October, 2008

Digital PathologyEmpowering pathologists

Bob van Gemen

1

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

CONFIDENTIAL Healthcare Incubator

Pathology PACS screen shot: patient list

16

CONFIDENTIAL Healthcare Incubator

Pathology PACS screen shot: image viewer

17

CONFIDENTIAL Healthcare Incubator

Pathology PACS screen shot: multiple images

18

CONFIDENTIAL Healthcare Incubator

Pathology PACS screen shot: 3D rebuild

19

20

Thank you