8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 12, 2009

Kinetic Concepts, Inc.

(Exact name of registrant as specified in its charter)

Texas	001-09913	74-1891727
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

8023 Vantage Drive San Antonio, Texas	78230
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (210) 524-9000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

As previously announced, on Monday, January 12, 2009, Kinetic Concepts, Inc. (“KCI”) will present at the 27th Annual JPMorgan Healthcare Conference in San Francisco. A copy of KCI’s presentation is attached hereto as Exhibit 99.1 and incorporated by reference into this Item 2.02. KCI’s presentation includes information regarding KCI’s results of operations for the year and quarter ended December 31, 2008.

Item 7.01. Regulation FD Disclosure.

The information under Item 2.02 above is incorporated by reference into this Item 7.01.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Kinetic Concepts, Inc. presentation at the 27th Annual JPMorgan Healthcare Conference in San Francisco

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KINETIC CONCEPTS, INC.
Date: January 12, 2009	By:	/s/ Brian Busenlehner
	Name:	Brian Busenlehner
	Title:	Vice President, Corporate Controller

EXHIBIT INDEX

Exhibit No.	Description
99.1	Kinetic Concepts, Inc. presentation at the 27th Annual JPMorgan Healthcare Conference in San Francisco

EX-99.1

Kinetic Concepts, Inc.

27th Annual J.P. Morgan Healthcare

Conference

January 12, 2009

Exhibit 99.1

2

Forward-Looking Statement

This presentation contains forward-looking statements including, among other things, management's

outlook, estimates of future performance, revenue, earnings per share, and growth objectives.  The

forward-looking statements contained herein are based on our current expectations and are subject to a

number

of

risks

and

uncertainties

that

could

cause

us

to

fail

to

achieve

our

current

financial

projections

and other expectations, such as changes in the demand for the V.A.C. resulting from increased

competition, the seasonal slowing of V.A.C. unit growth in the fourth and first quarter of each year,

changes in payer reimbursement policies, our ability to achieve expected benefits from our recent

acquisition of LifeCell

and our ability to protect our intellectual property rights. All information set forth in

this presentation is as of today’s date.  We undertake no duty to update this information.  More

information

about

potential

factors

that

could

cause

our

results

to

differ

or

adversely

affect

our

business

and financial results is included in our Annual Report on Form 10-K for the fiscal year ended December

31, 2007 and in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008,

including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and

Analysis of Financial Condition and Results of Operations."  These reports are on file with the SEC and

available

at

the

SEC's

website

at

www.sec.gov

TRADEMARKS

The

following

trademarks

are

proprietary

to

KCI

Licensing,

Inc.

and/or

LifeCell

Corporation,

their

affiliates

and/or

licensors

and

may

be

used

in

this

presentation:

ActiV.A.C.,

AlloDerm,

AlloDerm

GBR,

Conexa, Cymetra, GranuFoam, InfoV.A.C., KCI, KCI The Clinical Advantage, Kinetic Concepts, LifeCell,

RotoProne, SensaT.R.A.C., Strattice, T.R.A.C., V.A.C., V.A.C. ATS, V.A.C. Freedom, V.A.C.

GranuFoam

Silver, V.A.C. Instill, and V.A.C. Therapy.  The absence of a trademark or service mark or

logo

from

this

list

does

not

constitute

a

waiver

of

trademark

or

other

intellectual

property

rights

of

KCI

Licensing,

Inc.

and/or

LifeCell

Corporation. 

3

CEO Mission

4Q 2006 through 2010

November 2006: Three

Priorities Set for KCI

1.  R&D Innovation

2.  Global Expansion

3.  Diversification

Exercise

strong fiscal discipline and maintain strong

business fundamentals

4

CEO Mission

4Q 2006 through 2010

2007

2008

2009

2010

5

Strategic Vision

Sustainable, predictable growth

•

Incremental growth through innovation and global expansion

•

Build leadership position in Regenerative Medicine based on

acquisition of LifeCell

•

Focused execution to improve operating margins

•

Strong business fundamentals enabling earnings growth higher

than revenue growth and strong cash flows

A growth-oriented, diversified med-tech leader

with best-in-class therapeutic platforms

Company Overview

Clinically

focused…Outcomes driven

6

7

KCI at a Glance

A history of clinical and commercial innovation

•

30+ year heritage of innovative, high-value medical therapies

•

Demonstrated leadership positions in advanced wound healing,

therapeutic support surfaces and regenerative medicine

3.0MM patients treated with V.A.C. therapy

1.5MM patients treated with regenerative tissue matrix

7.0MM patients treated with our therapeutic surfaces products

•

Demonstrated ability to change clinical practice of medicine

•

Global market presence with direct operations in 20 countries

•

Solid financial performance over past 7 years

8

KCI at a Glance

Business Summary LTM as of 3Q08

(1) On a Proforma

basis as if LifeCell

was owned by KCI the entire period

Wound

Healing (WH)

Therapeutic

Support Systems

(TSS)

Regenerative

Medicine (RM)

Market Size

& Growth

KCI Market

Position

KCI

Revenue (1)

(LTM Q3)

~$4.5 Billion

(Advanced Wound Care)

5 to 6% Growth

~$1 Billion 

18 to 22% Growth

~$2.5 Billion 

2 to 3% Growth

#1

#1

#2

$1,391 Million

13.3%

Y-o-Y Growth

Current

Market

•

Surgical, trauma &

chronic wounds

•

Acute & Post-Acute

•

Challenging Hernia

•

Breast Reconstruction

•

Complications of

immobility

•

Pulmonary & skin

integrity

•

Patient handling

$227 Million

27.7%

Y-o-Y Growth

$339 Million

5.9%

Y-o-Y Growth

Revenue

Mix (1)

71%

12%

17%

8

9

KCI at a Glance

Global Sales Force Footprint

Note: Figures as of 3Q 2008

10

Wound

Healing

($ Millions)

Current

Markets

Geographic

Expansion

New Product

Innovation

Regenerative

Medicine

($ Millions)

Therapeutic

Support Systems

($ Millions)

Market

Penetration

Market

Expansion

Market

Innovation

$6,000

3.5 Million wounds

~25% penetration

$800

160k procedures CHR

60k procedures BR

~30% penetration

$800

~30% Global Share

Acute Rental

$1,000

~1.3 Million wounds

$440

90k procedures CHR

40k procedures BR

$5,000

~10.0 Million wounds

$2,400

~2.5 Million procedures

$100

Business/Product

Opportunities,

Co-developments

$100

Central Europe,

Bariatrics

EU, Canada

Realizing the Vision

Market opportunity driven by expansion and innovation

Note:   CHR: Challenging Hernia Repair,

BR: Breast Reconstruction

10

Wound Healing

Clinically

focused…Outcomes driven

11

12

Traumatic

Degloving

Infected

Abdominal

Initial Wound

7 days 

V.A.C. Therapy

18 days V.A.C. Therapy

with STSG

Sacral Pressure

Ulcer with

Necrotizing

Fasciitis

Post-debridement  

28 days V.A.C. Therapy;

2 weeks Post-Flap

Initial Wound

24 days

V.A.C. Therapy

30 days V.A.C.

Therapy

2-3 weeks post-STSG

14 days        

V.A.C. Therapy

Wound Healing

V.A.C. Therapy: significant unmet medical need

Note:  STSG: Split Thickness Skin Graft

13

•

Acute (surgical and trauma)

and chronic wounds

•

Complex, hard to heal wounds

•

Wounds treated across care

settings

•

20+MM complex, hard to heal

wounds

4.8MM V.A.C.

appropriate wounds

$7B target NPWT market

2x size of AWC market

Advanced Dressings

4Q 2008 Simplace

Launch

Wound Healing

V.A.C. Therapy: highly differentiated and clinically proven

ActiV.A.C.

for Home Care

InfoV.A.C.

for Acute Care

Target Market

Product Portfolio

14

Wound Healing

Current Market

Target

Launch

2009

2010

2011

2012

2013

15

Wound Healing

Geographic Expansion

Unpenetrated

Penetrated

20-25%

Target

Expectations

(2013)

12-15%

$700 MM

Market

Opportunity

$600 MM

$500 MM

$400 MM

16

Clinical Need

•

Soft tissue repair and

regeneration

•

Hard tissue repair and

regeneration

Wound Healing

New Product Innovation

•

Lower acuity wounds that

need only some of the

benefits of V.A.C.

•

Wounds that require

therapy in addition to

V.A.C.

VING

•

Management of high risk

surgical incisions;

cosmesis

•

Management of open

abdomen

Futura

SWMS

Ab-System

TE-Wound

TE-Ortho

Negative

Pressure

Wound

Therapy

(NPWT)

Negative

Pressure

Surgical

Management

(NPSM)

Negative

Pressure

Regenerative

Medicine

(NPRM)

17

Wound Healing

New Product Innovation

Anticipated

product

launch

Ab-System

SWMS-I

TE-Wound

Futura

SWMS-A

VING

TE-Ortho

2009

2010

2011

2012

2013

R & D  Planned Pipeline

18

Wound Healing

Competitive clinical advantage

Regenerative Medicine -

LifeCell

Clinically focused…Outcomes driven

19

20

Description:

Subset of ventral hernias that are complex

based on infection or risk of infection

U.S. market opportunity

$660MM

Procedures

160,000

Avg

revenue/procedure         

~$4,125

Regenerative Medicine

Grow revenue in U.S. core markets

AlloDerm

~ 70%

~30%

Market Share

Biologics

Penetration

(Procedures)

AlloDerm

~ 90%

~ 40%

Market Share

Biologics

Penetration

(Procedures)

Challenging Hernia Repair

U.S. Market

Breast Reconstruction

U.S. Market

Description:

Used in breast reconstruction post

mastectomy to support implant for improved

aesthetic outcomes

U.S. market opportunity

$140MM

Procedures

60,000

Avg

revenue/procedure         

~$2,330

21

Regenerative Medicine

Intact extracellular matrices that support tissue regeneration

•

Native collagen and key

matrix components

•

Matrix capable of supporting

cell migration and capillary

invasion (no abnormal

cross-links)

•

Rich in proteoglycans

•

Initial biomechanics that

supports suture retention

and high load

Extracellular matrix

is preserved and

intact

Chemically cross-

linked

Damaged matrix

Foreign antigens

•

Inflammation & infiltration

•

Elaboration of proteases

•

Replacement with scar

•

Normal fibroblasts

•

Revascularization

•

Remodeling to normal

tissue

•

Inflammation without

infiltration

•

Classic foreign body

response

•

Contraction

Regeneration

Negative

Recognition

Resorption

Encapsulation

Positive

Recognition

Regenerative Medicine

Processing matters

Response to biologics depends on the method of processing

22

23

Regenerative Medicine

Strattice

–

A Compelling Commercial Opportunity

•

Product Attributes

Mechanically & biologically similar to human derived Alloderm

Proprietary enzymatic process eliminates “foreign body response”

FDA approved June 2007; CE Mark received November 2008

•

Commercial Advantage

Greatly expands market opportunity from $1B to $3.6B

–

As a medical device Strattice

can be adapted for new applications

Sterile, ready to use & non-refrigerated

No issues with source of supply

Available in many shapes & sizes

Significantly lower manufacturing cost

•

Expect $100 MM in revenue in year two of launch (2009)

24

US Market Opportunity:  $2.4 Billion

Orthopaedics

$400MM

Inguinal hernia

repair $220MM

Laparoscopic

hernia repair

$320MM

Cosmetic

procedures

$630MM

Regenerative Medicine

New product innovation

•

Launch applications where 

regeneration addresses unmet

needs

•

Launch three new hernia related

applications over the next three

years

•

Enter cosmetic market focused on

breast augmentation revisions

followed by additional applications

•

Launch Strattice

into Orthopaedic

market

New applications focus

Hernia

prevention

$810MM

25

•

Surgeons use NPT

and RTM on same

wounds for optimal outcomes

•

Prepare abdominal wound for closure

•

Protect exposed RTM and aid incorporation prior to closure

Regenerative Medicine

RTM and Negative Pressure Current Utilization

RTM application

NPT application

Definitive closure at 4 weeks

26

LifeCell

Update

Performance exceeding expectations

27

Therapeutic Support Surfaces

Clinically focused…Outcomes driven

27

28

Therapeutic Support Surfaces

Market Overview

29

Therapeutic Support Surfaces

Strategic imperatives for profitable growth

Best in Class Quality

•

Refurbishment investment

•

Standardized, aviation-style

maintenance programs

Agile and Flexible

•

Improve labor efficiency to enable

flexibility

•

New delivery methods: V.A.C. vans,

DME, FS direct-ups

Right Therapy at the Right Time

•

New routing software capabilities

•

Asset preparation during night shift

Focus on Profitability

Enhance Customer Experience

Predictability

Reliability

Responsiveness

•

Service infrastructure

efficiencies

•

Efficient sales force

deployment

•

Manufacturing

improvement

•

Sufficient investment

in R&D

•

Exit unprofitable

markets/products

Financial Overview

30

31

Revenue Financial Performance

Outcomes drive sustainable growth

$  Growth

124

184

229

216

163

238

209

%  Growth

27%

32%

30%

22%

13%

17%

18%

32

Increasing Financial Flexibility

Strong earnings and cash flows fuel corporate agility

*

Adjusted for non-recurring and certain non-cash acquisition-related expenses

Adjusted EPS *

Free Cash Flow *

($ millions)

$0.00

$1.00

$2.00

$3.00

$4.00

2002

2003

2004

2005

2006

2007

LTM Q3

2008

$50

$100

$150

$200

$250

$300

$350

2002

2003

2004

2005

2006

2007

LTM Q3

2008

$-

33

4Q 2008 Preliminary Financial Performance

V.A.C. revenue grows despite economic and competitive challenges…

•

Still early in the process: 2008 full year results and 2009

financial guidance to be provided on Earnings Conference

Call January 27, 2009

•

Early Read on Y-o-Y 4Q08 Revenue Growth*

•

North American VAC growth: low single-digit

•

EMEA/APAC VAC growth: low double-digit

•

LifeCell

meeting expectations

•

TSS results impacted by economy

•

4Q08 to include one-time service/G&A restructuring costs of $12

to $14 million, before income taxes

* Constant currency basis

34

2009 and Beyond

Well positioned for continued success…

34

Kinetic Concepts, Inc.

27th Annual J.P. Morgan Healthcare

Conference

January 12, 2009