dento mimetix nsf final presentation
TRANSCRIPT
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THE PROBLEM IN DENTAL HEALTHCARE
Problem: The root of major dental ailments is demineralization
Using peptides we remineralize tooth surface without any synthetics.
This is the technology that made dentists say “WOW!”
OUR SOLUTION
Old tooth
New mineral layer
dentoMIMETIX
Mustafa
GungormusPhD, MSE
Terri
ButlerPhD, C4C
Mehmet
SarikayaProf. MSE & ChemE
Candan
TamerlerProf. MSE & Mol Bio
Hanson
Fong PhD, MSE.
Revolutionizing dental care throughnatural mineralization peptides
Final PresentationInterviewed: 115
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EntrepreneurialLead
Mentor P.I. Co-P.I. Co-E.L.
I-Corps Team Start-up Partners
Technical VideoIntroduction Video
1st BUSINESS MODEL CANVASKEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Coordination of manufacturing and marketing partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Sponsored dental screenings at schools
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities
- IP
3
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Coordination of manufacturing and marketing partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Sponsored dental screenings at schools
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities
- IP
Hypothesis:
• Everybody has caries at one point.
• Therefore, everybody is our potential customer.
CUSTOMER SEGMENTS
4
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Coordination of manufacturing and marketing partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Sponsored dental screenings at schools
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities
- IP
• Dental Patients are the end users, NOT our customers
• Our customers are dental practitioners and manufacturers
CUSTOMER SEGMENTS
5
FIRST LESSON: Getting out of the building
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Timothy Mulachy, DDS
Tracy Wayman, DDS
Greg Huang, DMS, MMD
Roberta Jurash, DDs
Turkar Sandalli, DDS
Nezih Hekim, MD
Yeditepe Dental Hosp.
• Sensitivity• Incipient carries• PDL regeneration • Baseliners• Cements for implants • Endodontic treatment
• Periodontal Maintenance
• Prophylaxis (cleaning)• Discoloration (White
spots)• Bone regeneration• Sealants• Dental glue
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Greg J. Huang, DMD, MSD, MPHProfessor and Chair Department of OrthodonticsDental School, University of Washington
Lyle McClellan, DDSRegional ManagerWillamette Dental Group, Oregon
FIRST LESSON: Getting out of the building
Addressable Market Size• Endodontics
• Periodontal disease• Hypersensitivity
$12 billion/yr
Target Market Size(10%)
$1.2 billion/yr
Total Market SizeDental Care Expenditures in Clinics
$35 Billion/yr
MARKET SIZE
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Consumables$0.3b/yr only
Target applications
• Endodontics• Periodontal disease• Hypersensitivity
- Most expensive procedures
- Repeatedly suggested in the interviews
• $300 million/yr is too small
• Time to pivot• What are the consumable intensive
applications
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MARKET SIZE
Addressable Market SizeRestorative & Preventive dentistry
$16 billion/yr
Target Market SizeConsumables (55%)
$8.8 billion/yr
Total Market SizeDental Care Expenditures in Clinics
$35 Billion/yr
Target applications
• Restorative & Preventive dentistry
- Strongly supported by insurance companies
- Majority of the expenditure is on consumables
Conservative estimate (10%)$880 million/yr
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Coordination of manufacturing and marketing partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Sponsored dental screenings at schools
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities
- IP
Hypotheses :
• We don’t have the infrastructure to manufacture and sell our product
• We must develop our technology and license it to major companies
• With the right partners we can pursue BOTH licensing AND direct sales
• Each require a separate canvas
CHANNELS & REVENUE MODELS
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CHANNELS & REVENUE MODELS: LICENSINGKEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Regulatory approval
- Developing and maintaining IP
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval, maintaining IP- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- New high value product, competitive edge
- New market
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Good relationship with the licensee
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
- Industry contacts
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities, IP
- Industry contacts
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COST / PROFIT ANALYSIS
R&DMaintaini
ng IP
En
d u
ser
Our revenue 4-8% revenues List price
Per unit cost and profit estimation
Licensing Revenue Model
Raw material
s
Manufacturing &
Packaging
License fee
Distribution
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Univ.Licens
efee
End User
Health-Care Providers:Hospitals
PractitionersClinics
InsuranceAgencies
Customer segment: Large
corporationsJ&J, GSK, 3M
DMXR&D
ProductsProcedures
IPs
$$$
~$40
$$
University
4-8% royalty
2-4% license fee
Licensing of Technology Ecosystem
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Target MarketXlear’s market share (40%)
$305 million
Addressable marketXylitol based products (25%)
$762.5 million
Total marketToothpaste & Mouthwash
$3.5 billion
MARKET SIZE: Licensing
• Royalties (est.) ~4%• University share ~2%
• Assuming peptide incorporated half of Xlear’s product line
• ~2% royalties from $152,500,000
= $3,000,000/yr14
CHANNELS & REVENUE MODELS: DIRECT SALE KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Identifying product format and area of use
- Identifying key partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Product development partners
- Manufacturing partners
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS- Web based & in-
clinic education
- Sponsored dental screenings
- Sales representatives
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities, IP
- Dental practitioners
15Pop out frames
Product Development
Manufacturing Distribution
3 TYPES OF KEY PARTNERS
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CS Bio, Palo Alto
Patterson Dental, PortlandDentaline, Istanbul
COST / PROFIT ANALYSIS
Raw active
ingredient
Manufacturing &
Packaging
Profit + R&D + License fee
Distributor
$40 *$27%32 cut
$6 ? ($5) ~$11 ~$13
En
d u
ser
Our revenue List pricePer unit cost and profit estimation
Direct Sales Revenue Model
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* Competition• NuPro prophy paste (Novamin $50)• NuPro desensitizer (Novamin $93)• MI varnish (Recaldent $100)• Gluma desensitizer (Glutaraldehyde $130)• Health-Dent desensitizer (Fluoride $49)
End User
Customer Segments;
Health-Care Providers:- Hospitals
- Practitioners- Clinics
InsuranceAgencies
Product Sales &
Distribution
Formulations& Packaging
Raw MaterialsManufacturing
DMXR&D
ProductsProcedures
IPs
$$??$6/pk
$5/pk$$??
University
-32%($27)
$?
Direct Sales Ecosystem
R&D &Regulation
$40/pk
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GROWTH PLAN
2012 2013 2014 2015 2016 2017 20180
500,000
1,000,000
1,500,000
2,000,000
Market share 2%
Market share 5%
Market share 7%
Market share 10%
Market share 15%
Sales$10,000,000
(22.90%)
Sales$24,000,000
(35.04%)
Sales$33,600,000
(36,46%)
Sales$48,000,000
(37.60%)
Profits$72,000,000
(39.13%)
Go Global?Get Acquired?
Un
its s
old
Year19
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Coordination of manufacturing and marketing partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Sponsored dental screenings at schools
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing, royalties
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities
- IP
20
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Coordination of manufacturing and marketing partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS
- Web based & in- clinic education
- Sponsored dental screenings at schools
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing, royalties
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities
- IP
21
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Identifying product format and area of use
- Identifying key partners
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Product development partners
- Manufacturing partners
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS- Web based & in-
clinic education
- Sponsored dental screenings
- Sales representatives
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing, royalties
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities, IP
- Dental practitioners
22
KEY ACTIVITIES
- R&D: Efficacy tests and product optimization
- Regulatory approval
- Developing and maintaining IP
KEY PARTNERS
- Peptide synthesis companies
- Regulatory advisors
- Dental researchers
- Distribution and marketing partners
COST STRUCTURE- Value-driven- Development, optimization, regulatory
approval, maintaining IP- Raw materials, production, distribution,
marketing
VALUE PROPOSITIONS
- New high value product, competitive edge
- New market
- Improved performance
- Convenience/- usability
- Risk reduction (toxicity)
- Non-animal ingredients (broader customer base)
CUSTOMER RELATIONSHIPS- Web based & in-
clinic education
- Good relationship with the licensee
CHANNELS
- Distribution and marketing partners
- Practicing dental professionals (secondary)
- Industry contacts
CUSTOMER SEGMENTS
- Practicing dental professionals
- People with incipient caries
- People with sensitive teeth
- People who are susceptible to caries
- Health care product manufacturers
REVENUE STREAMS- Direct sale (e.g. clinical products through
distributors)- Raw material sale (e.g. to toothpaste
manufacturers)- Licensing, royalties
KEY RESOURCES- Individuals
- Local biotech. entrepreneurs
- UW C4C & lab facilities, IP
- Industry contacts
23
After introducing the product concept, how likely is it you would find a use for it in your practice?
What indications would you use it for?
Not at all
I would find it useful
I would definitely use it
0 5 10 15 20 25 30 35 40
Sensitive teeth
Exposed root
White spots
Incipient caries
0 10 20 30 40 50 60
Reception by the dentists
27
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• US Population: 320,000,000• Annually visiting dentist: 204,800,000 (64.5%) 1
• Those with target indications: 116,736,000 (57%) 2 • Target population: Willing to try and switch new, better performing products
~12,000,600 (10% conservative estimate)
~58,000,000 (50% optimistic estimate)
2 http://www.ineedce.com/courses/1414/html/demo_dilemma_print.html
3 http://www.prnewswire.com/news-releases/reportlinker-adds-global-markets- for-dental-consumables-and-prosthetics-121693568.html
• Assuming reaching 2% of the target population in the first year: Estimated yearly sales ~250,000 units (conservative) 1,250,000 units (optimistic) Estimates yearly costs ~$7,380,000 (74%) (conservative) Estimated revenue in profits ~$2,600,000 (26%) (conservative)
* Based on competitor products:• NuPro prophy paste (Novamin $50)• NuPro desensitizer (Novamin $93)• MI varnish (Recaldent $100)• Gluma desensitizer (Glutaraldehyde $130)• Health-Dent desensitizer (Fluoride $49)
1 http://www.usatoday.com/news/health/2009-03-10-dental-skip_N.htm
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