1. Bio-Patch: Team M
Microneedle/Microchip Enabled Biosensor
Daily Contact Count: 23
Total Contact Count: 49
Joan Affleck Mike Dimitri Kirim Kim John Marshall Matt Nudell
3. Business Model Canvas Day 1
HP Production Smart drug Inventory Medical
delivery Control supply
Platform / system – companies
networking chip and
Co-creation
needle
Insurance
companies
HP patent Direct sales
CMOs
CMOs, Data Data
sales team, collection Direct DDS collection
general tools sales fees
admin
5. Business Model Canvas Day 2
-- Smart drug -- Inventory
delivery system Control
HP Production Med supply
(chip and needle) -- Co-creation companies`
-- Personalized
Hospitals / doctor Platform / medicine entry -- Branding
offices networking Pharma
-- Various uses
-- Smart delivery companies
Insurance Licensing system may -- Personalized
companies extend patent life data monitoring Patients
-- Ease of use,
FDA
time mgmt Doctors
-- Controlled
CMOs
pain-free delivery Insurance
HP patent Direct sales companies
-- Lower patient
Cloud service care costs
HP
-- Purchasing
CMOs FDA
-- Regulatory
CMOs, sales Direct DDS
team, general sales
admin
Data collection
Data collection
fees
tools
7. Business Model Canvas Day 3
-- Smart drug -- Inventory
Production delivery system
Hospitals / doctor Control Med supply
(chip and needle) -- Co-creation
offices Platform / companies`
-- Personalized
networking medicine entry -- Branding
Pharma Pharma
companies -- Various uses
Licensing -- Smart delivery companies
system may -- Personalized
Insurance Procure HP extend patent life data monitoring Patients
companies patent
-- Ease of use,
HP time mgmt Doctors
-- Controlled
FDA pain-free delivery Insurance
HP patent Direct sales companies
-- Lower patient
CMOs Cloud service care costs
BI Application HP
-- Purchasing
CMOs FDA
-- Regulatory
CMOs, sales Direct DDS
team, general sales
admin
Data collection
Data collection
fees
tools
9. Business Model Canvas Day 4
Med Device Platform / networking -- Smart drug delivery -- Inventory
Companies Software development system Biosensor (chip Control Med Supply
/ integration and needle) -- Co-creation Device
-- Personalized Companies
Pharma companies
Patent development biomarkers -- Branding
-- Clinical Studies Pharma
Hospitals / Doctor Companies
Procure HP patent -- Smart delivery system
offices -- Personalized
Production -- Preventative data monitoring Patients
Insurance companies
healthcare
-- Controlled pain-free Hospitals /
HP Needle & chip mfg Doctors
delivery
Software Developer HP patent Insurance
-- Lower patient care Direct sales
costs Companies
Cloud service
FDA
Patented software Web-based HP
-- Purchasing
CMOs software
Manufacturing download
-- Regulatory FDA
Hardware costs, CMOs, sales team, general Direct DDS Biosensor sales
admin
Data collection fees
Data collection tools Biosensor customization
Application development
Software development, patents, legal fees
11. Business Model Canvas Day 5
Med Device Software development
Companies Biosensor Med Device
/ integration Co-creation
Companies
Personalized biomarkers
Pharma companies Patent Filing Clinical Studies Pharma
Preventative healthcare Companies
Hospitals / Doctor Production Personalized data
offices monitoring Patients
Lower patient care costs
Insurance companies
Hospitals /
Regulatory Doctors
Needle & chip mfg
Insurance
Software Developer Direct sales Companies
Patented software
FDA
Web-based FDA
CMOs Manufacturing software
download
Hardware costs, CMOs, sales team, general admin Direct Biosensor sales
Biosensor customization
Software development, patents, legal Application development
fees
12. Getting out of the building
• Total number of contacts: 49
– Pharma industry subject matter experts in IT, business
development, pharmacokinetics, clinical research
directors
– Medical device experts
– Physicians specializing in diabetes, immunology,
geriatrics
– Life Science consultants
– Private equity expert
– Venture capital experts
– Patients
13. Hypothesis Testing
Hypothesis Test Result
Micro-needle self- Interviewed Doctors, Board TRUE-Patients dread self
application patches are member of Medical Device pricking & inaccurate testing
preferred over at-home and Company, Pharmaceutical
hospital blood tests Reps and Patients MIXED-Would require proof
of concept, safety studies
and cost effectiveness
FDA regulation period will Interviewed Consultant and TRUE- 510(K), Class II
be less rigorous for online research device will take 3 to 5 years,
biosensor than drug delivery approximately $30 million
vs. 7 to 10 years costing
more than $100 million
Filing for patent will Interviewed current patent TBD - Microneedles
differentiate us from owner combined with integrated
competitors alert system could be a
potentially patented product
at a cost of $20,000 to
$100,000 taking from 2 to
15 months
14. Hypothesis Test Result
Channels: Direct Sales to
medical device companies Confirmed by experts TRUE
is most efficient in field
Revenue: Revenue stream
is generated through sale of TBD TBD
biosensor as well as
application fees for
integrating with doctor’s
offices
15. What to do next?? Day 6+
Micro-needle and Micro-chip enabled patch providing periodic monitoring
of anti-coagulant efficacy (prothrombin time).
Data is wirelessly transmitted to patient’s phone and/or to hospital
systems.
Ensure Contact Engage
Evaluate
patent regulatory software
CMOs
protection consultant developer
16. 110 Million People Worldwide At
Risk of Thrombosis
Target Market:
• 2,000,000 DVT US patients per
annum
• $800 for current monthly testing kit
TAM: SAM: Target Market:
• Finger prick test Medical Device
• Potential insurance cost of People at Suppliers
DVT occurs in
$1,600,000,000 risk
2,000,000 per
for Co vidien
annum
thrombosis: Johnson & Johnson
• $100 for new continuous testing kit Baxter
600,000 are
• Potential insurance cost of 110 million
hospitalized w/ Meditronic
worldwide Boston Scientific
$200,000,000 affected
DVT/PE
Abbott Labs
17. Marketing approach
Medical Community Insurance
Medical journal publications
Results Oriented Data
Key opinion leaders
Comparative Product Costs
American Society of
Prevention of Acute Care
Hematology Conferences
Patients Episodes
Education sessions
DVT Awareness Month
(March)
American Public Health Assoc.
Trusted educational online info
MD Office
20. “I want to be there for my family. Biopatch
helps me monitor my DVT condition so I can
worry less and be with my grandchildren”
Meet Dave
Retiree, Grandfather
Age 60+
Former McKinsey
Consultant
Purchases 120
BioPatchs annually
Demographic: Traits: Condition:
•Male/Female Ages •Loves to travel (for •Bedridden due to
60+ business and recent hip
pleasure) – sitting replacement (on
Budget: down on flights general
•Fixed Income •No history of anesthetic)
•High Insurance familial cancer or •Calf
Costs thrombosis swelling/Localized
•Spends $100 dollars •Used to be avid swelling in leg’s
annually on Biopatch hiker before hip venuous system
injury •Weight gain
21. Day in a life-Remote Monitoring
Bio Patch Current
• On line order • On line order
Patient gets • Direct from pharmacy Patient gets • Direct from pharmacy
materials materials
• Peel off adhesive • Finger prick
Patient • Apply patch Patient does • Reader with strips
applies patch finger prick
• Electronic results for • Electronic read out on device
immediate use and e-records • No long term electronic
Patient gets Patient gets
results • Call MD office if needed results record
23. Financial Analysis
After 3 years in market, IRR is roughly 50%, sales
of $170 mm and net profit of $68 mm
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Patent Pending (100,000)
FDA Approval (7,500,000) (7,500,000) (7,500,000) (7,500,000)
Sales 59,500,000 110,500,000 170,000,000
Program Expense (40,000) (10,000) (10,000) (10,000)
App Store Costs (1,000) (1,000) (1,000)
Mfg / CMO Expense $ (27,216,000) $ (50,544,000) $ (77,760,000)
Distribution (10,000) (10,000) (10,000)
Sales (283,000) (487,000) (725,000)
Customer Acq Cost (59,500) (110,500) (170,000)
Support (8,164,800) (15,163,200) (23,328,000)
Admin (60,000) (25,000) (25,000) (25,000) (25,000) (75,000) (75,000) (100,000)
Total Cash Flows (200,000) (7,525,000) (7,525,000) (7,525,000) (7,525,000) 23,680,700 44,099,300 67,896,000
• Assumes 2 MM patients in its 3rd year (Yr 7 of analysis)
• Assumes 35% penetration in year 5, 65% penetration in year 6 and 100%
penetration in year 7 of newly recognized DVT patients
• Costs are estimates developed through “getting out of the building”
– $0.325 for each purchasing and manufacturing of patch after inventory-financing
– Outsourced support and service based off of 30% of manufacturing/CMO expenses
