Dento Mimetix NSF FInal Presentation

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THE PROBLEM IN DENTAL HEALTHCARE

Problem: The root of major dental ailments is demineralization

Using peptides we remineralize tooth surface without any synthetics.

This is the technology that made dentists say “WOW!”

OUR SOLUTION

Old tooth

New mineral layer

dentoMIMETIX

Mustafa

GungormusPhD, MSE

Terri

ButlerPhD, C4C

Mehmet

SarikayaProf. MSE & ChemE

Candan

TamerlerProf. MSE & Mol Bio

Hanson

Fong PhD, MSE.

Revolutionizing dental care throughnatural mineralization peptides

Final PresentationInterviewed: 115

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EntrepreneurialLead

Mentor P.I. Co-P.I. Co-E.L.

I-Corps Team Start-up Partners

Technical VideoIntroduction Video

http://www.youtube.com/watch?v=6h6dPMTG9qY

http://www.youtube.com/watch?v=ctZ3AQJgYYA

1st BUSINESS MODEL CANVASKEY ACTIVITIES

- R&D: Efficacy tests and product optimization

- Coordination of manufacturing and marketing partners

KEY PARTNERS

- Peptide synthesis companies

- Regulatory advisors

- Dental researchers

- Distribution and marketing partners

COST STRUCTURE- Value-driven- Development, optimization, regulatory

approval- Raw materials, production, distribution,

marketing

VALUE PROPOSITIONS

- Improved performance

- Convenience/- usability

- Risk reduction (toxicity)

- Non-animal ingredients (broader customer base)

CUSTOMER RELATIONSHIPS

- Web based & in- clinic education

- Sponsored dental screenings at schools

CHANNELS


- Practicing dental professionals (secondary)

CUSTOMER SEGMENTS

- Practicing dental professionals

- People with incipient caries

- People with sensitive teeth

- People who are susceptible to caries

- Health care product manufacturers

REVENUE STREAMS- Direct sale (e.g. clinical products through

distributors)- Raw material sale (e.g. to toothpaste

manufacturers)- Licensing

KEY RESOURCES- Individuals

- Local biotech. entrepreneurs

- UW C4C & lab facilities

- IP

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KEY ACTIVITIES



KEY PARTNERS







marketing

VALUE PROPOSITIONS








CHANNELS



CUSTOMER SEGMENTS












- IP

Hypothesis:

• Everybody has caries at one point.

• Therefore, everybody is our potential customer.

CUSTOMER SEGMENTS

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KEY ACTIVITIES



KEY PARTNERS







marketing

VALUE PROPOSITIONS








CHANNELS



CUSTOMER SEGMENTS












- IP

• Dental Patients are the end users, NOT our customers

• Our customers are dental practitioners and manufacturers

CUSTOMER SEGMENTS

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FIRST LESSON: Getting out of the building

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Timothy Mulachy, DDS

Tracy Wayman, DDS

Greg Huang, DMS, MMD

Roberta Jurash, DDs

Turkar Sandalli, DDS

Nezih Hekim, MD

Yeditepe Dental Hosp.

• Sensitivity• Incipient carries• PDL regeneration • Baseliners• Cements for implants • Endodontic treatment

• Periodontal Maintenance

• Prophylaxis (cleaning)• Discoloration (White

spots)• Bone regeneration• Sealants• Dental glue

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Greg J. Huang, DMD, MSD, MPHProfessor and Chair Department of OrthodonticsDental School, University of Washington

Lyle McClellan, DDSRegional ManagerWillamette Dental Group, Oregon

FIRST LESSON: Getting out of the building

Addressable Market Size• Endodontics

• Periodontal disease• Hypersensitivity

$12 billion/yr

Target Market Size(10%)

$1.2 billion/yr

Total Market SizeDental Care Expenditures in Clinics

$35 Billion/yr

MARKET SIZE

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Consumables$0.3b/yr only

Target applications

• Endodontics• Periodontal disease• Hypersensitivity

- Most expensive procedures

- Repeatedly suggested in the interviews

• $300 million/yr is too small

• Time to pivot• What are the consumable intensive

applications

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MARKET SIZE

Addressable Market SizeRestorative & Preventive dentistry

$16 billion/yr

Target Market SizeConsumables (55%)

$8.8 billion/yr

Total Market SizeDental Care Expenditures in Clinics

$35 Billion/yr

Target applications

• Restorative & Preventive dentistry

- Strongly supported by insurance companies

- Majority of the expenditure is on consumables

Conservative estimate (10%)$880 million/yr

KEY ACTIVITIES



KEY PARTNERS







marketing

VALUE PROPOSITIONS








CHANNELS



CUSTOMER SEGMENTS












- IP

Hypotheses :

• We don’t have the infrastructure to manufacture and sell our product

• We must develop our technology and license it to major companies

• With the right partners we can pursue BOTH licensing AND direct sales

• Each require a separate canvas

CHANNELS & REVENUE MODELS

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CHANNELS & REVENUE MODELS: LICENSINGKEY ACTIVITIES


- Regulatory approval

- Developing and maintaining IP

KEY PARTNERS






approval, maintaining IP- Raw materials, production, distribution,

marketing

VALUE PROPOSITIONS

- New high value product, competitive edge

- New market







- Good relationship with the licensee

CHANNELS



- Industry contacts

CUSTOMER SEGMENTS











- UW C4C & lab facilities, IP

- Industry contacts

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COST / PROFIT ANALYSIS

R&DMaintaini

ng IP

En

d u

ser

Our revenue 4-8% revenues List price

Per unit cost and profit estimation

Licensing Revenue Model

Raw material

s

Manufacturing &

Packaging

License fee

Distribution

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Univ.Licens

efee

End User

Health-Care Providers:Hospitals

PractitionersClinics

InsuranceAgencies

Customer segment: Large

corporationsJ&J, GSK, 3M

DMXR&D

ProductsProcedures

IPs

$$$

~$40

$$

University

4-8% royalty

2-4% license fee

Licensing of Technology Ecosystem

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Target MarketXlear’s market share (40%)

$305 million

Addressable marketXylitol based products (25%)

$762.5 million

Total marketToothpaste & Mouthwash

$3.5 billion

MARKET SIZE: Licensing

• Royalties (est.) ~4%• University share ~2%

• Assuming peptide incorporated half of Xlear’s product line

• ~2% royalties from $152,500,000

= $3,000,000/yr14

CHANNELS & REVENUE MODELS: DIRECT SALE KEY ACTIVITIES


- Identifying product format and area of use

- Identifying key partners

KEY PARTNERS




- Product development partners

- Manufacturing partners




marketing

VALUE PROPOSITIONS





CUSTOMER RELATIONSHIPS- Web based & in-

clinic education

- Sponsored dental screenings

- Sales representatives

CHANNELS



CUSTOMER SEGMENTS












- Dental practitioners

15Pop out frames

Product Development

Manufacturing Distribution

3 TYPES OF KEY PARTNERS

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CS Bio, Palo Alto

Patterson Dental, PortlandDentaline, Istanbul

COST / PROFIT ANALYSIS

Raw active

ingredient

Manufacturing &

Packaging

Profit + R&D + License fee

Distributor

$40 *$27%32 cut

$6 ? ($5) ~$11 ~$13

En

d u

ser

Our revenue List pricePer unit cost and profit estimation

Direct Sales Revenue Model

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* Competition• NuPro prophy paste (Novamin $50)• NuPro desensitizer (Novamin $93)• MI varnish (Recaldent $100)• Gluma desensitizer (Glutaraldehyde $130)• Health-Dent desensitizer (Fluoride $49)

End User

Customer Segments;

Health-Care Providers:- Hospitals

- Practitioners- Clinics

InsuranceAgencies

Product Sales &

Distribution

Formulations& Packaging

Raw MaterialsManufacturing

DMXR&D

ProductsProcedures

IPs

$$??$6/pk

$5/pk$$??

University

-32%($27)

$?

Direct Sales Ecosystem

R&D &Regulation

$40/pk

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GROWTH PLAN

2012 2013 2014 2015 2016 2017 20180

500,000

1,000,000

1,500,000

2,000,000

Market share 2%

Market share 5%

Market share 7%

Market share 10%

Market share 15%

Sales$10,000,000

(22.90%)

Sales$24,000,000

(35.04%)

Sales$33,600,000

(36,46%)

Sales$48,000,000

(37.60%)

Profits$72,000,000

(39.13%)

Go Global?Get Acquired?

Un

its s

old

Year19

KEY ACTIVITIES



KEY PARTNERS







marketing

VALUE PROPOSITIONS








CHANNELS



CUSTOMER SEGMENTS








manufacturers)- Licensing, royalties




- IP

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KEY ACTIVITIES



KEY PARTNERS







marketing

VALUE PROPOSITIONS








CHANNELS



CUSTOMER SEGMENTS












- IP

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KEY ACTIVITIES


- Identifying product format and area of use

- Identifying key partners

KEY PARTNERS




- Product development partners

- Manufacturing partners




marketing

VALUE PROPOSITIONS






clinic education

- Sponsored dental screenings

- Sales representatives

CHANNELS



CUSTOMER SEGMENTS












- Dental practitioners

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KEY ACTIVITIES


- Regulatory approval

- Developing and maintaining IP

KEY PARTNERS






approval, maintaining IP- Raw materials, production, distribution,

marketing

VALUE PROPOSITIONS

- New high value product, competitive edge

- New market






clinic education

- Good relationship with the licensee

CHANNELS



- Industry contacts

CUSTOMER SEGMENTS












- Industry contacts

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QUESTIONS?

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I’D GIVE AN EAR NOT TO HEAR THAT DRILL

Customer structure

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After introducing the product concept, how likely is it you would find a use for it in your practice?

What indications would you use it for?

Not at all

I would find it useful

I would definitely use it

0 5 10 15 20 25 30 35 40

Sensitive teeth

Exposed root

White spots

Incipient caries

0 10 20 30 40 50 60

Reception by the dentists

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• US Population: 320,000,000• Annually visiting dentist: 204,800,000 (64.5%) 1

• Those with target indications: 116,736,000 (57%) 2 • Target population: Willing to try and switch new, better performing products

~12,000,600 (10% conservative estimate)

~58,000,000 (50% optimistic estimate)

2 http://www.ineedce.com/courses/1414/html/demo_dilemma_print.html

3 http://www.prnewswire.com/news-releases/reportlinker-adds-global-markets- for-dental-consumables-and-prosthetics-121693568.html

• Assuming reaching 2% of the target population in the first year: Estimated yearly sales ~250,000 units (conservative) 1,250,000 units (optimistic) Estimates yearly costs ~$7,380,000 (74%) (conservative) Estimated revenue in profits ~$2,600,000 (26%) (conservative)

* Based on competitor products:• NuPro prophy paste (Novamin $50)• NuPro desensitizer (Novamin $93)• MI varnish (Recaldent $100)• Gluma desensitizer (Glutaraldehyde $130)• Health-Dent desensitizer (Fluoride $49)

1 http://www.usatoday.com/news/health/2009-03-10-dental-skip_N.htm

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Total sales (/yr) $10,000,000

Raw Material: $1,500,000 15.00%Manufacturing: $1,250,000 12.50%Distribution: $2,750,000 27.50%Marketing: $700,000 7.00%Personnel: $630,000 5.51%Space: $50,000 0.50%License Fee: $500,000 5.00%

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Dento Mimetix NSF FInal Presentation

Education

Transcript of Dento Mimetix NSF FInal Presentation