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Water Tower Hour Recap: Powerful Technology Platform Driving Strong Growth Potential

Marizyme, Inc. (MRZM) is a fast-growing biomedical company with a powerful multi-technology platform. At the forefront is DuraGraft (DG), which has already demonstrated improved outcomes and lower costs for cardiac care through clinical trials and actual implementation in select overseas markets. In addition to continued ‘OUS’ expansion, MRZM is readying for the implementation of DG in US markets, pending FDA approval. CEO and Director David Barthel joined us on The Water Tower Hour podcast to provide an overview of MRZM and answer our questions about the technology, near-term goals, and risks. Barthel pointed to a compelling value proposition for DG as evidenced through both clinical trials and in ‘real world’ implementation (i.e. in select EU and Asia markets where implementation of DG started in 2016). Further validation comes from a just-completed three-year registry study (2,975 patients). Adoption of DG in existing markets is accelerating. While initially modest, the pace of adoption has accelerated over the past couple of years. Reflecting that, revenue for 2023 is already about 2x the level of last year. Reflecting that momentum, along with results of initial introduction of DG in US markets, Barthel expects the company will reach or exceed $25 million in annual revenue by 2025. Longer-term outlook. While he did not offer a specific growth target beyond 2025, Barthel touched on the upside potential (for DG alone) based on assumptions on technology adoption for CABG procedures (both US and ‘OUS’). As we discussed on the podcast, the potential is even larger when we consider work underway to further enhance DG (support shipping at room temperature, make available in powder formulation) as well as to apply DG to modalities beyond cardiac care (we discussed organ transplantation and fat grafting). Finally, there is meaningful growth potential in other MRZM technologies (including MATLOC and Krillase that are developed but not yet approved for sale). There are also real risks. We discussed near-term risks, including FDA approval, nailing down strategic hospital system partners in the US, and reimbursement where MRZM is seeking CMS approval for a new reimbursement code (DRG, in this case). Barthel highlighted strong risk mitigation strategies as well as the company’s ability to adapt to change. No competitors at present, strong ‘IP’ protection, and further innovation are key. Barthel highlighted the uniqueness of DG in the context of a scarcity of new technologies in cardiac care in recent years. Nonetheless, Barthel expects further take-up of DG will trigger competition, but he pointed to strong IP protection as well as ongoing innovation as factors that help ‘moat’ the company from new entrants. Listen here. You can listen to The Water Tower Hour on Apple Podcasts, Google Podcasts, Spotify, or our website.