Post on 03-Jan-2016
debrideX SurgicalStrategy & 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
•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
Company Overview
Overview of the ProductProvides 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
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)
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
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
DS5
DS5 Cont’d (1)
Blade Diagram – Side ViewTurbine Chamber – X-Section
DS5 Cont’d (2)
Bent Joint of the Tip
DS6
Prototype Ideas
DS6 (cont’d)Priorities
▫ Well-controlled, bendable joint▫ Low friction blade rotation▫ Disposable parts
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)
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
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
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Break-Even Point Graph
Months
Acknowledgements
Henry Hess, Ph.D.Associate Professor of Biomedical Engineering
Columbia University
Elizabeth Hillman, Ph.D.Assistant Professor of Biomedical Engineering
Columbia University
Keith Yeager, M.Sc.Laboratory Machine Manager, Dept. of Biomedical
EngineeringColumbia University
Lauren GrosbergTeaching Assistant, Dept. of Biomedical Engineering
Columbia University