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.
4. • All natural (homeopathic)
• Found in wine, and dark
chocolate
• Potential usage:
• Heart Disease
• Cancer
• Metabolism
• Lifespan
• Pain relief
Resveratrol
5. Types of Pain
Types of pain…
How is it currently
treated???
What can be done???
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. 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. $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. 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. 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. $(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
21. Team
Greg Dussor Ted Price
Jackie Kimzey Madison Pedigo
Inventors
Mentors
22. In Summary…
• All-natural, homeopathic substance
• Low cost
• Available
• No side effects
• Proven Effectiveness
• Multiple Usages (Platform Technology)
Editor's Notes
Need to develop metrics to grade the company.
Defines basis for an organization-wide performance “report card”
Time to market push
Look into a cost play- need to compete with cost – cost parity or cost advantage
NRG neuro research group
Effictive ? But much cheaper
Can we overlay other rat model studies to show to ours may be more effictive
Get otc office to say they will help
Graph needs to be simplified
Graph needs to be simplified
Can bring the pain tolerance back to normal levels.
Say something about phase I phase II and Phase III of development
How much product do they move ?
How much can we make on that ?
Wellness international – off toll road – look into them . (WIN)
Nigel branson- first fitness nutrition
Craig keeland – CK Management – whole 5 – look into if we want to see them.
How can I test my product with you.
How much product do you move every month?
How do you vet the products you bring in and sell?
Can I give samples and then interview patients before and after??? Do a little study in your clinic
Finalize crème
Obtain prelim data for patch and stiches
File patents on crème, patch, and stiches
Launch crème
Finish develop of patch and stiches, wait for patent, get FDA, start clinical trials
Single clinic :
3-5 units per day
Up to 100 units per month
Clinical study : 6 clinics over 6 months