Improving access to healthcare using innovative models

Point-of-Care Diagnostics

in

LMICs

Borderless Gold

Pricing

Jean-François’ expectations

Intellectual Property

Manufacturing

Distribution

Advocacy

Blended Value

Enterprise Value Social Value

Bill & Melinda Gates Foundation: approx $500 million grant

Price < $1

Bottom of the Pyramid = 4 billion people Average population in LMICs = 47,081,632 0.83 doctors/1000 individuals 6% of GDP spent on health

Lack of manufacturing & product information

IP has country-specific implications

Partnership with Oxfam - Unwrapped campaign £2.7 million in 2010 (UK) 750 shops in the UK 15,000 shops worldwide POCD can be sold for £20 ($31.17)

IDEALLY: Unprotected

Fully available

RISK:

Abuse Complicated

patent systems

PROTECTED

PATENT

Safeguard

Quality

Ownership

Profitability

GATES FOUNDATION -Financial resources -Social mindset -Prevent abuse

PRODUCERS -Lower cost -Confidentiality -Specific license

commissions

Licensing contract

Main concerns for production location: • factor costs • tax benefits • broader issues of productivity and quality • convenience for shipping to other countries • extent of political risk • social and ethical standards of suppliers • Export/import restrictions

Long-term Health product

Awareness in the 1st World Global initiative

Partnership with NGOs & SHGs

- SHGs and NGOs have established kiosks in remote communities - Responsibilities: Education + Record-keeping - Strong relationships with community helps product penetration; build trust

- High collaboration with Ahimsa/Gates foundation in the initiative

- Will also promote Lifebuoy products to ensure hygiene

Partnership with Micro-insurance

- 25%/75% partnership with the micro-insurance partners. (25% of revenues for Ahimsa) - Insurance package much more attractive POCD - Micro-insurance will gain more customers

- Ahimsa is entitled to only those customers who have been validated to have used the product

- SHGs and NGOs will assist the process of record-keeping and reporting

- 23 Micro-insurers in India to choose from (source: Indian Gov´t)

Partnership with Lifebuoy

-Lifebuoy have been targeting BOP since early 1900s

- Emphasis on educating benefits of hygiene (special convoys; campaigns)

- CSR in-line with Ahimsa’s goals

- Leverage goodwill working with Gates Foundation Improve image in 1st World (Unilever)

- Consumers relate health benefits of Lifebuoy soap to POCD benefits

- Profit of SHGs and NGOs promoting lifebuoy Increase Sales

The case of ADICON

REVENUE GENERATION Micro-insurance NGOs & SHGs

DISTRIBUTION

Lifebuoy

ADVOCACY + All partners involved

+ Rural Knowledge Centers + Micro-finance

+ Oxfam in the 1st World

Pricing IP Manufacturing Distribution Advocacy

Price too high

Compliance of producers

Quality issues Effectiveness of distributors

Education of agents

Negotiations with Micro-Insurance

Very complex country-specific issues

Location Durability of partnership contracts

Effectiveness of channels

Unstable economices

B&MGF cooperation

Durability of contracts

Poor infrastructure

Encoding & decoding

Financial exercise - India

2012

Sales 6,000,000

FAMILY COVERED 1,000,000

Revenue For POCD 25% 1,500,000

COST TOTAL 106,500,000

Labor 500,000

Manufacture&Components 6,000,000

R&D 100,000,000

Operating Profit -105,000,000

Financial exercise - India

2012 2013 2014 2015 2016

Sales 6,000,000 12,000,000 24,000,000 36,000,000 48,000,000

FAMILY COVERED 1,000,000 2,000,000 4,000,000 6,000,000 8,000,000

Revenue For POCD 25% 1,500,000 3,000,000 6,000,000 9,000,000 12,000,000

COST TOTAL 106,500,000 14,000,000 20,500,000 30,200,000 28,025,000

Labor 500,000 1,000,000 1,500,000 2,200,000 3,025,000

Manufacture&Components 6,000,000 12,000,000 18,000,000 27,000,000 24,000,000

R&D 100,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Operating Profit -105,000,000 -11,000,000 -14,500,000 -21,200,000 -16,025,000

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

2012 2013 2014 2015 2016 2017 2018 2019 2020

FAMILY COVERED

128,000,000

32,971,097

-120 000 000

-100 000 000

-80 000 000

-60 000 000

-40 000 000

-20 000 000

0

20 000 000

40 000 000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Operating Profit

Operating Profit

Jonathan Hermijanto, Rachel Nelson, Carlos Pina-Vaz, Wu Ping, Qian Xiaoting