Digital Biodetection Market Opportunity Analysis5-17-2006Greg Luther

8/6/2019 Digital Biodetection Market Opportunity Analysis__5-17-2006__Greg Luther

1/64

1

BioWarn LLC Market Opportunity AnalysisDeveloped and Presented by Greg Luther, VP

May 17, 2006


2/64

2

About the SmartSense System


3/64

3

The SmartSense System

Product Evolution

Time

The SmartSenseSystem

Very HighThroughput Applications

Avian FluScreening

DrugDiscovery

RemoteSurveillance Applications

NosocomialInfection Control

TherapeuticDrug

Monitoring

AMP F A/D DSPPC +

Comms

SmartSense Processing Suite (SPS)

Non-Minia tur ized

SmartSense DetectorLIGAND

DETECTOR

Minia tur ized

AMP F A/D D SPPC +

Comms

SmartSense Processing Suite (SPS)

SmartBoxField Applications

SmartArray LaboratoryApplications

SmartSandMiniaturized Applications

Multiple Applications

SmartScreen Ha nd-Held Applications


4/644

The SmartSense System

Molecules Without MatchingLigands Do Not Bind

Binding Event Signature Matched

Against Database of Stored Signatures forPositive Target Identification

Ligand Chosen to

Bind with Target

Detection Target

SmartSense Detector

Test Sample

Computing

DetectionSignature

Specific Binding Event

SmartSense TM Detector Concept

Binding Event Signal Captured by Detector


5/645

X

L a b o n

a c h i

p

H I S S S

Multiplexed Detection

No Hands

Everywhere

Self-Networking

Real-Time

X X X X X X X X Always-On

S m a r t S e

n s e T M

C A N A R

Y

E L I S A

. . .

N a n o w i

r e s

I m m u n

o a s s

a y

X Mins

X X X X X X X

X X Laboratory- Based

X X X X X X X X

n/a X ? * * X

Hrs Hrs Hrs- Days

Hrs Mins

HH

?

* Depends on how test is deployed, e.g. use of micro-arrays, etc.

HH HH = Hand-Held

Hrs- Days

Makes HIGHTHROUGHPUT

Possible

SmartSense Differentiators

P C R / R T - P C

R

H o s p i t a

l L a b

M a s s S p e

c t r o s

c o p y

MakesEMBEDDING

Possible


Possible


Possible


6/646

SmartSense Opens UpNew High-Throughput Detection Possibilities

SmartSense opens up entirely new possibilities for bio-detection in contexts where throughput is measured in the hundreds of millions which current diagnostic technologies simply cannot address because they are not rapid enough, and they cost too much.

Avian Flu (H5N1) Screening Users include hospitals, physicians' offices, diagnostic testing

centers, major air carriers, airport authorities, industrial poultryfarms, and any major enterprise concerned about protecting itspeople from infection.

High Throughput Screening (HTS) in Drug Discovery Users include major pharmas and research labs


7/647

SmartSense Opens UpNew Remote Surveillance Possibilities

SmartSense opens up new possibilities for bio-detection in contexts where detection needs to be embedded , always on ,distributed , and remote which current diagnostic technologies cannot address as well because they require a lab, lab technician time, specialized procedures and equipment.

Active surveillance of cultures to control nosocomial infectionoutbreaks

Pharmaceutical clinical trials and post-launch surveillance


8/648

Potential Markets for the SmartSense System


9/64

9

Initial Target Market Potential EstimatesTarget MarketSegments Key Pathogens SmartSand Applications Estimated MarketPotential*

Healthcare 1. Methicillin-resistantstaphylococcus aureus(MRSA)2. Vancomycin-resistantenterococci (VRE)3. Tularemia

4. Viral hemorrhagic fevers5. Q fever6. Viral encephalitis7. Avian flu8. Opportunistic respiratoryinfections

- SmartSand bolt-on units added to HVAC systemsin hospitals, doctor's offices

- Hand-held SmartSand units for use by nursingstaff, inspectors, infectious disease specialists

- SmartSand-enabled surgical gloves and surgicaldressings

- SmartSand-based bedside diagnostic kits

- SmartSand-enabled dental prosthetics

$7 Billion

FoodProcessing &Distribution

1. Salmonella2. Botulism

3. E. coli O157:H74. Listeria5. Shigella dysentery6. Typhoid fever7. Vibrio cholerae8. Cryptosporidium parvum

- SmartSand bolt-on units added to HVAC andeffluent drainage systems in food processing

plants and distribution centers

- Hand-held SmartSand units for use by plant staffand inspectors

- SmartSand-enabled rubber gloves

$2 Billion

Bio-Defense 1. Anthrax2. Plague3. Smallpox4. Ricin toxin5. Staphylococcal

enterotoxin-B6. Avian flu

- SmartSand bolt-on units added to HVAC systemsin transportation hubs, government and otherpublic or high-profile buildings

- Hand-held SmartSand units for use by battlefield,first-responder, and haz-mat remediationpersonnel

- SmartSand-based automated pathogensurveillance systems in shipping containers, ports,trucking hubs, and water supply systems

$2-3 Billion

(*Source: International market analysis study funded by Ansell Healthcare Incorporated.)

SmartSense canalso be used to detectallergens, molds, fungi,and even DNA.


10/64

10

How Big Is the Current Biosensors Market?

$2.5 Billion


11/64

11

How Do Market SegmentsCompare by Size and Growth Rate?

#1 #2#3 #4


12/64

12

How Do Market SegmentsCompare by Size and Growth Rate?

Industrial markets include: food processing, bio-process control, pharmaceutical/medical device development

and manufacturing, water and waste management

Excludes the US biochip industry,which was estimated to be $852million in 2003


13/64

13Confidential and Proprietary 14Confidential and Proprietary 9BioWarn, LLC Board of Managers April 3, 2006

Additional MarketSegments Not Included in Estimates

Biodefense Excludes Avian Flu Crisis

Point-of-Care

Excludes Commercial Testing Labs ($42 Billion) Quest Diagnostics $5.5 Billion (13% Mkt Share) Lab Corp $3.3 Billion (8% Mkt Share)

Research Laboratories Excludes the US biochip industry (estimated at $852 million in 2003) Excludes Drug Discovery (> $10 Billion)

Additional Market Definitions

Molecular diagnostics ($12 billion by 2010 and $35 billion by 2015) Immunosensors Lab-on-a-Chip (LOC) Electric biochips


14/64

14

Opportunity Assessment


15/64

15Source:Adapted from Pragmatic Marketing, Inc.

Product Management Framework for Targeting

Innovation

Pricing

Buy, Buildor Partner

BusinessCase

ThoughtLeaders

TechnologyAssessment

CompetitiveAnalysis

MarketResearch

MarketProblems

DistinctiveCompetence

ProductContract

User Personas

ReleaseMilestones

SalesProcess

MarketRequirements

ProductRoadmap

Positioning MarketingPlan

AwarenessPlan

Customer Acquisition

Customer Retention

ChannelTraining

Competitive

Write-Up

EventSupport

Collateral &Sales Tools

Presentations& Demos

WhitePapers

SpecialCalls

Answer

Desk

LaunchPlan

MarketMessages

Lead

Generation

Buyer Personas

Product Marketing Management

Market Analysis ProductStrategy ProgramStrategyProductPlanningQuantitative Analysis ChannelSupportSalesReadiness S t r a t e

g i c T

a

c t i c al

Product Strategy Management

Less Technical

Technical Product Management

More Technical

We AreHere

Win/LossAnalysis

OperationalMetrics

MarketSizing

ProductPerformance


16/64

16

Biosensors were a $7.3 Billion worldwide market in 2003.

Key Segments: Biodefense Biosensors Market

Environmental Monitoring Biosensors Market Home Diagnostics Biosensors Market Point-of-Care Biosensors Market Process Industries Biosensors Market Research Laboratories Biosensors Market

What Are the Market ProblemsThat Present the Best Entrance Opportunities?


g i c T

a

c t i c al


CompetitiveAnalysis

MarketResearch

MarketProblems


We AreHere

Independent Tasks Problematic PATHOGENSvary by market segmentand end-user

Attributes of Successful Products: Highly specific Stable Low cost Small in size Portable Capable of being used by less

skilled operators Long shelf life Easy to manufacture

In addition, biosensors mustprovide a response that is:

Accurate Precise Reproducible


17/64

17

What Are the Market Problems? (cont.)


18/64

18





g i c T

a

c t i c al


CompetitiveAnalysis

MarketResearch

MarketProblems


We AreHere

Independent Tasks

Examples of CompetingPRODUCERS & TECHNOLOGIES:

Siemens and eBiochip SystemsGmbH - Lab-on-a-Chip (LOC)

Harvard University - Nanowires

UC Berkeley and The AcumenFund - Immunosensors

UC Berkeley- Smart Dust

DuPont Qualicon - The BAXSystem

What Is SmartSense Up Against?


19/64

19





g i c T

a c t i c al


CompetitiveAnalysis

MarketResearch

MarketProblems


We AreHere

Independent Tasks

Leading biochip providers(FredoniaGroup):

Affymetrix, Amersham Biosciences, Applera, Agilent Technologies, PerkinElmer Life and Analytical

Sciences, Beckman Coulter, Ciphergen Biosystems, and Caliper Life Sciences

Leading Biosensor MarketParticipants(Frost & Sullivan):

AZUR Environmental Abbott Laboratories Biosensor BV Bayer Cranefield Biotechnology

Center Chiron DuPont Biosensor Materials Draeger Safety Ercon, Inc. EG & IC Sensors Johnson & Johnson Integrated Micro Instruments Innovative Biosensors, Inc. LifeScan, Inc. Strategic Diagnostics Sysmex

Theron, Inc. Molecular Devices Corp. M-Biotech Oxford Biosensors Ltd. QTL Biosensors Roche Diagnostics Radiometer America, Inc.

Remedios Universal Sensors, Inc. Zellweger

Who Is BioWarn Sharing the Field With,and Are They Competitors or Partners?


20/64

20

X

L a b o n

a c h i

p

H I S S S

Multiplexed Detection

No Hands

Everywhere

Self-Networking

Real-Time

X X X X X X X X Always-On

S m a r t S e

n s e T M

C A N A R

Y

E L I S A

. . .

N a n o w

i r e s

I m m u n

o a s s

a y

X Mins

X X X X X X X

X X Laboratory- Based

X X X X X X X X

n/a X ? * * X

Hrs Hrs Hrs- Days

Hrs Mins

HH

?

* Depends on how test is deployed, e.g. use of micro-arrays, etc.

HH HH = Hand-Held

Hrs- Days


Possible

SmartSense Differentiators

P C R / R T - P C

R

H o s p i t a l L

a b

M a s s S

p e c t r

o s c o

p yMakes

EMBEDDINGPossible


Possible


Possible


21/64

21

Opportunity Assessment Conclusions


22/64

22

Finding: Ease of Market Entry

Market Segment Degree of

Competition Price

Sensitivity Number of

Competitors

Research Laboratories 1- Low 1- Low 15

Biodefense/Public Health 1- Low 1- Low 20

Environmental Monitoring 1- Low 2- Medium 10

Process Industries 1- Low 3- High- 25

Point-of-Care 2- Medium 2- Medium 12

Home Diagnostics 3- High- 3- High- 10

(Source: Frost & Sullivan)


23/64

23

$1MM$100K$10K$1,000$100$10$1

Ease of Market Entry (cont.)

Price perUnit

Easier Market toEnter

Harder Market to Enter

$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o n

m e n t a

l M o n

i t o r i n g

$153 B i o

d e f e n

s e / P u

b l i c H e a

l t h

$1,011

P o i n t -

o f - C a r e

$486

P r o c

e s s I n

d u s t r

i e s

$1,628

H o m e

D i a g n o s

t i c s

FDA Approvals

Higher Market

Concentration

BiggerCompetitors

Non-Healthcare

Market MoreFragmented,

Niche-Oriented

Emphasis onCustomized

SolutionsNatural Market

Entry Point

Natural MarketEntry Point

Tougher Marketsto Penetrate


24/64

24

$1MM$100K$10K$1,000$100$10$1

Avian flu HIV BSE Anthrax MRSA,

VRE, E.coli., etc.

Analysis: Detection Targets vs. Markets

Price perUnit



$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o

n m e n

t a l M o

n i t o r i n

g $153

B i o d e

f e n s e /

P u b l i c

H e a l t h

$1,011

P o i n t -

o f - C a r e

$486

P r o c

e s s I n

d u s t r

i e s

$1,628

H o m e

D i a g n o s

t i c s

FDA Approvals

Higher Market

Concentration

BiggerCompetitors

Non-Healthcare


Niche-Oriented


Solutions


25/64

25

$1MM$100K$10K$1,000$100$10$1


VRE, E.coli., etc.

Detection Targets vs. Markets

Price perUnit



$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o

n m e n

t a l M o

n i t o r i n

g $153

B i o d e

f e n s e /

P u b l i c

H e a l t h

$1,011

P o i n t -

o f - C a r e

$486

P r o c

e s s I n

d u s t r

i e s

$1,628

H o m e

D i a g n o s

t i c s

FDA Approvals

Higher Market

Concentration

BiggerCompetitors

Non-Healthcare


Niche-Oriented


Solutions


26/64

26

$1MM$100K$10K$1,000$100$10$1


VRE, E.coli., etc.


Price perUnit



$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o

n m e n

t a l M o

n i t o r i n

g $153

B i o d e

f e n s e /

P u b l i c

H e a l t h

$1,011

P o i n t -

o f - C a r e

$486

P r o c

e s s I n

d u s t r

i e s

$1,628

H o m e

D i a g n o s

t i c s

FDA Approvals

Higher Market

Concentration

BiggerCompetitors

Non-Healthcare


Niche-Oriented


Solutions


27/64

27

$1MM$100K$10K$1,000$100$10$1


VRE, E.coli., etc.


Price perUnit



$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o

n m e n

t a l M o

n i t o r i n

g $153

B i o d e

f e n s e /

P u b l i c

H e a l t h

$1,011

P o i n t -

o f - C a r e

$486

P r o c

e s s I n

d u s t r

i e s

$1,628

H o m e

D i a g n o s

t i c s

FDA Approvals

Higher Market

Concentration

BiggerCompetitors

Non-Healthcare


Niche-Oriented


Solutions


28/64

28

$1MM$100K$10K$1,000$100$10$1


VRE, E.coli., etc.


Price perUnit



$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o

n m e n

t a l M o

n i t o r i n

g $153

B i o d e

f e n s e /

P u b l i c

H e a l t h

$1,011

P o i n t -

o f - C a r e

$486

P r o c

e s s I n

d u s t r

i e s

$1,628

H o m e

D i a g n o s

t i c s

FDA Approvals

Higher Market

Concentration

BiggerCompetitors

Non-Healthcare


Niche-Oriented


Solutions


29/64

29

Avian Flu Is #1 Detection Target

Highest degree of urgency (emergency) Highest potential mortality (20 - 100+ million) Severe economic dislocation

High degree of public alarm

Significant market problem:

Unlike currently available tests, SmartSense is fast enough and no-hands enough to be very effective in high-volume settings whereisolation decisions must be made.

A SmartSense avian flu detector has applications in 5 out of 6 ofidentified biosensor markets


30/64

30

Competitive Opportunity for Avian Flu Detector

Performance characteristics of available tests for Avian Flu

BioMerieux NucliSens EasyQ(R) Influenza H5 and N1 -

"Nucleic acid amplification assay Exclusively for research purposes Takes 90 mins Requires instrument

CDC "Influenza A/H5 (Asian Lineage) Virus Real-Time Reverse

Transcription--Polymerase Chain Reaction (RT-PCR) Primer andProbe Set

FDA approved (in 2 weeks!) Takes 4 hours Requires instrument

MakesProcess-

EMBEDDINGImpossible


ScreeningImpractical


31/64

31

Competitive Opportunity for Avian Flu Detector (cont.)

Performance characteristics of available tests for Avian Flu QIAGEN

"artus Influenza/H5 kit Combines a broad screening test, with a highly specific assay for

the detection of characteristic nucleic acids (RNA) of avian flu(H5N1) virus strains.

Takes under 75 minutes Requires LightCycler instrument

Second Qiagen kit is a specific avian flu (H5N1) molecular detection kit

launched in 2004 in China by PG Biotech, a company acquired byQiagen

STMicroelectronics and Veredus Laboratories Rapid-Detection Point-of-Need, Disposable Lab-on-Chip

RT-PCR on a chip Takes 1 hour Requires instrument and laptop PC

Avian Flu Detector Can Address


32/64

32

Avian Flu Detector Can AddressMultiple Customers and Markets

Price perUnit


Harder Market toEnter

$1MM$100K$10K$1,000$100$10$1

$1,628

H o m e

D i a g

n o s t i c s

$1,011

P o i n t -

o f - C a

r e

$674

R e s e a r c h

L a b o

r a t o r i

e s

$486

P r o c e s

s I n d u

s t r i e s

$425 E n v i r o n

m e n t a

l M o n i t o r

i n g $153

B i o d e

f e n s e

/ P u b l i c

H e a l t h

FDA Approvals

Higher MarketConcentration

BiggerCompetitors

Non-Healthcare(No FDA)


Niche-Oriented


Solutions

Avian Flu Detectors forCDC, WHO andProject BioShield

Avian Flu Detectors forPoultry Producers and

Restaurant Chains

Avian Flu Detectors forUniversity & Other ResearchLabs (vaccine development)



33/64

33


Price perUnit



$1MM$100K$10K$1,000$100$10$1

$1,628

H o m e

D i a g

n o s t i c s

$1,011

P o i n t -

o f - C a

r e

$674

R e s e a r c

h L a b

o r a t o r

i e s

$486

P r o c e s

s I n d u

s t r i e s

$425 E n v i r o n

m e n t a

l M o n i t o r

i n g $153

B i o d e

f e n s e

/ P u b l i c

H e a l t h

FDA Approvals


BiggerCompetitors



Niche-Oriented


Solutions

Avian Flu Detectors forFirst-Responders

Avian Flu Detectors forHospitals and Clinics

Avian Flu Detectors forDoctors Offices

Avian Flu Detectors forHomes and Businesses

Avian Flu Detectors forCommercial Labs and Their

Test Center Networks



34/64

34


Price perUnit



$1MM$100K$10K$1,000$100$10$1

$1,628

H o m e

D i a g

n o s t i c s

$1,011

P o i n t -

o f - C a

r e

$674

R e s e a r c

h L a b

o r a t o r

i e s

$486

P r o c e s

s I n d u

s t r i e s

$425 E n v i r o n

m e n t a

l M o n i t o r

i n g $153

B i o d e

f e n s e

/ P u b l i c

H e a l t h

FDA Approvals


BiggerCompetitors



Niche-Oriented


Solutions

Ideally:Design a

device that

can workin all ormost

marketsegments


35/64

35

Nosocomial Infectious Agents Are Target #2

High degree of urgency Should be #6 in CDC list of Top 10 Killers

100,000+ deaths per year in U.S.

May be 1-2 million worldwide Costs hospitals $5 billion per year (ex-lawsuits) Patient Safety is a critical issue in hospitals across the U.S.

Significant market problem to solve: Unlike currently available tests, SmartSense is fast enough and

hands-free enough to be very effective in high-volume settingswhere isolation decisions must be made.

A SmartSense MRSA+ detector has applications in the two largestbiosensor markets: Point-of-Care and Home(Self)-Diagnostics

Nosocomial Infection Detector


36/64

36

Can Address the Three Largest Markets

Price perUnit



$1MM$100K$10K$1,000$100$10$1

$674

R e s e a r c

h L a b

o r a t o r

i e s

$425 E n v i r o n

m e n t a

l M o n i t o r

i n g $153

B i o d e

f e n s e

/ P u b l i c

H e a l t h

$1,011

P o i n t -

o f - C a

r e

$486

P r o c e s

s I n d u

s t r i e s

$1,628

H o m e

D i a g

n o s t i c s

FDA Approvals


BiggerCompetitors

Non-Healthcare


Niche-Oriented


Solutions


VRE, E.coli., etc.


37/64

37

#3 - The Drug Discovery Opportunity

Problem: The flood of data created by the genomics revolution is driving laboratory automation and creating bottlenecks.

As a result, High Throughput Screening (HTS), has become a keyelement in modern drug discovery.

Large pharmas are currently generating 20 terabytes of data daily .May go up to 100 terabytes per day in the next year.

The workhorses of proteomics are mass spectrometry and 2-D gel

electrophoresis. BUT long detection time is the critical bottleneck in the HTS

process.


38/64

38

Potential HTS Solution: Insert SmartSense TM To Eliminate Key Process Bottleneck

Genome

Proteome

Candidate Epitopes

Receptors Such AsKnown Major

HistocompatabilityComplexes (MHCs)

1) Sample Handling

2) Plate Loading3) Assay Procedure4) Reading/Detecting5) Capture into Informatics

Vaccines and Drugs

Immunity

The ValidationBottleneck

Drug Discovery Opportunity

1) Sample Handling

2) SmartSense BindingDetection in Micro-Assay Plates

SmartSenseAlternative


39/64

39

Potential HTS Solution: Insert SmartSense TM To Eliminate Key Process Bottleneck

Genome

Proteome

Candidate Epitopes

Receptors Such AsKnown Major

HistocompatabilityComplexes (MHCs)

1) Sample Handling

2) Plate Loading3) Assay Procedure4) Reading/Detecting5) Capture into Informatics

Vaccines and Drugs

Immunity

The Validation

Bottleneck


1) Sample Handling2) SmartSense BindingDetection in Micro-Assay Plates

SmartSenseAlternative

High ThroughputScreening Opportunity:

Reduce 5 steps to 2

High ThroughputScreening Opportunity:

Reduce 5 steps to 2


40/64

40


Opportunity: Integrate SmartSense with high-density assay plates used in High Throughput Screening (HTS) to eliminate the detection bottleneck in the drug discovery process.

Sales for the worldwide DNA sequencing and proteomicsmarkets are projected to rise from $7.8 billion in 2004 to $17.5billion in 2009 .

Provides BioWarn with entry into the $852 million US biochipsegment of that market.

Proteomics and biochips are key growth enablers driving thevaccines marketwhich is expected to grow from $5 to $10

billion over the next 10 years .

E d f Slid


41/64

41

End of Slides

End of Slides


42/64

42

ADDITIONAL MATERIAL


43/64

43

The BioWarn Business Model

Emerging B siness Model


44/64

44

The Company

Proof-of-Concept

ProductPrototype 1

ProductPrototype 2

ProductPrototype N

ProductPrototype 3

End-User ProductPrototyping Projects

IC Manufacturer (e.g. Intel, IBM,Samsung, TI)

Prototyping Customer

Third-PartyProduction

Foundry ProducesICs without Ligands

Chips Are Injected withLigands and Gelsas per Customer

Requirements

Commercial Production

Smart SenseTM Units Are Embedded in Products

and Sold to End-Users

Large

Quantities

BioWarn ProducesSmall Batches

S m a l l

Q u a n t i t i

e s

Emerging Business Model

The BioWarn Business Model Simplified


45/64

45

The BioWarn Business Model Simplified

Unmet Needs andRequirements

Prototyping Projects + Limited Production

Products and Benefits

Customer

BioWarn Partner

Engineering Services Fees / Prepaid Royalties


46/64

46

Biodefense Markets for the SmartSense System

The Biodefense Market for SmartSense


47/64

47

The Biodefense Market for SmartSense

High impact areas for pathogen detection are placeswhere large numbers of people congregate or pass intransitand places that bio-terrorists would consider desirable targets.

High Population Concentration Areas: The 5 Largest U.S. Cities: New York, N.Y. pop: 8.1 million Los Angeles, Calif. pop: 3.8 million Chicago, Ill. pop: 2.9 million Houston, Tex. pop: 2.0 million

Philadelphia, Pa. pop: 1.4 million(Bureau of Census estimated 2003 figures)

City centers Very large or prominent office buildings Concentrated financial or mercantile districts

Schools Public school districts University systems

Transportation systems Airports Sea ports Trains and train stations

Subway trains and stations Bus stations Highway interchanges

HospitalsGovernment buildingsSports arenas/stadiums

Places of WorshipMonuments and museums

High Economic / Disruption Value Targets:

- Water distribution and supply systems/ companies

- Food distribution and supply systems/companies

- Package delivery systems/companies

- Cargo shipping systems/companies

- Financial and payments systems/companies Major banks The Federal Reserve System

- Stock, options and futures exchanges

- Power (grid) systems/companies

- Communications systems/companies

The SmartSense Opportunity Space Is Vast


48/64

48

The SmartSense Opportunity Space Is Vast

NationalAuthorities

Local Authorities

The market opportunity for SmartSenseis very large because it benefits any enterprisethat is interested in protecting thehealth and quality of the air , food, and water enteringor entering withthe spaces,transports, packages, and

outside peoplewhocome into contactwith its community.

Public orPrivate

Enterprise

Supply Chain

Supply Chain

Process Chain

Process Chain

Watershed

Farm

The World

The World

Water

Food

Goods/Packages

People

Potential Buyers:

Dept of Homeland Security,Center for Disease Control, Deptof Agriculture, FBI, U.S. Customs,

INS, etc. Local & State Police, Port

Authorities, Mass TransitAuthorities, etc.

Corporate or Other InternalProtection Departments and theirSecurity Consultants and

Contractors Water Utilities/ Companies,

Bottlersand their SUPPLYCHAINS

Food Service, Supply,Distribution, and RetailCompanies and their SUPPLYCHAINS

USPS and delivery companieslike FedExand their PROCESSCHAINS

Airlines, Cruise Lines, Rail Lines,Transit Stations and Portsand

their PROCESS CHAINS

Potential Buyers:

Dept of Homeland Security,Center for Disease Control, Deptof Agriculture, FBI, U.S. Customs,INS, etc.

Local & State Police, PortAuthorities, Mass TransitAuthorities, etc.

Corporate or Other InternalProtection Departments and theirSecurity Consultants and

Contractors Water Utilities/ Companies,

Bottlersand their SUPPLYCHAINS

Food Service, Supply,Distribution, and RetailCompanies and their SUPPLYCHAINS

USPS and delivery companieslike FedExand their PROCESSCHAINS

Airlines, Cruise Lines, Rail Lines,Transit Stations and Portsandtheir PROCESS CHAINS

7

1

2

34

5

6

7

6

5

4

3

2

1


49/64

49

Potential Detection Targets

Pathogen DetectionTargets Differ by Market Segment


50/64

50

Targets Differ by Market Segment

Pathogen DetectionTargets Differ by Market Segment (cont.)


51/64

51

Targets Differ by Market Segment (cont.)

Assess Urgency of Potential Detection Targets


52/64

52

g y g

Assess Urgency of Potential Detection Targets


53/64

53

g y g


54/64

54

Initial Customer and Product Targets

Targeted Prospectsand SmartSense Opportunities


55/64

55

pp

Targeted Prospectsand SmartSense Opportunities


56/64

56


57/64

57

Approach to the SmartSense Product Question

The SmartSense Product Question


58/64

58

What Type of Device/ Productto Build for ?

EpidemiologicallySignificant


CorporatePartners

Objectives

CorporatePartners

Objectives

Patients +Customers +

Publics Critical

Unmet Needs


Publics Critical

Unmet Needs

Product DevelopmentProduct Development

Legal / RegulatoryLegal / Regulatory

ManufacturingManufacturing

MarketingMarketing

Distribution, Service & SupportDistribution, Service & Support

Product Revisions /Upgrades


Reach cashflowbreak-even quickly


Speed-to-marketSpeed-to-market

Demonstrate the Value of

SmartSense


SmartSense

BioWarnsNeeds andObjectives


The Key QuestionsWhich Pathogens?

XWhich Vectors?

XWhere in the Infection Chain?

XFor Which Customers?

The SmartSense Product Question


59/64

59




CorporatePartners

Objectives

CorporatePartners

Objectives


Publics Critical

Unmet Needs


Publics Critical

Unmet Needs




MarketingMarketing

Distribution, Service & SupportDistribution, Service & Support







SmartSense


SmartSense




XWhich Vectors?



Strategic Planning Order of Operations:

1) Target Which Customer-Markets?

X

2) For Which Market Problems?- Which Pathogens+Vectors?- With What Performance Characteristics?

X

3) With What Product?

- Targeting Which End-Users?- Providing Which Benefits?- At What Price?

EXAMPLE: Nosocomial InfectionIs the #6 Cause of Death in the U.S.


60/64

60

HospitalCounter-measures

PatientIsolation

PersonalProtectiveEquipment

HandHygiene

Sanitation/ Sterilization

ActiveSurveillanceof Cultures

GlovesMask

Gown

Points ofFailure

Usually only appliedto infected patients,

not colonized patients

Inconvenient for staffand no ready way to

verify efficacy

Staff falls back to oldhabits and no readyway to verify efficacy

No ready way toverify surfaces are

clean

Other measuresineffective without

this, but generally notused due to expense.

The InfectionReservoir

Infected Individuals

Colonized Individuals

The Infection Reservoir

Infected Individuals

Colonized Individuals

Community

The 10 Leading Causes of Death in the U.S.

1. Heart disease: 696,9472. Cancer: 557,2713. Stroke: 162,6724. Chronic lower respiratorydiseases: 124,8165. Accidents (unintentionalinjuries): 106,7426. Diabetes: 73,2497. Influenza/Pneumonia: 65,6818. Alzheimer's disease: 58,8669. Nephritis, nephrotic syndrome,and nephrosis: 40,97410. Septicemia: 33,865(Source: N C H S - FASTATS )

InfectionVectors

Patients

Visitors

Health-care

Workers

Environ-mental

Surfaces

Equipment& Devices

Air / Droplets

BioWarnOpportunities

Use SmartSensedevices to identifycolonized patients

Use SmartSensedevices to flag PPEfailures

Use SmartSensedevices to verify

compliance

Use SmartSensedevices to flag

surfacecontamination

Use SmartSensedevices to reducecost and increase

usage of activesurveillance

Use SmartSensedevices in HVAC

systems

So Whats the Right FIRSTProduct to Launch Through a Partner?


61/64

61

Reach cashflowbreak-even

quickly


quicklyMaximize

speed-to-marketMaximize

speed-to-market

Demonstrate thevalue of

SmartSense

Demonstrate thevalue of

SmartSense

BioWarn Objectives

the quickest-to-deliver devicefor the technically easier detection of

an epidemiologically significant pathogen

that does not require FDA approval

that a corporate partner can readily manufacture

that leverages a corporate partners product linesthat leverages a corporate partners existing brand

and achieves high volumes/low unit costs quickly

that leverages a corporate partners establishedcustomer base, distribution channels, storage andtransportation, quality standards, warranty, service,and customer support procedures

The Key Questions

Which Pathogens?X

Which Vectors?X

Where in the Infection Chain?X

For Which Customers?




MarketingMarketing

Distribution, Service& Support

Distribution, Service& Support

Need Areas

CONFIDENTIAL AND PROPRIETARY 31

The SmartSand Product Question

What Type of Device/Product to

Build for ?



CorporatePartners Objectives

CorporatePartners Objectives


PublicsCritical

Unmet Needs


PublicsCritical

Unmet Needs

ProductDevelopment

ProductDevelopment

Legal /Regulatory

Legal /Regulatory


MarketingMarketingDistribution,

Service & Support

Distribution,Service & Support

Product Revisions / Upgrades

Product Revisions / Upgrades


quickly


quicklySpeed-to-

marketSpeed-to-

marketDemonstratethe Value of SmartSand

Demonstrate

the Value of SmartSand



The Key Questions

Which Pathogens?X

Which Vectors?XWhere in the Infection Chain?


The SmartSense Product Question:FDA Approvals and Speed-to-Market


62/64

62




CorporatePartners

Objectives

CorporatePartners

Objectives


Publics Critical

Unmet Needs


Publics Critical

Unmet Needs




MarketingMarketing

Distribution, Service & SupportDistribution, Service &

Support






Demonstrate Value of SmartSense

Demonstrate Value of SmartSense




XWhich Vectors?



FDA approvals for SmartSenseproducts can be a major speed

bump. They are necessary in some markets

but not others.

Product Management Framework


63/64

63Source:Adapted from Pragmatic Marketing, Inc.

Innovation

Pricing

Buy, Buildor Partner

BusinessCase

ThoughtLeaders


Competitive

Analysis

MarketResearch

MarketProblems


Product

Contract

User Personas

ReleaseMilestones

SalesProcess

MarketRequirements

ProductRoadmap

Positioning MarketingPlan

AwarenessPlan

Customer Acquisition

Customer Retention

ChannelTraining

CompetitiveWrite-Up

EventSupport

Collateral &Sales Tools

Presentations

& DemosWhite

Papers

Special

Calls

Answer Desk

LaunchPlan

Market

Messages

LeadGeneration

Buyer Personas

Product Marketing Management

Market

Analysis

Product

Strategy

Program

Strategy

Product

Planning

Quantitative

Analysis

Channel

Support

Sales

Readiness S t r a

t e g

i c T a c t i c al

Product Strategy Management

Less Technical

Technical Product Management

More Technical

We AreHere

Win/LossAnalysis

OperationalMetrics

MarketSizing

ProductPerformance


64/64

64

END OF ADDITIONAL MATERIAL

Digital Biodetection Market Opportunity Analysis5-17-2006Greg Luther

Documents

Transcript of Digital Biodetection Market Opportunity Analysis5-17-2006Greg Luther

Digital Biodetection Market Opportunity Analysis__5-17-2006__Greg Luther

Documents

Transcript of Digital Biodetection Market Opportunity Analysis__5-17-2006__Greg Luther

Digital Biodetection Market Opportunity Analysis5-17-2006Greg Luther

Transcript of Digital Biodetection Market Opportunity Analysis5-17-2006Greg Luther