Business Idea Competition: Concept Innovate

Concept Innovate presents:

ResveraTech

Chiao Chang

Prateek Diwan

Lucas C Rodriguez

Chronic Pain

Man On Fire:

• 25% of Americans suffer from

chronic pain

• Nearly 50% do not get effective

relief from current therapies

• Post surgical pain often clear

culprits

• In many common conditions

such as diabetic neuropathy, no

clear source of pain is found.

• The annual cost of chronic pain

is as high as $635 billion a year,

which is more than the yearly

costs for cancer, heart disease

and diabetes.

Innovation of tomorrows pain relief solutions

ResveraTech

Amare Stoudemire…

Why are you in a tub of wine???

• All natural (homeopathic)

• Found in wine, and dark

chocolate

• Potential usage:

• Heart Disease

• Cancer

• Metabolism

• Lifespan

• Pain relief

Resveratrol

Types of pain…

How is it currently treated???

What can be done???

Types of Pain

Acute Versus Chronic

Types of Pain

Biochemistry of Pain

Pain

Activator

Pain

Activator

Middle

-Men

Middle

-Men

Complex

Ribo

Efficacy

• OTC market as of 2013

~ $6Billion

• Internal Analgesic ~ 60%

• External Analgesic ~ 15%

• GIA estimates $34.6Billion in

analgesic market by 2015.

Market

Platform Technology

ResveraDerm

Creme

Pain Relief

Patch

Post-Surgical Pain Relief

Bandage

Pain Relief

Sutures

ResveraDerm Clinical Feasibility Study

Customer Acquisition and Backing

• Physical Therapists

• Elderly post-surgery patients

• Orthopedics

• Sports injury

• Chiropractors

• Homeopathic

• Medical spas and Compounding Pharmacists

• Massage

• Homeopathic

• Western Medicine

• Pain Relief Centers

• Desperate for pain relief

Marketing Plan

• Finish development of platform

• CMO manufacture agreement

• Data acquisition for downstream (IP protection)

• Website Design

• Clinical feasibility

• Large retail

Sales

• Website

• Clinic / Retail

• Distributer

Strategy

Strategy

ResveraTech

• BASF is an international

chemical manufacturer

• Agreement in place:

ResveraDerm development

R&D Manufacturer

• Manufacture product for :

• Fee for service

• Royalty

• Save startup capital

Contract Manufacture

Timeline

2011 2012 2013 2014 2015 2016 2017 2018

Hard Launch Patch, Bandage, Sutures

Phase III Begin (Commercialization, Angel/VC Funding)

Phase II Complete (Patch, Bandage, and Sutures Ready for Launch)

Break Even

Phase II Approval (Development of Downstream Products)

Hard Launch ResveraDerm (Large Retail)

Downstream Product IP Acquired

Phase I End

Soft Launch ResveraDerm (Clinical Feasibility Study)

SBIR/STTR Phase I Approval

Submission of SBIR/STTR

Draft of SBIR/STTR

Business Planning Begin

Publication III

Publication II

Publication I

• Phase I:

• Feasibility

• Clinical Study

• 6 months : $150k

• Hard Launch ResveraDerm

• Phase II:

• Downstream Product Development

• 2 years : $750k

• Phase III

(Commercialization)

• Angel/VC:

• Strong track via SBIR

• Manufacturer contract

• Ready for sales

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

8000 58,000 118,000 178,250 239,750 301,750 364,750

Units Sold

Revenue vs. Unit Sales

Sales Total Costs

Fixed Costs: $626,820

Variable Cost per Unit: $3

Unit Price: $7.20

Unit Increments: 10,000

BREAK-EVEN POINT: 149,243

Projections

• Fixed and variable costs analyzed

• Conservative Assumptions

• low price point

• two marketing channels

• Concentrate efforts on TX, NM, AR, LA

• Market penetration based on Lidoderm

1999

• Manufacturing keeps up with sales

$0.10 $2.00$5.00

$10.00

$50.00

$100.00

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

2014 2015 2016 2017 2018 2019 2020

Sales in Millions

Revenue Projections

Financials

TOP DOWN

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Market $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00 $500,000,000.00

Penetration 0 0.1% 0.2% 0.4% 0.8% 1.6%

Rev $- $500,000.00 $1,000,000.00 $2,000,000.00 $4,000,000.00 $8,000,000.00

Costs $- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54

Profit $- $(150,000.00) $233,000.00 $1,094,940.00 $2,932,029.20 $6,739,794.46

BOTTOM UP

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Units 0 50000.00 87500.00 153125.00 267968.75 468945.31

Locations

(at 2:1 C:R) 0 125.00 218.75 382.81 669.92 1172.36

Sales Rev 0 500000.00 875000.00 1531250.00 2679687.50 4689453.13

Costs

$

- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54

Profit

$

- $(150,000.00) $108,000.00 $626,190.00 $1,611,716.70 $3,429,247.58

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

$(150,000) $(500,000.00)

$500,000.00

$1,500,000.00

$2,500,000.00

$3,500,000.00

$4,500,000.00

$5,500,000.00

$6,500,000.00

$7,500,000.00

Financials

(150,000)

$(500,000.00)

$500,000.00

$1,500,000.00

$2,500,000.00

$3,500,000.00

$4,500,000.00

$5,500,000.00

$6,500,000.00

$7,500,000.00

Sales in Millions

Concept Innovate

• Well-Educated

• R&D Experience

• Marketing

• Sales

• Motivated

• Adaptable

• Strong Strategy

• Mentor Backing

Team

Madison PedigoJackie Kimzey

Greg Dussor Ted Price

Inventors

Mentors

• All-natural, homeopathic substance

• Low cost

• Available

• No side effects

• Proven Effectiveness

• Multiple Usages (Platform Technology)

In Summary…