PneumaCare

1
DR GARETH W. ROBERTS CEO
NOVEL NON-INVASIVE CRITICAL CARE MONITORING
2
ACHEIVEMENTS TO DATE

• Obtained initial UK government funding of K46
  to develop concept.
• Clinical input obtained and first potential
  customers identified.
• First prototype built and tested.
• Patent applications completed to cover hardware
  and process.
• First trials in man completed successfully.
• First trials with competing devices completed
  successfully.
• Research contract for device to monitor military
  casualties under negotiation with UK Ministry of
  Defence.
• Further development funding applied for from
  regional government.
• Potential licensing partners identified.
• Device ready to be registered with regulatory
  authority and move into hospital for clinical
  trials.
• Potential lead investor identified (Cambridge
  Enterprise/Cambridge Capital).
• 80 equity owned by management team.

3
MANAGEMENT TEAM

• Alan Barrell (Chairman) ex Baxter Healthcare
  and Domino,
• (Chairman Health Enterprises East.
  experienced in
• fundraising and in US and EEC)
• Gareth Roberts (CEO) ex NovaThera/Sciona,
  experienced in
• raising finance, developing IP and strategy
  in tech start-ups (China,
• Japan, EEC and US)
• Ward Hills (CTO) experienced in technology
  evaluation,
• identification and development (experience
  raising finance and in EEC and US).
• Richard Iles (Medical Director) Senior
  Respiratory Consultant
• Addenbrookes Hospital
• Colin Smithers (Product Development) MD PlexTek
  specialist medical device design house
  (experience in EEC and US).
• Katie McDonald (Finance Director) FD Powderject
  and experienced in finance for technology start
  ups.

4
PRODUCTS
5
TARGET MARKETS

• Lung disease is a global health problem affecting
  millions of
• patients and represents one of the largest costs
  in healthcare.
• Medical management of lung disease requires
  assessment and
• monitoring of lung function.
• Monitoring lung function is a mature market of
  valued at 10 Billion a year.
• There are limitations to the current technology
  and it fails to satisfy the full span of clinical
  need.
• The market is ready for the introduction of new
  disruptive technology.
• UK Market
• Market for instruments 75,578,400
• Software and training 19,144,600
• Private/GP 21,144,600
• RoW Market
• Total 15
  Billion

6
BUSINESS AND REVENUE MODEL

• PneumaCare will develop and validate the first
  device - PneumaScan and launch the product in
• the UK (price 10-15K). Launch in the EEC and US
  will follow partnership with a large distributor.
  
• REVENUES - direct sales then shared revenues from
  distributor
• PneumaCare will outsource device manufacture. The
  strategy is to have a core unit which is easily
• adapted to different product applications
  .Applications will be driven by different
  software modules.
• Specialist developments would extend performance
  and facilitate its adoption in niche areas,
• REVENUES - licensing rights to 'niche' hardware
  (e.g monitors for critical care incubators).
• PneumaCare will be able to sell specific hardware
  and software products to companies such as,
• Siemens and GE Healthcare while retaining the
  rights to future improved versions using the same
• hardware with updated software applications. This
  will provide a long term focus for value creation
• and the growth of a non-invasive monitoring
  business
• REVENUES - equipment software upgrades

7
TRADING HISTORY AND FORECAST

• Existing companies in the lung function
  monitoring market (including Philips Healthcare)
  use 1930's based spirometer technology.
• BTS an Italian University spin out used a
  complex device derived from a gait monitoring
  system. This system is expensive (gt80K) and
  requires dedicated staff and space. It has not
  been a commercial success.
• Sales in EEC/US and RoW will be made by
  partnership with existing players.

8
INVESTMENT PROPOSITION

• Initial investment of 400K is under discussion
  with Cambridge Enterprise and Cambridge capital.
• A further investment of 600K is to ensure
  completion of product development and securing
  regulatory approval.
• Funds will cover
• clinical trials programme
• Device regulatory approval
• Completion pre-production model
• Building business development team for
  licensing/commercial partnerships
• The commercial terms of a licensing deal
  (licensing the general platform for specific
  applications in other fields) may allow for a
  partial exit in 2009. We are already in contact
  with larger companies in this sector who have
  already expressed an interest in the technology.
  
• The company will evaluate the strategic options
  for exit (trade sale or IPO) in mid 2011
  following a successful product launch in the EEC
  and US and development of the product pipeline.