MedAid

106 Interviews

A health monitoring device for quick and simple blood analysis and

performance indication.

Target customer segment: Chronic disease patients, health conscious individuals, athletes

A fast-results blood testing device as an alternative to a lab, for use in

developing regions.

Target customer segment:Doctors

Where we started Where we ended up

The Team

Elmer VillanuevaMBA

Jie MaM.Eng, Bioengineering

Prajanya KendrekarM.Eng, Mechanical Engineering

Laura SverchekM.Eng, Mechanical Engineering

Jim PattersonCPO, Earnest

Hustler Inventor PickerDesigner Mentor

Microfluidics → Nano-luminescence

Is it possible to accomplish what

Theranos claimed to do?

First hypothesis: Athletes and fitness enthusiasts

want to monitor their health on-the-go

Chronic disease patients would be happier if they had an at-home health monitoring device

Health-conscious consumers

Preventative care patients

Chronic disease patients

Nutritionists

Professional athletes

Athletic trainers

Doctors

Dialysis centers and clinics

Internet sales

Pharmacies

Retail outlets

Doctor’s offices

Device sales

Sales of companion technologies (e.g. apps, trackers)

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

1

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Health stores/ pharmacies

Hospitals

Life insurance companies

Chronic disease patient support groups

Intellectual property

Device design

Manufacturing facilities

People

Seamless, easy to use, trusted home health monitor

Quick blood analysis

Health suggestions

Avoids trips to the doctor/lab

Portable equipment

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

Broad value proposition: Seamless, portable, quick

Broad customer segment focus: Chronic patients, athletes, doctors

Initial MVP - Phone accessory

What we learned (I) Customers don’t feel strongly about monitoring their blood work themselves

“ I don't know how often I need to get my blood tested. I trust [the dialysis center] to take my samples often enough to keep me healthy.“ - Bob Buonocore, patient with chronic kidney disease

“If you just gave me my blood work... I wouldn’t know what it meant or what was optimal for me “ - Margarita Krivitski, endurance athlete

“All the tests you mention for athletes, fitness enthusiasts or chronic [disease] patients are not needed immediately. One day delay in test results does not affect anything’’ - Dr. Anjali Damania, Pathologist

New hypothesis: Doctors could treat patients more effectively if they have faster results and the ability to test in office

Preventative care patients

Chronic disease patients

Nutritionists

Doctors

Dialysis centers and clinics

General physicians w/private practices

Cardiologists

Endocrinologists

Internet sales

Pharmacies

Retail outlets

Doctor’s offices

Direct sales

Device sales

Sales of companion technologies (e.g. apps, trackers)

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

3

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Health stores/ pharmacies

Hospitals

Life insurance companies

Chronic disease patient support groups

Intellectual property

Device design

Manufacturing facilities

People

FEATURE: Blood work results in less than 30 minutesPR: Avoids trips to the doctor/labFEATURE: Portable equipmentFEATURE: Conduct blood test in office/clinicGAIN: Early intervention possibleGAIN: Reduces transportation and processing time

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

Shift in focus: from patients to private practitioners and critical disease doctors

Refined value prop: defined features and gains

Second MVP - MVP is the data, not the device

What we learned (II)Doctors in the US are comfortable with what they have in place

“I deal with diseases that can wait for [blood test] results. If it’s something that needs immediate attention, I send to the ER room in Alta-Bates. ” - Dr. Michiyo Kawachi, General Physician

“Lab turnaround is not a big problem in the ER.” - Dr. James Sverchek, Emergency Room

“Getting results immediately might help give patients peace of mind, but wouldn’t affect the way I practice. I’m used to what we have. Anything new would take some getting used to. “- Dr. Scott Peerenboom, Internal Medicine

So we explored the need overseas...

Indian Healthcare System (I)Lack of diagnostic infrastructure in Tier 2 cities and below

Unacceptably long waiting

time for 830 million people

Unmet need for a fast and

low-cost blood testing system

Indian Healthcare System (II)Lack of public & insured healthcare in Tier 2 cities and below

Almost no medical insurance:

doctors have the freedom to

decide which devices to use

Prevalence of private

healthcare providers: flexibility

in decision-making by owners

Market Size

$3.65 Billion

$7.42 Billion

$912 Million

TAM (USD): Doctors in India who could potentially own the device (cost of device: USD 8k)

SAM (USD): Doctors serving tier 2 and below populations

Target Market (USD): 25% of SAM

General physicians w/private practices

Cardiologists

Endocrinologists

Pediatricians

Phlebotomists at blood testing labs

OPD Doctors in Tier-2 Indian cities and lower

Internet sales

Direct sales

Distributor network

Medical network

Lab network

Device sales

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

5

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Hospitals

Intellectual property

Device design

Manufacturing facilities

People

FEATURE: Blood work results in less than 30 minutes

FEATURE: Conduct blood test in office/clinic

GAIN: Early intervention possible

GAIN: Reduces transportation and processing time

GAIN: Save lives

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

Revised geographical focus

Ultimate value prop: Save lives!

What we learned (III)Doctors in India want our device!

“Give me test results in 15 mins and I will save the life of every Pancreatitis patient that I treat.” - Dr. Prasad, General Physician

“Rural areas have little or no access to diagnostics. Sometimes it takes 18 hours to get results in an emergency condition that are needed in 15 mins.” - Dr. Khatri, Private pathology lab

“Many conditions go undiagnosed in rural areas. Doctors try and treat based on symptoms alone. We really need a device that reduces our guesswork while treating critical diseases.” - Dr. Shirkant Kulkarni, Doctor, Govt. of Maharashtra

What we learned about Partners

● More than 1000 languages + Fragmented market = We need regional distributors

● Cost is an important factor in the market = local manufacturers can help us keep

costs low

● Initial investment is high for rural areas = Local financiers

Payment Flow Diagram

Local financiers

Pre-pay $8000 / device

$0.75 / cartridge

$ 1000 / device

Patients Doctors

MedAid

$4 / test

Manufacturers

$2.75 / test$5 / test

$6400 / device

$2.2 / test

Distributors

$ 5400 / device$ 1.45/ test * 38,325 test/ lifetime

+$ 61k lifetime profit/ device

Where we are now

Product market fit in the Indian market

Local investors are willing to finance the equipment

Minimum 5 years to product launch

Substantial funding required to further develop the technology & complete trials

Difficult to enforce IP protection

Fierce price competition in India

And More

Business Model Canvas Progression

Health-conscious consumers

Preventative care patients

Chronic disease patients

Nutritionists

Professional athletes

Athletic trainers

Doctors

Dialysis centers and clinics

Internet sales

Pharmacies

Retail outlets

Doctor’s offices

Device sales

Sales of companion technologies (e.g. apps, trackers)

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

1

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Health stores/ pharmacies

Hospitals

Life insurance companies

Chronic disease patient support groups

Intellectual property

Device design

Manufacturing facilities

People

Seamless, easy to use, trusted home health monitor

Quick blood analysis

Health suggestions

Avoids trips to the doctor/lab

Portable equipment

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

Health-conscious consumers

Preventative care patients

Chronic disease patients

Nutritionists

Professional athletes

Athletic trainers

Doctors

Dialysis centers and clinics

Internet sales

Pharmacies

Retail outlets

Doctor’s offices

Device sales

Sales of companion technologies (e.g. apps, trackers)

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

2

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Health stores/ pharmacies

Hospitals

Life insurance companies

Chronic disease patient support groups

Intellectual property

Device design

Manufacturing facilities

People

Seamless, easy to use, trusted home health monitor

Quick blood analysis

Health suggestions

FEATURE: Blood work results in less than 30 minutes

PR: Avoids trips to the doctor/lab

FEATURE: Portable equipment

FEATURE: Conduct blood test in office/clinic

GAIN: Early intervention possible

GAIN: Reduces transportation and processing time

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

Preventative care patients

Chronic disease patients

Nutritionists

Doctors

Dialysis centers and clinics

General physicians w/private practices

Cardiologists

Endocrinologists

Internet sales

Pharmacies

Retail outlets

Doctor’s offices

Direct sales

Device sales

Sales of companion technologies (e.g. apps, trackers)

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

3

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Health stores/ pharmacies

Hospitals

Life insurance companies

Chronic disease patient support groups

Intellectual property

Device design

Manufacturing facilities

People

FEATURE: Blood work results in less than 30 minutes

PR: Avoids trips to the doctor/lab

FEATURE: Portable equipment

FEATURE: Conduct blood test in office/clinic

GAIN: Early intervention possible

GAIN: Reduces transportation and processing time

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

General physicians w/private practices

Cardiologists

Endocrinologists

Pediatricians

Allergists and immunologists

Internet sales

Direct sales

Distributor network

Medical network

Lab network

Device sales

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

4

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Hospitals

Life insurance companies

Intellectual property

Device design

Manufacturing facilities

People

FEATURE: Blood work results in less than 30 minutes

FEATURE: Conduct blood test in office/clinic

GAIN: Early intervention possible

GAIN: Reduces transportation and processing time

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

General physicians w/private practices

Cardiologists

Endocrinologists

Pediatricians

Phlebotomists at blood testing labs

OPD Doctors in Tier-2 Indian cities and lower

Internet sales

Direct sales

Distributor network

Medical network

Lab network

Device sales

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

WE

EK

5

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Hospitals

Intellectual property

Device design

Manufacturing facilities

People

FEATURE: Blood work results in less than 30 minutes

FEATURE: Conduct blood test in office/clinic

GAIN: Early intervention possible

GAIN: Reduces transportation and processing time

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity

Convenience and value added at-office health monitoring solution

Device design and capabilities

OPD Doctors in Tier-2 Indian cities and lower

Internet sales

Direct sales

Distributor network

Medical network

Lab network

Device sales

Service/support

Supplementary sales (e.g. test strips)

Partnerships with health device companies and stakeholders

Spare parts

WE

EK

6

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Hospitals

Regional distributor networks

Intellectual property

Device design

Manufacturing facilities

People

FEATURE: Blood work results in less than 30 minutes

FEATURE: Conduct blood test in office/clinic

GAIN: Early intervention possible

GAIN: Reduces transportation and processing time

GAIN: Save lives

GAIN: Reduce costs

Sales

Marketing

R&D

Manufacturing

Distribution

Brand identity Convenience and value added at-office health monitoring solutionDevice design and capabilitiesGET & GROW: Word of mouthGROW: IMA (India Medical Association) endorsement GET: Pilot programs with regionally influential doctors GET: Local conferencesKEEP: Customer ServiceKEEP AND GROW: Introducing additional markers & tests

OPD Doctors in Tier-2 Indian cities and lower

Distributor network

Medical network

Device sales

Supplementary sales (e.g. test strips)

Spare parts

WE

EK

7

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Insurance providers

Hospitals

Regional distributor networks

Manufacturers

Lawyers (Int’l law, IP)

Intellectual propertyDevice designManufacturing facilitiesPeople - EngineersPeople - MarketingFundingOffice Space - India

FEATURE: Blood work results in less than 30 minutes

GAIN: Save lives

GAIN: Reduce costs

SalesMarketingR&DManufacturingDistributionEarly stage promotion at conferences & medical journalsDesign and iteration of device & diagnostic technologyContract with manufacturers Build relationships with distributorsObtaining patentsObtaining regulatory approval

GET & GROW: Word of mouthGROW: IMA (India Medical Association) endorsement GET: Pilot programs with regionally influential doctors GET: Local conferencesKEEP: Customer ServiceKEEP AND GROW: Introducing additional markers & tests

OPD Doctors in Tier-2 Indian cities and lower

Distributor network

Medical network

Device sales

Supplementary sales (e.g. test strips)

Spare parts

WE

EK

8

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Regional distributor networks

Manufacturers

Lawyers (Int’l law, IP)

Global health NGOs

Local financiers

Government Intellectual property

People - Engineers

People - Marketing

Funding

Office Space - India

FEATURE: Blood work results in less than 30 minutes

GAIN: Save lives

GAIN: Reduce costs

Early stage promotion at conferences & medical journals

Design and iteration of device & diagnostic technology

Contract with manufacturers

Build relationships with distributors

Obtaining patents

Obtaining regulatory approval

GET & GROW: Word of mouthGROW: IMA (India Medical Association) endorsement GET: Pilot programs with regionally influential doctors GET: Local conferencesKEEP: Customer ServiceKEEP AND GROW: Introducing additional markers & tests

OPD Doctors in Tier-2 Indian cities and lower

Distributor network

Medical network

Device sales

Supplementary sales (e.g. test strips)

Spare parts

Fin

al c

an

vas

Manufacturing

Marketing

Research and development

Distribution

Healthcare providers

Regional distributor networks

Manufacturers

Lawyers (Int’l law, IP)

Global health NGOs

Local financiers

Government Intellectual property

People - Engineers

People - Marketing

Funding

Office Space - India

FEATURE: Blood work results in less than 30 minutes

GAIN: Save lives

GAIN: Reduce costs

Early stage promotion at conferences & medical journals

Design and iteration of device & diagnostic technology

Contract with manufacturers

Build relationships with distributors

Obtaining patents

Obtaining regulatory approval

GET & GROW: Word of mouthGROW: IMA (India Medical Association) endorsement GET: Pilot programs with regionally influential doctors GET: Local conferencesKEEP: Customer ServiceKEEP AND GROW: Introducing additional markers & tests