Med Byte

“Med-Byte”

Business Presentation for Innovation Competition 2010

at EU-Russian Innovation Forum

Alternative Non-invasive Diagnostic and Treatment Systems

“Home Doctor in mobile phone”

Description

«Home Doctor» - reliable accurate and ergonomic device for termopuncture diagnostic and treatment

Professional device “Home Doctor”

Problem

Nowadays for millions patients with chronic illnesses (like pancreatic diabetes, arrhythmia, etc.) there is no system of simple monitoring of their condition.

As a result these patients have to constantly visit doctors.

Existing systems of telemonitoring allow to supervise1-2 basic parameters and do not give a complete picture of a condition.

These systems do not allow to carry out medical influence.

Disease of a diabetes in the world has accepted character of epidemic (now all is about 200 million sick of a diabetes), under forecasts of the World Health Organization the quantity of diabetes sick in the world will reach 333 million persons by 2025 .

Solution

Non-invasive Diagnostic and Treatment Systems «Home Doctor in telephone»

Device works as organizer with creation of optimum life cycle for different patients.

Biorhythms of the organs

Abilities and Advantages of «Home Doctor»

Advantages for customers:

• Devices do not demand special knowledge• Treatment is painless and noninvasive• Gives the reliable result explained from the point of view of modern physiology.• Opportunity of forecasting of a condition for some days forward for address preventive treatment.• Opportunity not medicamentous address reflex correction of the certain organs and systems• Optimum time for treatment is defined with the help of an estimation of certain organ biorhythms and is shown on a screen.

Abilities:

• Making diagnostics for 5-7 minutes

• Making treatment within 3-5 minutes

• Contact with your doctor vie internet

• Save history of dates in the server

• Easy to mass-produce

Market InformationMarket size in USA,

bln. $2006 2007 2008 2009 2010

50,848,0

45,342,8

40,4Market Capacity for acupuncture

devises

4,5 bln.$

Actual Market Size 20%-22% of Capacity

World wide target market Focus short term

Russia Focus medium-term

(h2 2010 -2011) German speaking territory UK Australia Holland

Focus long term (h1 2012) USA Pacific rim – Japan, China

Target Market

Overview On Competition Main competitors: - devices based on electropuncture

diagnostics (HealthPoint, Acupuncture Pen, Pointer Pulse, Alpha-Stim 100, etc.)

- attendance of usual doctors (academic medicine)

- traditional medicine (reflexotherapy, homoeopathy, physiotherapy, etc.)

- attendance of folk healers

Why our solution is better: Devices of competitors are

intended for the condition control of acupuncture channels and do not show quantitatively standard conventional indicators of an organism. They are expensive and bulky, and their use demands special medical knowledge.

Competitive advantages of «Home doctor» are:

-high correlation of the special test with the biochemical and physiological indicators, allowing with a split-hair accuracy to create individual models for treatment

-ability to carry out the forecast crisis conditions of a person for some days forward

-The low cost price of the device- Our devices are useful and

accessible to each owner of the mobile phone.

-Medical influence on body in function "feedback" excludes a wrong choice of points and supervises time of influence.

-All responsible actions occur on the basis of the sanction of the doctor supervising this group of patients in real time.

Business Model

Meridian Energy LtdEurope

ProductionSales& Marketing

Support

Physicians /Therapists

аnd Traditional

complementary practitioners

“Home Doctor”

Feed-back

Distributors

Internet-shops

Mobile shops

Drugstores

“Home Doctor”

Customers: Patients,

Sportsmen

Marketing

Advice

Mar

ketin

g

Marketing

MedByteRussia

Back office

R&D

Feed-back

New releases of “Home Doctor”

$, Monthly

Subscription

$

“Home Doctor”

$

“Home Doctor” Technology Application: Potential Consumers

“Home Doctor”Alternative Non-

invasive Diagnostic and Treatment

Systems

“Home Doctor” may be used in all areas of sports medicine for balancing and increasing the atlete’s energy.

“Home Doctor” can be used diagnostic of different physiological systems and internal organs

It is possible to detect and correct imbalances before they become manifest as illness in the body.

Areas of application are functional disorders like migraine, stomach and intestinal troubles, painful joints, hormonal disorders, psychosomatic disorders and pain and many more.”

The device can be used with great success in sports, in the treatment of sexual dysfunctions like loss of libido or impotence, and in weight management.

Market Entry• How do we enter the market: after sales approbation of the device in the Russian market we’ll enter the European market: British, German, Finnish, Dutch, Austrian (as we have already begun business their with another devices – ex-version of “Home Doctor”); American, Chinese, Japanese markets.Verticals: medicine, sports medicine, fitness. Individual selection on the basis of tests of various medicines, their optimum doze and time of reception•. Delivery Channels:1) patient doctor •

insurance company

2) sportsman fitness club Service Providers: guarantee on devices is 1 year, and in each country where there is a representation there will be service centers.

Management Team Overview

Current Situation, Intellectual property Development: “Home Doctor”- Finished product Working manufacture prototype 14 patents + 2 pending (all rights and patents belong to the author of R&D

– Muzhikov Valery) Certification passed in Russia, Europe, Australia Golden medal for «Innovations for investments to the future» from

American-Russian Chamber of Commerce & Industry, New-York, 2009 Silver medal RAVI- Moscow 2009

Brings more than 10 years of experience

in building successful

internationalbusinesses

Nikolay Muzhikov

Brings experience and

in-depth knowledge in R@D, product development and

manufacturing

Vladimir Rogozin

Brings experience

and in-depth knowledge

of medicine and diabetes

Valery Muzhikov

Risks Management of risks (choice of actions)

1. Unexpected state regulation and medical branch.

Necessity to follow all regulating norms and rules and also to receive necessary certificates and licenses. The company has already passed certification of Ministry of Health of Russia. Our former devices were certificated in the Euro union, Russia and Australia.

2. Decrease in volume of the market of medical services, reduction in demand of consumers in the market

Under forecasts of analysts, despite decrease volume (for instance) of the Russian market of commercial medicine on 24 % in in 2009 owing to crisis and other phenomena, the quantity of chronic patients annually increases, and the further growth on medical services is predicted. It is necessary to define the niche, and to increase in it the share and the sales volume.

3. Poor-quality management of the company; Low culture and professional personnel level

It is necessary to employ professional managers of sales having experience in the medical market, directors for marketing, for sales, for logistics and other highly skilled experts.

4. Default of the signed contracts of outsourcing by the enterprise on which devices will be made.

This risk is practically absent, as already there is a successful experience of cooperation with the given enterprise. Necessity of manufacturing of the device on the modern equipment, work realisation only qualified personnel, and also sufficient capacities are contract indispensable conditions.

5. Risk of underestimation of competitors.

In connection with protection of all the results of intellectual activity by set of patents (reception of the umbellate patent is planned), and also constant carrying out of R&D, this risk is minimized.

Financing PlanFinancing Use of proceeds, € K

• IPO or acquisition: € 50 - 70 M for for investors’ share

• IRR for investors: 75-95%

• Seed: € 100.000 from clients and from founders;

• Grant = € 200.000 on clinical trials from Lords David and Charles

Wolfson. • Now we need to receive the

investments on certification, new patents, completion of the device and the software to let out the first party in 100 devices = 224 кЕ

• Another investments (€ 1M) are needed for launching the batch production, to creation of the service and methodological centers, the advertising, new patents, turnaround means.

Investors 35% Founders 65%

Sertification 24

Intellectual protection + umbrella patent

15+400=

415 Completion of the device (pen) 10 Completion of software (programme) 5

Production cost + marketing & advertisement costs

40+50+

500=590

Personal (yearly salaries) + Travelling expenses

60+20=

80Development of regional representations 100

Total 1224

Exit