sweet sensors lecture 7 partners
TRANSCRIPT
Sweet Sensors
Yu Xiang and Yi Lu, Nature Chem. 3, 697-703 (2011).
Small form factor diagnostic devices that can detect a variety of biological markers.
• Inexpensive• Quantitative • Adaptable to many
kinds of tests (targets)
Types of targets
• Recreational drugs• Heavy metals• Toxins• Bacteria• Viruses• Pharmaceuticals• Environmental hazards• Food safety targets
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
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
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.
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
• 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?
Key findings:
other customer segments, technical
Sweet SensorsYi Lu, Tian Lan, Brian Wong
Neil Kane
Chris Sorensen
Business Model Canvas #6 (last week)
One to one
Conferences
R&D
QC
IP
Personnel
Pharmaceutical
companies
R&D
Licensing
Convenient monitoring
and safer dosage
Immediacy
11-01-2011
Pharmaceutical Cos
Sales (to pharmaceutical companies)
Pharmaceutical Cos
Long termGlucometer/strip
manufacturer
ExclusiveDiagnostic
company
Contract research
organization
Pharmaceutical
companies
Glucometer/strip
manufacturer
Diagnostic
company
Contract research
organization
Sweet SensorsYi Lu, Tian Lan, Brian Wong
Neil Kane
Chris Sorensen
Business Model Canvas # 7 w/changes
One to one Direct
Conferences
R&D
QC
IP
Personnel
Pharmaceutical
companies
R&D
Licensing
Convenient monitoring
and safer dosage
Immediacy Immediate
results
11-08-2011
Pharmaceutical Cos
Product Sales (to pharmaceutical companies)
Pharmaceutical Cos
Long termGlucometer/strip
manufacturer
ExclusiveDiagnostics
companies
Contract research
organizations
Pharmaceutical
companies
Glucometer/strip
manufacturer
Diagnostic
companies
Contract research
organizations
Investors
Publicity
Inexpensive
Simple
Insurance Reimbursement
Robust/extensible
Licensing?
Glucometer mfr
Strip mfr
Sweet SensorsYi Lu, Tian Lan, Brian Wong
Neil Kane
Chris Sorensen
Business Model Canvas # 7
Direct
Conferences
R&D
IP
Personnel
Pharmaceutical
companies
R&D
Licensing
Convenient monitoring
and safer dosage
Immediate results
11-08-2011
Pharmaceutical Cos
Product Sales
Long termDiagnostics
companies
Contract research
organizations
Pharmaceutical
companies
Diagnostic
companies
Contract research
organizations
Investors
Publicity
Inexpensive
Simple
Insurance Reimbursement
Robust/extensible
Licensing?
Glucometer mfr
Strip mfr
Revenue Model
Missing:Lifetime value of customer and amortization of acquisition costs over lifetime
Sweet Sensor Revenue Model
Factors
COPD MARKET All Segments
Market Size 16,000,000
Market Share Target 10%
Channel Capacity 100%
Customer Activations 1,600,000
Attrition 10%
Net Customers 1,440,000
Revenue Model
Usage per Year 52
Number of Uses per Year 74,880,000
Revenue per Use $4 $4
Total revenue $299,520,000
EXPENSES
Cost Per Customer Acquisition $25 $25
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%
Service Channel Distribution Model
InsuranceCompany
Doctor
Service Provider“Healthways”
Patient
SweetSensors
Medical Services
DataService
In House CareServices
Payment
Payment
Payment
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.