Sweet Sensors describes developing small, inexpensive diagnostic devices that can detect a variety of biological markers from targets such as drugs, metals, toxins, bacteria, viruses, and more, in a quantitative and adaptable way for applications like pharmaceutical testing, environmental hazards monitoring, and food safety testing.

1. Sweet Sensors
Small form factor Types of targets
diagnostic devices that
can detect a variety of • Recreational drugs
biological markers. • Heavy metals
• Toxins
• Inexpensive • Bacteria
• Quantitative • Viruses
• Adaptable to many • Pharmaceuticals
kinds of tests (targets) • Environmental hazards
• Food safety targets
Yu Xiang and Yi Lu, Nature Chem. 3, 697-703 (2011).

2. Meetings/Conversations From the Past Week
• A CEO of company (familiar with diagnostics)
• Attorney to pharmaceutical companies
• Consultant for in vitro diagnostics
• Rich Ganz, medical device executive
• Richard Smith, expert in drug
discovery, clinical trials
• Donna Rosenbaum, expert in food safety
• Conference call with a major pharmaceutical
company

3. Upcoming Conversations
• Sword Diagnostics
• Abbott Labs
• Blue Cross Blue Shield innovation team
• Retired Hospital executive
• Biotech entrepreneur
• Michael Rosen, life sciences entrepreneur and
executive
• Other VCs

4. Summary of Key Findings (cumulative)
• HbA1c is not a good target.
• The best tests are those which require immediate
results.
• Saliva is preferred over blood.
• Our key value driver is cost.
• The breadth of the platform is an asset to be leveraged.
In most cases when money is no object, there’s
probably a more sensitive test available.
• POC is not recommended for patients at home.
Compliance is very low. We can’t find many examples
of successful products, even those that are very simple.

5. Key findings:
partners and customers
• Diagnostic companies can be our partners; dominated by five
companies
• Glucometer manufacturers as partners
– Mentioning glucometer can be confusing
• Contract research organizations
• Pharma will be interested if …for clinical trials
– It reduces cost
– Reduces the passage of time
– Helps get more accurate results
– Helps them avoid going down the wrong path
• Possible site visit by a major pharmaceutical company in
December

6. Key findings:
other customer segments, technical
• Saliva is the best testing medium
– Provide a list of targets in terms of testing medium
• POC diagnostic device not recommend for patient at home;
focus on cheaper and faster POC device for clinic
• Many home test devices didn’t sell well. Why?
– No benefit to the caregiver? Remote data analysis?
• Food safety?
– Bacteria: rapid test available, but they want them faster
– Spores: not available not…we may have something
– Virus: no advanced test existed
• Personalized medicine?
• Drug analyzer?

7. Business Model Canvas #6 (last week)
Yi Lu, Tian Lan, Brian Wong
Sweet Sensors Neil Kane 11-01-2011
Chris Sorensen
Conferences
R&D
Pharmaceutical Pharmaceutical
QC
companies One to one companies
Immediacy
Glucometer/strip Convenient monitoring Long term Glucometer/strip
manufacturer and safer dosage manufacturer
Diagnostic Exclusive Diagnostic
company company
Contract research Contract research
Pharmaceutical Cos
organization organization
IP
Pharmaceutical Cos
Personnel
Licensing
R&D Sales (to pharmaceutical companies)

8. Business Model Canvas # 7 w/changes
Yi Lu, Tian Lan, Brian Wong
Sweet Sensors Neil Kane 11-08-2011
Chris Sorensen
Conferences
R&D
Pharmaceutical Immediacy Immediate Pharmaceutical
QC results
companies One to one Direct companies
Publicity
Glucometer/strip Convenient monitoring Long term Glucometer/strip
manufacturer Insurance Reimbursement and safer dosage manufacturer
Diagnostics Exclusive Diagnostic
companies companies
Inexpensive
Contract research Pharmaceutical Cos Contract research
Pharmaceutical Cos Simple
organizations organizations
IP Investors
Glucometer mfr Robust/extensible
Strip mfr Personnel
Licensing Licensing?
R&D Product Sales (to pharmaceutical companies)

9. Business Model Canvas # 7
Yi Lu, Tian Lan, Brian Wong
Sweet Sensors Neil Kane 11-08-2011
Chris Sorensen
Conferences
R&D
Pharmaceutical Immediate results Pharmaceutical
companies Publicity companies
Direct
Convenient monitoring
Diagnostics Insurance Reimbursement and safer dosage Long term
companies Diagnostic
Robust/extensible companies
Contract research
organizations
Inexpensive Contract research
organizations
Simple Pharmaceutical Cos
Glucometer mfr IP Investors
Strip mfr Personnel
Licensing Licensing?
R&D Product Sales

10. Sweet Sensor Revenue Model
Factors
COPD MARKET All Segments
Market Size 16,000,000
Revenue Model
Market Share Target 10%
Channel Capacity 100%
Customer Activations 1,600,000
Attrition 10%
Net Customers 1,440,000
Missing: Revenue Model
Usage per Year 52
Lifetime value of customer Number of Uses per Year
Revenue per Use $4
74,880,000
$4
and amortization of Total revenue $299,520,000
acquisition costs over EXPENSES
Cost Per Customer Acquisition $25 $25
lifetime Cust. Acquisiiton Expense $40,000,000
Channel Split 30% 30%
Cost of Channel Sales $89,856,000
COGS $0.25 $18,720,000
Net Operating Income $150,944,000
Operating Margin 50%
Operating Expenses
GSA $5,000,000
EBIDTA $145,944,000
Net Margin 49%

11. Service Channel Distribution Model
Payment
Insurance Doctor
Company
Medical
Payment Services
Data
Service
Service Provider Patient
“Healthways”
In House Care
Services
Payment
Sweet
Sensors

12. Action plan
• Put together a compelling presentation and go pitch
pharmaceutical companies and diagnostic companies.
We’re getting inconclusive results talking to KOLs and
consultants.