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Vishuo Biomedical

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These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Vishuo Biomedical, a Singaporean startup. This startup offers a data analytics bioinformatics platform that includes an integrated drug-gene-relation database and this platform is constantly updated as scientific advances are reported in academic journals. The platform analyzes genetic sequence data and provides visualization and reports for hospitals. Vishuo targets hospitals and research institutes with DNA sequencers but who need data analytic tools to interpret the DNA sequencing output. The slides summarize the business model for Vishuo including the value proposition, customers, method of value capture, scope of activities, and method of strategic control.

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Vishuo Biomedical

  1. 1. Vishuo Biomedical Singapore Business Model : Analysis and Proposals Maria Ivona Climaco- climacomariaivona@gmail.com Keong Wei Jiao- weijiao.keong@gmail.com Sajni Chatly- ruuhhi@gmail.com Liu Jia- liujia228@gmail.com Zheng Xiang- NBNB2011NBZX@gmail.com Erwin Ernady- erwinernady@gmail.com A/Prof. Jeffrey Funk Lee MT5016 | Business Models for High Technology Products National University of Singapore
  2. 2. “You can easily match a blood transfusion to a blood type.. What if matching a cancer cure to our genetic code was just as easy? That’s the promise of precision medicine. Delivering the right treatment at the right time, to the right person, every time” -US President Barack Obama, Time Magazine
  3. 3. Agenda • Personalized medicine • Personal Genomics industry • Vishuo: A bioinformatics company • iCMDBTM • Value Propositions • Customer Segments • Methods of Value Capture • Scope of Activities • Competitive Analysis • Vishuo vs. Main Competitors • Vishuo vs. 23andMe • Strategic Control • Proposed Improvements • Value Proposition • Customer Segments • Methods of Value Capture • Scope of Activities • Strategic Control • Conclusion
  4. 4. The Future of Healthcare • The future of healthcare is moving towards become more personalized. • Precision/personalized medicine: Embracing genetic based medications, will help world economies by reducing the millions of dollars spent in present diagnostic and treatment approaches. • Personalized medicines will improve the quality of an individual’s health. Sources: -Frost & Sullivan, March 2014, Future of Personalized Genomics (Technical Insights) Impact Assessment of Business Models in DTC Genetic Testing - http://giphy.com/search/mark-j-kiel
  5. 5. Personalized Medicine “Modern approach to understanding health” Source: https://www.youtube.com/watch?v=HQKFgfMO5Sw, https://www.genome.gov/Multimedia/Slides/GenomicsInMedicine2013-2014/Helman_6-7-2013.pdf Personal genomics Empirical diagnosis Descriptive medicine Uniform treatment Retrospectively diagnose disease Acute care Mechanism-based diagnosis/treatment Understanding of disease mechanism Individualized treatment Prospectively evaluate relative disease risk Early detection and intervention
  6. 6. Personal Genomics industry Sources: The Promise of Precision Medicine. Time. April 9, 2015. https://www.youtube.com/watch?v=zkagtWSeisQ Frost & Sullivan, March 2014, Future of Personalized Genomics (Technical Insights)Impact Assessment of Business Models in DTC Genetic Testing The cost of gene sequencing has drastically reduced overthe years Growing need for big data analytics to manage complex and voluminous health data Information regarding human genome has rapidly increased and is still continuing to explode. Promising new applications of next generation sequencing like oncology Increased awareness about personalized medicine. Government support and initiatives. Collaborations between IT, Pharma and Diagnostic Companies Key Drivers for Personal Genomics Industry
  7. 7. Participants in Personal Genomics industry Reference: Frost & Sullivan, March 2014, Future of Personalized Genomics (Technical Insights) Impact Assessment of Business Models inDTC Genetic Testing • Whole genome and exome sequencing machine manufacturers • Diagnostic/ Pharmacogenetic/ Nutrigenomics testing kits • Conducts sequencing services and clinical trials/analysis • Software for genetic test result, visualization, storage, analysis and annotation • Integrates genetic tests and results into diagnostic and treatment approaches • Researchers, scientists, patients, physicians, healthy individuals Sequencing Technology Manufacturers Genetic Test Developers Laboratories Data Analytics Bioinformatics Solutions Hospitals and Healthcare Systems End User *not in any particular order
  8. 8. Overview of Personal Genomics Industry Sequencing Technology Manufacturers Hospitalsand Healthcare Systems End User ResearchInstitutes Data Analytics Bioinformatics Solutions Genetic Test Developers
  9. 9. Data Analytics Bioinformatics Solutions Platform/Software for genetic sequence visualization, storage,analysis, interpretation and correlationto drug and treatment response Bioinformatics- application of computertechnology to themanagementof biologicalinformation. Data Analytics- science of examining raw data withthepurposeof drawing conclusionsaboutthatinformation. www.bioplanet.com/what-is-bioinformatics/ searchdatamanagement.techtarget.com/definition/data-analytics Challenges: • Data analysis requires bioinformaticians, long turnaround time • Weak or no clinical annotation available • Multiple sequencing platforms with its own software • Patient data confidentiality must be ensured Challenges of traditional Next Generation Sequencing Workflow Solution: Data Analysis Bioinformatics
  10. 10. HQ Singapore Founder Guo Dong Liang (Bioinformatician) Established 2011 Industry Health & BioTech Regions US, China, APAC “Vishuo Biomedical is a Singapore based healthcare technology company dedicated to establish personalized medicine for diagnosis, prognosis and treatment. It delivers genomic sequence analysis to research institutes, health screening clinics, hospitals and pharmaceutical industry.” Source: http://www.vishuo.com/en/company/ Vishuo: A bioinformatics company Core Product/Service: iCMDBTM (Individual Customized Medicine Database) Data Analytics Bioinformatics Platform
  11. 11. What is Vishuo iCMDBTM? iCMDBTM Vishuo’s Data Analytics Bioinformatics Platform Generates genetic annotation report • Application to gene-based drug discovery and development • Tailored for clinicians to conduct personalized treatment for the patients Powered by supercomputers Stores, visualizes, analyzes and interprets genetic sequence With an integrated drug-gene-relation database • Integrates drug and genetic information • Correlates genetic sequence to drug treatment and response Source: Vishuo
  12. 12. How does Vishuo iCMDBTM work? Upload Gene Sequence Analysis Report Generation Vishuo iCMDBTM Database Coverage: 1200+ Biomarker | Gene alterations | 200+ Diseases | Drugs | 750+ Treatment |Disease-Gene-Drug Association External Research Data Internal Clinical Data • High quality public database and medical & clinical research articles Together the robust and comprehensive database and algorithm give a reliable analysis and accurate correlation of data for drugs, genes and diseases. Real Time Data • Manually curated drug- gene corresponding data • Historical patient sequencing data • Multi-cancer support data* and treatment effectiveness data • Clinical patient data is collected on a real-time basis from various hospitals *Covering top 20 cancers in China Proprietary algorithm: Data mining, collection, classification and storing Sources: Process:
  13. 13. What are the main features of Vishuo iCMDBTM ? Compatibility AccuracySpeed Super computing power reduces analysis lead-time Compatible to all sequencers Clinical annotation based on high quality evidence and manually curated database 3-5 days Serve unarticulated needs Source: Vishuo
  14. 14. iCMDBTM Output Report (1) Data Quality Report Guides the user on the quality of the genetic sequence data (obtained from the sequencing laboratories/machines) that was used in the analysis Source: Vishuo
  15. 15. iCMDBTM Output Report (2) Clinical Annotation Report Provides recommendation on optimal treatment plan for the patient’s disease/medical condition Source: Vishuo
  16. 16. Value Propositions Basis for targeted diagnosis Patients Research Institutes Hospitals Receive personalized treatments Database analysis for clinical projects
  17. 17. Value Propositions – Hospitals No more trial and error, with life on the line! • Seeing the unseen Vishuo’s DNA analysis platform help physicians to ‘see’ beyond their diagnosis ie. symptoms. • The genes don’t lie Physician makes fast and accurate medical treatment decisions based on the genetic predisposition of patients. • Treat one, treat more The collection of patients’ genes profiles and disease details allow matching of similar patients and treatments. Ultimately, by adopting an advanced technology like Vishuo’s iCMDBTM, hospitals can potentially have an enhanced reputation from the improved success rates of treatments.
  18. 18. Value Propositions – Patients The right treatment for the right person at the right time, every time! - Obama http://biomedvic.org.au/symposium/genomic-medicine-symposium/ • Accuracy Vishuo minimizes the ambiguity between diagnosis and effective treatment by analysing patients’ DNA profiles and annotating reports by using iCMDB. • Reduced Cost Targeted treatment reduces time and medical bills caused by inaccurate diagnosis and generic treatment. • Prevention is better than cure Early prediction and detection allows patient to seek the right treatment before it is too late.
  19. 19. Value Propositions – Research Institutes From data to clinical breakthrough! • Clinical research Research institutes use Vishuo’s database to evaluate and improve their clinical trial projects. • Future drug discoveries Vishuo helps research institutes to learn more about the existing drugs’ functions and resistance, thus providing information as evidence to create better ones.
  20. 20. Customer segments Vishuo iCMDBTM Database and Platform Provider Customers Indirect customers Hospitals Research Institutes Customers are the ones paying for the service Patient Indirect customers interacts with the direct customers
  21. 21. Customer Segments (By needs) Hospitals Patient Research Institutes “My patient has a cancer. He has been undergoing chemotherapy for some time but has not shown any positive response. What other alternative treatments can I propose for him?” – Dr. Jeff I want to find more appropriate treatment for him. “My clinical research has been puzzling. I may need to study the biomarkers (biological parameters) to understand a drug’s efficacy and toxicity. Where can I find a comprehensive database reflecting actual clinical situation?” – Dr. Funk, PhD I want data for evaluation. “This is my sixth visit to the doctor since I was diagnosed with breast cancer. I have tried all kinds of treatments such as radiotherapy and chemotherapy. Are these therapies really working on me? Do I have better options?” – Ms. Li I want the right treatment.
  22. 22. Targeted Customer Segments Hospitals Patient Research Institutes Research Institutes which are actively involved in clinical and drug analysis Patients with genetic related diseases ie. cancer All types of hospitals Hospitals have high visits from patients TARGET Specializes in treating genetic- related diseases ie. cancer
  23. 23. • BeijingPLA 307 Hospital • BeijingCancer Hospital • General Hospital of Armed Police Forces • PLA General Hospital • Peking University People’s Hospital • West China Hospital • China Academy of Medical Science XiYuanHospital • Mount Sinai Hospital • TanTock SengHospital • National UniversityHospital • Singapore General Hospital Current Customers Since the launch of iCMDB in 2013, Vishuo has successfully engaged reputable hospitals as their customers. Vishuo has continuously expand its customer base and currently has existing customers located across China, Singapore, US and Thailand. Besides hospitals, Vishuo has also attracted the attention of research institutes such as A*STAR in Singapore. • Ramathibodi Hospital
  24. 24. How does Vishuo serve its customers? Patient Hospitals Reports Vishuo’s iCMDB 1. Patient visits doctor for diagnosis 2. Pathologist uploads patient’s gene profile into iCMDB Patient’s DNA 5. Doctor prescribes suitable treatment based on the report 3. iCMDB analyses patient’s gene profile and automatically generates reports 4. Doctor analyses and verifies report outcomes Research Institutes 1. Research Institute uses iCMDBTM database for analysis
  25. 25. Revenue Models • Subscription • Annual subscription for iCMDBTM • Commission • Annotation fee • Fee for Service • Project based payment Methods of Value Capture HospitalsVISHUO iCMDBTM Subscription fee and Annotation fee Clinical Annotation report Research Institutes Fee for service Research support Data Patient Service Fee Service
  26. 26. Scope of Activities Sequencing Technology Manufacturers Hospitals Patient Research Institutes supplier Service provider Medical Journals (e.g. Nature, Science) suppliers Service provider Super Computers and Network provider
  27. 27. Participants in Personal Genomics industry (recap) Reference: Frost & Sullivan, March 2014, Future of Personalized Genomics (Technical Insights) Impact Assessment of Business Models inDTC Genetic Testing • Whole genome and exome sequencing machine manufacturers • Diagnostic/ Pharmacogenetic/ Nutrigenomics testing kits • Conducts sequencing services and clinical trials/analysis • Software for genetic test result, visualization, storage, analysis and annotation • Integrates genetic tests and results into diagnostic and treatment approaches • Researchers, scientists, patients, physicians, healthy individuals Sequencing Technology Manufacturers Genetic Test Developers Laboratories Data Analytics Bioinformatics Solutions Hospitals and Healthcare Systems End User *not in any particular order
  28. 28. Market Competitors Data Analytics Bioinformatics Solutions Sequencing Technology Manufacturers Genetic Test Developers Potential Competitors Direct Competitors
  29. 29. Vishuo vs. Main Direct Competitors Foundation Medicine & PierianDX workflow Order Test Specimen Collection & Preparation Gene Sequencing Analysis Report Generation Vishuo workflow Upload Gene Sequence Analysis Report Generation What makes Vishuo better? Better value proposition: Hospitals and Research Institute • First in Asia • Better report quality • Protectedprivacy and confidentiality (data is not stored/analyzed in the cloud) Patients • Cheaper annotation fee • Comprehensive Asian gene database • Protectedidentity Hospital does sequencing Better analysis and report quality. - Proprietaryalgorithm - Manually curated database i.e. High Quality References only Valuable for physician’s in making decisions on medical conditions of their patients.
  30. 30. FDA’s role within Precision Medicine Initiative: Ensure the Accuracy of Tests Source: http://www.fda.gov/ScienceResearch/SpecialTopics/PrecisionMedicine/default.htm http://www.forbes.com/sites/matthewherper/2014/07/31/fda-to-regulate-thousands-of-cancer-genetic-and-other-diagnostics/#44b189465698 Regulations in the US FDA’s Role in the Precision Medicine What is FDA Doing Right Now? • Laboratory diagnostics to notify FDA about their test. • Only FDA approved tests can be sold Create a regulatory platform to encourage innovation and ensuing accuracy
  31. 31. Case: 23andMe FDA Issues with 23&Me - Specific tips and guidance on reducing health risk - Report does not need physician’s approval (sent to consumer directly) Surety on 23&Me result interpretation Too much confidence may result in bad medical decision Predicting nature of the report FDA’s Concerns: Source: http://gizmodo.com/23andme-is-back-in-the-genetic-testing-business-with-fd-1737917276
  32. 32. Service offerings Offers diagnosis and therapeutic recommendations Only provide diagnosis Drug-genetics correlation data Provides personalized recommendation on drug and treatments No recommendations of drugs & treatments; Data confidentiality Server is localized in the hospital Data is stored in the cloud Customer privacy Only collects gene information, not customer’s identification Collects customer identification Involvement of clinical experts Doctors receives and interprets the report for the patient Customers directly reads the report Sampling Blood; more reliable, done in accredited clinics/hospitals Saliva; self-sampling Ease of sampling Traditional sampling Sampling kit References Strong scientific bases; manually curated database and high quality references Relies on text mining and data analytics (might include low quality information) Gene database More comprehensive Asian database Mainly Caucasian database Scope of of services More comprehensive: gene-related diseases (i.e. cancer) More on health and ancestry reports Value of application Serious medical conditions Personal interest Vishuo vs. 23andMe
  33. 33. Physicians need to asses the Reports Physicians make recommendation based on their knowledge too Only high quality data are included. (Tests at clinical trial level are not primarily recommended ) Vishuo does not predict but understands why is it happening Regulations in the US FDA’s Role in the Precision Medicine: Vishuo FDA’s concerns less likely for Vishuo
  34. 34. Strategic Control • For Vishuo to: - Sustain Profitability - Ensure Survival - Foster Innovation - Be Responsive to Customers - Maintain Focus on Quality Barrier to Entry: Intellectual Property Network Effects Complementary Assets First Mover Advantage in Asia
  35. 35. Strategic Control Distribution Channel: Present in Australia, Thailand, Malaysia, China Marketing Channel: Medical Conferences & Exhibitions Strategic Partner Life Technologies & Qiagen Patents: 6 Patents in China Trademarks: Company Name, iCMDB database Intellectual Property Complementary Asset Tacit Knowledge Proprietaryalgorithm Patient database
  36. 36. Proposed Improvements
  37. 37. https://www.youtube.com/watch?v=HQKFgfMO5Sw As the knowledge network grows we can ensure that every patient can get the right treatment with theright dose at the right time. Proposed Improvements Value Proposition Data Analytics is the Future of Healthcare and the Future of Vishuo By building up database on each specific geographical region, more appropriate treatments can be provided for a particular demographic group. The more information we collect and connect, the better the scientists will understand health.
  38. 38. Proposed Improvements Value Propositions Deliver better healthcare services Patients + Healthy Individuals Research Institutes + Pharmaceutical Companies Hospitals Use data as key business driver Increased quality of life Government Improve public health
  39. 39. Proposed Improvements Value Propositions Hospitals Further improve (iCMDBTM) : expand into new applications (i.e. prenatal test, nutrigenomic tests and analysis) Healthy Individuals introduce new services for health- consious/curious individuals: (i.e. lifestyle, nutrition and ancestry analysis) Benefit to Hospital: Deliver better healthcare services Benefit to Individual: Improved quality of life
  40. 40. Proposed Improvements Value Propositions Formation of strategic partnership for mutual benefits Pharmaceutical Companies Benefits for Vishuo: 1. New source of revenue: • Provide data • Develop new platforms for pharma application 2. New treatment options Benefits for Pharma: 1. Create breakthroughs in drug resistance clinical studies 2. Develop better/new drugs 3. Identify drugs suitable to specific race and disease
  41. 41. Proposed Improvements Value Propositions Formation of strategic partnership for mutual benefits Government Benefits for Vishuo: 1. Government support: • To help increase awareness about genome testing and precision medicine • Enhanced reputation for Vishuo • Possibility of participating in developing legislations Benefits for Government: 1. Be at the forefront of healthcare advancement 2. Better understanding of public health and thereby implement more appropriate healthcare programs
  42. 42. Proposed Improvements Customer Segments Proposed improvements Legend: Vishuo iCMDBTM Hospitals Research Institutes Patient Pharma Companies Direct customers Direct customer indirect customers (benefactor) Healthy Indivduals Government
  43. 43. Proposed Improvements Methods of Value Capture Revenue Models • Subscription • Annual subscription for iCMDBTM • Commission • Annotation fee • Fee for Service • Project based payment Hospitals VISHUO iCMDBTM Subscription fee and Annotation fee Clinical Annotation report Research Institutes Fee for service Research support Data Patient Service Fee Service Proposed improvements Legend: Pharma Companies Fee for service Research support Data Software with new algorithm Subscription fee Healthy Individuals Service Fee ServiceReport Government Exposure Reputation Service Data
  44. 44. Sequencing Technology Manufacturers Proposed Improvements Scope of Activities Vishuo Hospitals Patient and Healthy Individuals Research Institutes supplier Service provider Super Computers and Network provider Medical Journals (e.g. Nature, Science) suppliers Service provider supplier Service provider Pharma Companies Service provider Provider of drugs/ medicine Proposed improvements Legend: Vishuo should develop new algorithms/ softwares suitable for Pharma applications Government Vishuo should have clinics (with in-house doctors/ dieticians/nutritionists) equipped with laboratories facilities and sequencing machines Vishuo should partner with government in some project like government subsidized healthcare studies and insurance service.
  45. 45. Proposed Improvements Strategic Control: Strengthen IP protection Trademark Aggressively apply for trademarks related to products, processes, algorithms, etc. To aid in: -Accelerating Brand Recognition Patents Continually file patents (build patent portfolio in various countries) A strong patent portfolio: - Reflects that Vishuo is actively participating in recent advancements in healthcare - Can be deployed for future strategic alliance - May be licensed out for additional revenue TacitKnowledge Protect and strengthen existing knowledge base Will be a source of competitiveadvantage
  46. 46. Proposed Improvements Strategic Control: Leverage from Network Effects More Physicians More Patients Development of Data Better Quality of Reports More Business Opportunities More Comprehensive Database
  47. 47. Proposed Improvements Strategic Control: Build Complementary Assets ECOSYSTEM Build a wider ecosystem Have stronger presence in the industry Continuous R&D efforts Provide high caliber offerings and enhance reputation Strengthen strategic alliances in different regions Increase market penetration Active Marketing Improve consumer awareness
  48. 48. Conclusions & Recommendations
  49. 49. Conclusions and Recommendations (1) At present, Vishuo’s strongest competency is on genome analysis for medical grade application. Their analysis is built and developed on robust and strong scientific (manually curated database and high quality references) and technology (proprietary algorithm) validation. Currently, Vishuo’s biggest value proposition is helping physicians in making informed critical medical decisions for their patients. Vishuo does not conduct the genome testing itself but provide intelligent analysis and interpretation of the data towards gaining more knowledge about the genome.
  50. 50. There is a vast opportunity for Vishuo to improve its current business model. Today, the revenue stream is mainly from analyzing the genome data. In the future, the large amount of data accumulated can enable Vishuo to embark on new services. By doing so, Vishuo can cater to an even wider range of customer and have a bigger contribution in providing personalized healthcare to the community. The Business Times September 2, 2015 Vishuo databases aim at targeted medical treatments Conclusions and Recommendations (2)
  51. 51. Conclusions and Recommendations (3) To maintain and enhance reliability and credibility, Vishuo will have to collaborate with many stakeholders (i.e. government, research institutes, hospitals and pharmaceutical companies) to build appropriate standard procedures and legislation and prevent unrest in terms of ethical dilemmas and other privacy issues. These partnerships can also help to increase awareness and adoption of Vishuo’s products and services and thereby be more profitable and sustainable.
  52. 52. The future of Vishuo is promising specially since the world is increasingly leaning towards leveraging technology to improve human life. Undoubtedly, today’s tech-savvy generation would like to use technology to access more efficient and effective health treatments, diagnosis and services in the near future. Conclusions and Recommendations (4)
  53. 53. Thank you!

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