debrideX Surgical

16
debrideX Surgical Strategy & Business Plan

description

debrideX Surgical. Strategy & Business Plan. Our Team. Grygorii Yefremov - CEO Ranjan Upadhyay - CFO Prasant Varghese - CMO Krishn Khanna - CRO Srinivas Chivukula - CTO. Executive Summary. Head and neck surgeries currently employ microdebriders with tips of fixed angles - PowerPoint PPT Presentation

Transcript of debrideX Surgical

Page 1: debrideX Surgical

debrideX SurgicalStrategy & Business Plan

Page 2: debrideX Surgical

Our Team

•Grygorii Yefremov - CEO

•Ranjan Upadhyay - CFO

•Prasant Varghese - CMO

•Krishn Khanna - CRO

•Srinivas Chivukula - CTO

Page 3: debrideX Surgical

Executive Summary•Head and neck surgeries currently employ

microdebriders with tips of fixed angles

•debrideX Surgical presents this challenge with a novel and efficient solution: a variable-angle debriding tip

•Company is expected to become profitable during the 4th year

•Exit strategy: acquisition by a major biomedical company after the 5th year

Page 4: debrideX Surgical

Company OverviewOverview of the Product

Provides angular flexibility to the functional unit of a microdebrider

Advantages of this Product over Existing Technologies▫ Flexible tip▫ Less trauma▫ Economically more efficient for the consumer▫ A simpler mechanism = lower costs and higher profits

Development DurationR&D▫ 6 months - development of the tip▫ 6 months - development of the base unitFDA approval and Fundraising▫ 1 year - designing, manufacturing and clinical trials ▫ Concurrently aiming for venture capitalMarketing and Manufacturing▫ 1 year - aggressive marketing campaign▫ Development of manufacturing facilitySales begin in the fourth year▫ 2 years of sales – become profitableAcquisition

Page 5: debrideX Surgical

The MarketMarket Overview

▫ 37 million Americans with sinusitis per year (32 million – chronic) ▫ 300 thousand FESS surgeries alone per year▫ Net market = $5.8 billion, ▫ Nearly 20% or $1.1 billion lies in the sinus surgery regime

Customer Base 12,000 Otolaryngologists / ENT surgeons in AmericaHospitals and private practice

Marketing of the ProductMarketing representativesAdvertise to ENT databases and conferences

Competitors▫ Medtronic Xomed

60% of the market▫ Stryker▫ Gyrus, (an Olympus company)

Page 6: debrideX Surgical

Business Model• Funding

▫Academic grants and design competitions▫SBIR▫Venture Capital

• Spending▫R&D▫FDA/clinical trials▫Marketing▫Manufacturing▫Business Expenses

• Income▫Base unit - $10,000 each▫Tip - $500▫Disposable blade - $100▫Biannual Maintenance - $750

Page 7: debrideX Surgical

Design & DevelopmentDesign Selection

▫ Selection criterion = effectively transferring blade motion through a flexible tip

Prototyping▫ CAD software prototyping▫ Modeling of functionality▫ Final prototype

Constant Evaluation and Reevaluation of DesignAmong the more important evaluation criteria will be:

▫ Torque▫ RPM▫ RPM variability▫ Deflection angle and curvature▫ Temperature of the shaft▫ Suction power▫ Minimal achievable diameter▫ Sterilization techniques

 

Page 8: debrideX Surgical

DS5

Page 9: debrideX Surgical

DS5 Cont’d (1)Blade Diagram – Side View Turbine Chamber – X-

Section

Page 10: debrideX Surgical

DS5 Cont’d (2)

Bent Joint of the Tip

Page 11: debrideX Surgical

DS6

Prototype Ideas

Page 12: debrideX Surgical

DS6 (cont’d)Priorities

▫ Well-controlled, bendable joint▫ Low friction blade rotation▫ Disposable parts

Page 13: debrideX Surgical

Financials & TimelineResearch and Development Phase (Months 1-12)

COST REVENUEEXPENSE TOTAL INCOME TOTAL

Flexible Tip Materials $500 Columbia University Funding $500 Base Unit Materials $3,000 BME Design Grants $1,000 Polishing and Finalizing Product $10,000 SBIR Grants (Tentative) $20,000 Patent Applications $10,000    Employee Salaries $80,000    Office Upkeep $18,000           Total Expenses ($121,500) Total Income $21,500

YEAR 1 EARNINGS ($100,000)NET LOSS ($100,000)

FDA Approval and Fund Raising Phase (Months 12-24)

COST REVENUEEXPENSE TOTAL INCOME TOTAL

Travel Expenses $10,000  Design Updates $5,000    Clinical Trials $100,000    Employee Salaries $160,000    Office Upkeep $18,000           Total Expenses ($293,000) Total Income $0

YEAR 2 EARNINGS ($293,000)NET LOSS ($393,000)

Page 14: debrideX Surgical

Financials & TimelineAdvertising and Manufacturing Phase (Months 24-36)

COST REVENUEEXPENSE TOTAL INCOME TOTAL

Advertising Materials $4,500    Design Updates $5,000    Initial Stage Manufacturing Costs $147,500    Employee Salaries $510,000    Travel Expenses for Representatives $50,000    Factory Upkeep $46,000           Total Expenses ($763,000) Total Income $0

YEAR 3 EARNINGS ($763,000)NET LOSS ($1,156,000)

Early Sales Phase (Months 36-48)

COST REVENUEEXPENSE TOTAL INCOME TOTAL

Advertising Materials $3,500 Base Unit Sales $750,000 Research and Development $15,000 Tip Sales $750,000 Manufacturing Costs $395,000 Disposable Blade Sales $750,000 Employee Salaries $435,000 Maintenance Costs $150,000 Travel Expenses for Reps and Techs $90,000 Factory Upkeep $46,000         Total Expenses ($984,500) Total Income $2,400,000

YEAR 4 EARNINGS $1,415,500NET PROFIT $259,500

Target Venture Capital

Investment: $ 1.2 million

Page 15: debrideX Surgical

Financials & TimelineLate Sales Phase (Months 48-60)

COST REVENUEEXPENSE TOTAL INCOME TOTAL

Advertising Materials $3,500 Base Unit Sales $1,500,000 Research and Development $15,000 Tip Sales $2,250,000 Manufacturing Costs $605,000 Disposable Blade Sales $2,250,000 Employee Salaries $435,000 Maintenance Costs $225,000 Travel Expenses for Reps and Techs $90,000 Factory Upkeep $46,000  

Total Expenses ($1,194,500) Total Income $6,225,000

YEAR 5 EARNINGS $5,030,500NET PROFIT $5,290,000

0 6 12 18 24 30 36 42 48 54 60

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

6000000Break-Even Point Graph

Months

Page 16: debrideX Surgical

AcknowledgementsHenry Hess, Ph.D.

Associate Professor of Biomedical EngineeringColumbia University

Elizabeth Hillman, Ph.D.Assistant Professor of Biomedical Engineering

Columbia University

Keith Yeager, M.Sc.Laboratory Machine Manager, Dept. of Biomedical Engineering

Columbia University

Lauren GrosbergTeaching Assistant, Dept. of Biomedical Engineering

Columbia University