doctor direct investor presentation - · pdf file · 2015-09-01september 2015...
TRANSCRIPT
DOCTOR DIRECT
INVESTOR PRESENTATION
September 2015
Doctor Direct
Executive Summary
The Doctor Direct (DD) medical remote monitoring technology is complete, live patient tested and has been field deployed.
The DD system automatically connects any Bluetooth health or wellness devices (i.e.
Blood Pressure, Blood glucose, Pulse oxygen, digital scale, etc.) to the caregiver
Data is automatically received by VeriSmartPhoneTM, assessed and sent to caregivers.
Patient data with action level is transmitted in real time to Caregiver who can respond to
patient via voice, video, SMS or email in real-time through patient’s VSP
The DD system, combined with new Medicare billing/CPT reimbursement codes creates
the opportunity for a significant Physician revenue stream with better quality care.
Smartphone based remote monitoring platform providing real time patient monitoring for physicians
Overview
Utilizes Cytta Private Mobile Cellular Network:
• Licensed by Cytta (Cytta.com) to use its voice data M2M cellular network to manage an IoT
network of unlocked smartphones programmed to ‘think’ – VeriSmartPhones™ (VSP).
• Proprietary Voice & Data cellular network for real-time health & wellness monitoring
• ‘Intelligent’ rooted android VSP IoT control interface
Enterprise GUI (Graphic User Interface):
• Auto Alerting and Highly Scalable to millions
• Automatically creates Cloud based patient electronic health record
• Automatically populates and alerts Physicians office of all patient information
Medical Analytics:
• All data contained in Cloud based relational database
• All biometric readings stored and available for meta analysis
• Power of big data available to Government, Insurers, Pharma, etc.
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Senior Management
Gary Campbell CEO - Cytta Corp. – Founder, CEO and Chairman; Unified Financial Inc. – CEO and
Chairman; Rocketinfo Inc. – CEO and Chairman; Screenphone Inc. President and Chairman; Cancall Cellular Int’l
– President and Chairman; Telemac Cellular Corp. – VP Corporate/ Counsel; International Verifact Inc. – Director
& Attorney; HC&G Barristers and Solicitors– Senior Partner of Law Firm; University of BC – B Comm., LL.B;
www.linkedin.com/in/garymcampbell
Natalia Sokolova President - SGG World LLC -Founder/ Managing Partner; Designer Holdings Ltd –
VP Business Dev; Bidz.com - Head of Marketing/ PR and IR; United Licensing Group - Managing Director; US
Chamber of Commerce; University of MD Cum Laude Int’l Finance; Member of; National Investor Relations
Institute; National Association of Professional Women; Cambridge Who is Who; www.linkedin.com/in/nsokolova
Raj Matthew CFO - Raised $1.2BB in public/private placements; Asante Technologies, (NASDAQ: ASNT)
CFO; RiskSense, The Brenner Group, Tagged, Narus (NSE:BA), BuildPoint – CFO; PeopleWeb Communications
(EBR: BELG), CFO led IPO; Avant!-Synopsys (NASDAQ:SNPS)- VP Finance & Controller; Seagate Technology
(NASDAQ:STX)- Director of Finance; Airtouch Vodafone (VOD:LN) Staff Director Finance; Price Waterhouse –
Senior Associate; University of San Francisco – BS Accounting/ MBA; www.linkedin.com/in/rajmatthew
Mr. William Casselman II, J.D., An attorney and business advisor highly experienced in information technology and
telecommunications matters. He represents U.S. and foreign clients on business and government matters, including commercial
transactions, government contracts and federal lobbying and is driven by tackling large issues such as the current Healthcare
change mandate. Mr. Casselman served for over 10 years in appointed positions within the Executive and Legislative Branches of
the U.S. Government, culminating with his appointment by President Ford as Counsel to the President, after serving as Legal
Counsel to Vice President Ford.
Mr. Michael Chermak Mr. Chermak has 30 years of experience in the healthcare industry and has raised over $200 million for
his various enterprises, both private and public. Mr. Chermak is the Founder and Principal of MD Capital Advisors a firm focused on
assisting emerging medical companies access equity capital markets. Mr. Chermak has been a CEO, Board Member, and Principal,
Investor in projects in the US, China and Europe in both private and public companies. Mr. Chermak and his partner purchased
controlling interest in a publicly held CRO, Covalent Group (CVGR), He helped install a new management team which turned the
company around resulting in a 350% stock increase.
Mr. Erik Stephansen BA (Econ) Mr. Stephansen is a private equity adviser and former investment banker who is experienced
in corporate development, technology and sales management work with Cisco, Microsoft and other Fortune 500 companies. He is
the President of Cytta Corp and has been instrumental in the acquisition and development of the Cytta Connect technology and is
the architect of the entire Cytta Connect system and ecosystem. . He has advisory board experience with several US companies and
an Australian technology company. Mr. Stephansen is an innovative business executive with documented knowledge in medical,
financial and professional services, hardware and software technologies.
Other Team Members
Business OpportunityThe Doctor Direct remote patient monitoring system, combined with the new billing/CPT
codes for the service, allows real-time patient monitoring and a significant revenue stream to the Physician for providing better quality care.
On January 1st, 2015, the Centers for Medicaid and Medicare (CMS) began reimbursement for a number of
telehealth services that the Agency hasn't covered before. This means that physicians now get paid for using
Cytta's remote monitoring system to remotely monitoring their patients' health!
The Doctor Direct program system saves busy practitioners time, generates revenue without adding staff costs
and opens up whole new avenues of care possible in the areas of weight control, diabetes, hypertension and
cardio-pulmonary diseases.
CMS now covers remote chronic care management using current procedural terminology ("CPT") code, 99490
(with a monthly unadjusted, non-facility fee of $42.60). This CPT code can be bundled with CPT code 99091
for collecting and reviewing patient data, which pays an average monthly fee of $56.92 to the physician.
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Leading manufacturers of remote-monitoring equipment include Medtronic Inc., Philips NV and St. Jude Medical
Inc. Sales are expected to total about $32 billion this year, with a compound annual growth rate of 9.2%
between 2014 and 2019. Such a merging of wireless technology and medical care is still in its infancy, but health systems that began pilot programs with the technology in recent years say they see signs that it is
keeping patients healthier. By enabling doctors to continuously monitor patients, they say, the systems can
detect problems well before they grow serious. WSJ Feb 16, 2015
Remote Patient Monitoring Lets Doctors Spot Trouble EarlyFor patients with chronic conditions, tracking of vital signs allows quick care adjustments
How it Works
Doctor Direct utilizes licensed Cytta VeriSmartPhonesTM and technology to create an instantaneous remote
medical monitoring connectivity system
The remote medical data capture 'VeriSmartPhone’ (VSP) technology’ works over a private national cellular
network license from Cytta Corp. utilizing:
The Doctor Direct system is completely open source – Automatically connects any Bluetooth health or wellness
devices (i.e. Blood Pressure, Blood glucose, Pulse oxygen, digital scale, etc.) to the VSP to the Cloud and on to
the caregivers anywhere anytime
Data is automatically received by VSP, interpreted, assessed and recipients determined
VSP transmits data in real time to the Dr., Nurse, Caregiver and/or family member along with determination of
action level or importance.
Dr., Nurse, caregiver, or family member responds to patient via voice, video, SMS or email in real-time through
VSP in patient’s home.
Their proprietary Private Unlocked Cellular Network
Any ‘factory unlocked’ Android smartphone (i.e. all US Carrier marketed
smartphones
have major portions of their functionality restricted or “locked” by the Carrier
A proprietary ‘intelligent’ VSP rooted android control interface
Any Bluetooth health or wellness device from any manufacturer (open source)
A relational cloud-based data repository
Any smartphone or computer of the recipient (Dr., Nurse, family-member, etc.)
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Benefits of Doctor Direct
Reduce costs and improve care coordination with
Doctor Direct monitoring services.
Reduce avoidable hospital readmissions
Take preventative measures before condition gets critical and increase
survival rates
Shorten length of stay when admission is
necessary
Enable constant and engaging patient-provider
connections
Increase compliance with lifestyle changes, such as
diet, exercise and medication
Increase patient satisfaction and contribute to improved quality of life.
Provides safety and security from any place for the
patient with available 24/7 alerts to the doctor’s office
with unusual readings.
Doctor has his patients EMR readings displayed in graphic and other formats
for easy diagnosis.
Our device not only monitors and sends signals but can be a regular cellular
phone and video conference solution
Patient has a choice to use this device as a main mobile number and
transfer the prior number to this line.
Secure remote access, HIPPA compliant
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Competition
Qualcomm -Qualcomm is an American global semiconductor company that designs and markets wireless telecommunications products and services. The 2net™ WiFi platform is an excellent cloud-based system that securely gathers your health information from various medical devices and health applications into one easily accessible spot for you and your health care team. Cons only works with WiFi no cellular connectivity
There are a number of competitors in this space. Below we list the most popular playersin medical remote monitoring. What separates the Doctor Direct platform is the Cytta private cellular network combined with IoT VeriSmartPhones™ that can be reprogramed at an operating system level to perform multiple functions and ‘think’.
Honeywell HomeMed - Leverages an Android tablet for an intuitive, consumer based interface with access to a full range of LifeStream applications, services and devices. This personal health device revolutionizes how care providers interact with patients by enabling simple, one-touch, video-based communication in addition to traditional telemonitoring. A patient education feature encourages healthier choices and compliance with a personalized care plan. Support for peripheral devices meets the needs of patients with different risk factors and specialized monitoring requirements. Cons: expensive, not automatic, limited devices available.
Validic - Solves the accessibility and integration challenges for healthcare organizations by providing a one-to-many connection to digital health technologies. Validic is a cloud-based technology platform that connects patient-recorded data from digital health applications, devices and wearables to key healthcare companies like hospital systems, providers, pharmaceutical companies, payers, health information technology platforms, health clubs and wellness companies. Validic provides a great solution for our data.
Philips Telehealth - Takes vital signs and customized surveys with Philips monitoring devices. With specialized algorithms, Philips data server processes clinical data into manageable information with bi-dreictional data communication with electronic health records (EHR). Results are automatically sent to a website (via a land line or cellular signal). The telemonitoring nurse monitors the patient daily and physically alerts the patient and care team when results fall outside predefined limits. Requires full and part time field installation and ongoing nurse monitoring
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Competitive Advantages
Most medical devices rely on landline telephone connectivity and/or WiFi connectivity to send health data to
caregivers. Many elderly patients have no WiFi access and can’t be monitored outside
their home. Doctor Direct cellular monitoring gives the security, safety and
flexibility to communicate with their doctor anywhere and anytime.
Most remote monitoring apps leave the data uselessly trapped on the cellphone or on a web portal. Doctors are not permitted
to utilize this data. Our VeriSmartPhone solves this issue by automatically passing
the FDA approved data to the Doctor for his review and action, without any patient
input.
Our system does not require that you purchase or have to install an expensive
and cumbersome EMR technology, although we can integrate your patient data
with any existing EMR.
Our Doctor Direct system is fully operational in any US location, HIPPA compliant and our existing clients are
currently achieving remarkable results with the Doctor Direct Program.
We are the first highly scalable, mobile platform for collecting verifiable and
objective data for anyone needing FDA or Non FDA approved monitoring; from the
Chronically Ill to 30-Day Readmission prevention to fitness and wellness testing.
Our Compression/ Encryption technology gives Doctor Direct an unparalleled advantage to all our competitors.
Target Market
Three million patients around the world were using connected home medical monitoring devices in late 2013, this number will jump to 19.1
million by 2018.. Remote patient monitoring revenues reached $5.8 billion in 2013 and are expected to grow to $26.4 billion by 2018.
Our primary markets are primary care physician offices and small group practices. Individual and small group practices possess
the required patient base, and the clinical and financial incentives to adopt this program.
We will address this market through a sales affiliate marketing program which not require a costly in-house sales infrastructure.
The program will be two tiered, the first -sales team development and management and second -the actual field sales reps.
We have identified key opinion leaders, regional medical sales rep associations and clusters of independent medical sales reps.
In addition to the affiliate program, the primary marketing function for the company is largely creating effective
communications materials for the affiliates, physicians, and their patients.
FinancialsFunds Raised to Date and their Use Total funds raised to date $1.2 million Licensing and Development fees for Cytta VeriSmartPhoneTM IoT technology and Private Cellular Network
Current Round Angel Round $1,250,000 with Valuation of $6,000,000
Use of Proceeds Marketing Sales Operations R&D
Assumptions based upon our market research Average size of Family Practice - 5,000 patients Patients with two Co-morbidities eligible for Medicare reimbursement of $100 per month ($56 RPM and $44 for virtual visit) 30% Patients fall in the range of Co-Morbidity. We assume that doctor will provide/ prescribe monitoring to 25% of his co-morbidity. ( i.e. it will be 375 patients per doctor) Doctor will be responsible for paying for reps $10/ patient and for VeriSmartPhone (lease for $10-20/ month) Doctor pays DD $10/ patient on the network/month = 3750 x 12 = $45,000 per doctor/year plus one time setup fee In Year 1 we can sign 42 Family Practices, which will result in $1,900,500 gross revenue In year 2 we can sign 252 Family Practices, which will result in $11,345,250 gross revenue In year 2018 we can sign 700 Family Practices, which will result in $31,473,000 gross revenue Plus revenue from operating the AT&T network - TDB Less Marketing/ Operating/ Salaries/ Licensing royalties/ Office/ Administrative - Net Margin approx. 33% Additional revenue - Mandatory $15/ phone prepaid credit for emergencies (we net $10) - Advertising revenue
Year 1 Year 2 Year 3
Revenue 1,900,500 11,345,250 31,473,000
Cost of Sales 760,200 3,403,575 11,015,550
Operating Expenses 1,793,840 4,397,240 7,993,530
Net Income (Loss) (653,540) $3,544,435 $12,463,920
Financials
-5,000,000
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Year 1 Year 2 Year 3
Pro Forma Financials
Revenue
Cost of Goods Sold
Operating Expenses
Net Income
How this Company was Born (Optional reading)
• The principals of this Company began working on this project in 1999 when they decided over a glass or two of wine that medical peripherals should dam well be connected to the Internet. They visited A&D Medical in Menlo Park and discussed their novel concept. A forward thinking engineer at A&D (now their head of Engineering) thought the idea interesting and donated a box of A&D blood pressure (BP) monitors.
• Our intrepid Vancouver programming team thereupon cracked open the BP devices and connected a serial cable to the inside of the BP monitor. The other end of the serial cable was connected to the Samsung Anyweb serial port (this was before USB) and with some reprogramming of the Anyweb, the blood pressure readings were sent from Vancouver via the Internet and to an Anyweb in scenic San Clemente and not so scenic Suwon City, Korea.
• Eventually our team were moving the data from 10 different medical peripherals through the Anyweb, including readings from a 12 lead EKG designed for veterinary use. Interestingly, in the first trial with a live young Canadian programmer, our US doctors both looked at the EKG results from Vancouver and identified a serious heart problem. The test was stopped and the kid immediately went to the hospital where he was immediately placed on heart medication. Was this the first life saved by remote monitoring?
• By August 2001 the medical community was placing their first orders for the Anyweb Medical ScreenPhone and its medical peripherals. Unfortunately the internet appliance market died with 9/11 as PC prices fell dramatically and their was no ability to source Anyweb Internet appliances. Advanced remote medical monitoring systems were just another victim of 9/11.
• The market stayed in its primitive technology status until the advent of Obamacare which changed the healthcare paradigm and tried to shift the emphasis to quality of care and value based care. Believing the opportunity once again existed to radically change the way medicine was practiced, the now longer in the tooth members of our intrepid ScreenPhone crew decided to get the band together and try again. And since smartphones were now ubiquitous, we decided to make them the control interface for the system.
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How this Company was Born (Optional reading Con’t)
• The beauty of this model is that it is completely automatic. You take a reading and the smartphone receives it automatically and then sends it to the Cloud and on to the Doctor with the appropriate notices. Simple and elegant. Unfortunately, all US carrier cell phones are factory “locked” so that the root or automatic functions are not accessible. These are “network protocols” and prevent cellphones from thinking and acting on their own or independently of the user. These constraints prevented our model from working.
• Not to be deterred by the fact no US cellphone was permitted to do what we wanted, we went out and found a small private cellularnetwork that allowed us to use factory unlocked android cellphones and gain root access to the smartphone’s control interface. Basically we hacked them. We reprogrammed the smartphones (we began calling them ‘very smart phones’ or VeriSmartPhonesTM) to do our bidding and began operating on their private 2G cellular network. The system worked flawlessly and a live patient trial was undertaken with 27 very sick patients who swore the Cytta Connect technology changed their lives.
• Interestingly, some enterprising AT&T executives were watching our progress and once we demonstrated the efficacy of our system on the Network, we were offered the opportunity to play in the big leagues and use the AT&T 4G LTE domestic and international network for our VeriSmartPhones. We accepted and now have the opportunity of making our VeriSmartPhones (VSPs) do different and amazing things on our unlocked portion of the national cellular network. We have developed the original demonstration system as a complete independent remote medical monitoring system, but that is merely one vertical our VSP’s can control. The VSP’s are a very smartconnected control interface which allows us to empower the Internet of Things (IoT) in many different ways.
• And as we cynically said before, nothing happens in US medicine unless someone can make money from it. This miraculous event occurred on January 1, 2015 when CMS introduced two codes so Doctors could bill monthly for remote monitoring and make recurringrevenue. Instantly the medical community was ready to embrace the wonders of our remote monitoring technology. Hallelujah!