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Business Idea Competition: Concept Innovate

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Business plan strategy for BIC.

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Business Idea Competition: Concept Innovate

  1. 1. Concept Innovate presents: ResveraTech Chiao Chang Prateek Diwan Lucas C Rodriguez
  2. 2. Chronic Pain Man On Fire: • 25% of Americans suffer from chronic pain • Nearly 50% do not get effective relief from current therapies • Post surgical pain often clear culprits • In many common conditions such as diabetic neuropathy, no clear source of pain is found. • The annual cost of chronic pain is as high as $635 billion a year, which is more than the yearly costs for cancer, heart disease and diabetes.
  3. 3. ResveraTech Amare Stoudemire… Why are you in a tub of wine??? Innovation of tomorrows pain relief solutions
  4. 4. • All natural (homeopathic) • Found in wine, and dark chocolate • Potential usage: • Heart Disease • Cancer • Metabolism • Lifespan • Pain relief Resveratrol
  5. 5. Types of Pain Types of pain… How is it currently treated??? What can be done???
  6. 6. Types of Pain Acute Versus Chronic
  7. 7. Biochemistry of Pain Pain Activator Pain Activator Middle -Men Middle -Men Complex Ribo
  8. 8. Efficacy
  9. 9. Market • OTC market as of 2013 ~ $6Billion • Internal Analgesic ~ 60% • External Analgesic ~ 15% • GIA estimates $34.6Billion in analgesic market by 2015.
  10. 10. Platform Technology ResveraDerm Creme Pain Relief Patch Post-Surgical Pain Relief Bandage Pain Relief Sutures
  11. 11. Marketing Plan ResveraDerm Clinical Feasibility Study Customer Acquisition and Backing • Physical Therapists • Elderly post-surgery patients • Orthopedics • Sports injury • Chiropractors • Homeopathic • Medical spas and Compounding Pharmacists • Massage • Homeopathic • Western Medicine • Pain Relief Centers • Desperate for pain relief
  12. 12. • Finish development of platform • CMO manufacture agreement • Data acquisition for downstream (IP protection) • Website Design • Clinical feasibility • Large retail Sales • Website • Clinic / Retail • Distributer Strategy
  13. 13. Strategy ResveraTech
  14. 14. R&D Manufacturer • BASF is an international chemical manufacturer • Agreement in place: ResveraDerm development Contract Manufacture • Manufacture product for : • Fee for service • Royalty • Save startup capital
  15. 15. Timeline SBIR/STTR Phase I Approval Soft Launch ResveraDerm (Clinical Feasibility Study) Downstream Product IP Acquired Hard Launch ResveraDerm (Large Retail) Phase II Approval (Development of Downstream Products) • Downstream Product Development • 2 years : $750k Business Planning Begin • Phase I: • Feasibility • Clinical Study • 6 months : $150k • Hard Launch ResveraDerm • Phase II: • Phase III (Commercialization) • Angel/VC: • Strong track via SBIR • Manufacturer contract • Ready for sales 2011 2012 2013 2014 2015 2016 2017 2018 Phase II Complete (Patch, Bandage, and Sutures Ready for Launch) Phase III Begin (Commercialization, Angel/VC Funding) Hard Launch Patch, Bandage, Sutures Break Even Phase I End Submission of SBIR/STTR Draft of SBIR/STTR Publication III Publication II Publication I
  16. 16. $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Projections Revenue vs. Unit Sales 8000 58,000 118,000 178,250 239,750 301,750 364,750 Units Sold Sales Total Costs Fixed Costs: $626,820 Variable Cost per Unit: $3 Unit Price: $7.20 Unit Increments: 10,000 BREAK-EVEN POINT: 149,243
  17. 17. Revenue Projections • Fixed and variable costs analyzed • Conservative Assumptions • low price point • two marketing channels • Concentrate efforts on TX, NM, AR, LA • Market penetration based on Lidoderm 1999 • Manufacturing keeps up with sales Sales in Millions $0.10 $2.00 $10.00 $5.00 $50.00 $100.00 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 2014 2015 2016 2017 2018 2019 2020
  18. 18. Financials TOP DOWN Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Market $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 Penetration 0 0.1% 0.2% 0.4% 0.8% 1.6% Rev $- $500,000.00 $1,000,000.00 $2,000,000.00 $4,000,000.00 $8,000,000.00 Costs $- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54 Profit $- $(150,000.00) $233,000.00 $1,094,940.00 $2,932,029.20 $6,739,794.46 BOTTOM UP Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Units 0 50000.00 87500.00 153125.00 267968.75 468945.31 Locations (at 2:1 C:R) 0 125.00 218.75 382.81 669.92 1172.36 Sales Rev 0 500000.00 875000.00 1531250.00 2679687.50 4689453.13 Costs $ - $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54 Profit $ - $(150,000.00) $108,000.00 $626,190.00 $1,611,716.70 $3,429,247.58
  19. 19. $(150,000) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Financials $7,500,000.00 $6,500,000.00 $5,500,000.00 $4,500,000.00 $3,500,000.00 $2,500,000.00 $1,500,000.00 $500,000.00 (150,000) $(500,000.00) Sales in Millions
  20. 20. Concept Innovate • Well-Educated • R&D Experience • Marketing • Sales • Motivated • Adaptable • Strong Strategy • Mentor Backing
  21. 21. Team Greg Dussor Ted Price Jackie Kimzey Madison Pedigo Inventors Mentors
  22. 22. In Summary… • All-natural, homeopathic substance • Low cost • Available • No side effects • Proven Effectiveness • Multiple Usages (Platform Technology)

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