Panacea Partners, LLC - pages.business.illinois.edu · Generally, small biotechnology companies like Panacea Partners, LLC, are research and development (R&D) intensive and operate

Panacea Partners, LLC

The Plasmol Pill: A Solution for Managing Diabetes

Rishi Debnath Aisha Mohyuddin Rashi Singh Sindhu Soman-John

1

Table of Contents

I. Executive Summary .................................................................................................................. 3

Business Description

Market Need

II. Mission and Objectives............................................................................................................. 4

Mission Statement

Objectives

III. Situation Analysis ...................................................................................................................... 4

Internal Strengths and Weaknesses | External Opportunities and Threats

Macro Environment (Opportunities & Threats)

Market Environment (Opportunities & Threats)

Competition (Threats)

Suppliers and Manufacturing (Opportunities & Threats)

IV. Field Research ............................................................................................................................ 7

Learning from Virtual Immersion & Emersion

Idea Generation and Screening

Pre-Field Research Idea Generation & Screening

Background Research

Concept Generation & Evaluation

V. Product Development ............................................................................................................ 16

Post-Field Research Idea Generation & Screening

Carbohydrate Content

Glycemic Index

Control Your Diabetes

VI. Marketing Strategy ................................................................................................................... 21

Customer Information

Target Market Selection (Based on market research and consumer behavior)

Market Segmentation

Positioning

Competition

2

_Toc482189013

_Toc482189014

_Toc482189015

VII. Strategy & Implementation .................................................................................................... 25

Targeting and Positioning Statement (Include Sustainability Issues)

Market Segmentation

Pricing

Sustainable Value Chain

VIII. Manufacturing Plan, Product Forecast & Launch Schedule .................................................................................................................................... 27

IX. Financial Forecast .................................................................................................................... 29

X. Societal and Ecological Forecast ........................................................................................... 30

XI. Implementation, Controls & Evaluation .............................................................................. 31

People

Profit & Financials

Planet

Meeting Triple Bottom Line

XII. Conclusion ................................................................................................................................ 32

XIII. Appendix ............................................................................. Error! Bookmark not defined.

Start-Up Expenses

Determining Start-Up Capital

Cash Flow

Income Projection Statement

Profit and Loss Statement

Balance Sheet

Sales Forecast

Milestones

Break-Even Analysis

XIV. Appendix .................................................................................................................................. 33

[Office1][ 2]

Executive Summary

This report was commissioned to examine how a genomics solution would benefit the subsistence markets of

southern India. After extensive research through both virtual emersion and immersion, and testing several

concepts, our team was able to see a gap in the market when it came to diabetes management. With India being

considered as the “Diabetes Capital of the World”, and the incidences of diabetes to increase to over 100

million by the year 2030, this was a space where solutions were necessary.

Business Description

Panacea Partners, LLC offers the opportunity to fund a development project and later provide investment

capital for a patented genomics solutions for a wide array of problems facing subsistence markets – from health

to agriculture and energy. Our first product, developed after extensive research and collaboration with the Carl

R. Woese Institute for Genomic Biology, is one that tackles issues related to diabetes management.

We have developed a proprietary blend of bacteria that can be ingested orally to populate the microbiome of a

person in India. This bacterium would then ingest the sugars in white rice, preventing it from entering the

bloodstream, thus making it possible to control spikes in blood-sugar levels. This ultimately translates to

managing diabetes through genomics solutions and leading to a decreased need for insulin. We have patented

this formula, and plan to administer it in a pill form that will be marketed as the Plasmol Pill.

We believe in continued research and development, and plan to grow as a company in the future as we tackle

additional problems with genomics.

Market Need

As we are targeting subsistence markets with people with low literacy, limited access to healthcare, and

education on diabetes, we were looking to find a simple solution to a complex problem. Diabetes education is

the cornerstone of diabetes management which requires day-to-day knowledge of nutrition, exercise,

monitoring and medication – something that even those in the developed world have difficulty attaining. It is

even more challenging in subsistence setting. During our market research, not only did we find a huge need for

lifestyle management tools for diabetic patients, but also learned that the food traditions and limitations of

healthy alternatives made it incredibly difficult for diabetic patients to get the nutrition that they needed.

White rice was the biggest culprit in South India for rises in blood sugar for diabetics, and it is also the staple

food of the region. Being able to access alternatives, such as brown rice, is incredibly limited, and, if possible

to get, extremely expensive. Thus, this is where the idea for the Plasmol Pill came from. We realized that

changing habits is difficult for most people, but even more so when the challenge is multiplied by the fact that

the availability of nutrition options are limited. We also were aware that our solution had to be simple and

convenient, and even in the face of error, it would work. The simplicity of the Plasmol Pill, the ease of

understanding how to use it via the packaging, and its fit into the current access to food in a subsistence market

in India make it the perfect genomics solution.

4

PANACEA PARTNERS, LLC - [SELECT DATE]

Mission and Objectives

Mission Statement

Our aspiration is to revolutionize healthcare for underserved consumers all over the world. With our research-

driven solutions, we aim to help patients, customers, partners and our communities around the world to live a

better life. We hope to deliver inconceivable success through innovation. We aspire to make great things happen

for underserved communities. We want to continuously improve ourselves and to pursue ambitious goals. We

are always striving internally for the most efficient solution. And we want our activities to help address

worldwide challenges – through our products as well as through our commitment to society.

We are active in research- driven specialty businesses. Whether in pharmaceuticals, high-tech materials, or in

life science technologies, we focus on products and services have two things in common: Firstly, they contribute

to improving the quality of life for patients and customers. Secondly, they consistently fulfill high quality

standards. Patients and customers all over the world can depend on the quality of products made by our

company. By including our partners as well as our communities in the mission statement, we affirm our

commitment to fulfilling our social, economic and ecological responsibilities.

Objectives

The overall driving force of our research was to find simple solutions to complex problems. Our single,

overarching goal was to try to find a genomic solution that will make the world a better place for the children

of tomorrow. We know that there exists an overwhelming need for healthcare in general, and genomics

solutions specifically. We hope to improve the quality of life for people living in poverty, and quality of

healthcare overall. We plan to orient our genomics research specifically towards subsistence markets. We

want our product to overcome the complexities of genomics to provide simple, effective and affordable

solutions to pressing health problems.

Situation Analysis

Internal Strengths and Weaknesses | External Opportunities and Threats[Office3]

[ 4][ 5]Before we began, to help us carve a sustainable niche in the market, we did a thoughtful analysis of

understanding our strengths and weaknesses, thus leading to an identification of both the opportunities open

to us, and the threats we face. We first visually mapped out our SWOT Analysis (as can be seen in the

infographic), and then broke each one down further and delved into how to address each issue.

5


Macro Environment

There are several trends in the macro-environment that will affect our business. We decided to break down the

micro-environment into three separate areas, and then address each one based on our SWOT analysis:

Demographics

The demographic we are targeting is the subsistence market that is predominantly rural, in South India, for

people afflicted with diabetes. An advantage that we have in understanding this demographic is that all members

of our team have been involved in extensive market research from the bottom-up to understand the needs of

this segment of the population. This exposure has also helped our team understand the social and cultural

norms of the area, thus helping us develop and market our product to align with these.

Economics

Targeting a subsistence market comes with several challenges, especially for a pharmaceutical product that

requires substantial up-front investment to develop a solution. However, our company has partnered with the

University of Illinois’ Genomic Institute and received grants to develop our proprietary blend. This has

decreased our start-up costs significantly, thus giving us the ability to enter the subsistence marketplace with an

affordable product.

Strengths

*Our Team - Interdisciplinary experts with extensive knowledge and experience in their respective fields.

*Our Network - Connected to genomics community via labs at a top research university, can be used to inform innovation.

*Our Access - Network of people on the ground to leverage for informantion & bottom up research.

*Our Experience - Team's experience spans several subsistence marketplaces (India, Turkey, Ghana, China & the United States).

*Management & Design Expertise -Cohesiveness in team

*Our Passion - Commitment to the betterment of society

Weaknesses

*Our Limited Language Skills - Not everyone on team can communicate in markets we will be working in.

*Our Genomics Knowledge - Need more education in the intricacies of wider applications of genomic solutions.

*Our Finances - High financial threshold to find solutions for marketplaces.

*Our Timeline for Solutions - Longer timeline to test actual products (need at least five years for an agriculture breakthrough)

& slow breaktrhough in genomics research

*Our Infrastructure - Implementing solutions requires higher levels of education and expertise on the ground

Opportunities

*Costs associated with genomics are exponentially reducing

*We will be the next Google of Genomics

*India is a huge opportunity as there are many topics that genomics can find solutions for health, energy, agriculture.

*Scalable solutions (micro-level or macro-level) depending on which institutions we partner with.

*Government of India interested in solutions via genomics.

*No real competition in genomics.

Threats

*Hesitancy to adopt technology due to religious or traditional cultural leanings / negative connotation due to lack of knowledge.

*Need buy-in of government to introduce genomics solutions -may not be popular, especially on the local level.

*Other more socially acceptable solutions to problems genomics would solve (i.e. cross-breeding plants)

SWOT Analysis

6


Legal

When entering the healthcare realm, we must be aware of legislation and regulations surrounding the health

solution. Since our product is a probiotic, the level of scrutiny is much less than if we were a drug. As we are

entering a completely new market segment with a novel genomic solution, we made the decision to outsource

some the compliance issues to a local Indian company (Unique Biotech) as they have the expertise in this realm

that our team lacks. With their assistance and connections, we are confident that we can overcome the legal

hurdles we may face.

Market Environment

The global biotechnology industry comprises a large range of companies engaged in diverse activities, such as

pharmaceutical development, genetic mapping for livestock breeding and the development of pest-resistant

crops. Generally, small biotechnology companies like Panacea Partners, LLC, are research and development

(R&D) intensive and operate primarily with venture capital, grants, initial public offerings and collaborative

agreements. Large, diversified companies hold significant in-house R&D resources and well-established

production, commercialization and distribution processes.

Although larger biotechnical companies do have significant resources, what we have that sets us apart is the

support of the University of Illinois’ Institute of Genomic Biology, and a grant that we received to develop our

prototype, and have developed partnerships with manufacturing companies to overcome some of the

challenges we face as a smaller biotech firm.

Additionally, according to IBISWorld projections, the biotech industry is expected to continue to prosper until

2022 in the Asian region. Thus, investing significant amounts of capital to gain a strong foothold in the industry,

especially in the Indian marketplace like our company is doing, is projected to be profitable, and a low-risk

strategy for success.

A recommendation that IBISWorld gives to large biotech companies is “. . .pursuing low-risk strategies, such as

buying out smaller operators to collect successful research for commercial-ready technologies, and partnering with academic

institutions. Over the next five years, industry revenue is forecast to grow at an annualized rate of 1.6% to total $283.4 billion.”1

Panacea Partners is the epitome of this – we are in possession of a commercial ready technology, and have

partnerships with academic institutions both in the United States and India.

Moreover, sales of biotechnology products in emerging markets are growing at a faster rate than in European

markets because of the rising standard of living and access to healthcare in emerging economies. Many emerging

economies, including India, are investing strongly in establishing their own biotechnology sectors. Panacea

Partners, LLC has identified the increasing capabilities in India, and are leveraging them.

With our alliances, our research, the diversity of our team, and our innovative approach of applying genomics

solutions to subsistence markets, we possess several strengths in our market environment.

Competition

The Global Biotechnology industry continues to be populated by many small companies, alongside a few giant

pharmaceutical, chemical and agricultural operators. The top four industry players

1 Retrieved from: http://clients1.ibisworld.com/reports/gl/industry/ataglance.aspx?entid=2010

7


account for 42.9% of the industry's revenue in 2017, representing a low level of market share concentration.

Greater global investment in biotechnology, particularly in emerging economies, will largely drive growth, and

the industry is expected to undergo further commercialization to cater to an aging population in more developed

economies. Despite the rising proliferation of biosimilars, which are generic versions of biotech drugs for which

patent protection has expired, biotech products are becoming increasingly difficult to duplicate and will prompt

pharmaceutical companies to prioritize biotechnology-based product development over the next five years.

Since Panacea Partners, LLC is specializing in specific diseases (diabetes to start), concentration will stay low

for our specific solution. We are entering the market to provide a targeted, niche service that we will constantly

iterate, thus competition will be something that, in our specific product, not be a significant threat to our

business.

Suppliers and Manufacturing

What our team lacked was an understanding and expertise in proliferation of our product in the Indian

marketplace. Although our team consists of Indians, their expertise lied in marketing and technical capabilities.

Recognizing this weakness, while on our market research trip in India, we formed partnerships with companies

that did have an expertise in this. As our product is a proprietary blend of bacterium, we needed to ensure our

partners had the highest level of privacy, and had a history of working with companies like ours. After extensive

research, we chose to partner with UniqueBiotech – a company that not only would be able to supply the

needed bacterium for our probiotic, but also package, manufacture and deal with legal regulations.

Additionally, to collect data, we also needed local, highly trained scientists and researchers to ensure that our

product was effective, and with whom we could partner with to constantly iterate our formula. We were able

to partner with researchers at the top university in India, The Indian Institute of Science, in Bangalore, to assist

us with local expertise.

Field Research

The bulk of this project was dedicated to research. In the fall, we were immersed in virtual exercises to help us

gain an understanding of the complexities of subsistence marketplaces. Winter and Spring break were spent in

emersions in both India and Tanzania to conduct in-depth interviews with a wide-array of people in these

marketplaces – from housewives and farmers to doctors and professors.

Learning from Virtual Immersion & Emersion

The virtual immersions have given an excellent overview of a wide array of environments and examples of

subsistence marketplaces. We could see what it was like to live in poverty in the United States, India, Tanzania

and Kenya – and were able to see several common threads throughout each example. The need for survival with

limited resources leads to incredible amounts of stress that we had not really thought about before.

Infrastructure problems, and also strengthens the community bonds of those people living in such conditions.

Although people have very little, because they understand each other’s dire conditions, they are also more

willing to help each other.

The immersions not only opened our eyes to a different portion of society that none of us had any real

experience with, it also overcame some of our stereotypes of those living in poverty. People we “met” during

8


our virtual immersion all had one thing in common – they were incredibly hard working, have high aspirations

for their children and work to better themselves. Unfortunately, there were so many factors beyond the control

of the individual that we had not really thought about – specifically related to infrastructure[Office6][ 7].

An interesting aspect to the problem solving was the fact that the different team members saw different

challenges to the same situation. An educator in the team questioned how a complex genetic solution could be

communicated to people with such low literacy levels. The designer was challenged with the task of designing

a product as simple and as minimalistic as possible. The marketer was faced with the task of communicating

the value of the product the public to generate an interest in the product. The financier was concerned with the

high cost of, not only developing a product, but also setting up an ecosystem to support a genetic solution.

Immersing into the market helped us understand and evaluate what a product would need to succeed in the

market. This helped develop ideas that would work in a subsistence market place, how to develop a product

from these ideas and the criteria to assess the possible success of these products.

Idea Generation and Screening[Office8]

Pre-Field Research

During the first three months of class, we were involved in the following virtual immersions:

Participating in an in-class poverty simulation (that was geared towards poverty in the US)

Reading of interviews from people in India, Tanzania and Kenya

Reading books on the topic of subsistence marketplaces and poverty in the developed world

Watching Day in the Life videos from subsistence marketplaces

Watching a movie viewing that showed the challenges (and ultimate successes) of a village in India

Building models of poverty that took several variables into consideration - from the

ecology/environment of those in poverty, to an examination of the products and marketplaces based on

specific needs.

The virtual immersions have given excellent overview of a wide array of environments and examples of

subsistence marketplaces. Via the immersions, we were able to learn from the experiences of poverty from

those in a wide range of settings - something that would not have been feasible otherwise. We could see what

it was like to live in poverty in the United States, India, Tanzania and Kenya – and were able to see several

common threads throughout each example.

The need for survival with limited resources leads to incredible amounts of stress that we hadn’t really been

aware of due to being so far removed from the lives of people unlike us. Infrastructure shortcomings led to

the strengthening of community bonds in impoverished areas. Although people have very little, that does not

stop them from helping one another - one could argue that they are also more willing to help each other because

they understand the dire conditions they are all in. A type of solidarity is forged for survival.

The immersions not only opened our eyes to a different portion of society that none of us had any real

experience with, it also overcame some of our stereotypes of those living in poverty. People we met during our

virtual immersion all had one thing in common – they   were incredibly hard working, have high aspirations for

their children and work to better themselves. Unfortunately, there were so many factors beyond the control of

the individual that we had not    really thought about – specifically related to infrastructure.

Needs Deconstruction

9


Based on these observations, we built the following needs-drivers-context models. We utilized a needs-based

problem deconstruction to address the problems unique to the individuals living in the subsistence context. The

problem follows a deconstruction that begins with the basic need an individual requires. The need is meant to

be broad, and the problem definition is further discovered by understanding the drivers of the need.

Investigating even further into the circumstances, it is important to address the overall context of the problem.

Through this brainstorming process of different ideas, we narrowed our concepts to a handful of areas.

We analyzed four different areas: Health, Nutrition, Energy, and Social, Infrastructural, and Educational issues.

Through this we discovered some of the problem areas that are particular to this context.

Health Deconstruction

Through a thorough investigation the subsistence lifestyle, we understand that there is a problem of accepting

a lower standard of health. Health problems are increased in subsistence areas due to three primary problems.

The first issue is the severe lack of utilities and resources. Due to the lack of water, time, and proper resources

for sanitation – soap, hand sanitizer, hot water – there is no viable way to enforce sanitation. This leads to the

second primary driver of this need: education. Since there are few resources to stay clean and healthy, there are

few means to effectively educate younger generations on proper health practices. The final driver to poor health

is the nature of subsistence labor. When forced to work day to day to earn a living wage, and where occupations

and jobs are typical manual labor intensive, adults do not have the opportunity to take time off to visit the

hospital. All these problems occur under the context of poor infrastructure.

Nutrition Deconstruction

10


Similar to health, nutrition is a vital part of any individual. In the rural subsistence context, we find that there

is a lack of access to food for a balanced diet. There is evidence throughout India point to this large problem.

It is the second most diabetic country in the world, only second to China, local farmers are increasingly unable

to afford food for themselves and their families, and heart failure is due to poor nutrition is increasingly

becoming the primary cause of death.

The drivers of these nutrition related problems are that as the population of India has increased and wages have

decreased, nutritious produce is often not affordable to famers and housewives. Similarly, there are often non-

monetary obstacles preventing families from securing food for themselves. Produce markets or groceries can

be several kilometers away, forcing housewives to focus on a high volume of storable food such as rice,

compared to fresh, nutrient dense foods such as fruits and vegetables.

There are a variety of contextual elements that allow for these problems to arise. The problems that have led

to this condition are primarily the infrastructure and education. One problem is the poor infrastructure for

transportation. Another part of the context is the miseducation on what is considered health or healthy.

Energy Deconstruction

11


Energy accessibility is an additional factor that affects the quality of life in rural India. Traditionally, households

have rationed amounts of electricity, if any. This proves to be a large problem because it affects a number of

areas including cooking, education, quality of life, and general infrastructure. Both electricity and oil are in

limited supply. However, there is an opportunity to appease the situation by developing local solutions for

energy generation instead of storing energy in one central area and slowly distributing it. The drivers for energy

accessibility are the resulting improved quality of life. Currently, the context that prevents energy access is the

core electrical infrastructure and the current energy generation processes. With pollution becoming an

increasing problem in south and east Asia, there is little interest in producing petroleum based energy for

prolonged periods of time.

12


Societal and Infrastructural

The final needs we identified through a bottom-up needs-based approach were regarding transportation,

improved gender roles, and education. These are all part of the general context for many other issues, which is

why it is important to address the needs that define the contexts of the other problems. Proper education and

empowering housewives provide tremendous opportunity for growth and innovation. However, these are

primarily not addressed due to culture, the lack of resources, and limited interaction with various markets. The

larger social and infrastructural problems limit the growth of subsistence workers.

As you can see, education, transportation, healthcare, and gender equality were the top needs that we ascertained

from the virtual immersions. These needs stem from a larger context of infrastructure - or - more specifically -

the lack of it. Access via transportation to larger cities and marketplaces for business, education and healthcare

are incredibly limited. Making changes to any of these requires power, something that those in subsistence lack.

It is not impossible, when people come together as a united front, to gain some power, but it is difficult and

this is where we feel our role comes into play. Trying to help find solutions to the needs of those in our target

market by implementing solutions that overcome the drivers and context of the problem.

Background Research

Our investigation into applications of genomics for subsistence began in conversation with Courtney Cox,

Outreach Activities Manager at the Carl R. Woese Institute for Genomic Biology at the University of Illinois.

Having performed independent research we were able to explore the current landscape of genomics which is

primarily established in more affluent markets. However, our key takeaways were that applications of genomics

are nearly limitless and that associated costs are dropping. With this perspective in mind we were allotted a level

of creativity we used to develop ideas from various idea generation exercises to discover potential applications

in subsistence.

13


Primary Research

Application of genomics in a subsistence marketplace extremely new. In order to get a holistic view of how

useful the three applications that are being explored can be used in such market places, conducting interviews

and observation of daily life happenings seem to be the first step in clearly understanding the market place.

In the following section, we have divided the details of interviews first by application. Under each application,

the different actors to be interviewed have been listed along with the primary questions for each actor.

Concept Generation & Evaluation

Portable Identification  Water Testing: In order to prevent the ingestion of contaminated water and the transmission of waterborne

diseases (i.e. typhoid fever, cholera, Hepatitis A, etc.) we propose the development of a portable tool that can

be used to identify contaminated sources of water. 

Disease Identification in Individuals: We envisioned a portable device that could easily identify diseases by

taking genetic samples from individuals. The benefits of such a tool are many: immediate identification informs

individuals of immediate health needs, eliminates uncertainty, and induces the pursuit of health care and healthy

living; prevents transmission of diseases. 

14


Genomic Analysis of Groups  Identify Disease Profile of Population: Genomics can be used to empower health care providers to provide

more effective and informed health care by forecasting current and future susceptibility of given population to

diseases based on genomic data. 

Transgenesis  Energy Crops Biomass: People living in subsistence rely on biomass for cooking and heating - often spending

several hours or entire days to harvest. We envision genomics being used to enhance both the availability and

energy density of biomass stocks. 

15


Resilient and Reinforced Crops  Resilient Crops: The climate is changing and will continue to impact food security which is already dwindling in developing countries due to imports of food being greater than exports. When applied to crops genomics could boost crop resilience to the changing climate, increase crop yields, and the reliability of yields. This is

particularly important for the majority small scale farmers who rely on yields for a living. 

Reinforced Crops: Imagine a nutrient rich crop infused with vitamins and minerals. When applied and available to subsistence environments, this will improve preventative health care for a set of people who currently suffer from a lack of these resources in their foods. Genomics provides the science necessary to make

such an idea a reality. 

Criteria

16


While working in a subsistence market place, it is important to understand the market before developing a

product. A bottom up approach works well in such situations as it helps us to understand the psyche of the

consumer as well as the rules and relations of the market place. This allows us to understand what would

provide maximum value to the consumer. However, as a corporation developing a product, it is equally

important to assess the potential commercial success of the product as well. While all the ideas generated had

scope for success, we needed to assess them based on some criteria which would ensure optimal value add to

the consumers which ensuring the financial success of the product for the corporation as well. Thus, to evaluate

the ideas, we finalized on a series of factors which included both bottom up and top down criteria.

The following set of criteria resulted from the generation of these ideas:

Bottom-Up Criteria

Needs to satisfy a pressing issue.

Adoption should require minimal behavior changes.

Positive effects should be apparent and immediate.

The idea should Improve quality of life.

The social acceptance of such a solution must be high.

Top-Down Criteria

Should be feasible

Value proposition should be clear to both company and consumer

The idea should be profitable and sustainable

Identify channels and delivery method

Identify compliance issues with government and other organizations

What are the social issues surrounding the use of this technology

Observations

Another important aspect of market research would be observing the main actors involved in the various

situations in their day-to-day activities. This would include pictures and observation notes. The huge advantage

of observing individuals rather than interviewing them is that we would be able to see the reality of ongoing

happenings rather than the version that the individuals want to be portrayed.

They say a picture is worth a thousand words. Without the ability to witness subsistence environments live in

person, we used pictures of everyday environments to generate ideas which are outlined and organized in the

next section.

[Office9]

Product Development

Post-Field Research Idea Generation & Screening

Through the field research in India, we explored the lifestyles and daily activities that make up each day. Each

day we would drive two to three hours out of a major city – Chennai, Bangalore, Delhi – and would spend

several hours speaking to a range of people in the subsistence context. We spoke to farmers, agricultural

laborers, homemakers, nurses, village administrators, and the leaders of chit or local woman’s crowdfunding

17


groups. We conversed and investigated a range of topics from family healthcare, nutrition, agriculture, energy,

and sanitation to assess what needs were prominent and what needs required direct attention.

The field immersion in rural India revealed both the tremendous growth in areas such as health and nutrition,

and the disparity and poor access to sanitation, waste management, and energy. Many of the villages in India

are attempting to address the health needs of subsistence workers through government initiatives. In Chennai

and Bangalore, the government provides resources for mobile clinics which arrive once a week to address

problems such as diabetes, joint pains, skin problems, and a swath of other health issues. The mobile health

clinics provide prescriptions on premise to expedite treatment. In addition, there are many initiatives to assist

mothers in prenatal care and postnatal care through comprehensive medical checklists for vaccines and

nutrition.

Contrary to the growth in healthcare, changes in sanitation and waste management are difficult to incorporate.

One such example with regards to water, villagers prefer not to sanitize drinking water by boiling water after

capturing it from the well because of poor taste of boiled water. Thus, developing a solution for health and

sanitation requires that we keep the daily habits of subsistence workers in mind[Office10][ 11].

Concepts Generated

Post field research, after talking to people in these market places, we fine-tuned our ideas to generate a few

concepts that would obtain both commercial and financial success while providing the greatest value to the

consumers. These concepts needed to improve their quality of living in terms of healthy diets, cleaner air or

water, improve their information about nutrition and how to obtain it or improve their crop yield either by

providing them with better seeds or reducing the threat of pests.

Water Purification

Although this was a solution that had a lot of potential from a corporation point of view, the field research

highlighted a lack of consumer enthusiasm for this solution. One of the main reasons was because the

consumers did not find a need for water purification. They were used to the water. In fact, they disliked the

‘taste’ of even boiled water. Thus, heavy consumer opposition forced this concept to be dropped as we found

that it did not add sufficient value to their life.

High Yield for Farmers

One of the major concerns of the farmers was low crop yield. The reasons varied from climate conditions to

poor quality of seeds to pests. One of the concepts developed was to generate a solution which would allow

farmers to have a better crop yield by providing them with genetically modified seeds that could withstand a

higher range of climatic conditions and water shortage. These seeds would also require less amount of fertilizers

to grow.

From a top-down approach, this was a one stop solution that could be used in all markets and was feasible.

Also, there was an existing infrastructure to deliver seeds to the farmers which could be utilized for these

fortified seeds as well. As low yield for crops was a source of government concern as well, approval from

government regulatory bodies were also guaranteed.

18


From a bottom up approach, it solved many of the issues farmers faced with utmost ease. This provided huge

value add to the customers because the changes were seen within that farming cycle. Since farming is usually

the main source of income for most of these families, it provides them with a huge financial gain as well.

However, societal acceptance of the product was highly improbable because of the stigma associated with seeds

developed in labs. During interviews, almost all farmers clearly denied using seeds developed in labs.

Waste Disposal

One of the biggest problems observed during the field research was the overwhelming amount of agriculture

and plastic waste that was usually burnt in these market places. This was both a waste of resources as well as

harmful to the environment.

Developing a solution that would speed up the processing time for agricultural waste as well as fortify the

compost generated with the nutrients that was deficient in the soil was a solution that resolved both the waste

disposal problem as well as fortify the soil which would potentially increase the yield for farmers. While this

had a great and immediate value gain for the farmers, it also required huge behavior change in terms of

separating plastic and perishable waste and then collecting them separately. Also, the composting process would

require a dedicated worker which would have to be incorporated into the village governing system.

From a corporation point of view, the solution would have to be customized to suit the individual soil needs

of different areas. This included a huge overhead cost.

Diet Solution

Diabetes was the most commonly known health problem amongst the people in this market place. One of the

biggest pain points among the patients was that their diet habits had to change drastically after being diagnosed.

As rice was readily available and easily accessible, it was a staple in their diets. For many people, all three meals

constituted of mainly rice. Asking these people to change their food habits immediately usually results in them

eating rice and compensating by eating a tablet soon after. Additionally, changing their diet habits was not only

difficult, it was expensive. Governments usually subsidize the price of rice so that it is affordable to these market

places. Any substitute would be more expensive and come at the cost of a living necessity for these people.

Developing a solution that would allow them to eat rice while without increasing the blood sugar levels in their

system was a solution that would not only add huge value to their life but also prove to be a health solution

that could be transferred into other markets as well. The health infrastructure that already exists could be utilized

to distribute such solutions. The field research identified that most consumers were willing to pay up to 400

rupees per month for this luxury. Since the target consumers are already in-taking medicine in the form of

insulin or anti-diabetic drugs, an additional drug solution would be best as this would minimize the behavior

change.

Product Specifications

The bacteria will be freeze-dried in the form of pills that makes them stable and easy to transport. The pills will

be contained inside eco-friendly bottles. These pills can be opened and bacteria can be also mixed with

yogurt/curd/water, etc. The pills are required to be stored in a cool, dry place away from sunlight. The pills

will be manufactured by local fermentation companies.

19


A quick release, digestible pill filled with bacteria that assist diabetic patients digest carbohydrates found in rice.

The product should be consumed during or prior to a meal. The microorganisms will assist microflora in

stomach and lower-intestine to minimize an immediate insulin spike proceeding a carbohydrate rich meal. For

better and immediate results, the patient must start taking pills at least a couple of days before he/she resumes

eating rice.

The product is engineered to help manage diabetes, so the pill should be prescribed by each diabetic patient’s

physician. To deliver the products to diabetic patients, our team will organize an effort to educate physicians

about the opportunity of reducing patient's need for medicine after a meal.

Technical Specifications

Genetically Modified bacteria that targets to control blood sugar level by regulating digestion of carbohydrates

into sugar.

TYPES OF FAT FOUND IN RICE:

Rice is primarily composed of carbs. Carbs in rice are mainly in the form of starch, accounting for up to

90% of the total dry weight and 87% of the total caloric content. Starch is the most common form of

carbohydrates in foods, made up of long chains of glucose known as amylose and amylopectin. Amylose

also slows down the digestion of starch and is often associated with so-called resistant starch, a type of

healthy fiber. On the other hand, rice that is low in amylose and high in amylopectin is sticky after

cooking. Perfect for risottos and rice puddings, sticky rice (glutinous rice) is also preferred in Asian

cooking because it is easy to eat with chopsticks. High digestibility is one of the downsides of the carbs

in sticky rice. For a high-carb food, good digestibility is not always favorable because it may cause an

unhealthy spike in blood sugar, especially among diabetics.

Customer Needs

Most people with diabetes keep an eye on their sugar intake, but starches from white rice, potatoes and

even whole grains can also raise blood sugar levels. All foods containing carbohydrates can affect your

diabetes as carbohydrates is digested into sugar and rises the blood sugar level. Maintaining the amount

of carbohydrates in your diet is key to maintaining good blood sugar control to stay healthy with diabetes

and prevent long-term complications.

Carbohydrate Content

A cup of white rice contains around 53 grams of carbohydrates. Brown rice has a similarly high carb

content, with 46 grams per serving, or the equivalent of roughly three slices of bread. The amount of

rice served with dishes like Asian stir-fries or as a side dish with Greek kebabs, for example, may be as

much as 3 cups; this corresponds to a very large amount of carbs at once and can affect your blood

sugar.

20


Glycemic Index

Foods with a high glycemic index of 70 and above cause your blood sugar levels to peak within a short

period of time, which is damaging for your blood vessels and nerves and can, over time, contribute to

heart disease, kidney disease, blindness and stroke. Foods with a medium or low glycemic index, below

69 and below 55, respectively, are better options for diabetics. White rice typically has a glycemic index

between 72 and 83, while the glycemic index of brown rice varies between 48 and 62.

Control Your Diabetes

Test your usual serving of regular white rice by checking your blood sugar levels before eating and again 30

minutes, 60 minutes, 90 minutes and 120 minutes later. Ideally, your blood sugar levels should stay as low as

possible and not exceed 180 mg/dL.

Using the Panacea Pill

The Patient is required to take these pills immediately after their every meal so that the bacteria can regulate the

blood sugar levels from spiking before the sugars in the rice is breaks down in the digestive system. The pills

are required to be taken regularly without skipping otherwise the patient’s blood sugar levels might rise and

affect their health.

The patients are required to take these pills at least 3 days prior to start eating rice in their meals in order

populate their microbiome with the bacteria that will ingest sugar from white rice. After that they just need to

keep repopulating these bacteria by taking Plasmol pills once daily. The pill is to be taken by the patient once

every day, preferably morning. These bacteria in the will populate the microbiome of the patient in their guts

assisting the diabetic patients digest carbohydrates found in rice to minimize an immediate sugar absorption

proceeding the digestion of the rice, thus allowing them to consume rice which is otherwise prohibited to

diabetic patient. The patients are required to check their blood sugar levels religiously before and after their

meals for the first few weeks (about 3-4), and then continue with practice just to keep a check on their

conditions. Although the pill allows them to eat rice, however there a limit to the maximum amount of rice to

be consumed per day. Preferably 3 bowls or “katoris”. The pills are required to be stored in a cool, dry place

away from sunlight so the integrity of the pills is not diminished.

Prototype

We opted for flip-and-fold packaging to keep the manufacturing cost minimal. Also, being mindful of the low-

literacy level in the target market, the instructions on the packaging will be mostly graphical. Since, the people

in these marketplaces visit the hospitals/clinics once or hardly twice a month to avoid loss of their daily wages,

we decided to design the packaging so that each packet would be sufficient to supply at least for a month's

dosage.

21


Marketing Strategy[Office12]

Customer Information

The customer for this product will be a middle-aged person (45-60) living in a subsistence marketplace. Rice

and rice products are a staple in this customer’s life. They have long days with a lot of hard work. They live of

their daily wages. They operate on survival mode. They have dreams of their children having a better standard

of life. They do not allow sicknesses to hamper their normal everyday life as it affect their source of income.

Only when the illness progresses to a state where they cannot go to work do they consult a doctor. They have

recently been diagnosed with Type 2 diabetes at a stage where they are required to take tablets or insulin to

control it.

The doctor informs them that they need to change their food habits to incorporate less rice in their diet. In

addition to being a huge behavior change at a later part in their life, this behavior change also comes at a cost

which is not acceptable to the patient. Thus, the patient ignores the doctor and goes on with their usual diet

but taking medicines at the same time, not knowing how detrimental such behavior is to their health.

22


Target Market Selection

The target market for the Plasmol pill will be those people in living in subsistence market places where the

staple diet is rice but have a high affinity for type 2 diabetes. They are willing to take steps in controlling their

disease by visiting the doctor and taking medication. However, their diet habits are extremely important to them

and the value of not changing these habits is considerably high.

Market Segmentation

Segmentation in the subsistence market place is not as diverse and clear cut as seen in more affluent market

places. The general tendency is survival and thus, most people have similar tendencies. However, we do find

certain specific attributes and behaviors which allow to segment the market.

Health Conscious Segment

This is a relatively small percent of the market. They are conscious of their diet and although, they might not

know the specifics of the nutritional benefits of different types of food, they do take an effort to eat a somewhat

balanced diet of protein and carbohydrates. They usually substitute rice and rice products for rotis and porridge

made of either wheat or millets. They usually tend to have a steady but low income source.

No Change Segment

This is the segment which usually comes in the lower income bracket of this market place. They are either

unable to shift from their dietary habits because of economic constraints or they do not care enough to change.

They are highly dependent on medicines to control their diabetes and are unable to change their lifestyle to curb

or control the disease. This segment progresses quickly into the insulin dependent stage of diabetes.

Afflicted Segment

Most of the population tend to fall in this segment which also represent the target segment for our product.

These are consumers who have been diagnosed with diabetes and is willing to take measures to control their

disease. They are regular in taking their medication and doctor visits. They tend to abide by their diet plan.

However, the change in diet is an uncomfortable behavior change that many find extremely uncomfortable.

They are willing to pay for a solution to this discomfort.

Positioning

The product will be positioned as a supplementary probiotic pill which will populate the consumer’s

microbiome with bacteria that will digest sugars specific to those found in rice. Panacea pill has the unique

positioning of being a probiotic solution for a very specific

This probiotic solution will be in no way a substitute to the drugs that the consumers are currently taking.

Instead it just enhances the consumer’s lifestyle and reduces the need for extreme behavior change.

23


Unlike other solutions available in the market, especially the subsistence marketplaces such as Insulin injections

and other oral pharmaceutical drugs Plasmol pills lets the patient to eat rice, requiring minimal

behavior change. It takes the best of both worlds, solutions in this case, and introduces a pharmaceutical level

solution while being a probiotic product.

Competition

As this product has a relatively unique positioning, there is no direct competition in the market. However, there

are other probiotic solutions which claim to improve the overall health of families. Most probiotic solutions

are targeted towards overall development of children. In general, there is no direct threat to the product.

24


However, we expect to obtain a certain level of opposition from drug companies as this can potentially delay

the overall progression of the disease which results in a potential loss for them.

Unlike other solutions available in the market, especially the subsistence marketplaces such as Insulin injections

and other oral pharmaceutical drugs, Plasmol pills lets the eat rice, requiring minimal behavior change.

It takes the best of both worlds, solutions in this case and introduces a pharmaceutical level solution while

being a probiotic product.

Sustainable Marketing Mix

Product

Plasmol is a probiotic gel based pill which combats one of the most prevalent diseases in the market place. It

allows consumers to improve their quality of life by reducing the extreme behavior change associated with

diabetes. It is natural in the sense that the proprietary blend of bacteria naturally occurs in several other ethnic

groups which have a resistance to diabetes. The product will be positioned as a probiotic solution which faces

less regulation than usual drugs. This product faces virtually no direct competition.

Place

The Panacea pills will be sold in Local pharmacies, Government hospitals/clinics and through Medical

representatives in the area. The partnership with these institutions will help us reach at the very ground levels

to the diabetic patients in the subsistence marketplaces.

Price

Based on virtual interviews held with potential customers, it was found that most people afflicted with diabetes

spend an average of Rs.1000 per month on medicines and doctor visits. The preliminary market research shows

that most people are willing to pay about 200-300 rupees for a product that would eliminate the need for a

behavior change in their eating habits. INR 200-500 for monthly supply based on bottom-up approach. Once

the pills are successfully produced, tested and launched, then only an estimate of top-down pricing can be

figured out.

Promotion

The product will be launched with the help local health institutions. The initial promotion will be done by

arranging health camps in the villages and other location of interest, educating them about diabetes and our

product. With the initial launch, the product will be available at local pharmacies and health clinics for a free

one-month trial sample given out with feedback forms or survey forms. Later, the consumers will be given 5-

10% discount on ordering yearlong supply.

25


Strategy & Implementation

Pricing

Bottom-Up: Through Virtual market immersion we found that our customers in the subsistence marketplace

are willing to pay about INR 200-500 per month for this product to control their diabetes. The pills must be

designed and manufactured to be able to fall under this range for a month-long supply.

Sustainable Product Design

The product targets diabetic patients in subsistence market places with low income and low literacy level. Our main goal

is to provide best product with cheapest cost. The packaging will be recyclable, made from recycled material that will

save the packaging cost as well as will be environment friendly. The pills will come pictorial instructions which will also

educate the patients about basic preventive measures that can help them control their blood sugar levels along with the

taking the pills.

Sustainable Value Chain

The pills are to be prescribed and given by doctors and local physicians and will also be available at the local

pharmacies. The manufacturing will be done by local probiotic company outsourced by Panacea Partners, LLC.

To promote and try the pill in the initial stage we would seek the help of local health clinics to put up camps

where the patients can be educated about the pill and general information on how to control their diabetes.

The Proprietary Blend of the bacteria for the pill has been created at the Institute of Genomics Biology at

the campus of University of Illinois at Urbana-Champaign. This blend was patented by Panacea Partners,

LLC. We have formed partnerships with a local, private manufacturing & distribution company in India

that will help us manufacture the probiotic pills. The reason we are going with local manufacturing is to

26


make use of already available infrastructure that will aid the integration of the product into the market

seamlessly, and will also provide the local expertise we lack.

Being a health product, the next step of implementation would be to obtain approvals and authorizations

from Government Regulatory bodies. After getting the green flag from the government, the next step is

distribution of the product. We will incorporate the Plasmol Pill into current health schemes, such as the

National Rural Health Scheme. This will ensure penetration in the subsistence market places at the primary

level. We have also formed a partnership with local universities to monitor the effects and growth of the

product that will aid us to keep iterating the product as per need of the consumers.

Design of Value Proposition

As the product is one of the first of its kind, it’s value proposition is quite unique and novel. Panacea pill does

not claim to cure diabetes or even control it. Panacea pill simply claims to introduce bacteria into the gut such

that it populates the human microbiome and process the sugars present in rice. This in turn prevents the human

digestive system from processing the sugar thereby reducing the insulin spike that usually occurs in diabetic

patients because of eating rice.

In effect the value proposition that will be communicated is that Panacea pill will help patients enjoy the

comfort of not having to go through extreme behavior change. Panacea pill does not affect the treatment of

diabetes in any way, shape or form. Diabetic patients will still have to take all the medicines as prescribed by

their doctor. Rather it simply improves the quality of living for these patients.

Communication of Value Proposition

One of the greatest challenges in a subsistence market place is communicating the value proposition to a market

place where the literacy rate is very poor. Concepts like probiotics, genetics and the working of the pill is above

the understanding of the general population of the market place. Instead, the benefits of the product should be

communicated. This allows the consumer to relate to the product as it applies to their life.

The first interaction of the consumer with information regarding this product should be from a doctor or a

medical representative who are well versed with the value proposition and correct information. One of the

vehicles to use for the promotion of Panacea pill should be a flyer with pictorial representation of how the pill

should be taken such that it is understandable to even illiterate people in the marketplace. But along with this

its specific uses and benefits should also be communicated. However, at the same time it is equally important

to communicate what the pill will NOT do. Medical representative, Pharmacists and doctors should be trained

to stress on the fact that this is not a remedy that will cure or control diabetes. It is simply a product to enhance

the quality of life by reducing the need for drastic behavior change.

In addition to the flyer, the packaging of the pill will also contain instructions as well as pictorial representation

of how the pill should be taken. This will be printed on the packet sleeve itself and not on a pamphlet.

Factors Leading to Commercial Success

Walking into a rural, South Indian village, it was astonishing to see how many people were not only aware of

diabetes, but had such a close association to it. Every single person we spoke with, regardless of age or gender,

“touched” the disease – meaning either they themselves had it, or a close family member did (spouse, parent,

child, or sibling). Digging deeper into this, we learned that there was very little support to be found in educating

27


people thoroughly about the disease. Additionally, although the government was making efforts to get medical

care and medication to those in need, it was limited, and the level or education needed was not sufficient to

manage the disease. We found the following insights:

Staple Food: India is considered to be the diabetic capital of the world. The main reason for such large

number of people afflicted with the diabetic endemic is because Indian are genetically predisposed to

diabetes. The gut bacteria responsible for managing the sugar absorption are not present in the Indian

population. Moreover, from our market research in India, we found that rice is a huge part of the

tradition and is the staple food for Indians, particularly in South India.

Behavior Change: Typically, Type 2 diabetes is diagnosed after the age of 40 years. At this point in a

person’s life, they are set in their ways, and making lifestyle changes can be incredibly difficult. Thus,

you are asking a person to drastically change their food habits and stop eating the main element of

their diet – in this case, rice. In the Western world, this is an easier thing to do as white rice can easily

be substituted with brown rice. However, in subsistence markets, access to healthier alternatives is not

an available.

Convenience: Rice is convenient, especially for the people in subsistence marketplace. It is inexpensive,

while at the same time, being highly calorific. Giving up rice goes beyond a dietary commitment – t it

is counter-intuitive to cultural dietary norms, and financially infeasible to substitute for other foods.

Manufacturing Plan, Product Forecast & Launch

Schedule

Manufacturing Plan

Due to the complexities of manufacturing a probiotic, we have enlisted the services of a manufacturing biotech

company in India. We are partnering with UniqueBiotech due to its reputation and quality of product.

Geographic proximity enables reduced storage, transport and travel costs and the development of professional

and personal relationships. A dominant industry business model shows that geographic industry clusters 'churn'

work (i.e. they feature sustainable and consistent levels of innovation through the development cycle of new

products). As a result, labor and investors are retained and profit and knowledge can be reinvested in new work.

UniqueBiotech offers a comprehensive list of services that would overcome a lot of barriers of entry for

Genesis, Inc. Not only can they produce the pills, they can accommodate our packaging specifications, and

assist in technical support to address any government regulation and licensing issues.

We would leverage the following services from Unique Biotech (as stated on their website):

28


Product Forecast

The Plasmol Pill will require about an additional year before it is able to put on the market. The next nine to

twelve months will be dedicated to designing the ideal amount needed to be administered of the probiotic,

human testing and performing reliability metrics before completion of a thorough financial analysis can be done

for the subsistence marketplace. These stages will lead to the development of an investment package specifically

designed for the larger biotech companies that can possibly be a partner in our endeavor.

While our research team will be focused on testing the product, our management team will be engaging

government officials to supplement the existing infrastructure of diabetes care with the Plasmol Pill. Building

relationships and expanding our network on the ground will be key in the next year to ensure success once the

pill is ready for the market.

Launch Schedule

In order for a successful entry into the Indian market, we have a two-phase plan to ensure that the product is

effective and effectively tailored to the Indian market. As a healthcare and biotechnology firm there are large

capital costs for research and development. Thus, our two-phase plan is to: 1. Test our initial market hypothesis,

and 2. Scale the adoption of Plasmol.

Phase One

In phase one we plan to focus our resources on testing the efficacy of the probiotic in India. Our initial testing

of the product will have been in the US, so it is important to see that it responds in a similar manner in India.

In order to do this, we plan to spend two years on testing the product. In year one, we will plan to distribute

the product to 100 villages, roughly reaching 5000 individuals. In year two, we plan to iterate the product if

there are any possible improvements. We will then proceed to distribute the product to an additional 100 villages,

reaching roughly 10000 diabetics. The additional 100 villages should be in a significantly different area of Tamil

Nadu, so we can test the product across geographic populations.

Additionally, an important part of the healthcare industry is to educate subsistence workers. Relative to our

revenue generated, we will invest a substantial amount of capital to ensure that the distribution channels such

29


as nurses, pharmacists, doctors, and village administrators understand the value of the product. Through this

education, we will spread the product across villages.

Phase Two

In phase two, which is planned for years three through five, we plan on scaling the product across the entire

state of Tamil Nadu. In order to remain a sustainable business, we want to generate modest growth while

remaining local for the most part. By the end of five years, we intend to reach 500,000 diabetics in Tamil Nadu,

out of the roughly 950,000 diabetics in the state. In year four we plan to grow our distribution to 50,000 diabetics,

and still incur a loss. However, in years four and five, as production, distribution, and marketing and education

improve, we will experience a dramatic increase in use.

Financial Forecast

The goal of the financial plan is to understand the path to a self-sustainable business within five years. The

scope of the problem of diabetes offers an incredible opportunity for sustainable business in India. The

Plasmol Pill is a health supplement, so it is critical to scale the product quickly to compensate for the high

research and development costs.

The goal is to do field testing and product validation for the first two years. We plan to address 100 villages

in the first year and 200 villages in the second year. This is part of the product validation – it will

demonstrate the adoption rate of the product and the efficacy of the probiotic blend for different geographic

populations.

Assumptions and Calculations

Key Financial Assumptions

Sales Estimates

Population of Tamil Nadu 67,869,000

% in Rural Poverty 27.10%

Total Target Market 18,392,499

Expected 5 year Capture 2.7%

Target Number of Users 919,125.00

Price per Package (USD) $3.50

Annual Number of Purchases 12

Annual Revenue per Person $42

Costs

Raw Material and Freeze dry(30

pills)

$0.80

Packaging Cost per Package $0.50

Labeling Cost per Package $0.70

Total Cost Per Package $2.00

30


Five Year Forecast

Year 1 Year 2 Year 3 Year 4 Year 5

Customers Served 5,000 10,000 50,000 200,000 500,000

Sales Revenues $210,000 $420,000 $2,100,000 $8,400,000 $21,000,000

Probiotic

Ingredients

$48,000 $96,000 $480,000 $1,920,000 $4,800,000

Packaging $30,000 $60,000 $300,000 $1,200,000 $3,000,000

Labeling $42,000 $84,000 $420,000 $1,680,000 $4,200,000

Total Cost of

Materials

$120,000 $240,000 $1,200,000 $4,800,000 $12,000,000

Distribution $25,200 $50,400 $252,000 $1,008,000 $2,520,000

Education and

Marketing

$20,000 $20,000 $30,000 $45,000 $67,500

Research &

Development

$1,500,000 $1,500,000 $2,000,000 $2,500,000 $5,000,000

EBIT $(1,455,200) $(1,390,400) $(1,382,000) $47,000 $1,412,500

After-Tax Income $(974,984) $(931,568) $(925,940) $31,490 $946,375

The revenues from the financial model are derived from the number of customers*price of pill* 12 refills per year. For

the first three years, there are consistent income losses due to the low margin on each product. Each package

costs $2.00 with additional 12 percent of the sales funding distribution. Thus, the margin on each package is

quite low. Additional variable costs include education and marketing and research and

development. Since Plasmol will be released as a health supplement, it is vital to reinvest more capital into

improved probiotic solutions and research facilities to reach scale as the product grows.

Societal and Ecological Forecast

Societal Impact

Our product will likely change the lifestyle and health of the people in subsistence marketplaces immensely.

For the diabetic patients in these marketplaces, substituting rice with another expensive alternative means they

have to cut down their very limited budget on something else. Plasmol pill allows them to eat rice, which is

their staple food, is inexpensive and convenient, hence, requiring minimal behavior change and maximum

convenience. It will also include a small component of educating the people to be aware about their health and

condition as a diabetic. Since, the packaging is designed in such a way that they get their monthly supply with

just one pack, the requirement to visit health clinics and hospitals multiple times on the expense of their daily

wage can be avoided as well.

31


Ecological Impact

We decided to keep the packaging minimalistic. The packaging will be recyclable. Since, the pill itself is probiotic

and organic, it will have no effect of the environment what-so-ever. The manufacturing will be done locally, so

the impact on the environment due to pollution from transportation can be avoided as well.

Implementation, Controls & Evaluation

People

In India, where it is now known as the diabetic capital of the globe, it is an expectation for someone in your

family to have diabetes. More than 7% of Indians have diabetes – roughly 60 million – and nearly one million

Indians die as a result of diabetes each year. Our product can alleviate many of the symptoms and reduce the

likelihood of developing diabetes. By reducing the amount of sugar taken into the blood stream, our pill

supplements a starch rich diet, thus reducing diabetic symptoms and the overall burden of medical costs for

both the individual and the government.

Profit & Financials

The goal of the Panacea Pill is to develop a product and business model that will result in sustainable profits in India. To

do this, we focus our financial model, revenue projections, and user growth on moderate and measured growth during

the first five years. There is great potential for the Panacea Pill to decrease diabetic symptoms to Indians in rural areas,

thus it is important to scale fast, to ensure profits to shareholders, while, at the same time, limit growth to build proper

distribution networks, infrastructure, and education.

Planet

In rural and low-income neighborhoods of India, people live their environment. Waste is thrown on the streets,

empty containers line the gutters, and carbon emissions are skyrocketing as India catches up with developed

nations but with a population of 1.2 billion people. Thus, it is our responsibility at Panacea Partners, LLC to

reliably source, manufacture, package, and monitor the process sustainably for the Panacea Pill. Furthermore,

we need to monitor the overall net impact of introducing the pill compared to the resources currently used in

order to mediate diabetic symptoms.

Meeting Triple Bottom Line

Our value proposition is to reduce alleviate the symptoms for existing diabetics and to reduce the likelihood of

developing diabetes. This is possible by managing sugar intake – more specifically, reducing sugar absorbed

into the bloodstream – which is made possible by the Panacea Pill. Since, the risk of diabetes is increasing in

India each year and the there is a constant concern among all households, there will be sufficient demand to

realize profit from this product. Along with profit, we are producing and distributing a product that alleviates

many of the potential symptoms caused by diabetes and removing the stress and concerns of high sugar intake

that are widespread throughout India. The Indian lifestyle consist primarily of rice. The current mode of

managing diabetes is to switch to less rich foods, which may be more expensive or less convenient to prepare.

The Panacea Pill benefits society on two-fronts: it offers an avenue to continue dietary habits, and it reduces

the risk of the national crisis of diabetes. Concurrently, with an improvement in society, our product benefits

the environment. The pill reduces energy and resources required to treat and diagnose diabetes; thus, it alleviates

the economic stress on the individual and reduces the resources used in the medical arena. Such resources can

32


be put towards other lethal ailments, and individuals can direct their income towards more valuable projects

such as education or investments through self-help groups.

Conclusion

Business experts have identified 250 Key Success Factors for a business – and each business usually has about

five to eight factors that are essential for success. IbisWorld has identified the six most important factors

essential for success to be the following:

Ability to quickly adopt new technology

Ability to raise financing

Ability to educate the wider community

Concentration on core business

Must comply with required product standards

Access to highly skilled workforce2

As we have demonstrated from our business plan, Panacea Partners, LLC has proven that our company has all

of the factors that are required for a biotech company to be successful. We are confident that our product is

not only a much-needed solution for the market, but we have the expertise to make it a success in our target

market.

Not only is our product and company philosophy gearing our company for success, our industry is one of

growth, especially in the Indian market. The Global Biotechnology industry is in the growth phase of its

economic life cycle. Over the 10 years to 2022, which measures the industry's contribution to the overall global

economy, is forecast to grow at an annualized rate of 0.7% during the 10 years to 2022, slower than the

annualized global GDP growth of 2.8% over the same period. While an industry growing slower than the

economy is usually a sign of a declining industry, biotechnology companies continue to expand their product

offerings. Product lines increase as new technology is developed, processes are learned and products

commercialized. The industry benefits from a rapid rate of technological change.

Because US companies have more access to high and steady levels of venture capital than companies in other

regions, including those in the European Union, US companies are typically more mature than the global

average. The industry has growing market acceptance for the products it supplies. However, there remain

significant obstacles to wholehearted market acceptance of products. This industry is at the top of the

technology pyramid, as it develops the products and processes that feed other industries. Innovation is expected

to continue at a fast pace, enabling the industry to remain in the growth stage of its economic life cycle for

some time to come. Our focus on R&D and growing our solutions beyond our flagship Plasmol Pill, we are

confident that our company and our solutions are ripe for success, and any investor would not only reap

financial rewards, but also know that their investment has helped people who need it the most.

2 Retrieved from: http://clients1.ibisworld.com/reports/gl/industry/ataglance.aspx?entid=2010

33


Appendix

Interview Process and Questions

1. Diagnostic Tool

a. Mother/ housewives

i.Because they would know the exact details of when their kids fall sick – they might not

necessarily go to the hospital for themselves… but they would go to hospitals for their

kid and they would remember

ii.They are usually responsible for getting water from the village pump or the water supply

tanks.

iii.What is their idea of clean water?

b. Health care workers – Hospitals, clinics, etc.

i.What kind of diseases are common?

ii.What kind of diseases are difficult to diagnose?

iii.How often do people come for treatment?

iv.When do people come for treatment?

v.What are the barriers that the health officer’s face?

vi.What are the usual costs associated with medical treatment?

2. Power Crops

a. Talk to agriculture officers:

i.Common problems faced by farmers

ii.Types of crops that grow in the area

iii.Types of crops that don’t flourish in the area? Why?

b. Talk to farmers –

i.What are the common problems farmers face?

ii.What kind of crops do they grow?

iii.What kind of crops do they want to grow but can’t? – Why not?

iv.What is their usual quantity of produce?

v.What are some common agricultural practices to overcome problems that they face?

vi.What kind of resources do they have to find solutions to problems?

c. Talk to housewives and women who are responsible for growing basic vegetables for everyday

consumption.

i.Do they grow any particular crops?

ii.Why? Why not?

3. Fuel

a. Housewives – who collect firewood for fuel purposes and are responsible for cooking and all

household maintenance activities.

i.What do you use for fuel?

ii.Does everyone use the same fuel? Are there alternatives?

iii.How long is the trip to gather firewood?

iv.How frequently do they gather firewood, and whether they collect independently or in

a group?

v.Do the housemakers/mothers feel impacted or feel that they are negatively impacting

the health of their family through the smoke/emissions?

Planned Field Research

34


In order to prepare for our trip to India, we constructed several questions and core concepts to test that we

wanted to better understand. In India, our plan was to check if our needs-based approach to understanding

problems was accurate. And it whether there are other, less noticeable problems that can more easily be

addressed through genomic technology.

Through the process of planning our trip, we developed a simple guide for each type of figure that we wanted

to interview. Since our topics were centered around health, nutrition, energy, and transportation, we organized

our interview questions by occupation and gender. We wanted to understand the different points of view.

Housewives

What is your daily routine?

How often do the kids fall sick?

What are the common illnesses that ails your kids?

Where do you take them when they are ill – public or private hospitals?

How much do you spend on healthcare?

What do you do to stay healthy?

Do you grow vegetables?

What do you cook?

Where do you buy your produce from?

Do you know about nutrition? Well balanced diet?

Where do you get your water from?

Do you boil water? Why?

What do you use for fuel? How do you cook?

What is your idea of clean water?

Do you know about genetics?

What diseases do you know of?

What are the problems you face on a daily basis?

Farmers

What are the common problems farmers face?

What kind of crops do they grow?

What kind of crops do they want to grow but can’t? – Why not?

What is their usual quantity of produce?

What are some common agricultural practices to overcome problems that they face?

What kind of resources do they have to find solutions to problems?

Agriculture Officers

Common problems faced by farmers

Types of crops that grow in the area

Types of crops that don’t flourish in the area? Why?

Village Officers

35


Where do you get water from?

What are the water purification methods?

What are the common problems people face in the village?

How does healthcare happen in the village?

How does waste disposal happen?

Health Officers

What is the most common diseases faced by the people?

How do you prioritize health issues?

How do you treat the most common diseases?

What challenges do you face with this market place?

How often to people come for diagnosis?

How common are health check-ups?

What are the usual costs associated with healthcare?

Documents

Panacea Partners, LLC - pages.business.illinois.edu · Generally, small biotechnology companies like Panacea Partners, LLC, are research and development (R&D) intensive and operate