Transcript Company Company Logo - UC Davis Graduate School of …

Benjamin Wang MD
2/19/2015
proving Lives one Bottle at a Time
Non-Profit Founded in 2014
Scalable, Self-sustaining Recycling solution to:
Address Homelessness
Create paid volunteer opportunities
Provide affordable green housing
Hand up for education/training
Purpose of Round 2
Still needs to work in 17 seconds
Lead with your stronger slides
Content: Much more than an investor
pitch deck
Must Make Sense
Simple Wording
Don’t read off your slides
Don’t bad mouth your competition
Pitching and Jokes
 Personal elements draw the audience into the story

Metaphor, Similes, Secrets, You
 Make the audience feel smart

Give them a glimpse of what is coming up, tell them a story
 Surprise them

Give them a something good to chew on
 Show them that you can bootstrap it



Everything easy has been done
We did that and here are the results
What else can be done without funding
Judging Criteria
Clarity
(How it will make $)
Viability
(How likely it will make $)
1 pt- Unclear Summary
1 pt- Little shown viability
3 pt- Close but needs work
3 pt- Close but needs work
5 pt- Very Clear
5 pt- Strong Viability
Life and Healthcare Saving Innovations
Benjamin R. Wang MD CMO/Founder
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Nevap Overview
Medical Device to prevent
US Patent Filed (Oct 2013)
3rd Generation Prototype
Team Assembled
Ventilator Associated Pneumonia (VAP)
US Billion problem
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Team
Janet
Harold
Sandra
Benjamin
Brenton
Kowalyski
Carrison
Forrer
Wang MD
Hanlon
CEO
Regulatory
Engineering
Quality Assurance Founder/CMO
10
Problematic Gold Standard: SSET tube
50,000 US cases each year

300,000 US at risk/yr

Avr Treatment cost $40K
Source: Center of Disease Control & Prevention
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Problematic Gold Standard: SSET tube
50,000 US cases each year

300,000 US at risk/yr

Avr Treatment cost $40K

No Medicare reimbursement

Growing Global ICU needs
Source: Center of Disease Control & Prevention
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Problematic Gold Standard: SSET tube
50,000 US cases each year

300,000 US at risk/yr

Avr Treatment cost $40K

No Medicare reimbursement

Growing Global ICU needs

Era of Multi-antibiotic resistance
“Superbugs”
Source: Center of Disease Control & Prevention
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Ventilator Associated Pneumonia
Source: Medscape, Pubmed, Youtube.com
Solution: Nevap Suction Line ET tube
Core Competencies
Simple & Effective
Unique
Low Risk
Integratable
Manufacturable
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Solution: Nevap Suction Line ET tube
Core Competencies
Simple & Effective
Unique
Low Risk
Integratable
Manufacturable
Class II Device, Predicate Devices needed only bench testing to gain
FDA clearance.
17
Testimonials & 3rd Party Validation
“It just makes sense to Anesthesiologists”
-Lynn White MD Anesthesiologist/CEO Patient Shield Concepts
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Testimonials & 3rd Party Validation
“It just makes sense to Anesthesiologists”
-Lynn White MD Anesthesiologist/CEO Patient Shield Concepts
“When will this be available for clinical testing? I’ll write up a proposal”
-Arash Esmailzadegan MD Anesthesiologist
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Testimonials & 3rd Party Validation
“It just makes sense to Anesthesiologists”
-Lynn White MD Anesthesiologist/CEO Patient Shield Concepts
“When will this be available for clinical testing? I’ll write up a proposal”
-Arash Esmailzadegan MD Anesthesiologist
“If it can live up to its claims, this could help a lot of people,”
-Jim Fink PhD Respiratory Industry Expert.
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Testimonials & 3rd Party Validation
“It just makes sense to Anesthesiologists”
-Lynn White MD Anesthesiologist/CEO Patient Shield Concepts
“When will this be available for clinical testing? I’ll write up a proposal”
-Arash Esmailzadegan MD Anesthesiologist
“If it can live up to its claims, this could help a lot of people,”
-Jim Fink PhD Respiratory Industry Expert.
“This sounds very promising, when will we have more data in patients”
-Mike Rosenthal MD Anesthesiologist/ Professor Emeritus
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Competitive Devices
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Technology: Nevap Suction Line ET tube
Patent Pending Technology 25 claims

No Suction Blockage

Regardless of patient movement

Reinforced Suction Sealing

Safely change tubes
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Technology: Nevap Suction Line ET tube
Patent Pending Technology 25 claims

No Suction Blockage

Regardless of patient movement

Reinforced Suction Sealing

Safely change tubes

Better Outcomes/Re-admissions

Save Hospital $$$ Billions

Decrease Legal Liability
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Technology: Nevap Suction Line ET tube
Patent Pending Technology 25 claims

No Suction Blockage

Regardless of patient movement

Reinforced Suction Sealing

Safely change tubes

Better Outcomes/Re-admissions

Save Hospital $$$ Billions

Decrease Legal Liability

Lower rates of “Superbugs”

Additional Device Applications
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Competitive Landscape
Conservatively, estimate VAP reduction rates of 75% & US Hospital Savings of $9B/yr
Covidien
Kimberly
Clark
Teleflex
Market Rank
1
2
3
Device Cost
$40
$43
$40
Tbd
Residual
Secretions
++
++
++
++++
Border
Suctioning
++
++
++
+++++
Suction
Blockage Rate
++-
++-
++-
+++++
Airway
Sealing
++
++
++
+++++
+++
+++
+++
+++++
Mucosal harm
Nevap
-
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US VAP Market Opportunity
350K Patients X $40/tube X 3.5used = $50M
Nevap US TAM = $150M/yr
Target
Segment
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US VAP Market Opportunity
350K Patients X $40/tube X 3.5used = $50M
Nevap US TAM = $150M/yr
Target
Segment
Key Decision
Makers
Anesthesiologists/Critical Care
Nursing/Respiratory Therapy
Hospital Administration
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US VAP Market Opportunity
350K Patients X $40/tube X 3.5used = $50M
Nevap US TAM = $150M/yr
Target
Segment
Key Decision
Makers
Anesthesiologists/Critical Care
Nursing/Respiratory Therapy
Hospital Administration
Saves $Billions/ Better Outcomes
Key Benefits
Readily Integrated
Increase Hospital Revenue
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Value Proposition
(6 day ICU Stay)
Gold Standard (1 tubes used)
X $40= $40(purchase price)
Hospital Profits
15
$
Hospital Savings
$
X $55= $55(Medicare reimbursement)
0
Net Hospital Profit $15
Competition Profit
Costs ($-5328)
Incidence:
22.2/1000days
$34
X $40,000
Nevap (2 VAP
tubesRisk
used)
Hospital
Profits
$ 30
average cost
X $40= $80(purchase price)
Hospital Savings
$
4128
X $55= $110 (Medicare reimbursement)
Nevap Profit
$ 68
Net Hospital Profit $30
VAP Risk Costs ($-1200)
Incidence: 5/1000days X $40,000 average
Nevap New CPT Coding (2 tubes used)
Hospital Profits
$ 40
cost
X $60= $120(purchase price)
Hospital Savings
4128
X $80= $160(Medicare reimbursement)
Nevap Profit
Net Hospital Profit $40
$
$ 102
Current Competition Profile
Physician Bills One procedure
Hospital Profits
Hospital Savings
Competition Profit
$ 15
$0
$34
Nevap $40 Price Point
 Physician Bills One procedure
 Hospital Profits
 Hospital Savings
 Competition Profit
$ 15
$0
$34
 Physician Bills Two procedures
 Hospital Profits
 Hospital Savings
 Nevap Profit
$ 30
$ 4128
$ 68
Nevap $60 Price Point
 Physician Bills One procedure
 Hospital Profits
 Hospital Savings
 Competition Profit
$ 15
$0
$34
 Physician Bills Two procedures
 Hospital Profits
 Hospital Savings
 Nevap Profit
$ 40
$ 4128
$ 102
US TAM is $150M, Global Tam $450M
Strategic Manufacturing Partner
www.bioteq.com.tw
Low Capital Equipment Costs
Rapid & Experienced OEM Expertise
Existing Bioteq Distribution
Rapid high precision scalability
Licensing/Partnership for small market countries
Est. COG: <$2.00 (package, shipped)
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Market Strategy: Promotion/Sales
1.
Generate Independent Clinical Data through existing
network of Academic physicians (UM, NYU, etc)
Market Strategy: Promotion/Sales
Generate Independent Clinical Data through existing
network of Academic physicians (UM, NYU, etc)
2. Target Anesthesia & Critical Care Groups through
Publication, Medical Conferences, and Trade Shows
1.
Market Strategy: Promotion/Sales
Generate Independent Clinical Data through existing
network of Academic physicians (UM, NYU, etc)
2. Target Anesthesia & Critical Care Groups through
Publication, Medical Conferences, and Trade Shows
3. Target & Garner thought leader Endorsements
1.
Market Strategy: Promotion/Sales
Generate Independent Clinical Data through existing
network of Academic physicians (UM, NYU, etc)
2. Target Anesthesia & Critical Care Groups through
Publication, Medical Conferences, and Trade Shows
3. Target & Garner thought leader Endorsements
1.
4. Apply for Unique CMS coding
Market Strategy: Promotion/Sales
Generate Independent Clinical Data through existing
network of Academic physicians (UM, NYU, etc)
2. Target Anesthesia & Critical Care Groups through
Publication, Medical Conferences, and Trade Shows
3. Target & Garner thought leader Endorsements
1.
4. Apply for Unique CMS coding
5. Target large hospital chains & distributorship for private
labeling/licensing
US Business Strategy
(sell on 10 unit basis)
 Beachhead sales
 Academic Researchers

Promotional target price $10 / free
Est. COG: $2.00 (package, shipped)
Gross Margins Est: 85+%
US Business Strategy
(sell on 10 unit basis)
 Beachhead sales
 Academic Researchers

Promotional target price $10 / free
 Anesthesia Groups

Promotional target price $40
Est. COG: $2.00 (package, shipped)
Gross Margins Est: 85+%
US Business Strategy
(sell on 10 unit basis)
 Beachhead sales
 Academic Researchers

Promotional target price $10 / free
 Anesthesia Groups

Promotional target price $40
 Distributors

Target price $60
Est. COG: $2.00 (package, shipped)
Gross Margins Est: 85+%
Milestones
46
Financial Projections
Q2
Q3
Q4
Yr1
Yr2
Yr3
Yr4
Yr5
Sales
0
0.02
0.15
0.17
3.0
7.0
13.0
27.0
Gross
Margins
0
0.015
0.14
0.155
2.65
6.3
11.7
24.3
Marketing
Sales
0
0.01
0.02
0.03
0.3
0.6
1.0
2.0
QA/Mfg
0.01
0.02
0.02
0.05
0.1
0.15
0.15
0.15
Admin
0.01
0.02
0.03
0.06
0.4
0.5
0.7
0.8
Total Exp
0.02
0.05
0.08
0.15
0.8
1.25
1.85
2.95
EBITDA
-0.02
-0.035
0.06
0.02
1.85
5.05
9.85
21.25
Amounts in
Millions
*Est. GM = 85+%
Break Even
----
---
Profitability
------
-
Ask
$1M/20% equity
($350,000),
PCT Filing
Pilot Run
IDE Study/Process Validation/ Quality Systems,
Design History File,


$ 100K
$ 250K
Prototype
US Patent
($170,000)
Biocomp Testing

Stability Testing

CE Mark
CMS Application, Stage II SBIR Grant,

$ 100K
$ 50K
$ 20K

510K
$ 40K

Legal/Accounting
Salaries
Business Dev
$ 40K
$ 250K
$ 150K

Team Assembled
Consultants Identified
($40,000)

Completed Milestones
Manufacturing Partner
Founders Funding to date: $60,000
Raised to date: $350,000
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Summary
Nevap Suction Line Endotracheal Tube
-Help hundreds of thousands US patients/yr
-Saves US hospitals $Billions/yr
1. Functional Prototype, Patent Pending
2.Enormous Societal & Financial Returns
3.Key Team of Professionals
4.Physicians embrace design
5.Strong Incentives
Benjamin R. Wang MD
(408) 398-5159
[email protected]
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Questions?