Market Feasibility Study VitalSign: Wireless Heartbeat and Respiration Detector - PowerPoint PPT Presentation

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Market Feasibility Study VitalSign: Wireless Heartbeat and Respiration Detector

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... of heart rate monitoring during cardiovascular exercise to a target heart rate zone ... products currently measure heart rate while exercising. Handgrip Sensors ... – PowerPoint PPT presentation

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Title: Market Feasibility Study VitalSign: Wireless Heartbeat and Respiration Detector


1
Market Feasibility Study VitalSignWireless
Heartbeat and Respiration Detector
2
Presentation Outline
  • Technology Description
  • Potential Markets
  • Target Market
  • Financial Analysis
  • Conclusions

3
Technology Description
  • Developed by Dr. Jenshan Lin and his colleagues
    at the University of Florida
  • VitalSign utilizes a modified Doppler radar to
    wirelessly monitor heart and respiration rates

4
Technology Description
  • The small portable device employs low power radio
    waves to determine vital signs without attaching
    sensors to the body
  • The system monitors chest motion to determine
    heart and breathing rates
  • Proven accurate within 3 meter range
  • Patent Pending

5
Technology Description
  • Next generation working prototype the size of a
    scientific calculator has been developed
  • Goal is to integrate the technology into a single
    chip

6
Potential Markets
  • Technology applicable in various markets
  • Conducted market research in the following three
    potential markets
  • Healthcare
  • National Defense
  • Cardiovascular exercise equipment

7
Potential Markets - Healthcare
  • By 2011, the first of the 76 million baby-boomer
    generation will turn 65 years old
  • Increasing demand on the healthcare system
  • Opportunities for cost effective healthcare
    solutions allowing doctors to function more
    efficiently

8
Potential Markets - Healthcare
  • Telemedicine - use of electronic information and
    communication technologies to provide health
    services when participants are geographically
    separated
  • Remote patient monitoring is a key component of
    telemedicine
  • Allows healthcare providers access to important
    information regarding a patients medical status
    between doctor visits

9
Potential Markets - Healthcare
  • VitalSign provides additional convenience
  • Easily monitor patients with severe burns or
    contagious diseases
  • Provides method to monitor babies without the
    potential danger of wires

10
Potential Markets - Healthcare
  • Barriers to Entry
  • Only measures two important vital signs
  • FDA pre-market requirements for groundbreaking
    (Class III) medical technologies cover every
    aspect of product development
  • FDA validation process will take up to 5 years
    and cost at least 15 million

11
Potential Markets National Defense
  • Department of Defense (DOD) budget for 2006 is
    over 500 billion
  • VitalSign may fill the militarys need to provide
    troops, conducting urban warfare operations with
    personnel detection devices
  • Allows detection through barriers such as wood
    and concrete when looking for enemy combatants

12
Potential Markets National Defense
  • Additional military detection applications
    include
  • Military search and rescue on the battlefield or
    during a natural disaster
  • Detection after biological exposure

13
Potential Markets National Defense
  • Barriers to Entry
  • Notable challenges dealing with government
    acquisitions bureaucracy
  • Competition from large defense contractors
    developing technology that can provide more data
    to the soldier than VitalSign

14
Potential Markets Cardiovascular Exercise
Equipment
  • Cardiovascular disease (CVD) is the number one
    killer of men and women in the United States
  • Increased awareness of the importance of proper
    diet and exercise
  • Has created exceptional growth in the exercise
    and fitness industry

15
Potential Markets Cardiovascular Exercise
Equipment
16
Potential Markets Cardiovascular Exercise
Equipment
  • Approximately 4.4 million treadmills were sold in
    2003 totaling 2.7 billion
  • Elliptical cross trainers experienced growth of
    41 in 2003.
  • Increasing popularity of heart rate monitoring
    during cardiovascular exercise to a target heart
    rate zone allowing for maximum exercise efficiency

17
Potential Markets Cardiovascular Exercise
Equipment
  • Competitive Analysis
  • Two primary products currently measure heart rate
    while exercising
  • Handgrip Sensors
  • Telemetric Chest Strap
  • VitalSign has significant advantages over the two
    currently available technologies

18
Target Market - Cardiovascular Exercise Equipment
  • Low barriers to entry
  • Ability to provide a revenue stream quickly
  • Technology can be integrated into the next
    generation of cardiovascular exercise equipment,
    providing convenient monitoring of heart and
    respiration rates

19
Financial Analysis Startup and Operation Costs
  • Investment of 2 million over the next 2 years is
    estimated for research and development with zero
    estimated revenue
  • RD is reduced to 250,000 in year 3 and beyond
  • Marketing is budgeted at 1 million in the first
    year of sales, which is then reduced to 250,000
    in the following years

20
Financial Analysis Revenue Forecast
  • Conservative forecast is to sell 200,000 units
    during year three at a price of 8 each
  • Forecast sales to increase by 100 each year for
    the next three years while the price will be
    reduced by 10 each year
  • Equates to sales beginning in year three at
    200,000 units and increasing to 1.6 million units
    by end of year six
  • Revenue is projected to increase from 1.6
    million to 9.2 million during the same period.

21
Financial Analysis - Price and Income Elasticity
  • The market for all cardiovascular disease (CVD)
    monitoring equipment is generally price elastic
  • Since VitalSign is a complementary product it is
    more elastic to the price of the complementary
    product
  • Large increases in the price of cardiovascular
    exercise equipment will severely impact the sales
    of our product
  • Demand is income elastic

22
Financial Analysis Break-Even Analysis
  • Operational Costs during the first year of
    commercial availability (2008) are estimated at
    670,000
  • The 6 year (2006-2012) total cost of product
    development, operational expenses will be
    approximately 12.7 million with revenue totaling
    19.7 million
  • Resulting in six year net profit of approximately
    5.3 million

23
Break-Even Analysis
24
Pro Forma Financial Data
25
Conclusions
  • Numerous Possibilities for VitalSign
  • Fitness Equipment Industry is most viable
  • Technology needs only minor changes.
  • Industry is growing
  • Nothing exists that can compare.
  • Technology is definitely feasible

26
Questions
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