Neoark Healthcare LLC
Global Strategies, LLC (“GS”) and Neoglory Co., Ltd. (“Neoglory”): Two Partners, One Mission
- GS is a Colorado based minority business that specializes in technology transactions and distribution of medical products across federal and state governments and private industries. GS has deep expertise in international transactions, business startups, financial investments, and strong understanding and connections in areas of smart manufacturing, smart supply chain and cyber security.
- Neoglory has entered into a joint venture with GS and will serve as their manufacturing partner. This partnership, a new US company named Neoark Healthcare, LLC (NH), will allow Neoglory to create its first manufacturing plant in the US. Neoglory manufactures facemasks which are strictly regulated by the Ministry of Health and Welfare in Korea, a country which boasts some of the highest quality and efficient manufacturing standards.
- NH expects to apply for N95 NIOSH approval. NH will have the exclusive rights to all North American sales and distribution upon commencement of operations. In addition, NH can sell internationally on a non-exclusive basis.
AMERICA’S SUPPLY CHAIN PROBLEM
- Even with the US reaching herd immunity, N95 facemasks will likely continue to be a vital part of the medical and industrial supply chain.
- The massive surge of N95 purchasing during the highest peak of the pandemic caused an unmet demand for facemasks.
- With new and more virulent pandemics and the continued mutation of Covid, the US may once again face shortages even with larger companies like 3M and Honeywell, who continue to manufacture in, and ship, from China.
US Dependency on Foreign Supply
- Without a production shift, the US will likely continue to face unprecedented shortages, massive counterfeit, fraudulent supplies and skyrocketing pricing for PPE going to the highest bidders.
- With China owning 50% of the PPE market, the US is dependent on China to provide immediate supplies.
- The US experienced foreign countries imposing export controls which created delays in shipments and products being held or denied at the US customs borders.
Permanent Demand Expected
- Hospitals and other medical institutions along with the construction industry will continue to require N95 facemasks.
- Moreover, demand for new facemasks is anticipated to grow with: 1) the CDC moving away from guidance supporting reuse of N95 facemasks by medical personnel; 2) recent recommendations for medical personnel not to use KN94; 3) increasing crackdowns on quality control and fake N95s from China; and 4) a continuation of the current pandemic, and future pandemics around the world.
- Cost remains an issue, with physician practices’ spending on PPE rising by 57% in 2020
- Millions of fake N95s have circulated, spurring the Centers for Disease Control and Prevention National Institute for Occupational Safety and Health (CDC NIOSH) to advise physicians and others how to properly identify bogus PPE. Chinese fake N95s remain a significant issue with many groups demanding the Administration take action and shut down Chinese imports
Authenticity is Paramount
- “Fifty-six percent of our seizures are coming from either China or Hong Kong,” Steve Francis, head of HSI’s National Intellectual Property Rights Coordination Center told reporters on a call. “We have a list of 39 other countries where these prohibited, fraudulent or counterfeit goods have entered.”
Dramatic Price Increases
- Since the start of the pandemic, PPE prices have increased dramatically as demand has far exceeded the normal supply of PPE. With healthcare providers and governments scrambling to secure PPE to protect workers, purchasers have been forced to pay exorbitant costs.
NH will be owned 49% by NeoGlory and 51% by Global Strategies LLC
- Expect to manufacture N95 FDA approved facemasks in all sizes
- The facility is planned to be strategically located in Colorado to take advantage of lower real estate prices, lower taxes, and multiple logistics options
- Taking control of the supply chain should improve logistics timing significantly
- Eliminate quality concerns by offering a 100% money back guarantee on defective products
- Pricing and timing of oversees shipping continues to add unprecedented stress
- By manufacturing locally and using as much raw materials sourced within the US as possible, the cost of N95 respirators should drop dramatically
- NH’s wholesale price is expected to cost buyers $0.80-0.90 per unit, significantly lower than the $1.20-1.40 market range that existed even without the dramatic pandemic surge pricing
Access and Distribution Strategy
- NH will prioritize distribution to ensure access to PPE is provided where needed most: hospitals and the medical community
- By establishing the manufacturing site in the US, there should be several options to distribute and sell approved N95’s
- Through previous connections, NH will begin dialogue with various local, state and federal emergency agencies and hospital networks
- NH expects to partner with domestic carriers like DHL, Fed-Ex, USPS, and UPS for door-to-door delivery of all products
CEO and Co-Founder. Previously, was the co-founder and Chief Strategy and Digital Officer for Clovity IoT, a software company in California focusing on Artificial Intelligence, edge computing for smart technology manufacturing, supply chain and cyber security. Prior to Clovity, spent 20+ years in Corporate IT and venture-based businesses, building new products and solutions for the private sector.
Vice President and CFO. Co-founded and was CFO of Advanced Sustainable Technologies, Inc., an Israeli cleantech company specializing in the construction of waste-to-energy plants around the world. In addition, served as COO and CFO of a CPG company, tasked with spearheading both US and global expansion. Over 16 years of investment banking and project finance experience.