Dr. Michael Savic is a renowned expert in signal processing who holds a patent for computer aided diagnosis of lung disease using modified stethoscopes and computer analysis of sound signals. The technology has the potential to accurately diagnose various lung diseases but the market has been slow to adopt more innovative solutions. However, demand is rising for products that can help address gaps between high-cost solutions and current electronic stethoscopes. The patented technology could see market success if licensed to emerging players developing digital stethoscopes integrated with diagnostic software applications.

1. Computer Aided Diagnosis
of Lung Disease
U.S. Patent No. 7,479,115
Dr. Michael Savic
Savic Research, LLC

2. Behind the patent…
Dr. Michael Savic, Professor Emeritus, is a world renowned expert in
the field of Signal Processing
• Former full professor and Director, Signal and Speech Research Laboratory at Rensselaer
Polytechnic Institute, Troy, New York
• 9 US Patents
• 82 published papers including 17 journal articles
• 215 noted citations of his work in books and journals
• 120 national and international patents reference his patents or publications
• 14 invited presentations on radio or television
• Project director for organizations using his research and patents including the NSA, US
Air Force, Texaco, Disney, the Canadian Government , General Electric, and many more

3. Patented technology…
• U.S. Patent No. 7,479,115 Computer Aided Diagnosis of Lung Disease (‘115)
• Related to the automatic diagnosis of lung disease by computer. A modified
stethoscope picks up sound signals from chest which are input to a
computer for processing.
• Sound signals are subjected to autoregressive modeling, projected multi-
dimensionally, and then further subjected to autocorrelation coefficients.
• An analyzer analyzes the results and a classier identifies the disease from an
inbuilt sound database.
• LPC/PARCOR coefficients enhance the sensitivity of the digital model (DSP)
which allows analysis of low intensity sounds with greater accuracy.
• Tested for diagnosis of lung diseases – including, Asthma, Bronchitis,
Pneumonia, Cystic Fibrosis, etc. - however applicable for heart and other
body parts of which disease diagnosis can be made by sound analysis.

4. Innovation landscape slows…
• Market is replete with electronic stethoscope offerings.
• Slowdown in patenting activity and limited
patent/innovation supply justifying increased value in
sea-change innovations.
• Selected diagnostic space shows one dominant
Assignee – Cardiac Pacemakers – with double digit
patent families. Top 25 Assignees in the space average
low to mid-single digit number of patent families.
• Gaps exist between high-end solutions – e.g.,
Ultrasound and CAT Scan – and current e-stethoscopes.
Figure 1. Selection of Electronic Stethoscopes in the Market

5. An overview of the market shows…
• $2 billion respiratory disease diagnostics market; global stethoscope market estimated
growth to $342 million by 2017
• Electronic stethoscopes segment outpacing traditional stethoscopes; estimated e-
stethoscope market at $180 million
• E-stethoscope competition to ‘115 less accurate and/or more expensive – e.g.,
Ultrasound, portable ultrasound, CAT Scan, cardio sleeves; demand for more innovative
products rises
• Expected industry consolidation; industry major players include Welch Allyn Inc., Tytan
Medical Corporation, Rudolf Riester GmbH & Co. KG, Medline Industries Inc., Medi-Stim
ASA, GF Health Products Inc., American Diagnostics Corporation, A&D Medical,
Cardionics Inc. and 3M

6. Market influences and demand drivers…
• “…the physician’s ability to differentiate between normal and abnormal sounds generated by the human
body remains essential in clinical practice for correct diagnosis.” - Dr. Amgad Makaryius, a cardiologist and
the director of cardiac, CT and MRI for the North Shore-LIJ Health System
• “Dr. Savic’s technology may find success in remote locations, military, etc. where reliability is not as heavy a
concern.” - Dr. Manuel L. Fontes, Professor of Anesthesiology and Critical Care Medicine at Yale University
School of Medicine
• “Advances have been seen recently in the techniques used to process auscultatory signals as well as in the
analysis and clarification of the resulting sounds. There have also been advances in the processing and
meaning of these signals for further understanding of the many varied physiological processes occurring in
the human body.” - Dr. Amgad Makaryius
• Cardiac auscultation - the technical term for using a stethoscope to hear heart sounds and make diagnoses
- is "a skill in decline," lamented heart experts writing last year in the British Journal of Cardiology. "I
would say there's definitely been a reduction in the amount of training for auscultation.” - Dr. Robert Wilson,
a cardiologist at the University of Minnesota.

7. Filling the gap – key emerging players…
• 3M/Zargis Medical – Despite failure of Zargis Medical, the Siemens spin-off, they developed
sound analysis software designed to support physicians in analyzing and interpreting sounds, e.g.,
heart murmurs. (Note: Assets of Zargis were acquired by 3M)
• Texas Instruments – TI markets a digital stethoscope analog front-end module as part of a kit
which captures heart and lung sounds; it features an algorithm for heart defect detection.
• Thinklabs Medical – Company manufactures a digital stethoscope with software that uses a
sound library and is capable of providing representation of a diseased lung from data held in the
library.
• GS Technology Co., Ltd. – Manufacturer of the JABES electronic stethoscope, packaged with the
JABES Analyzer Software. The software includes an auscultation sound database, and is
promoted as assisting physicians with limited practice experience with identifying patients
illnesses at first examination. Further claims to identify diagnosis of heart murmurs w/Class I
indication.

8. Key emerging players…(cont’d)
• University of Melbourne – Scientist at the university launch “StethoCloud” a mobile app for
digital electronic stethoscopes that helps it diagnosis conditions like pneumonia “without the
need for a doctor”.
• Summeditec – Veterinarian focused provider that markets WISE PETS, a digital stethoscope aimed
at listening and providing analysis of disease status for animals. The system includes a heart and
lung sound diagnostic algorithm (AML3000W).
• Cardionics – Company produces the CARDIOSM VII which allows a practitioner to identify &
match patients’ heart and lung sounds with those included in the Cardionics software database.
The technology is positioned as a system for teaching, learning, and recording heart sounds,
breath sounds, and ECG.

9. Attractive market value potential…
Total Global Market, Stethoscopes $342 million
Electronic/Digital Stethoscope Share of Mkt $171 million
3M Share of Total Mkt (est. 70%) $120 million
3M Share of Electronic/Digital Stethoscope Mkt (est. 20% of sales) $24 million
Balance of Market Share of Electronic/Digital Stethoscope Mkt $10 million
Addressable Market, Savic ‘115 Patent $34 million
Additional value to be captured via software/app sales and SAAS | lung diagnosis at $200/person-test

10. Patent Acquisition General Terms…
• Patent Assignment
OR
• Exclusive/Non-exclusive License:
• Up-front fee + Reasonable Royalty
• Option Period, Pre-market ramp-up
• Joint Ownership of IP Improvements
• Mutual Enforcement of Infringement Rights
• Best Effort – Rights terminate on non-performance; IP and Improvements
revert back to Licensor

11. Contact: Wil Jacques
E-mail: wjacques@emanus.com
Voice: 860.214.6043
Web: www.emanus.com