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Smart Feeding Tubes

Smart Feeding Tubes. Opportunity Quest Finals January 17 th , 2009 Arlo McGinn Kalyani Yerra Mark Adams. arlomcginn@gmail.com 801-369-1146. Nasogastric/Nasoenteric Feeding. Tube inserted through nose into stomach Most common GI tract device Placed bedside by nurses

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Smart Feeding Tubes

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  1. Smart Feeding Tubes Opportunity Quest Finals January 17th, 2009 Arlo McGinn Kalyani Yerra Mark Adams arlomcginn@gmail.com 801-369-1146

  2. Nasogastric/Nasoenteric Feeding • Tube inserted through nose into stomach • Most common GI tract device • Placed bedside by nurses • Significant risk of misplacement • Lung placement/puncture • Intracranial placement • Esophageal puncture

  3. Properly Placed Feeding Tube • Proper placement confirmed by X-ray Placement of a feeding tube to the jejunum Cresci and Martindale, 2003

  4. Misplaced Feeding Tube • Misplacement determined after the fact • Significant risk burden • Inefficient placement system • Avg 28 hrs till placement • Large time cost • Failed placement requires costly intervention • Fluoroscopy • Endoscopy Placement of a feeding tube into the lung www.learningradiology.com

  5. Feeding Tube Impact • A 0.5% overall mortality rate results in an average of 4 deaths/year in hospitals 300 beds and larger de Aguilar-Nascimento et al. 2007

  6. Market Opportunity AHA 2005 Hospital Statistics, de Aguilar-Nascimento et al. 2007

  7. Proprietary Veritract Smart Tubes • Real-time vision • Incorporated lighting and optics • Steering mechanism • Single plane, cable-actuated steering Endoscopy Nasogastric Feeding

  8. Prototype Demonstration

  9. Competition • Competing Techniques andTechnologies • Blind Placement • Fluoroscopic and endoscopic placement • Magnetically and electromagnetically-guided placement • CO2 sensing feeding tubes

  10. Veritract: A Value Leader Blind Placement Blind Fluoroscopic Placement Fluor Endoscopic Placement Endo Magnetically-guided Tubes Mag Electromagnetically-guided Tubes Electro CO2 Sensing Tubes CO2

  11. Veritract: A Cost Leader Veritract tube cost = $125 Average cost of blind placement = $454

  12. Veritract: Hospital Friendly

  13. Business Strategy • Initial investment of $2M • Product to market in 2 years • Greater than 70% IRR after year 6 based on a terminal multiple of 10X EBITDA • Regulatory path • 510K approval • Promotion • Direct sales model • Physician conferences • Partnership with medical supplies distributors

  14. Business Development Timeline Initial $2 M Investment Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 U.S.Medical Distributor Partnership Begin U.S. Nasogastric tube sales Begin U.S. Nasoenteric tube sales Foreign Regulatory Approval Begin Foreign Nasogastric Sales Strategic Buy Out FDA Approval ($0.6 M) ($0.6 M) $0.8 M $6.3 M $17 M ($1.1 M)

  15. Financial Summary

  16. Management • Current Team • Kalyani Yerra, MBA, MHA, CEO • Mark Adams, MBA, CTO • Arlo McGinn, PhD Candidate, CSO • Advisory Board • John Fang, MD, Physician Advisor • Robert Hitchcock, PhD, Bioengineering Advisor • Troy D’Ambrosio, Strategic Advisor

  17. Summary • Veritract—clinically useful smart feeding tube • Reducing healthcare costs • Improving patient care • Only product with real time vision and steering • Provisional patent • 510k FDA approval expected • 70% IRR with $2M initial investment • Experienced team

  18. Questions?

  19. References 1. Cresci, G. and R. Martindale, Bedside placement of small bowel feeding tubes in hospitalized patients: a new role for the dietitian. Nutrition, 2003. 19(10): p. 843-6. 2. Radiology of Nasoduodenal Feeding Tubes. [cited 2008 12/10/2008]; Available from: http://www.learningradiology.com/archives2007/COW%20285-DHT%20in%20RLL/dhtinrllcorrect.html. 3. de Aguilar-Nascimento, J.E. and K.A. Kudsk, Clinical costs of feeding tube placement. JPEN J Parenter Enteral Nutr, 2007. 31(4): p. 269-73. 4. AHA Hospital Statistics. 2005, Chicago, Ill.: Health Forum.

  20. Potential Manufacturers • MedVenture Technology – Jeffersonville, IN • http://www.medventure.com/ • Currently manufacture similar medical devices (disposables, optically guided, steerable catheters) for large medical device companies such as Boston Scientific. •  Accellent, Inc. – Wilmington, MA • http://www.accellent.com/ • Instrument Technologies, Inc – Westfield, MA • http://www.scopes.com/ • Creganna Medical – Galway, Ireland • http://www.creganna.com/

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