CONFIDENTIAL Healthcare Incubator 2
Royal Philips Electronics
• Founded in 1891
• Headquarters: Amsterdam, The Netherlands
• One of the largest global diversified industrial company with sales in 2007 of EUR 26,793 million
• Multinational workforce of 123,800 employees (January 2008)
• Manufacturing sites in 28 countries, sales outlets in 150 countries
• R&D expenditures EUR 1,619 mln (2006)
CONFIDENTIAL Healthcare Incubator 2
HealthcareHealthcare LifestyleLifestyle
Since 1 Jan 2006, there are 3 Incubators within Philips to further New Business Development
TechnologyTechnology
IncubatorIncubator IncubatorIncubator
IncubatorIncubator
CONFIDENTIAL Healthcare Incubator
Philips Research
Strategic Focus Healthcare Incubator
Current Emerging Potential Future
Philips capabilities
PD Roadmap, PD Incubation& Contract Research
Mar
ket
Sta
ge
Established
FutureGrowth
EmergingGrowth
Sector Road Maps
HI
CONFIDENTIAL Healthcare Incubator
Create value for Philips by
1. finding superior venture opportunities and
2. making them work
Incubation Process at Philips
PH, CLS, L
Outside
Research
Other Philips
Spin-together
1. Pre-seed
2. Seed 3. Alpha 4. Beta 5. Scaling
New BU in IEB
CONFIDENTIAL Healthcare Incubator 6
Healthcare Incubator scope & selection criteria
Scope
• Involvement of medical profession
• Medically validated solution required (e.g. FDA approval)
Selection Criteria
• Large market potential
• Strong value proposition
• Capable team
• Strong IPR position
• Link to Philips strategy
• Venture can be run independent of Philips
• There are synergies with Philips capabilities or assets
CONFIDENTIAL Healthcare Incubator 7
Challenges in Pathology
0.0
10.0
20.0
30.0
40.0
50.0
under5
5-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Age group
Mill
ion
s
Baby Boomers, age distribution (USA)Pathology graduates decreasing
-
5,000
10,000
15,000
20,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
Gra
du
ate
s
-
500
1,000
1,500
2,000
2,500
3,000
Medical
Pathology
-
5,000
10,000
15,000
2000 2001 2002 2003 2004 2005
Year
H &
E
-
500
1,000
1,500
2,000
2,500
IHC
H&E
IHC
More stains 6% AAGR
16.8% AAGR
Lack of consensus
70%accuracy among
average pathologists
CONFIDENTIAL Healthcare Incubator 8
Pathology oncology care cycle Radiology
Biopsy
Clinic initiatediagnostic procedure
Pathologist
Imagecreation
Clinic: treatment adviceWritten report
Image-baseddiagnostics
Radiologist
PACS, RIS
CONFIDENTIAL Healthcare Incubator 9
Digital Pathology: empowering the pathologist
PathologyLab
PACS
Radiologist OncologistMedical
SpecialistEPR
Path. Information
System
CADCDS
Expertpathologists
Scanner
CONFIDENTIAL Healthcare Incubator
Value proposition Digital Pathology in Cancer DxV
alue
Quantification single Quantification multiple Morphology based IHC IHC CAD/CDS
Radiology CDS Pathology CDS General CDS
PACS
Imaging Mod. Fast Scanner Lab Dx
CONFIDENTIAL Healthcare Incubator 11
• Even though a slide is “small”, imaging of biological specimens requires 100’s of millions of pixels.
• Philips strength from Imaging in Radiology (e.g. whole body CT scan)
• Better handling and viewing due to expertise from Radiology PACS
Data acquisition: importance of data processing
CONFIDENTIAL Healthcare Incubator
Interesting possible solutions
Technology basis• hardware and software • open system • enables clinical solutions
Digital scanner
Pathology PACS (viewer & storage)
Clinical relevant solutions• follows clinical needs• development with clinical sites• scanner independent
Patient safety
1
Advisor
2
Productivity
3
QA
4
12
CONFIDENTIAL Healthcare Incubator
How to optimize the anatomic pathology workflow?
1. Single batch
2. Small batches
3. Continuous
Slide production
Diagnosis• Is a more continuous
process more efficient?
• What is the optimal workflow for scanning slides?
• Model with output in terms of:
1.turn-around-times2.lab equipment 3.human resources
CONFIDENTIAL Healthcare Incubator
Development in collaboration with:
• Pathology departments in 3-4 of the top 10 cancer hospitals in USA
• University Hospitals and Med Schools in USA
• Same in Europe
• Companies with synergistic technology
14
CONFIDENTIAL Healthcare Incubator
Digital Pathology delivers benefits for Oncology Care Cycles
Short term
Long term
15