Business Models That Work In Mobile Health

1www.agamatrix.comwww.agamatrix.com

Business Models That Work In Mobile Health

Sonny VuChairman and Founder, AgaMatrix

SMS: 617-642-6226@SonnyVu

2www.agamatrix.com

COMMERCIAL PARTNERS

130 EMPLOYEES (SALEM, NH)

INTELLECTUAL PROPERTY

ALL ABOUT MHEALTH

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Demo Video

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Games, useful

services, etc.

+

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6www.agamatrix.com Source: http://www.cdc.gov/diabetes/statistics

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What can we do today?

Connected Health

Public Policy

Drug Discovery

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Healthcare Costs Related to Disease

Source: http://bit.ly/ksigHF

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Non-ComplianceNon-Compliance

I didn’t fill my

prescription.

We filled our prescriptions.

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$9B $20B $40B$30B

Potential Savings From Improvements

in Healthcare Quality and Safety

$100B Non-Adherence

Music Video Games Book PublishingOnline Ads

Source: http://bit.ly/El4R8

Source: http://bit.ly/mkY3PQ

Source: http://bit.ly/iPs8dH

Source:http://bit.ly/mR9l9o

Source: http://bit.ly/kBi2eO

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Things you think about:

Market Need

Product Design

“Positioning”

Engineering

Marketing

Explosive Growth / “Virality”

VC Funding

Recruiting

Things you don’t think about:

(Until its too late)

Reimbursement

HCP Adoption

Clinical Studies

Regulatory Clearance

Outcomes Data

Adherence

Quality Systems and Audits

Customer Support

Manufacturing, (Actual) COGS

Litigation

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What You Can SellHARDWARE

SOFTWARE

SERVICES

ADS

CONSUMABLES

DATA

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Road BlocksHARDWARE • Infrequent Replacement

• Speed of Commoditization, low margins

SOFTWARE • Infrequent (paid) Upgrades• Low Barriers to Entry, Commoditization

SERVICES • Long Sales Cycles• High Churn Rates

ADS • Capturing Eyeballs• Regulatory/Small Digital Budgets

CONSUMABLES • Regulatory/Reimbursement Barriers• Manufacturing, IP Minefields

DATA • HIPAA/Privacy• Finding Buyers

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Who will pay for what?

PATIENT

INSURANCE/COMPANIES/OTHER 3RD PARTIES

HARDWARE Yes, but… Yes, but…

SOFTWARE Heck no! No.

SERVICESYes, but a word of

warning Varies Wildly

ADS -- --

MEDICAL CONSUMABLE

SNo. Yes

DIETARY CONSUMABLE

SYes No.

DATA Haha! Best of luck to you!

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Type 1 Patient: 365 days/year x 4-8 tests/day x 16¢ - 50¢/strip-------------------------$233 - $1460 / year

Meter cost ($20-$40) covered within a few weeks

~30-60 million people

Type 2 Patient: 365 days/year x 1 - 3 tests/day x 16¢ - 50¢/strip------------------------- $58 - $273 / year

Meter cost ($20-$40)covered within a few months

~240-270 million people

16www.agamatrix.com…Aren’t In This Room (?)

Key Companies for mHealth

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Music Innovation Cost Music Retailers

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Gaming Interaction

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• $50B in Pharma products are going “Off Patent” in 2011-12

• Even after that destruction the Pharma industry will be worth $720B!

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What Opportunities Exist in $50B?

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My goal as CEO is never to inaugurate

a new research and development

center.- Chris Viehbacher, CEO sanofi-aventis

Source: http://bit.ly/htou1n

”

“

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Product Design

Philosphy & Tips

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The Ideal Combination

&

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We All Want to Believe

+50%!

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Unsexy

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Games for Diabetes

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2011 Winner Life Science & Medicine Category

svu@agamatrix.com@SonnyVu

Other 2010 Winners:Apple: iPad, iPhone 4

Daimler AG:Mercedes Benz SLS AMG Coupe