Planexta Inc. BUSINESS PLAN
Mission Develop, manufacture, market and support revolutionary healthcare products and solutions
for consumers and medical professionals.
Evolve a lineup of world’s first one wrist ECG Bands, Instrumental Online Diagnostics solution
and CardioCloud service. Bring them to Health & Fitness Wearables market (3,8B by 2020, CAGR 20%), Connected Healthcare market (117B by 2020, CAGR 36%) and Electronic Health Records market (21B market by 2020, CAGR 43%).
Bring Endovenous Electric Welding technology to Endovenous Vascular Surgery market (potentially 29B by 2020).
Maintain lead with unique technological advantages and innovative marketing approach.
Objectives Over Next 6 Month: October 2016 - March 2017 1. PRODUCTS. Bring products to market. Make first shipments of ECG wristbands by February 15, 2017.
2. DEVELOPMENT. Finalise development of the first ECG wristband and accompanying mobile apps. Finalise the development of Instrumental Online Diagnostics solution
and CardioCloud service.
3. PEOPLE. Create BizDev and Sales depts.
4. PLANNING. The following pages contain preliminary business plan designed to present
the whole picture. Detailed plan and budget will be worked out by November 31, 2016.
5. FINANCING.
We need $3,5M for 25% of equity. Here is how we will spend it:
- 1,2M for R&D Impulse Lab that will quadruple our effectiveness.
- 300K for BizDev and Market Access dept., financial and legal services.
- 1,75M to finalise development of the wristbands lineup.
- 250K to launch in US and Canada.
We propose:
- Clear exit strategy.
- Clear 3 and 5 year P&L plan.
- IPR capitalisation.
Objective is to obtain Series A money by December 1, 2016 and full funding by February 1 2016.
Tentative 3-year Plan Following the pre-launch in October 15, 2016 and launch on January 7 at CES we plan to achieve the following objectives: 1. SALES.
Wristbands: In 1 year the volume of sales will reach 5M/month. Next year we plan to double it due to US market expansion and launches in Europe, India and China.
Total customers: 1.153.000
Total revenue: $346M
Total expense: $190M
EBITDA: $177M
Instrumental Online Diagnostics:
Total customers: 18500
Total revenue: $23,5M
Total expense: $3,85M
EBITDA: $19,65M
CardioCloud service:
Total customers: 5000
Total revenue: $210M
Total expense: $42M
EBITDA: $168M
Endovenous Electric Welding:
Total customers: 2000
Total revenue: $60M
Total expense: $50%
EBITDA: $30M
Total for Planexta Inc. (excluding white-label and licensing strategy):
Revenue: $639,5M
EBITDA: $394,6M
2. OPERATIONS. Relocate the R&D lab into newly built facility. Perform necessary legal procedures and certifications, receive necessary approvals from government organisations. Implement proper manufacturing and testing procedures, financial, accounting controls
and customer support organisation.
3. FINANCING. Manage company growth to produce break-even cash flow by the end of the first year.
Products:
ECG Wristbands lineup
Instrumental Online Diagnostics solution
CardioCloud service Endovenous Electric Welding
WORLD’S FIRST ONE WRIST ECG BAND
HRV (Heart Rate Variability) analysis is an established method of monitoring for various health parameters: cardiovascular, respiratory, muscular, nervous and glandular systems, emotional state, immunity factors, stress, circadian rhythm, signs of ageing, etc. It might even save your life
by alerting about upcoming heart attack.
But in order to make accurate conclusions the measuring must be extremely precise
and performed on a regular basis. That was limiting its usage to clinical environment.
Its benefits in full were available only to astronauts and pro-athletes.
We are bringing it to consumer market. This opens an opportunity for fundamental shift in healthcare: from diagnosis to prevention. Planexta Inc. created world’s first one wrist ECG band that performs HRV analysis with the same accuracy as hospital grade electrocardiograph. It measures >80 health parameters and helps you to get yourself into peak health state, both physical and mental. Wristbands lineup includes 5 products:
- Planexta Active. World’s first one-wrist ECG band. Live to the max!
Status: prototype is ready. US patent pending. Working on product design. 1st lot TBD September 2016. - Planexta Sport. Waterproof one-wrist ECG band + sports apps. Train to the max!
Status: under development.
- Planexta Care. Medical diagnostic instrument.
Status: under development.
- Planexta Care Pro. 3-channel ECG + blood pressure sensor connected to medical infrastructure.
Status: under development.
- Planexta Home Care. 6-channel wireless cardiograph for dynamic monitoring at home. 15% more accurate than any competitors product.
Status: under development. Summary of Key Competitive Advantages • Unique technology, no direct competitor. We succeeded where many better funded companies was unable to deliver so far. Including Google. • First one wrist ECG band that performs HRV analysis with the same accuracy as hospital grade electrocardiograph. • Measures >80 health parameters. • Blood pressure sensor for dynamic monitoring. • Absolute best solution for every market sector. • Award-winning design. • Huge interest from medical companies from all over the world.
Market: Health & Fitness Wearables, Connected Healthcare
Customers: consumers, health, fitness and medical companies, corporate wellness sector, healthcare funds and organisations. How do we make money: 30% profit margin of wristbands price (starts at $299) + $60 annual subscription fee for specialised apps. Lifetime value of average customer: $1266 Summary of Marketing Approach • Planexta enters the market with the absolute best solutions in every sector. • We are going to win all relevant contests and competitions and get massive publicity: CES Awards, RedDot Award, MedTech Award, etc. • Besides traditional marketing channels we are working on cooperation with international healthcare organisations to solve the socially significant tasks. Competitors
Alternative options have very limited application: • FitPal patch (not yet available) requires sticking it to the chest or stomach and positioned solely
as a fitness gear. • AliveCor wristband for Apple Watch (awaiting FDA approval) requires pressing finger in order
to receive data, so no continuous monitoring. • BioPac doesn’t make consumer devices. All the rest (Samsung, Fitbit, Polar, etc.) measure not the electric impulses but simply pulse, which does not provide comparable data and precision.
INSTRUMENTAL ONLINE DIAGNOSTICS No more “How do you feel today?” questions. The doctor knows best.
Planexta ECG wristband measures 68 health parameters with the same accuracy as hospital grade electrocardiograph. Combined with telemedicine service, it enables doctor to monitor patient’s health status remotely on a whole new level.
Status: base technology is ready and commercially available, we are in final phase
of the development. Summary of Key Competitive Advantages • Measuring of >80 health parameters with the same accuracy as hospital grade electrocardiograph. • Blood pressure sensor for dynamic monitoring. • Absolute best solution for every market sector. • Award-winning design. • Industry’s best teleconference technology.
Market: Health & Fitness Wearables, Connected Healthcare
Customers: telemedicine companies How do we make money: 30% profit margin of wristband price (starts at $299) + 5% of consultation cost ($2,5 per consultation). Lifetime value of average customer: $1266 Summary of Marketing Approach • Territorial business development with gradual market penetration. • Direct sales to doctors. • Partnership programs with medical service providers and insurance companies. Competitors Currently there are many available options. But our solution takes the whole industry to the next level: • It is wearable, this opens the opportunity of dynamic long-therm monitoring and possibility
to focus on prevention. • Delivers more complete analysis. • Has added benefit of continuous blood pressure measurement.
CARDIOCLOUD SERVICE
Makes doctors 7X more effective. While saving them a ton of money.
There are no cloud solutions on the market. Currently clinics and doctors are buying conventional stationary cardiographs for $6000-7000K that analyse data with a built-in hardware. We offer them tiny mobile cardiographs for $199 that deliver even more precise and much more comprehensive analysis thanks to our CardioCloud service solution.
Status: base technology is ready, we are in final phase of the development.
Summary of Key Competitive Advantages • Makes doctors 7X more effective: offers IV-generation (nosological & pre-nosological) diagnostics with 580 parameters. • Saves a lot of money. • Adds mobility.
Market: Electronic Health Records
Customers: doctors, hospitals, clinics, healthcare organisations. How do we make money: $50 monthly fee + optional mobile electrocardiograph for $199. Lifetime value of average customer: $12000 Summary of Marketing Approach We already have a long queue of companies awaiting for this service with a total commitment for more than $1M (with a cost of sale