TruTouch Medical Device pitch

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Alcohol Abuse killed nearly as many people in the 20th century as war. This century, war is coming in second. Meanwhile the financial burden placed on the US economy amounts to hundreds of billions of dollars per year.

Now lot’s of pain, means lots of opportunity…

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I’m Tim Tigner, CMO of TruTouch Technologies, and I’m here to talk to you about that opportunity.

You’re going to be hearing about an award-winning device that uses light rather than bodily fluids to measure alcohol concentration, a device that will help usher in a new era of diagnostic medicine.

Our story begins on the front lines of this battle against bad judgment. Emergency rooms and trauma centers owe up to 50% of their business to alcohol.

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It may surprise you to learn that even in an Emergency Room it typically takes 90 minutes for a Doctor to get blood alcohol test results. While waiting those 90 minutes for the lab, physicians have to act on assumptions about a patient’s sobriety. And given that 1 in 4 ER patients abuse alcohol, that adds up to a lot of assumptions.

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Those assumptions routinely cost lots of money, and sometimes cost lives. TruTouch can save both.

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TruTouch has proven through multiple clinical trials and hundreds-of-thousands of field tests that it can accurately read a person’s alcohol concentration noninvasively, using Light rather than a bodily fluid.

This methodology enables us to provide physicians with nearly instantaneous results. And—the icing on the cake—to do so at a fraction of the cost of a blood test.

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Here you see the plot of a 3,500 test study sponsored by the US Department of Justice and National Institutes for Health showing that TruTouch’s noninvasive results are as accurate as the invasive results of other FDA approved tests.

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Physicians consistently site intoxication as a big enough factor in emergency medicine to warrant including an alcohol measurement in the standard protocol for all patients entering the ER.

Pre-TruTouch this was not practical, but the advent of our technology makes measuring Alcohol Concentration comparable in effort and impact to measuring the other 5 vital signs.

I note that the 5th Vital Sign, Oxygen Saturation, was recently added to the list for the same reason we expect Alcohol Concentration to be: because modern technology made it possible.

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Let me share with you a couple examples the head of an ER gave me when I asked him for relevant scenarios common enough to have everyone who works in an ER nodding his or her head:

The first is the case of the elderly husband who finds his teetoatling wife slurring her speech and unable to walk. He calls 9-1-1 fearing that she’s had a stroke.

2 hours and $5,000 later at the stroke center, the lab reports that his wife isn’t on the wagon after all. She later confesses to have been sneaking vodka for years.

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In our second example, we encounter Victor. He’s a chronic alcoholic, one of the “frequent flyers” every ER enjoys.

One evening Victor arrives at the ER characteristically combative, malodorous, and disheveled. He’s left in a room to sleep it off, but is found dead in the morning.

An autopsy reveals both an atypically low alcohol level and the culprit, an epidural hematoma—probably resulting from falling and striking his head.

Of course Victor is deeply loved by the family that has ignored him for the last 10 years, and they have hired a lawyer.

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Backing up these anecdotes are actions from the authorities. The World Health Organization has recently published an 83-page study calling for alcohol screening in ER’s, and the American College of Surgeons, supported by the Department of Health and Human Services, now requires it at new Trauma Centers.

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This is because renowned studies show that alcohol screening and brief intervention immediately following alcohol related trauma reduces the recidivism rate by 47%.

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Let’s circle back now to the amazing technology that makes these dreams possible.

Technically speaking, the Light TruTouch uses is Near-Infrared.

Legally speaking, our device is protected domestically and abroad by 58 well-vetted patents.

Practically speaking, we can obtain accurate alcohol readings with the ease of touching a button.

If you want to get a general feel for the science involved, think of the electronic ear thermometers many of you have at home.

That said, no one else markets anything like our technology. Our prototype won a TIME Magazine Invention of the Year award in 2006. It derives from a 10-year, $60-million effort to measure blood glucose noninvasively—thus our impressive patent estate and leap on the competition.

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You’re looking at the quote-unquote button on our current device. More specifically, it’s a near-infrared-light emitting & collecting probe.

We’ve sold our current device into a wide variety of industries. It is accurate and reliable and our customers are satisfied. They are using it for over 15,000 tests/month.

But the markets for this device pale in comparison to the market for a medical-grade device. As we turn our attention to the numbers, you’ll begin to see why.

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Despite the 90 minute wait, ER’s are still blood testing 2% of their patients for intoxication.

While that already makes for an attractive market, once instantaneous results are possible that number will grow dramatically — oxygen saturation screening has grown 15 percentage points in the last year alone to 41% of all ER patients.

Meanwhile, alcohol concentration’s reimbursement is already in place, the pricing looks good, and the value proposition is great, especially when you factor in all the people and paperwork we’re removing from the equation.

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There are plenty of metrics I could show you and testimonials I could provide to help flesh out our business case, but let me focus your attention on a simple equation that highlights where the rubber really meets the road.

You see here that with today’s reimbursement TruTouch turns a money-losing service profitable by taking cost out of the equation, all while making a gross profit north of 90%.

And what you see is just the direct financial benefit. Once you factor in the efficiency a radically faster diagnosis creates and the healthcare system savings generated by increased intoxication screening, what we have is exactly the kind of technological advancement for which our economy is desperate.

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You’ve seen why emergency medical services want our product, and why it makes economic sense for them to adopt it.

The next logical questions are “What’s an account worth?” and “How big is the market?”

Every 1,000 devices placed will create an annual revenue stream of $12 Million.

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This brings us to TruTouch’s exit strategy, which is acquisition by a major medical device company.

To that end, we’ve begun discussions with several big players. One of them, quoted here, has already gone so far as to conduct extensive market research among their customer base regarding our product, and they remain very interested in acquiring it.

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But before they can acquire it, we have to build it.

I’d like to emphasize that the scientific leaps required to build a medical-grade device are behind us: what’s left boils down to component integration, calibration, and certification.

All in, this will require about 2 years and $4 million dollars, $1 million of which has been committed to by current investors.

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To summarize, you’ve seen the grave need for our product and how highly differentiated our solution is.

You’ve seen how we’re reducing risk by focusing on prioritized deliverables and by outsourcing non-core functions.

You’ve seen why everyone benefits from using our technology, while nobody loses.

In short, you’ve seen that TruTouch is a great investment because it will Save Money and Save Lives.

Thanks for your kind attention. Please join me and my team at our booth for further discussion and a demonstration.

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