Post on 07-Jul-2015
transcript
Redef in ing pro tec t i ve eyewear.
IQ is...• a start up medical device firm in the field of corrective
lenses.
• seeking exclusive rights to manufacture and commercialize the first ever photochromic contact lenses.
• seeking capital to expand operations.
A new solution to an old problem will allow to change the way we see world.
Value PropositionP/E (Large) 17‐70P/E (New/small) 10P/E (Medium) 25
10xReturn
5 Years
58.5% Internal Rate of Return
$2.0M investment
Projected $20MRETURN
EXIT
The TechnologyFirst ever method for production and design of photochromic contact lenses First ever method for production and design of photochromic contact lenses
Product Differentiation
Intellectual PropertyINVENTORS: Edwin Chow and Jackie Ying (Singapore)
PATENTED in the United States of America:• polymeric material • manufacturing process
IBN Seeking Corporate Partners Overseas:• license agreement to bring product into U.S. market
Budget allocationBy key expenses
Estimated Total Project Cost: $2.5 million
29%
39%4%
8%
20% Manufacturing Cost ($720K)
Marketing Cost ($970K)
Distribution and supply ($100K)
Other Operating Cost and Expenses ($210K)
Product Registration and Clinical Study ($510K)
Project Timeline
The U.S. Contact Lens Market
23%
8%
8%
4%4%
53%
New York
Los Angeles
Chicago
Houston
Philadelphia
Others
/
YEAR 2: 0.1% OF MARKET SHARE. LA, NYYEAR 3: 0.2% OF MARKET SHARE. LA, NY, CHICAGOYEAR 4: 0.3% OF MARKET SHARE. LA, NY, CHICAGO, HOUSTON, PHILIDELPHIAYEAR 5: 0.5% OF MARKET SHARE. ALL OF UNITED STATES
The U.S. Market for Pūr‐VU®
Sales Projections
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0
5
10
15
20
25
30
1 2 3 4 5
Target M
arket S
hare (%
)
Total N
et In
come
(USD
in M
illions)
YearMarket Share
Total Net Income
Product Launch
EXIT
Conclusion
10xReturn in 5 Years$2.0M investment
Projected $20M ReturnEXIT
The f i rst ever correct ive dai ly wear photochromic contact lens made us ing novel patent protected technology.
Changing the way you see the world .
Changing the way you see the world .
Changing the way you see the world .
Q &A
SUPPLEMENTARY SLIDES
Regulatory PathwayClass II Medical Device
Premarket Notification Application (510K)
Clinical Performance Study
Investigational device exemption application (IDE)
Clinical Performance Study 3 months randomized study
50 Test Subjects Five Independent Investigators
Test Lenses(Pūr‐VU)
Control Lenses(Predicate Lenses)
Predicate Devices
1‐Day Acuvue (Johnson & Johnson)Dailies AquaConformt (CIBA Vision)Soflens Daily Disposable (Bausch & Lomb)
Project OverviewGantt Chart for 24‐Months
Investment ReturnCalculation
Budget allocationBreakdown by Tranches
Budget allocationBreakdown by Marketing Strategy Phases
Competitor AnalysisThe Porter Five Model
Supplier PowerStrong supplier power
Pūr-vu contact lenses are two‐in‐one: they provide vision correction and sun protection
Ability to transition in under 20 seconds from transparent to tinted contact lenses, and vice versa
Buyer PowerHigh buyer power
Bias in prescribing behaviour based on brand preferences
SubstitutesMedium risk of being substituted
Three of the four competitors have substitutes available (Vistakon, Inc., CIBA Vision, and Bausch & Lomb).
Potential EntrantsLow‐Medium Entry Barrier
Medium start‐up cost
Requires licensure of patented and proprietary technology
Internal RivalryHigh intensity
Competitors’ products are medicore substitute to Pūr-VU contact lenses.
Competitor AnalysisSWOT Analysis
Strength• Prescription lens – improve vision• Non prescription lens – everyone can use them• Don’t require additional sun protection – other
accessories, such as sunglasses are not needed• Specific protection – receive protection depending
on the level of UV light• Cost saving – 2‐in‐1 contact lenses act to correct
vision and provide UV protection • Patented technology• Novel material improved oxygen permeability and
moisture content
Weakness• Inadequate sun protection in vehicles – the glass inside a car may block UV light, and thus the level of brightness is minimized even though exposure to UV light is occurring
Opportunity• Bringing the product to the US market will require partnership with a large pharmaceutical company
• Once customer base is established, can sell the business off a pharmaceutical company
Threat• Threat of current substitutes in the market• Entry of other competitors into the market • Medical device product life cycles tend to be shorter
Competitor AnalysisList of Competitors
Competitors Soft Contact Market Share in the
U.S. (2009)
Competitive product
Vistakon , Inc. (Johnson & Johnson)
46% Acuvue ‐ provide UV protection with absorption of up to 82% of UV‐A radiation,
and up to 97% of UV‐B radiation.17
CIBA Vision(Novartis)
24% Precision UV® ‐ absorbs up to 90% of harmful UV radiation.18
CooperVision, Inc. 17% ‐
Bausch & Lomb, Inc. 12% ‐
Nike‐
Nike’s MaxSight Contacts – comes in two shades: grey‐green for sports played in bright
light and amber for sports that are fast paced.19