Business Idea Competition: Concept Innovate
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Transcript of Business Idea Competition: Concept Innovate
Chronic Pain
Man On Fire:
• 25% of Americans suffer from
chronic pain
• Nearly 50% do not get effective
relief from current therapies
• Post surgical pain often clear
culprits
• In many common conditions
such as diabetic neuropathy, no
clear source of pain is found.
• The annual cost of chronic pain
is as high as $635 billion a year,
which is more than the yearly
costs for cancer, heart disease
and diabetes.
Innovation of tomorrows pain relief solutions
ResveraTech
Amare Stoudemire…
Why are you in a tub of wine???
• All natural (homeopathic)
• Found in wine, and dark
chocolate
• Potential usage:
• Heart Disease
• Cancer
• Metabolism
• Lifespan
• Pain relief
Resveratrol
• OTC market as of 2013
~ $6Billion
• Internal Analgesic ~ 60%
• External Analgesic ~ 15%
• GIA estimates $34.6Billion in
analgesic market by 2015.
Market
Platform Technology
ResveraDerm
Creme
Pain Relief
Patch
Post-Surgical Pain Relief
Bandage
Pain Relief
Sutures
ResveraDerm Clinical Feasibility Study
Customer Acquisition and Backing
• Physical Therapists
• Elderly post-surgery patients
• Orthopedics
• Sports injury
• Chiropractors
• Homeopathic
• Medical spas and Compounding Pharmacists
• Massage
• Homeopathic
• Western Medicine
• Pain Relief Centers
• Desperate for pain relief
Marketing Plan
• Finish development of platform
• CMO manufacture agreement
• Data acquisition for downstream (IP protection)
• Website Design
• Clinical feasibility
• Large retail
Sales
• Website
• Clinic / Retail
• Distributer
Strategy
• BASF is an international
chemical manufacturer
• Agreement in place:
ResveraDerm development
R&D Manufacturer
• Manufacture product for :
• Fee for service
• Royalty
• Save startup capital
Contract Manufacture
Timeline
2011 2012 2013 2014 2015 2016 2017 2018
Hard Launch Patch, Bandage, Sutures
Phase III Begin (Commercialization, Angel/VC Funding)
Phase II Complete (Patch, Bandage, and Sutures Ready for Launch)
Break Even
Phase II Approval (Development of Downstream Products)
Hard Launch ResveraDerm (Large Retail)
Downstream Product IP Acquired
Phase I End
Soft Launch ResveraDerm (Clinical Feasibility Study)
SBIR/STTR Phase I Approval
Submission of SBIR/STTR
Draft of SBIR/STTR
Business Planning Begin
Publication III
Publication II
Publication I
• Phase I:
• Feasibility
• Clinical Study
• 6 months : $150k
• Hard Launch ResveraDerm
• Phase II:
• Downstream Product Development
• 2 years : $750k
• Phase III
(Commercialization)
• Angel/VC:
• Strong track via SBIR
• Manufacturer contract
• Ready for sales
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
8000 58,000 118,000 178,250 239,750 301,750 364,750
Units Sold
Revenue vs. Unit Sales
Sales Total Costs
Fixed Costs: $626,820
Variable Cost per Unit: $3
Unit Price: $7.20
Unit Increments: 10,000
BREAK-EVEN POINT: 149,243
Projections
• Fixed and variable costs analyzed
• Conservative Assumptions
• low price point
• two marketing channels
• Concentrate efforts on TX, NM, AR, LA
• Market penetration based on Lidoderm
1999
• Manufacturing keeps up with sales
$0.10 $2.00$5.00
$10.00
$50.00
$100.00
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2014 2015 2016 2017 2018 2019 2020
Sales in Millions
Revenue Projections
Financials
TOP DOWN
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Market $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00
Penetration 0 0.1% 0.2% 0.4% 0.8% 1.6%
Rev $- $500,000.00 $1,000,000.00 $2,000,000.00 $4,000,000.00 $8,000,000.00
Costs $- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54
Profit $- $(150,000.00) $233,000.00 $1,094,940.00 $2,932,029.20 $6,739,794.46
BOTTOM UP
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Units 0 50000.00 87500.00 153125.00 267968.75 468945.31
Locations
(at 2:1 C:R) 0 125.00 218.75 382.81 669.92 1172.36
Sales Rev 0 500000.00 875000.00 1531250.00 2679687.50 4689453.13
Costs
$
- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54
Profit
$
- $(150,000.00) $108,000.00 $626,190.00 $1,611,716.70 $3,429,247.58
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
$(150,000) $(500,000.00)
$500,000.00
$1,500,000.00
$2,500,000.00
$3,500,000.00
$4,500,000.00
$5,500,000.00
$6,500,000.00
$7,500,000.00
Financials
(150,000)
$(500,000.00)
$500,000.00
$1,500,000.00
$2,500,000.00
$3,500,000.00
$4,500,000.00
$5,500,000.00
$6,500,000.00
$7,500,000.00
Sales in Millions
Concept Innovate
• Well-Educated
• R&D Experience
• Marketing
• Sales
• Motivated
• Adaptable
• Strong Strategy
• Mentor Backing