Download - Cubists team 4 - v3
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CubiSafe: Cubist’s next growth storyAnagha MahajanSaurabh MalaniRyan DoyleNikhil Bhiwankar
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Agenda
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating uncertainties
Risk and mitigation
Conclusion
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+Raison d'être: Saving lives
Saving lives
Core competency: Innovation and New
Product Development
Market leader in anti-bacterial
Differentiated culture
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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+HAI: Disguised Opportunity 100,000 individuals killed every
year $45 billion in cost Antibiotic resistance is rising Pressing concern for Hospitals
$2 Billion in global revenue – majority from organic growth
Balanced and unique pipeline strategy
Leverage disciplined investments to generate $700mn in non-GAAP income
A highly differentiated Culture
Disciplined new business development
Unique pipeline for development –focus on anti-bacterial space
Investment in future technology
Promote innovative culture
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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Value Creation• Customer pain-points• Product Conception• Product Definition
Value Delivery• Channels• Marketing• Organizational
restructuring
Value Capture• Pricing• Creating sustainable
shareholder value
Opportunity realization
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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Value Creation: Pain-point
Human touch points – Thriving ground for bacteria colonies
Improbable to eradicate completely by routine cleaning
Causes health complications to existing patients and visitors
No change in current protocols and infrastructure, with a product that kills bacteria.
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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+CubiSafe
No additional step
Seamless integration with existing products
Wider reach
No additional procurement of products
CubiSafe: An additive that can be incorporated in the paint, disinfectants and fabrics making them bacteria resistant.
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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+Partnership v/s product strategy
Hedging risk of entering new market
Creating a hurdle for brand value dilution
REACH – Cannot manufacture various products but can reach all products with one solution – CubiSafe
Safety net for Cubist’s Pharma brand in case pilot is not successful in the new market
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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Delivery Medium- Paints Disinfectants Fabrics
Channel selection criteria Brand Image Access to end consumer Market Leadership Legal Agreement
Value Delivery
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
CubiSafe Inside – A mark of safety and 100% guarantee
Think Intel Inside!!
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+Value Delivery Partnership with
OEM’s
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
New marketing strategy
Cubist(owns
molecule)
Manufacturing Partner
Material Supplies
Procurement
OEMs (Customers
)
HospitalsProducts
with CubiSafe
Safer Hospital
Environment
SAVE LIVES
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+Go-to Market Strategy
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
Research Hospitals
Investor owned for-profit
Not-for-profit Push strategy for KOL
Publish studies
Use partner sales channel to reach final customers
Create pull
Positioning: Pre-emptive bacteria free environment without altering the stakeholder behavior.
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+Value Capture: Pricing
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
Partners
Spray Paint Linen
Avg. Price per can = $XPrice for Cubisafe Spray =$2.5X
Avg. cost per can = $XPrice for Cubisafe Paint = $1.66X
Revenue Split 50-50
Avg. cost of Linen per room = $XPrice for Cubisafe Linen per room = $1.5X
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+Financials
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
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Conclusion
(In $ Thousands) Year 1 Year 2 Year 3 Year 4 Year 5Revenue
Paint $1,500 $2,250 $3,750 $4,200 $4,500 Spray 13,500 20,250 33,750 37,800 40,500 Linen 7,500 11,250 18,750 21,000 22,500
Total Revenue 22,500 33,750 56,250 63,000 67,500
Cost of Goods Sold 1,350 2,025 3,375 3,780 4,050
Gross Margin 21,150 31,725 52,875 59,220 63,450
Research & Development 3,375 3,375 28,123 1,890 675 Selling, General and Admin. 4,500 6,750 12,398 15,750 18,900 Operating Expenses 7,875 10,125 40,521 17,640 19,575
Operating Profit $13,275 $21,600 $12,354 $41,580 $43,875
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+Navigating through uncertainties
Entrepreneurial Though and Action ®
Fail fast learn quick
Cubist Capital
Partner with Babson and likes
Create an incubator to keep innovations flourishing
Hampers negative attitude and fosters healthy competition
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Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
n
Conclusion
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+Conclusion
CubiSafe
Quick positive cash
flow
Fractional R&D
cost
Quick to market
Testimony for
employess
Business diversificatio
n opportunity
Standard for
Bacteria Removal
Entrepreneurial thought and
action
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
nConclusion
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THANK YOU!!
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+Organizational Strategy
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Risk and Mitigation
New partner alliances
Low barrier to entry
Not an end product
No credibility in this space
Supply chain dynamics
Pricing
Cannibalization
Co-branding
Partner with credible players
Increase barriers by establishing brand early on
Discerning market sensing
If you do not address someone else will – look at it as opportunity
Patent – With application
Raison detre
Opportunity
Business Model
Value Creation
Value Delivery
Value Capture
Navigating
uncertainties
Risk and mitigatio
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Conclusion
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Option for additives
Future Growth
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+Cannibilazation
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+Product selection
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+Benefits of going with OEM
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+Sensitivity analysis
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+Competitive analysis
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+Modeled Assumptions