Vette pharmaceuticalss


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Vette pharmaceuticalss

  1. 1. Vette Pharmaceuticals
  2. 2. <ul><li>Vette Pharmaceuticals has developed a birth control for men. This breakthrough product is called Levederal. </li></ul><ul><li>Levederal is a once a month oral contraceptive that has received approval from the Food and Drug Administration for being one hundred percent effective at preventing pregnancy when used correctly. </li></ul><ul><li>Levederal is a low dose hormone with minimal side effects. </li></ul><ul><li>This revolutionary drug offers men the option to control their reproductive future without having to use desensitizing barrier methods. </li></ul><ul><li>Levederal is a more effective birth control method than common barrier forms. </li></ul><ul><li>Now there is no longer the fear of allergies to condoms, having them break, or the reduction of sensation. It is less invasive than a vasectomy, and completely reversible. Levederal is perfect for men in committed relationships as well as single men. </li></ul>Vette Pharmaceuticals
  3. 3. Vette Pharmaceuticals Market Need Market Need <ul><li>The market for a breakthrough product like Levederal is substantial. This is because up until now there had not been any effective and convenient options available to men that are completely reversible as well as non-invasive. </li></ul><ul><li>Currently available contraceptive options are flawed and carry a higher risk for failure. </li></ul><ul><li>Levederal is also targeted towards committed couples where the female oral contraceptive is not an option due to health concerns. </li></ul><ul><li>Levederal is a lower dose of hormones and has a lower risk of side effects than standard female birth control pills. </li></ul><ul><li>38% percent of couples currently using female oral contraceptives are looking for another option. </li></ul><ul><li>The male birth control pill allows for increased pleasure in comparison to condoms, as well as being a great alternative for couples in which the woman cannot take the pill due to serious and unpleasant side effects. </li></ul>
  4. 4. Vette Pharmaceuticals Research Research <ul><li>Vette Pharmaceuticals has conducted clinical trials and focus groups over the last 3 years. </li></ul><ul><li>Clinical trial results showed no major side effects aside from weight gain in a small percent of men. </li></ul><ul><li>Complications women have from taking oral hormonal contraceptives are weight gain, blood clotting, nausea, headaches, and dizziness. </li></ul><ul><li>Women who smoke are at an increased risk for these side effects. </li></ul><ul><li>Men who smoked and took part in our test trials did not see an increased risk in the occurrence of side effects. </li></ul><ul><li>Sperm concentration returned to pre study levels within 16 weeks for all men. </li></ul><ul><li>66% percent of the focus group respondents believe that men should play a bigger role in choice and use of contraception. </li></ul>
  5. 5. Vette Pharmaceuticals Continued Research Continued Research <ul><li>66% of men would use male contraceptive </li></ul><ul><li>71% of American men would. </li></ul><ul><li>The market is roughly 300 million men. FDA reports show the condom has a 14% failure rate under typical conditions </li></ul><ul><li>female oral contraceptives have a 1% failure rate </li></ul><ul><li>male oral contraceptive had a 0% failure rate in test trials. </li></ul>
  6. 6. Vette Pharmaceuticals Financing Financing <ul><li>Startup finances needed: $67,714,000 </li></ul><ul><li>Current capitol: $37,714,000 </li></ul><ul><li>Investments needed: $30,000,000 </li></ul>Rent 6,000,000 Utilities 30,000 Salary 7,950,000 Office supplies 1,000,000 Insurance 22,500 Communication 12,000 Marketing/advertising 50,000,000 IT expneses 200,000 Website 150,000 Product development 500,000 Focus groups 350,000 Clinical trials 1,500,000 67,714,000
  7. 7. Vette Pharmaceuticals Income Statement Income Statement Projected Five-Year Income Statement YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Avg. Price per unit of product (Estimate) 50 50 50 50 50 Number of units sold 3,500,000 5,250,000 7,850,000 11,800,000 17,700,000 Loan Principal Balance 30,000,000 24,000,000 18,000,000 12,000,000 6,000,000 Number of Employees 150 300 450 700 1,000 Annual Salary per Employee 53,000 58,000 64,000 70,000 80,000 Total Revenue 175,000,000 262,500,000 392,500,000 590,000,000 885,000,000 Expenses Salaries, wages, benefits 7,950,000 17,400,000 28,800,000 49,000,000 80,000,000 Loan Interest @ 3.5% 1,050,000 840,000 630,000 420,000 210,000 Principal Repayment 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 Rent 21,000,000 31,500,000 47,100,000 70,800,000 106,200,000 Utilities 30,000 60,000 90,000 140,000 200,000 Insurance 22,500 45,000 67,500 105,000 150,000 Equipment 120,000 240,000 360,000 560,000 800,000 Communication Expense 12,000 24,000 36,000 56,000 80,000 Postage/Shipping 7,000,000 10,500,000 15,700,000 23,600,000 35,400,000 Office supplies 3,500,000 5,250,000 7,850,000 11,800,000 17,700,000 Marketing/advertising 175,000,000 210,000,000 235,500,000 236,000,000 177,000,000 Training / development 10,500,000 15,750,000 23,550,000 35,400,000 53,100,000 Miscellaneous 3,500,000 5,250,000 7,850,000 11,800,000 17,700,000 IT Expense (website, hardware, etc.) 150,000 300,000 450,000 700,000 1,000,000 Total Expenses 235,834,500 303,159,000 373,983,500 446,381,000 495,540,000 Income - (Loss) (60,834,500) (40,659,000) 18,516,500 143,619,000 389,460,000 Taxes @30% of Income 0 0 0 43,085,700 116,838,000 Net Income (Loss) (60,834,500) (40,659,000) 18,516,500 100,533,300 272,622,000 Net Income as % of Sales -34.8% -15.5% 4.7% 17.0% 30.8%
  8. 8. Vette Pharmaceuticals Timeline Timeline <ul><li>Pre Testing Timeline </li></ul><ul><ul><ul><li>Day 0 – Product Idea </li></ul></ul></ul><ul><li>Product creation – 3 months </li></ul><ul><li>Pill design – 2 weeks </li></ul><ul><li>Clinical Trials and testing ( 1- 3 years) </li></ul><ul><ul><li>Government approvals – 1 year </li></ul></ul><ul><li>Market analysis -6 months </li></ul><ul><li>Product design – 2 weeks </li></ul><ul><li>Focus groups and clinical trials – 6 months </li></ul><ul><li>Financial Plan – 6 weeks </li></ul><ul><li>Presentation to investors – 1 week </li></ul><ul><li>Approval of plan – 2 weeks </li></ul><ul><li>Earmark funds for distribution – 1 week </li></ul><ul><li>Accounting plan – 1 week </li></ul><ul><li>Post venture capital plan – 1 week </li></ul><ul><li>Post testing and FDA approved Timeline </li></ul><ul><li>Packaging – 2 weeks </li></ul><ul><li>Find company to design, create and ship to distribution points. – 2 weeks </li></ul><ul><li>Pricing – 2 weeks </li></ul><ul><li>Profit analysis – 2 weeks </li></ul><ul><li>Advertising plan – 2 weeks </li></ul>
  9. 9. Vette Pharmaceuticals Risk Management Risk Management <ul><li>Our market research has shown that there are many people relying on birth control who are looking for a better option. </li></ul><ul><li>Due to the high success rate and low side effects we are confident that people will try our product and will continue to use it. </li></ul><ul><li>Our market is sexually active males. </li></ul><ul><li>With this product being so new, there may be some initial skepticism from men resulting in hesitation to try it. </li></ul>
  10. 10. Vette Pharmaceuticals Risk Management Risk Management <ul><li>After a successful advertising campaign and then word of mouth from happy users this skepticism will decline. If we continue to experience this we plan to advertise toward women in relationships. Informing them of the reduced risk of side effects, and the effective rate. </li></ul><ul><li>Studies showed that 1/3 of men would try the product if suggested by their partners. </li></ul><ul><li>We would inform female doctors about Levederal so that they could suggest it to their patients who are experiencing problems with current choice of birth control. </li></ul><ul><li>The risk of this product is in the initial stage, getting consumers to try it. Once this is achieved we are confident the result will be steady growth. </li></ul>
  11. 11. Vette Pharmaceuticals Marketing Marketing <ul><li>We plan to put the majority of our advertising budget towards television commercials and print advertisements. The start up advertising budget is $50,000,000. </li></ul><ul><li>15% of our advertising budget will go to magazines geared toward men such as; </li></ul><ul><li>Men’s Health, Rolling Stone, Men’s Fitness, Maxim, and Playboy. </li></ul><ul><li>5% will go to magazines for women. </li></ul><ul><li>30% will go to television commercials. </li></ul><ul><li>20% will go to radio ads. </li></ul><ul><li>20% will go to product placement in movies and television shows </li></ul><ul><li>10% will go to pamphlets, online advertising, and billboards </li></ul>
  12. 12. Vette Pharmaceuticals <ul><li>Given exclusivity of the product, market acceptance will be immediate. It is the first and only one of its kind and it meets a current consumer need. It is a unique example of our research to create a product unlike any other. Based on studies of other types of contraception, we have bridged the short falls with a new formula. Our product out performs currently available forms. Given the applicable population of 66% of men in the world, with an acceptance rate of 25% phase one of sales would be 3.5 million . </li></ul><ul><li>With a refill interval of 30 days, run rate revenue stream will be 3.5 million per month. Following initial phase of product introduction the referral base will add 50% of sales to the initial amount. </li></ul><ul><li>Our ask of the investment community is for 30 million dollars to be paid back in 5 years. Profit margin expectation is 10% following phase one and 15% after 1 year on the market. </li></ul>