Molecular diagnostic devicesthat make every molecule count
Number of Customers
97
LIQUILUME DIAGNOSTICS
Total target opportunity: $5.1 Billion
Holger Schmidt (PI)Prof. Electrical EngineeringUC Santa Cruz
Philip Measor (EL)PhD, Electrical Engineering, UC Santa CruzCEO, LiquiLume Diagnostics, Inc.
Bob Dunkle (IM)MBA, Entrepreneur-in-Residence QB3ABES Partners
Aaron Hawkins (Co-founder)Prof. Electrical and Computer EngineeringBrigham Young University (BYU)
Team members
- Build viable MVP- Identify and win first customers- Develop partnerships and advisors- Set up production- Assess regulation needs
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 120 03 2012
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Channels
Revenue StreamsCost Structure
Key Resources
1. Cancer researchers
2. Hospital labs
3. Test labs
4. Physicians
5. Pharmaceutical comps
- Early diagnosis, better treatment (docs)- Unprecedented perfor- mance [proteins] (docs, researchers)- Lower test cost, faster [NAT] (test labs, hospital labs, payors)- Companion Dx (pharmaceuticals)- Quality of life (patients)
- R&D (scientists)- IP licensing + filing- Chip manufacturing- Assembly/design
- Chip foundry- acad/industr. research labs to validate- distributors- Potential parent comp.- Regulators
- Proteins: Value-driven (unmatched performance)- NATs: Cost-driven (cheaper, faster, simpler)- Economies of scale: increasing # of biomarkers- Economies of scope: both NATs and proteins on one platform- Fixed costs: ongoing R&D; chip fabrication fairly simple
- Instrument: feature-dependent; negotiable; possibly low- Consumables: fixed; mass/volume discounts- Service contracts- Service sales: test per marker per sample
- Direct purchase- Distributors- Website sales- Trade shows / conf.s- On-site setup- Service contracts
- On-site support- Co-develop (research)- Web forum
Designed for: Designed by: On:
Iteration:
Original value propositions
Detect individual molecules rapidly and inexpensively
Nucleic acid testing (NAT) Protein biomarkers• save cost • unprecedented sensitivity
Standard Nucleic Acid Testing Workflow
Take sample
Mix sample and probes
Extract DNA/RNA
Thermal cycles Analysis
Labor intensive, subject to inaccuracies at low concentrations, high cost
LiquiLume Workflow
Low volume sample
On-chip sample prep
Add to disposable chip
Run Assay Read out result
Add reagents
Highly automated processing, highly accurate at low concentrations, low cost
LDI developsPrototype & test
kits
Initial company roadmap
Sell to:- Clinical labs- Research labs Trials;
510(k);Cost: ??
2 years
Research labs partner to
validate product
Sell to:- Point of care- Physician offices CLIA
waiver
1 year
Market size: In-vitro Diagnostics
Worldwide: $44.3B
US: $19B
ID: $4.6B
Source: Kalorama Information (2009)
Oncology: $1.85B
TM: $440M
TM: $2.4B
Out of the building: Customer interviews
RUO labs• Oncologists• Pathologists• Virologists• Sequencing center• Biomolecular eng.• Anal.chemist• MS facility
Regulators
Clinical labs
Partners Water safety
Industry• Stanford MDx• Quest• LabCorp• Idexx
• Test labs• Drug company• Vets• Cancer immuno- therapy• Private oncologist• Pharmaceuticals
• CMS• CAP• CLIA• FDA
• Semiconductor foundry• Assay developers• OEMs• Distributors
• Semiconductor industry• Pool users
Out of the building: Options!
water
chemicals
Service test
Research labs
Clinical labs
Test service (S) vs. Instrument (I) model
Customer Type Preference
UCSF oncologists Academic I
Genentech Industry I
Lab Corp Clinical lab I
Quest Clinical lab I
Idexx Clinical lab I
Stanford oncologists Academic I
Stanford MDx lab Academic I
TBRI (ID) Academic I
UCSF microbiology (ID) Academic I
UCSF virologists (ID) Academic I
• VCs will not fund a hybrid instrument/test company
Clinical Trial Road
Feasibility
ProposalTrial Bid
Trials
Training?
$50k-$1M$3k
Pass?$2k-50k
IRB FDA Submission
X
First MDx cost to approval: $100M, 7 yearsExample:
FDA approval
Aha Moment: Micro-RNA testing
Oncologist: “Micro-RNAs are emerging cancer biomarkers”
Scientist: “Micro-RNAs are not well suited for standard detection.”
Works!
Doesn’t Work
20-30 bases
Successful short-strand detection within 2 weeks!
Impact: • New market segment• New competitive weapon• New value proposition
Validation
Target Market
water
chemicals
Service test
Research labs
Clinical labs
Refined company roadmap
510(k); PMA; $3-100M
5-7 years
RUO:- Researchers- Core labs
Sell to:- Clinical labs- Hospitals
RUO = Research use only
$$$
Source: Web of Science
Market size: Research-use only (RUO)
Worldwide: $27.0B
US: $7.7B Target: $2.3B
Bio
chem
istr
y
Mic
robi
olog
y
Bio
tech
nolo
gy
Onc
olog
y
Vet
erin
ary
Sci
ence
s
Gen
etic
s
Imm
unol
ogy
Infe
ctio
us D
isea
ses
Cel
l Bio
logy
Pla
nt S
cien
ces
0%
2%
4%
6%
8%
10%
12%
14%
RUO Customer Archetypes
Academic research labs Core Diagnostic labs
• principal investigators• large research effort involving nucleic acids/proteins • make purchase decision• heavy instrument users• joint publications
• academic core labs• multi-user-facilities• director or committee decides• multiple instruments• relatively high sample volume• results go back to researchers
Revenue Model: “Razor / razor blade”
Academic research labs
Core Diagnostic labs
Razor - Instrument Blade - Chips and test kits
• loan or lease (~$500/month)• option for discounted purchase
• ~3 options for chip types (~$50/chip)• customized test kits (~$200/kit)
• direct sale (~80k for NATs; ~200k for proteins)
• ~3 options for chip types (~$500/chip)• customized test kits (~$100/kit)
Additional revenue• IP licensing of non-core applications• protein tests for chem/bio researchers (~$200/test)
Chip Manufacturers
RUO Ecosystem
LiquiLume
OEMs
Packaging
Reagents
Shippers
Clinical Labs$$$
Research Labs
$$$
Distributors
$$
$$
Licensing
$$
Doctors
SBIRs
Seed Funding
MVP Production
Customer Validation
Next Steps
Iteratio
n:
On:The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 923 05 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs
(“RUO”)
2a. Test labs
2b. Hospital labs
- Unprecedented performance
- New biomarker detection (Micro-RNA)
-Perform NAT and protein detection on one platform
- R&D (scientists)
- IP licensing / filing
- Assembly/design
- R&D
- Customer Acquisition
- Distributor cut
- Instrument manufacturing
- Chip fabrication
- IP - Instrument
- Accessories
- Consumables
- Service contracts
- Licensing
- Direct purchase (RUO)
- Trade shows / conferences
- Publications
- Service contracts
- Direct
- On-site support
- Co-develop (research)
- Web forum
Designed for: Designed by:
- MVP- Customers- Partners/advisors- Production - Regulation - SBIRs- Seed investment
Market
- Research labs
- Clinical labs
- Dx co-developers
Product/Operation
- Chip foundry
- Packaging
- OEMs
- Reagent suppliers
- Sample prep.
- Shippers
- Distributors
Canvas Slideshow
- Build viable MVP- Identify and win first customers- Develop partnerships and advisors- Set up production- Assess regulation needs
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 120 03 2012
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Cancer researchers
2. Hospital labs
3. Test labs
4. Physicians
5. Pharmaceutical comps
- Early diagnosis, better treatment (docs)- Unprecedented perfor- mance [proteins] (docs, researchers)- Lower test cost, faster [NAT] (test labs, hospital labs, payors)- Companion Dx (pharmaceuticals)- Quality of life (patients)
- R&D (scientists)- IP licensing + filing- Chip manufacturing- Assembly/design
- Chip foundry- acad/industr. research labs to validate- distributors- Potential parent comp.- Regulators
- Proteins: Value-driven (unmatched performance)- NATs: Cost-driven (cheaper, faster, simpler)- Economies of scale: increasing # of biomarkers- Economies of scope: both NATs and proteins on one platform- Fixed costs: ongoing R&D; chip fabrication fairly simple
- Instrument: feature-dependent; negotiable; possibly low- Consumables: fixed; mass/volume discounts- Service contracts- Service sales: test per marker per sample
- Direct purchase- Distributors- Website sales- Trade shows / conf.s- On-site setup- Service contracts
- On-site support- Co-develop (research)- Web forum
Designed for: Designed by: On:
Iteration:
Iteration:
- MVP- Customers- Partnerships/advisors- Production - Regulation
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 221 03 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue StreamsCost Structure
Key Resources
1. Research labs
2. Hospital labs
3. Test labs
4. Pharmaceuticals
5. Defense clients
6. Physicians
- Unprecedented perfor- mance [proteins] (docs, researchers)- Lower test cost, faster [NAT] (test labs, hospi tal labs, payors)- Drug validation (pharmaceuticals)- PoC on-site diagnosis (military)- Early diagnosis, better treatment (docs)- Quality of life (patients)
- R&D (scientists)
- IP licensing / filing
- Manufacturing
- Assembly/design
- Chip foundry- Research labs- Distributors - Potential parent comp.- Regulators
- Both cost (NAT) and value (proteins) driven
- Economies of scale: biomarker #
- Economies of scope: NATs + proteins
- Fixed costs: ongoing R&D; chip fabrication
- IP
- Instrument
- Consumables
- Service contracts
- Service sales
- Direct purchase
- Distributors
- Website sales
- Trade shows / conf.s
- On-site setup
- Service contracts
- Direct
- On-site support
- Co-develop (research)
- Web forum
Designed for: Designed by: On:
Bait and Hook
Iteration:
On:
- MVP- Customers- Partnerships/advisors- Production - Regulation
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 322 03 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue StreamsCost Structure
Key Resources
1. Research labs
2a. Hospital labs
2b. Test labs
4. Pharmaceuticals
5. Defense clients
6. Physicians
- Unprecedented perfor- mance [proteins] (docs, researchers)- Lower test cost, faster [NAT] (test labs, hospi tal labs, payors)- Drug validation (pharmaceuticals)- PoC on-site diagnosis (military)- Early diagnosis, better treatment (docs)- Quality of life (patients)
- R&D (scientists)- IP licensing / filing- Manufacturing- Assembly/design
- Chip foundry- Research labs- Distributors - Potential parent comp.
- Both cost (NAT) and value (proteins) driven - Economies of scale: biomarker #- Economies of scope: NATs + proteins- Fixed costs: ongoing R&D; chip fabrication- IP
- Service tests- Instrument- Consumables- Service contracts- Service sales
- Direct purchase- Distributors- Website sales- Trade shows / conf.s- On-site setup- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
Bait and Hook
Iteratio
n:
On:
- MVP- Customers- Partnerships/advisors- Production - Regulation
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 428 03 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs
2a. Hospital labs
2b. Test labs
3. Ultrapure water user (power plant, semi.)
- Unprecedented performance [proteins]
(docs, researchers)- Lower test cost, faster [NAT] (test labs,
hospital labs, payors)
- Cleaner water for ultrapure operations
- R&D (scientists)- IP licensing / filing- Manufacturing- Assembly/design
- Chip foundry- Research labs- Distributors - Potential parent
comp.
- Both cost (NAT) and value (proteins) driven - Economies of scale: biomarker #- Economies of scope: NATs + proteins- Fixed costs: ongoing R&D; chip fabrication- IP
- Service tests- Instrument- Consumables- Service contracts- Service sales
- Direct purchase- Distributors- Website sales- Trade shows / conf.s- On-site setup- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
Bait and Hook
Iteratio
n:
On:
- MVP- Customers- Partnerships/advisors- Production - Regulation
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 504 04 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs
2a. Hospital labs
2b. Test labs
3. Ultrapure water user (power plant, semi.)
- Unprecedented performance [proteins]
(docs, researchers)- Lower test cost, faster [NAT] (test labs,
hospital labs, payors)
- Cleaner water for ultrapure operations
- R&D (scientists)- IP licensing / filing- Manufacturing- Assembly/design
- Chip foundry- Research labs- Distributors - Potential parent
comp.
- Both cost (NAT) and value (proteins) driven - Economies of scale: biomarker #- Economies of scope: NATs + proteins- Fixed costs: ongoing R&D; chip fabrication- IP
- Service tests- Instrument- Consumables- Service contracts- Service sales
- Direct purchase- Distributors- Website sales- Trade shows / conf.s- FDA clearance- Publications- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
Bait and Hook
Iteratio
n:
On:
- MVP- Customers- Partnerships/advisors- Production - Regulation
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 611 04 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs
2a. Hospital labs
2b. Test labs
3. Ultrapure water user (power plant, semi.)
- Unprecedented performance [proteins]
(docs, researchers)- Lower test cost, faster [NAT] (test labs,
hospital labs, payors)
- Cleaner water for ultrapure operations
- R&D (scientists)- IP licensing / filing- Manufacturing- Assembly/design
- Chip foundry- Research labs- Distributors - Potential parent
comp.
- Both cost (NAT) and value (proteins) driven - Economies of scale: biomarker #- Economies of scope: NATs + proteins- Fixed costs: ongoing R&D; chip fabrication- IP
- Service tests- Instrument- Consumables- Service contracts- Service sales
- Direct purchase- Trade shows / conf.s- FDA clearance- Publications- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
Bait and Hook
Iteratio
n:
On:
- MVP- Customers- Partnerships/advisors- Production - Regulation
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 718 04 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs
2a. Test labs
2b. Hospital labs
- Unprecedented performance [proteins]
(docs, researchers)- Lower test cost, faster [NAT] (test labs,
hospital labs, payors)
-New biomarker detection
-Perform all above on one platform
- R&D (scientists)- IP licensing / filing- Manufacturing- Assembly/design
- Chip foundry- Research labs- Distributors - Potential parent
comp.
- Both cost (NAT) and value (proteins) driven - Economies of scale: biomarker #- Economies of scope: NATs + proteins- Fixed costs: ongoing R&D; chip fabrication- IP
- Instrument- Consumables- Service contracts- Service sales
- Direct purchase- Trade shows / conf.s- FDA clearance- Publications- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
Bait and Hook
Iteratio
n:
On:
- MVP- Customers- Partnerships/advisors- Production - Regulation - SBIRs- Seed investment
The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 825 04 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs (“RUO”)
2a. Test labs
2b. Hospital labs
- Unprecedented performance [proteins]
- New biomarker detection [NAT]
-Perform all above on one platform
- R&D (scientists)- IP licensing / filing- Manufacturing- Assembly/design
- Chip foundry- Packaging- OEMs- Reagent suppliers- Sample prep.- Shippers- Distributors - Dx co-developers- Research labs- Clinical labs
- Both cost (NAT) and value driven - Economies of scale: biomarker #- Economies of scope: NATs + proteins- Fixed costs: ongoing R&D; chip fabrication- IP
- Instrument- Accessories- Consumables- Service contracts
- Direct purchase- Trade shows / conf.s- Publications- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
Iteratio
n:
On:The Business Model Canvas LiquiLume Diagnostics HS / PM / BD 923 05 2012
Key Partners Key Activities Value Propositions
Customer Relations
Customer Segments
Channels
Revenue Streams
Cost Structure
Key Resources
1. Research labs (“RUO”)
2a. Test labs
2b. Hospital labs
- Unprecedented performance
- New biomarker detection (Micro-RNA)
-Perform NAT and protein detection on one platform
- R&D (scientists)- IP licensing / filing- Assembly/design
- R&D- Customer Acquisition- Distributor cut- Instrument manufacturing
- Chip fabrication
- IP - Instrument- Accessories- Consumables
- Service contracts
- Licensing
- Direct purchase (RUO)
- Trade shows / conferences
- Publications- Service contracts
- Direct- On-site support- Co-develop (research)- Web forum
Designed for: Designed by:
- MVP- Customers- Partners/advisors- Production - Regulation - SBIRs- Seed investment
Market- Research labs- Clinical labs- Dx co-developers
Product/Operation- Chip foundry- Packaging- OEMs- Reagent suppliers- Sample prep.- Shippers- Distributors
Backup Slides
Competitors
Nucleic acid tests Protein detection