Team introduction, glucose meter for detection of targets other than glucose; a device/strip to use with a glucometer for detection of non-glucose targets.
The conversation with Steve Mayer hinted us that there is some other attractive market with a new value proposition, IMMEDIACY.
a flexible Drugs of Abuse Analyzer “Bank” which is actually a rack which holds a number of small individual analyzers. A specific hospital could order the specific analyzers to meet it needs …etc.
Transcript of "Sweet sensors lecture 7 partners"
Sweet SensorsSmall form factor Types of targetsdiagnostic devices thatcan detect a variety of • Recreational drugsbiological markers. • Heavy metals • Toxins• Inexpensive • Bacteria• Quantitative • Viruses• Adaptable to many • Pharmaceuticals kinds of tests (targets) • Environmental hazards • Food safety targets Yu Xiang and Yi Lu, Nature Chem. 3, 697-703 (2011).
Meetings/Conversations From the Past Week• A CEO of company (familiar with diagnostics)• Attorney to pharmaceutical companies• Consultant for in vitro diagnostics• Rich Ganz, medical device executive• Richard Smith, expert in drug discovery, clinical trials• Donna Rosenbaum, expert in food safety• Conference call with a major pharmaceutical company
Upcoming Conversations• Sword Diagnostics• Abbott Labs• Blue Cross Blue Shield innovation team• Retired Hospital executive• Biotech entrepreneur• Michael Rosen, life sciences entrepreneur and executive• Other VCs
Summary of Key Findings (cumulative)• HbA1c is not a good target.• The best tests are those which require immediate results.• Saliva is preferred over blood.• Our key value driver is cost.• The breadth of the platform is an asset to be leveraged. In most cases when money is no object, there’s probably a more sensitive test available.• POC is not recommended for patients at home. Compliance is very low. We can’t find many examples of successful products, even those that are very simple.
Key findings: partners and customers• Diagnostic companies can be our partners; dominated by five companies• Glucometer manufacturers as partners – Mentioning glucometer can be confusing• Contract research organizations• Pharma will be interested if …for clinical trials – It reduces cost – Reduces the passage of time – Helps get more accurate results – Helps them avoid going down the wrong path• Possible site visit by a major pharmaceutical company in December
Key findings:other customer segments, technical• Saliva is the best testing medium – Provide a list of targets in terms of testing medium• POC diagnostic device not recommend for patient at home; focus on cheaper and faster POC device for clinic• Many home test devices didn’t sell well. Why? – No benefit to the caregiver? Remote data analysis?• Food safety? – Bacteria: rapid test available, but they want them faster – Spores: not available not…we may have something – Virus: no advanced test existed• Personalized medicine?• Drug analyzer?
Business Model Canvas #6 (last week) Yi Lu, Tian Lan, Brian Wong Sweet Sensors Neil Kane 11-01-2011 Chris Sorensen Conferences R&DPharmaceutical Pharmaceutical QCcompanies One to one companies ImmediacyGlucometer/strip Convenient monitoring Long term Glucometer/stripmanufacturer and safer dosage manufacturerDiagnostic Exclusive Diagnosticcompany companyContract research Contract research Pharmaceutical Cosorganization organization IP Pharmaceutical Cos Personnel Licensing R&D Sales (to pharmaceutical companies)
Business Model Canvas # 7 w/changes Yi Lu, Tian Lan, Brian Wong Sweet Sensors Neil Kane 11-08-2011 Chris Sorensen Conferences R&DPharmaceutical Immediacy Immediate Pharmaceutical QC resultscompanies One to one Direct companies PublicityGlucometer/strip Convenient monitoring Long term Glucometer/stripmanufacturer Insurance Reimbursement and safer dosage manufacturerDiagnostics Exclusive Diagnosticcompanies companies InexpensiveContract research Pharmaceutical Cos Contract research Pharmaceutical Cos Simpleorganizations organizations IP InvestorsGlucometer mfr Robust/extensibleStrip mfr Personnel Licensing Licensing? R&D Product Sales (to pharmaceutical companies)
Business Model Canvas # 7 Yi Lu, Tian Lan, Brian Wong Sweet Sensors Neil Kane 11-08-2011 Chris Sorensen Conferences R&DPharmaceutical Immediate results Pharmaceuticalcompanies Publicity companies Direct Convenient monitoringDiagnostics Insurance Reimbursement and safer dosage Long termcompanies Diagnostic Robust/extensible companiesContract researchorganizations Inexpensive Contract research organizations Simple Pharmaceutical CosGlucometer mfr IP InvestorsStrip mfr Personnel Licensing Licensing? R&D Product Sales
Sweet Sensor Revenue Model Factors COPD MARKET All Segments Market Size 16,000,000 Revenue Model Market Share Target 10% Channel Capacity 100% Customer Activations 1,600,000 Attrition 10% Net Customers 1,440,000 Missing: Revenue Model Usage per Year 52Lifetime value of customer Number of Uses per Year Revenue per Use $4 74,880,000 $4and amortization of Total revenue $299,520,000acquisition costs over EXPENSES Cost Per Customer Acquisition $25 $25lifetime Cust. Acquisiiton Expense $40,000,000 Channel Split 30% 30% Cost of Channel Sales $89,856,000 COGS $0.25 $18,720,000 Net Operating Income $150,944,000 Operating Margin 50% Operating Expenses GSA $5,000,000 EBIDTA $145,944,000 Net Margin 49%
Service Channel Distribution Model Payment Insurance Doctor Company Medical Payment Services Data Service Service Provider Patient “Healthways” In House Care Services Payment Sweet Sensors
Action plan• Put together a compelling presentation and go pitch pharmaceutical companies and diagnostic companies. We’re getting inconclusive results talking to KOLs and consultants.
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