American HealthCare Capital is pleased to offer a Stem Cell and PRP Regenerative Medicine Company for sale based in Southern California. The company provides non-surgical pain management for a multitude of orthopedic disorders, primarily focusing on joint, neck, and back pain. They currently operate in Southern California, but the platform is scalable nationwide. Offices can be functional and profitable as turnkey operations in hundreds of clinics around the country using their in-house, proprietary, internet and radio marketing campaigns.
Stem Cell Therapy and Platelet-Rich Plasma (PRP) Therapy are part of a group of treatments that fall under the term “regenerative medicine,” which uses the patient’s own (autologous) cells to rejuvenate damaged tissues in the body. They are also termed “biomedicine,” since they are based on natural biology and chemistry. These therapies do exactly the opposite of surgery: instead of removing damaged tissue, they rebuild and strengthen it. They are designed to stimulate the immune system to heal and rebuild damaged joints and tissue without the significant risks that accompany surgery, joint replacement, or other invasive procedures.
Stem Cell Therapy is a minimally invasive procedure in which stem cells are extracted from bone marrow from the patient and then re-injected into any injured or arthritic part of the body. The procedure is performed outpatient under local anesthetic in a doctor’s office. It’s sister procedure, is PRP, a process of using the patient’s blood to stimulate new cartilage growth in joints. Bloomberg News foresees stem cell therapy as a potential multibillion dollar industry in the near future for the treatment of pain and other related degenerative diseases. Cost can vary from $2,000 to $10,000 per treatment, depending on who the company/provider is. Insurance companies, Medicare and Medicaid do not reimburse doctors for stem cell therapy, but it is a legal and a viable alternative to surgery. The FDA is in the advanced stages of establishing its Standard of Care for each of the possible component therapies and procedures that can be implemented. The estimated time line is 2 years. At such time, all of the unqualified providers of stem cell therapies today will be eliminated because they will not meet the high standards set by the FDA, but our seller will have no issues. Once the insurance industry approves a reimbursement schedule for stem cell treatment, it will become one of the top revenue generators in the healthcare system for doctors.
The company grossed $3 Million in 2016 with net revenues of nearly $1.5 Million to the owner/doctor at a single clinic. They are projecting $4 Million in annual gross revenue in 2017 with 50% in pretax profits. An additional revenue source is in the cosmetic field doing Vampire Face Lifts, Botox, and facial fillers. Although this profit center is small at this time, it could easily outperform the musculoskeletal area with low cost midlevel practitioner delivery instead of using an MD. Vampire Face Lifts are an alternative to surgery, using the same platelets from the blood and stem cells from bone marrow used in the orthopedic branch of the company, and made famous by the Kardashians. The final profit center is a diet program, which is adjunct to assisting in the reduction of pain in the lower extremities, and could also be a standalone business.
Our client has placed a minimum $5 Million minimum enterprise value on the business opportunity and is willing to sell to a strategic or equity partner, either all or part of the company, with the intent to grow the platform from a regional business to a national organization.
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