cre medical final nsf i-corps presentation

16
CREmedical C What can CREmedical do? •Bring EEG into the 21 st century with a new platform. •194 individuals talked to. CREmedical “Seeing the Unseen Then Now

Upload: steve-blank

Post on 23-Jun-2015

823 views

Category:

Education


2 download

TRANSCRIPT

Page 1: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

What can CREmedical do? • Bring EEG into the 21st century with a new platform.

• 194 individuals talked to. • Changed from one main product to product mix.

CREmedical

“Seeing the Unseen”

ThenThen

NowNow

Page 2: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Principal Investigator – Walter BesioOver 12 years industry experienceOver 14 years CRE experience

Entrepreneurial Lead – Xiang LiuWorked with tEEG since 2008M.S. in Physical Electronics

Mentor – Jim PetellOver 20 years of business experienceStart-up to large corporate companies

Page 3: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Initial Idea – Manufacture, sell, and service tEEG front-end

By 2015•Total physiological monitoring equipment (TAM): $4.6 B•EEG & EMG (SAM): $1 B•EEG: $500M

SAM $1 B

TAM $4.6 B

EEGTarget $500 M

Page 4: CRE Medical Final NSF I-Corps Presentation

CREmedicalCThe Business Model Canvas V1

ManufacturersManufacturers

DistributorsDistributors

Parts SuppliersParts Suppliers

Product Development

Product Development

End User AcceptanceEnd User

Acceptance

FDA ApprovalFDA Approval

IP ProtectionIP Protection

ISO Certified ManufacturingISO Certified

Manufacturing

Product Development Team

Product Development Team

FinancingFinancing

Improved Product Performance

Improved Product Performance

Unmet NeedsUnmet Needs

UsabilityUsability

End Value to Customers

End Value to Customers

End User CliniciansEnd User Clinicians

HospitalsHospitals

DistributorsDistributors

Device DistributorsDevice Distributors

Medical Supply Distributors???Medical Supply Distributors???

Electrodes???Electrodes???

Physiological Signal SystemsPhysiological

Signal Systems

Sensors???Sensors???

Development CostsDevelopment Costs

Cost of ProductionCost of Production

RegulatoryRegulatory

LegalLegal

MarketingMarketing

Device Systems Sales

Device Systems Sales

Electrodes: Low Value???

Electrodes: Low Value???

Sensors : Any Value?

Sensors : Any Value?

Existing EEG Markets

Existing EEG Markets

Page 5: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Who Did We Talk To… • Robert Fisher – Head Epilepsy Center Stanford

• Andrei Medvedev – Director EEG and Optical Imaging Laboratory, Georgetown University

• EEG electrodes distributor

• Research/Education neurophysiology equipment distributor

• Sales Manager Electro-Medical

• Electrodes and sensor manufacturer

• Steve Schachter – Past President American Epilepsy Society

Customers175

Channels 15

Partners 4

Page 6: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Why are we better than competition…

Movement artifact eliminated

• Fact: EEGs are not used as a stand alone.• Proprietary tripolar interface exceeds

traditional disc electrode performance: Improved signal to noise ratio (375%). Improved spatial selectivity (257%). Reduced overlap information (only 8.3%).

Them Us

Page 7: CRE Medical Final NSF I-Corps Presentation

CREmedicalCThe Business Model Canvas V4

ManufacturersManufacturers

Value Added Resellers

Value Added Resellers

Parts SuppliersParts Suppliers

Product Development

Product Development

End User AcceptanceEnd User

Acceptance

FDA ApprovalFDA Approval

IP ProtectionIP Protection

ISO Certified ManufacturingISO Certified

Manufacturing

Product Development Team

Product Development Team

FinancingFinancing

End User CliniciansEnd User Clinicians

HospitalsHospitals

Development CostsDevelopment Costs

Cost of ProductionCost of Production

RegulatoryRegulatory

LegalLegal

MarketingMarketing

FoundationsFoundations

AssociationsAssociations

SocietiesSocieties

Early AdoptorsEarly Adoptors

Improved SNRImproved SNR

Improved SpecificityImproved Specificity

Improved Spatial Resolution

Improved Spatial Resolution

Improved SensitivityImproved Sensitivity

End User Researchers

End User Researchers

Device Value Added Resellers

Device Value Added Resellers

Device Retailers / Resellers

Device Retailers / Resellers

Neurologists, Neurosurgeons, Psychologists,Audiologists,

NeuroscientistsAnesthesiologists

Neurologists, Neurosurgeons, Psychologists,Audiologists,

NeuroscientistsAnesthesiologists

Existing EEG Markets

Existing EEG Markets

Research SystemsResearch Systems

Tripolar EEG Front End Retrofit Sales

Tripolar EEG Front End Retrofit Sales

Tripolar EEG Front End New Sales

Tripolar EEG Front End New Sales

Electrode Replacement Sales

Electrode Replacement Sales

Device Value Added Resellers

Device Value Added Resellers

Medical Supplies Retailers DMS

Medical Supplies Retailers DMS

DistributorsDistributors

Improved Product Performance

Improved Product Performance

Unmet NeedsUnmet Needs

UsabilityUsability

End Value to Customers

End Value to Customers

DistributorsDistributors

Clinical SystemsClinical Systems

Page 8: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

NeurologistNeurologist EEG Diagnostic

EEG Diagnostic

NeurologyDept

NeurologyDept

HospitalAdmin

HospitalAdmin

InsuranceInsurance

PatientPatient

Workflow for Clinic But… Pivot???•EEG device replaced 5-10 years.. •Our interface price is $3,300. Electrode set price is $600.•Hospital insurance billing: >$300,000 annually per EEG.•Question: How can you capture revenue from each test?

Page 9: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Neurologist?

Neurologist?

EEG Diagnostic

EEG Diagnostic

OR Surgery – Anesthesiologist

OR Surgery – Anesthesiologist

HospitalAdmin

HospitalAdmin

PatientPatient

Page 10: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

NeurologistNeurologist EEG Diagnostic

EEG Diagnostic

OR Surgery – Anesthesiology

OR Surgery – Anesthesiology

HospitalAdmin

HospitalAdmin

DMSDisposable

DMSDisposable

PatientPatient

“New Market Segment”– Pivot•EEG used in OR require sterility >>> sterile sensors.•Over 4,000 ORs in the US.•Disposable sterile sensors are replaced every test!•Hey… we are in the “ink jet printer / cartridge business”.

Page 11: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

How Pivot changed the market opportunity … • Gross revenue increased to $163MM at Year 10 with

21% margin.

924,000 units sold Yr 1018,000 units sold Yr 10

BUT….

75,000 units in use & more counting

Page 12: CRE Medical Final NSF I-Corps Presentation

CREmedicalCThe Business Model Canvas V5

ManufacturersManufacturers

Value Added Resellers

Value Added Resellers

Parts SuppliersParts Suppliers

Product Development

Product Development

End User AcceptanceEnd User

Acceptance

FDA ApprovalFDA Approval

IP ProtectionIP Protection

ISO Certified ManufacturingISO Certified

Manufacturing

Product Development Team

Product Development Team

FinancingFinancing

End User CliniciansEnd User Clinicians

HospitalsHospitals

Development CostsDevelopment Costs

Cost of ProductionCost of Production

RegulatoryRegulatory

LegalLegal

MarketingMarketing

FoundationsFoundations

AssociationsAssociations

SocietiesSocieties

Early AdoptorsEarly Adoptors

Improved SNRImproved SNR

Improved SpecificityImproved Specificity

Improved Spatial Resolution

Improved Spatial Resolution

Improved SensitivityImproved Sensitivity

End User Researchers

End User Researchers

Device Value Added Resellers

Device Value Added Resellers

Device Retailers / Resellers

Device Retailers / Resellers

Neurologists, Neurosurgeons, Psychologists,Audiologists,

NeuroscientistsAnesthesiologists

Neurologists, Neurosurgeons, Psychologists,Audiologists,

NeuroscientistsAnesthesiologists

Existing EEG Markets

Existing EEG Markets

Research SystemsResearch Systems

Tripolar EEG Front End Retrofit Sales

Tripolar EEG Front End Retrofit Sales

Tripolar EEG Front End New Sales

Tripolar EEG Front End New Sales

Electrode Replacement Sales

Electrode Replacement Sales

Device Value Added Resellers

Device Value Added Resellers

Sterile Disposable Sensor Sales

Sterile Disposable Sensor Sales

Medical Supplies Retailers DMS

Medical Supplies Retailers DMSSterilitySterility

DistributorsDistributors

Improved Product Performance

Improved Product Performance

Unmet NeedsUnmet Needs

UsabilityUsability

End Value to Customers

End Value to Customers

DistributorsDistributors

Operating RoomsOperating Rooms

Clinical SystemsClinical Systems

Page 13: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Distribution Channels

Contract Manufacturer

Contract Manufacturer

LaboratoriesScientists

LaboratoriesScientists

VARInterface

VARInterface

VAR / DMSElectrodesVAR / DMSElectrodes Hospitals

AdminHospitals

Admin

NeurologistAnesthesiologist

NeurologistAnesthesiologist

StockProductStock

ProductCREmedicalCREmedical

DMSDisposable

DMSDisposable

Channel Customers

Page 14: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

•Our platform is readily used for ECG in cardiac diseases and for EMG in neuromuscular disorders.•The total neurophysiological market in 2015 grows to $4.6 B for all “E-testing” (TAM).

TAM $4.6 B

InitialTarget $500 M

Page 15: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

Why Invest Increased sensitivity and performance over current

products. Customers, VARs and DMSs want product. Diverse revenue streams. Scalable, platform technology. Fast time to market (<2 years). Platform potential for treatment of epilepsy, pain and

neurological disorders.

Page 16: CRE Medical Final NSF I-Corps Presentation

CREmedicalC

“What We Are Going To Do” Build 20 prototypes for early adopters and

earlyvangelist to validate product. Submit SBIR. Finalize VARs and DMSs partners to sell product. Work with key manufacturing partners to scale up

production. FDA 510k. Go after new opportunities for treatment.