business plan bps cardiac mc combs school of business march 26 2010
Post on 18-Oct-2014
3.107 views
DESCRIPTION
Business Plan Bps Cardiac Mc Combs School Of Business March 26 2010TRANSCRIPT
THE UNIVERSITY OF TEXAS AT AUSTIN
Business Plan Competition: MSTC Monterrey Program
McCombs School of BusinessMarch 26th, 2010
BPS-Cardiac Medical Device:
Chimera Team: Michele GonzalezViridiana OmanaMarco SanchezFernando Huerta
BPS-Cardiac: Presentation
PainPatient
&StakeHolders
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
BPS-Cardiac: Presentation
PainPatient
&StakeHolders
Value Proposition
& Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Did You Know?
• “Hearth blood pressure is highly related to Cardiac diseases and cause 7 million deaths worldwide” – WHO report.
• “Worldwide 418,000 persons die every year because of hearth strokes” – WHO report.
PAIN: Blood Pressure methods.(Background)
Central Venous Blood Pressure:
• Procedure: Measured inside the thoracic cava vena near the right atrium via catheterization.
• Goal: Identify problems related ability of the hearth to pump blood during trauma, hearth stroke in emergency rooms and/or ICU or ER.
• Method: Continuously / Accurate.
External Venous Blood Pressure:
• Procedure: Measured externally via a device or with an stethoscope.
• Goal: Register the External venous Blood pressure by event it helps to identify at given moment of time how the blood is flowing.
• Method: by event / Best effort.
PAIN: Circumstances
Trauma Heart attack
People who experience a:
To save their lives….is critical to measure the Central Venous Pressure
Intensive Care Units
PAIN: Cardiac Catheterization
Painful
Risky Expensive
Time Comsuming
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Patient&
StakeHolders
Funds Required
Capital Structure Financials
Patient & Stakeholders Analysis
Stake Holder
Patient and his Family
Physician & Nurse
Payers (Public & Private)
Hospitals
Government Regulator
Needs & Concerns related to CVBP
Pain and suffering
Lawsuits for wrong catheterizations
Cost of the procedure
Facilities, Lawsuits, Productivity, Reputation
Secure and effective treatments (Law/Reg.)
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Patient&
StakeHolders
Funds Required
Capital Structure Financials
Value Proposition
• A non invasive, painless, low cost, easy to use technology to measure Central Venous Blood Pressure (CVBP) to save peoples lives.
Value Proposition: The Technology
• A disruptive non-invasive technology that measure through a sensor the mechanical activity of CVBP
Technology: Good News!!
• A full functional Prototype is ready!!
Technology Applications
(+)
(-)(-) (+)Precision
Price Doctors Office
ICU
Home
Hospital Rooms.
Personal
Margin %
(+)
(-)
(+) (-)Market Size (Units)
Technology: Current IP Status
Mexico• Filing: Ago ‘09• Inventor: Teodoro Cordova, PhD• Owner: Guanajuato University• Testing: Lab and field testing already conducted• COFEPRIS approval: Pending
Technology Competitiveness
Technology BPS-Cardiac Catheterization
Equipment Cost $4,000 $400,000
Procedure Cost $400 Mex: $3,000 usdUS: $8,000 usd
Physician & Nurses 1 Nurse 3 Physician1 Nurse
Measurement Good EnoughContinuously
AccurateContinuously
SCOPE Central Venous Blood Pressure
Central Venous Blood Pressure
Technology Competitiveness
Technology BPS-Cardiac Catheterization
Equipment Cost $4,000 $400,000
Procedure Cost $400 Mex: $3,000 usdUS: $8,000 usd
Physician & Nurses 1 Nurse 3 Physician1 Nurse
Measurement Good EnoughContinuously
AccurateContinuously
SCOPE Central Venous Blood Pressure
Central Venous Blood Pressure
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Patient&
StakeHolders
Market Opportunity ICU– US
Catheterization CVP(0.4M)
Catheterization (1.2M)
Total Market
Equipment: Device Manufacturera) 58K units.b) $232 MUSD Revenues
Procedures: Hospitalsc) 408K procedures.d) $3.2 BUSD
Market Opportunity ICU– Mexico
Catheterization CVP(40K)
Catheterization (120K)
Total Market
Equipment: (Device Manufacturer)a) 4K units.b) $16 MUSD Revenues
Procedures: (Hospitals)c) 40K procedures.d) $120 MUSD
Medical Devices – Hot Deal
Med. Devices
VC investment in Medical Devices Startups $719MUSD / Q4 2009
Medical Devices – Hot Deal
Medical Device Startups had raised from $64M usd to $1M usd
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Patient&
StakeHolders
Business Model OptionsSegments IP IP + Manufacturing IP + Manufacturing
+ CommercializingValue Delivered Technology Technology +
ProductTechnology +
Product + Sales Channels
Revenue Sources R&D: Royalties Producing the Product
Selling the Product
Cost Sources Low High High
Risk Acceptable High High
Business Model OptionsSegments IP IP + Manufacturing IP + Manufacturing
+ CommercializingValue Delivered Technology Technology +
ProductTechnology +
Product + Sales Channels
Revenue Sources R&D: Royalties Producing the Product
Selling the Product
Cost Sources Low High High
Risk Acceptable High High
Business Model
• Goal: License the technology to a major Medical Device Manufacturer–GE Medical Systems– Johnson & Johnson Medical System–Baxter – Etc.
Business Model: Where we add value?
• Disruptive Technology– Patent– Exclusivity for US/Mexico Markets
• Regulatory Compliance– Paperwork– USPTO, FDA, COFEPRIS– Clinical trials
• Manufacturing & Testing (1,000 Units)
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Patient&
StakeHolders
MANAGEMENT TEAM
CEO & CFOFernando Huerta
(Innovation/ Telecom Consultant)Tec de Monterrey MBA
Chief Marketing OfficerMichele Gonzalez
(Mexico City Technology Council)Master in Science IPN
Regulatory & Oper. OfficerViridiana Omana
(IT Tecnológico de Celaya)Computer Science
Chief Technology OfficerMarco Sanchez
Guanajuato UniversityComputer Science Tec de
Monterrey
Operational Plan: TimelineEXIT STRATEGY: Licensing the technology
to a Medical DeviceManufacturer
COFEPRIS /FDA APROVALS/USPTO
Manufacturing 1000 EQUIPMENTS
Conducting Clinical Trials to Hospitasl and R&D Centers
8yrs Time Frame (2010-2017)
$
Medical Device Manufacturer Start the Commercialization phase
20122011
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Patient&
StakeHolders
Funds Required
$ 1.57 MUSD
Equity: 30%
Funds used for:
a) Exclusivity (US/Mex)
b) FDA/COFEPRIS Approvals
c) USPTO filing
d) Clinical Trials
e) Manufacturer 1,000 units
f) Due diligence for contracting MDM
Exit: Selling IP to a major Medical
Device Manufacturer.
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Patient&
StakeHolders
Capital Structure
PMS-Cardiac Capital Structure (Series A)
Invested $/Share Shares %Founders $ 60,000 6,000,000 60%Management Option Pool 1,000,000 10% Management Total 7,000,000 70% Series A Prefered $ 1,570,800 $ 0.524 3,000,000 30% Investor Total 3,000,000 30% Company Total 10,000,000 100% Company Pre-Financing Valuation $ 1,000,000 Total InvestMent $ 1,570,800 Company Post-Financing Valuation $ 2,570,800
BPS-Cardiac: Presentation
Pain
Value Proposition
&Technology
Market Opportunity
Business Model
OperationalPlan
Funds Required
Capital Structure Financials
Patient&
StakeHolders
Financials: Value Creation
• Investors & Founders: $8.9M usd– Investors: 2.9 M usd– Founders: $6.0M usd
• Medical Device Manufacturer: $14.1M usd
• High Margin Product:– Price per Unit: $4,000– Cost: $80 USD– Sales Channel: Commission 28%
Financials: Cost & Expenses
Assumptions (Total Revenues 2010-2012 MUSD)
• Regulatory: USPTO/COFEPRIS/FDA: $0.60• Clinical Trials $0.60• IP Lawyers $0.30• Deal Lawyers $0.30• Headcount, Travel & Office Expenses $0.30• Insurances $0.30• Manufacturing 1,000 units $0.10• Exclusivity fee Guanajuato University: $ 0.08• Manufacturing 1,000 units $0.10
BPS Cardiac: Remember!!!!!!
• This is an Excellent Opportunity to invest in a non-invasive low risk disruptive technology that saves people lives.
• Business Upsides: More applications, can be expanded worldwide and with a potential of developing a recurrent business disposals.
• That requires an investment of $1.57 MUSD used for: Clinical trials, Lawyers, Regulatory fee, manufacturing 1,000 units, insurance, due diligence with a major device manufacturing.
• And creates a value of $23M usd for investor, founders and the Device Manufacturer.
BPS-Cardiac: Presentation
Thanks!!!We are ready
for Q&A
THE UNIVERSITY OF TEXAS AT AUSTIN
Business Plan Competition: MSTC Monterrey Program
McCombs School of BusinessMarch 26th, 2010
BPS-Cardiac Medical Device:
Chimera Team: Michele GonzalezViridiana OmanaMarco SanchezFernando Huerta