. We believe this is a key competitive advantage as we head into a period where we expect to see increasing acquisition opportunities.
Additionally, we have revamped our internal corporate mechanisms to not only better serve our employees, build shareholder value but also to be as efficient as possible when serving our future customers. We have become more efficient by outsourcing payroll and employee health benefits to a top U.S. based firm at a reduced cost of what previously was an internal expense freeing up capital to be allocated where needed.
We are currently in the process of completing a capital infusion of $250,000.00 with April beginning the launch of a $5,000,000 raise in support of corporate expansion, product manufacturing and up-listing to a senior exchange. Accompanying capital raises will be a robust marketing campaign supporting the delivery of a pipeline of products beginning with the Aegis fixation pin to include the delivery of the ClearView wrist fixator later this year. In support of this initiative I have, for the first time, granted several scheduled interviews and the company will be releasing several videos on our products, manufacturing processes as well as offering a glimpse into what is on the horizon here UAT Group. I think you will be just as excited and encouraged as I am, by seeing what our Applied Sciences Division (ASD) has been working on.
I look forward to my next letter updating you on our progress and how far we have come since first beginning this journey almost five years ago. I will be releasing another podcast in the coming weeks outlining advances and perhaps a few surprises so be sure to update your official UAT Group app and watch for UATG alerts so you can listen to the podcasts to come. If you do not yet have the UAT Group app, it is available at the Apple App Store and Google Play under "UAT Group".
I would also urge everyone to sign-up/opt-in to our e-mail list so that you can always stay up to date on the latest news from UATG. To opt-in and become part of the UATG experience simply follow the link http://uatgroup.com/chairmans-letters/ and fill out field on the right under "Get Chairman's Letters & News by E-mail" or If you have any questions about our improved social media presence, please visit http://uatgroup.com/faq/.
Chairman & Chief Executive Officer
Umbra Applied Technologies Group, Inc.
About Umbra Applied Technologies, Inc.
Umbra Applied Technologies is a member of the Umbra Applied Technologies Group (OTC: UATG) family of companies. Umbra Applied Technologies, U.S. based Defense and Security Company, is engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services for defense, civil, and commercial applications in United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services.
In support of air, land and naval forces, the company operates in five segments: Aeronautics, Information Systems & Global Solutions, Biotech, Alternative & Renewable Energy, and Intelligence Systems. The Aeronautics segment offers military aircrafts, such as unmanned combat and air mobility aircrafts, and related technologies. The Information Systems & Global Solutions segment provides advanced technology systems and security expertise, integrated information technology solutions, and management services for civil, defense, intelligence, and other government customers. The Biotech segment addresses critical gaps that are absent in defense medical research programs. The Alternative & Renewable Energy segment provides alternative solutions to energy through research in bioelectricity, wind, thermodynamic and solar energy. The Intelligence segment provides computational study of signals, open source and network intelligence through advanced metrics and algorithms to locate and extract sentiment from gathered intelligence.
For more information visit www.uatgroup.com or www.umbraappliedtechnologies.com
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This news release may include "forward-looking statements" including forecasts, estimates, expectations, and objectives for future operations including but not limited to its ability to conclude a business combination with a third party, sale of assets, return of capital or initial public offering and a secondary listing on the OTC as a result of aforementioned and its ability to fund the exploration of its assets through the raising of equity or debt capital or through funding by a joint venture partner that are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of Umbra Applied Technologies including but not limited to capital markets and securities risks and continued development success on technology. There can be and are no actual or implied guarantees that any of the above activities will be completed or completed on terms acceptable to the Company and its shareholders or approved by any regulatory authority having jurisdiction. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Risks and uncertainties about Umbra Applied Technologies business are more fully discussed in the company's disclosure materials, including its MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Umbra Applied Technologies does not assume the obligation to update any forward-looking statement, except as required by applicable law.