Business Plan: Pharmacogenomics

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Business Plan: Pharmacogenomics

  1. 1. Business Plan Presentation on Reference Laboratory for Pharmacogenomics Founders : Sandeep Saxena and Sunil Kumar Team : Dr Suresh Advani, Dr. Hema Ramaswamy, Dr S Jain and Neelam Chauhan
  2. 2. Who are we? <ul><li>Two batchmates from NirmaLabs having complementary skills and sufficient experience. </li></ul><ul><li>Wanted to do something challenging, useful to society and create substantial wealth </li></ul><ul><li>Ready to make sacrifices and take risks </li></ul>
  3. 3. Pain Points <ul><li>Pharmaceutical companies make block buster drugs and doctors give prescriptions assuming “one drug fits all” </li></ul><ul><li>But 70 % patients benefit, 25 % show no response, 5 % show side effects. In USA, 20 million people need hospitalization and 100,000 people die every year due to adverse drug reactions </li></ul><ul><li>This is because of genetic differences </li></ul><ul><li>Pharmacogenomics is the study of genetic differences to predict drug response </li></ul>
  4. 4. Idea <ul><li>Setup a reference laboratory that collects samples for genetic tests </li></ul><ul><li>Cancer drugs have a narrow therapeutic index, have side effects and are expensive. </li></ul><ul><li>Value lies in identifying responders, non responders and patients who are at risk of toxicity and hence saving expenses on ICU, supportive care, antibiotics and trauma to the patient and family </li></ul>
  5. 5. Idea <ul><li>Concept is multidisciplinary involving pharmacology, medicine, pathology, molecular biotech and business. </li></ul><ul><li>Sales is through Doctors who will prescribe these tests to patients. Have Medical Representatives to build awareness across India. </li></ul><ul><li>Right now this is a niche business and does not affect any existing player </li></ul>
  6. 6. Example : 5FU and DPD <ul><li>5FU is most commonly drug used to treat solid tumors </li></ul><ul><li>DPD enzyme is responsible for metabolizing 85 % of 5FU </li></ul><ul><li>*2A is the most common mutation in DPD that results in a truncated protein with no activity </li></ul><ul><li>1% of Caucasians have *2A mutation. These patients are at high risk of fatal toxicity </li></ul><ul><li>International literature warrants DPD testing before 5FU exposure </li></ul>
  7. 7. Example : 5FU and DPD <ul><li>But in India, about 5 % Indian patients treated with 5FU show severe side effects </li></ul><ul><li>One study on Indian Population on 13 individuals in US, found 1 person carrying *2A </li></ul><ul><li>From 25 normal individuals, we found 2 carrying *2A mutation. We are </li></ul><ul><li>Indian Oncologists are aware of DPD deficiency </li></ul>
  8. 8. Market Size : Cancer Patients Compiled from various sources 50 UGT1A1 Irinotecan 500 MTHFR Methotrexate 700 NAT, GST, MDR1 CYP Various Cancer Drugs 100 ECC1 Cisplatin 300 TS 5FU 300 DPD 5FU 8 TPMT 6MP # of Patients (in ‘000) Gene Drug
  9. 9. Market Size: Other diseases Compiled from various sources 50 Surgery and Transplants 50 CNS 50 AIDS 10 TB 20 Asthma 50 Diabetes 50 Cardio Vascular 20 Cancer # of Patients (in Lacs) Description
  10. 10. Market Size <ul><li>Every Individual has 38,000 genes and every one would a genetic test for one reason or another over the next 5 years </li></ul><ul><li>Hence this is a great opportunity, with great growth potential </li></ul>
  11. 11. Acton Biotech Pvt. Ltd.
  12. 12. Startup <ul><li>Started on 15 th Feb, 2006 </li></ul><ul><li>Did extensive research </li></ul><ul><li>Hired Neelam as first employee and partnered with PERD center for equipment and space </li></ul><ul><li>Indigenously developed tests </li></ul><ul><li>Handled logistics </li></ul><ul><li>Met 100 oncologists across India </li></ul><ul><li>Received 24 paid samples and 66 samples for research for TPMT Genotyping </li></ul><ul><li>Spent Rs 7,00,000, Revenue of Rs 30,000 </li></ul>
  13. 13. Immediate Plan <ul><li>Sunil focus on Mumbai </li></ul><ul><li>Collect samples for DPD Genotyping </li></ul><ul><li>Launch MTHFR Genotyping by 15 th Jan </li></ul><ul><li>Complete company registration formalities </li></ul><ul><li>CME in Mumbai and Delhi by Feb end </li></ul><ul><li>Indirect marketing activities like website, email, charitable organization, Insurance, defense and corporate medical schemes </li></ul>
  14. 14. Next Step <ul><li>Setup the Laboratory in Vadodara </li></ul><ul><li>Hire scientists, technicians and office staff </li></ul><ul><li>Hire Medical Representatives for Delhi and Bangalore </li></ul><ul><li>Get additional business from CROs and International market </li></ul>
  15. 15. Vision and Mission <ul><li>Be the leader in pharmacogenomic testing offering cutting edge, cost effective and accurate tests </li></ul><ul><li>Build an organization that is lean and knowledge intensive, offers conducive environment to learn and grow </li></ul><ul><li>Maintain clean and ethical operations </li></ul>
  16. 16. Key Success Factors <ul><li>Quality Laboratory </li></ul><ul><li>Aggressive expansion of test menu and reach in important markets </li></ul><ul><li>Building a strong brand to state that we are strong in technology, cost effective and the first bring these these tests to India. </li></ul><ul><li>Having a cohesive team of scientists, technicians, Medical Representatives </li></ul><ul><li>Low cost operations </li></ul>
  17. 17. Team <ul><li>Sandeep Saxena, BSc Life Science and MBA Finance with 8 years of professional experience. </li></ul><ul><li>Sunil Kumar, BA (University Topper), MBA (Marketing) </li></ul><ul><li>Dr. Suresh Advani. 25 years in Tata Memorial Hospital of which last 10 years as Head of Medical Oncology. Leading Oncologists of India. </li></ul><ul><li>Dr. Hema Ramaswamy, More than 20 years of biotech research in US and India </li></ul><ul><li>Ms. Neelam Chauhan (Ph D in Pharmacogenomics from PERD center, Ahmedabad) </li></ul><ul><li>Dr. Shwetank Jain, General Practitioner in Mumbai and with investments in Real Estate </li></ul>
  18. 18. Advisors <ul><li>Business and Strategy </li></ul><ul><ul><li>Dr. Madhu Mehta, NirmaLabs, Ahmedabad </li></ul></ul><ul><ul><li>Mr. Thyagrajan, NirmaLabs , Ahmedabad </li></ul></ul><ul><li>Biotech </li></ul><ul><ul><li>Dr. B J Rao, TIFR, Mumbai </li></ul></ul><ul><ul><li>Dr. Anand Kumar, ABLE, Bangalore </li></ul></ul><ul><li>Diagnostics </li></ul><ul><ul><li>Dr. Abha Shroff, Disha Pathology, Mumbai </li></ul></ul><ul><ul><li>Dr. Toprani, Toprani Laboratory, Vadodara </li></ul></ul><ul><ul><li>Dr. Shabazkar, Shabazkar Lab, Mumbai </li></ul></ul><ul><li>Pharmacogenomics </li></ul><ul><ul><li>Dr. G S Bhattacharya, AMRI, Kolkatta </li></ul></ul><ul><ul><li>Dr. Somasundaram Kumaravel, IISc, Bangalore </li></ul></ul><ul><ul><li>Dr. K Satyamoorthy , MAHE, Manipal </li></ul></ul>
  19. 19. Medical Advisors <ul><li>Ahmedabad </li></ul><ul><ul><li>Dr Shirish Alulkar, Cancer Care Clinic </li></ul></ul><ul><ul><li>Dr. Chirag Desai, Vedanta </li></ul></ul><ul><li>Mumbai </li></ul><ul><ul><li>Dr. Bharat Agarwal, Wadia Children Hospital </li></ul></ul><ul><ul><li>Dr. Asha Kapadia, Hinduja Hospital </li></ul></ul><ul><li>New Delhi </li></ul><ul><ul><li>Dr. Gauri Kapoor, Rajiv Gandhi Cancer, New Delhi </li></ul></ul><ul><ul><li>Dr. Meenu Walia, Dharmashila Cancer </li></ul></ul><ul><li>Hyderabad </li></ul><ul><ul><li>Dr. Dattatreya, Indo American Cancer, Hyderabad </li></ul></ul><ul><li>Pune </li></ul><ul><ul><li>Dr Shailesh Kanvinde, DM Hospital, Pune </li></ul></ul><ul><li>Bangalore </li></ul><ul><ul><li>Dr. Udai Kumar Maiya, Bangalore Hospital </li></ul></ul>
  20. 20. Competition <ul><li>Large reference labs like Dr. Lal Path lab, SRL Ranbaxy, Well Spring, Thyrocare, Metropolis, Vimta Lab and Reliance Life Sciences </li></ul><ul><li>Small technology players like Genome Biotech, Synchron and Triesta </li></ul><ul><li>Hospitals like Gangaram, Hinduja and Manipal </li></ul><ul><li>International players like Mayo Clinic, Labcorp, Myraid, DxS, deCODE Genetics, Genentech, Gentris, Genedia, Golden Helix, Specialty Laboratory, Prometheus Laboratory, Biologix Research Corporation, Oncoscreen, Geneblitz </li></ul><ul><li>Academic centers like CCMB, MAHE, Actrac </li></ul>
  21. 21. Risk <ul><li>Technology is new and unproven </li></ul><ul><li>Indian population genetic data is limited </li></ul><ul><li>Market is nascent and might take more time than expected to develop </li></ul><ul><li>Equipment is expensive is becomes obsolete very fast </li></ul><ul><li>Experienced people are scarce </li></ul><ul><li>Large players with financial muscle and unethical practices might enter </li></ul><ul><li>We might have a small % of false positive and false negatives and this is because of other genetic and environmental factors. </li></ul>
  22. 22. Finance
  23. 23. Break Even Point <ul><li>Monthly Expenses : Rs. 1,00,000 </li></ul><ul><li>Unit Price : Rs 3000 </li></ul><ul><li>Variable Cost : Rs 500 </li></ul><ul><li>Gross Profit : Rs 2500 </li></ul><ul><li>Break Even Point : 40 Samples </li></ul><ul><li>Expected in Feb, 2007 </li></ul>
  24. 24. Cash Flow
  25. 25. Investments Required <ul><li>Immediate </li></ul><ul><ul><li>Laboratory Setup : Rs 20 Lacs </li></ul></ul><ul><ul><li>Working Capital : Rs 20 Lacs </li></ul></ul><ul><li>Differed (6 months) </li></ul><ul><ul><li>Sequencer : Rs 40 Lacs </li></ul></ul><ul><ul><li>Buffer : Rs 20 Lacs </li></ul></ul>
  26. 26. Further Reading <ul><li>FDA guidelines for Pharmacogenomics data submission </li></ul><ul><li>Drugs don’t work by Allen Roses, GSK </li></ul><ul><li>Few Scientific Papers </li></ul><ul><li>Brochure and MR Presentation for TPMT and DPD </li></ul><ul><li>Certification from ROC, Gujarat for Allotment of Name </li></ul><ul><li>Sample Report </li></ul><ul><li>Incubation agreement with NirmaLabs </li></ul><ul><li>MOU with Dr Advani, Dr. B J Rao, NirmaLabs Sandeep and Sunil </li></ul><ul><li>Letter to Dr. Shwetank Jain for Investment. </li></ul>

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