This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Safeguard Scientifics Inc. Analyst Day Conference Call Transcript

We had 2 exits so far in 2011, Advanced BioHealing and Portico Systems. Just to give you a case study on ABH, this was a regenerative medicines company that was once upon a time inside of the British firm, Smith and Nephew. Smith and Nephew penetrated the marketplace to a small degree. They built a lavish, beautiful manufacturing facility in Southern California, but they never figured out the pricing and reimbursement model. So what did they do? They closed the whole business; they shut it down.

Safeguard acquired the assets along with the syndication partner and worked with their management team. We hired back all the people and brought in another management team. We worked with that CEO and his management team . So we defined the pricing and reimbursement model, and they went back to the marketplace with their lead product Dermagraft in 2007. This was a cellular-based artificial skin used for diabetic foot ulcer and burn patients.

They increased their revenue from nothing in 2007 to $145 million in 2010 and filed an S1 and were getting ready to price an IPO when Shire came in and offered a 25% premium on the midpoint of that pricing range. And that was earlier this year.

The aggregate proceeds for Safeguard on that was $145 million back for the $10.8 million we put in. That was over 13 times cash-on-cash return or 90% IRR. That’s the example of the ten-bagger. We want to do that everyday, but it sure is nice when you do it. So we were just thrilled with how well ABH had built itself and were pleased to be a partner with them.

Portico Systems was a IT healthcare firm with the piece of software that enabled health insurers to design, build, manage, reimburse and support their healthcare provider networks. If the mandates that the payer and provider Portico Systems just to give you a case study on ABH. This was regenerated to the medicine’s company that was once upon a time inside of the British firm Smith & Nephew. Smith & Nephew penetrated the marketplace to a small degree, they built a lavish beautiful manufacturing facility in Southern California, but they never figured out the pricing in reimbursement model. So what did they do? They closed the whole business, they shut it down.

7 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,138.99 +42.09 0.23%
S&P 500 2,103.86 +5.33 0.25%
NASDAQ 4,992.3490 +25.2080 0.51%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs