BIOSIGNAL Pty Ltd

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Business Plan Evaluation
BIOSIGNAL Pty Ltd
Tove Ringbom Lotta Ekman
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What is a biofilm?

• Biofilms are colonies of living micro-organisms
  (e.g., bacteria, fungi, algae, and/or protozoa)
  growing on any surface (e.g. metals, plastics,
  tissue, soil particles, teeth, and so forth)

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Biofilms
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How are biofilms formed?
http//www.crca.asn.au/activities/2002/conference/
Plenary2/Jasjit/Biofilm_Jasjit.swf
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Biofilm infections

• cause dental cavities, gum disease, as well as
  ear-, heart- and lung infections
• Biofilms also form on contact lenses and on
  intrauterine birth control devises
• Biofilms on the inner surfaces of medical
  equipment (catheters) ? hospital infections

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The Innovation

• The seaweed (Delisea pulchra) remains slime-free
  due to the production of furanones
• Biosignal has patented synthetic analogs of these
  furanones
• Furanones prevent bacteria from attaching to
  surfaces ? no biofilm formation

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http//www.crca.asn.au/activities/2002/conference/
Plenary2/Jasjit/PreventionJasjit.swf
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Business Opportunity

• By attaching furanones to polymers, biofilm
  formation could be prevented in
• 1) marine and agriculture usages
• 2) bound to polymer coatings
• 3) in implantable medical devices such as
  catheters

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Evaluating the Business Plan

• Plan dated December 6th 2000

• Clear purpose stated

• 5.3 million to expand RD
• to hire an experienced chief executive officer
• raise money in order to register its patented
  compounds with the EPA and FDA

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Management

• Biosignal lacks a CEO at the moment
• ? Demanding requirements
• An experienced polymer chemist must be hired
• Professors Kjellberg Steinberg possess
  scientific experience in the field of marine
  biology and microbiology
• GM Rohan McDougall

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Market Assessment

• Biosignal found six different areas of
  interest - Household cleaners - Oral care -
  Contact lens solutions - Anti-foulant in marine
  paint - Commercial farming applications -
  Biomaterials

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Risks

• Biosignals technology may fail to deliver on its
  early promises
• The safety risks to patients and to the
  environment are not known at this point

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Segment for first market entry

• Catheter market
• The medical grade polymers demonstrate the
  greatest revenue opportunity of the six different
  options
• The catheter market is growing rapidly, as is
  the total biomaterials market
• Reason for choosing the segment the disposable
  catheter is a relatively simple device
• ? ambition is to move to more technologically
  advanced medical devices at a later stage

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Competitor Information

• 156 companies operate on the global catheter
  market today
• Several multinational polymer giants operate in
  this field
• PROBLEM big organizations such as hospitals
  generally make group purchases and catheters are
  often priced as a part of a bundle of products

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Collaborations

• Biosignal gets office space and lab space
  support from UNSW and the two Research Directors
  are employed part time by UNSW
• A cooperation project to manufacture Biosignals
  product with an American specialty chemical
  manufacturer
• Multinational partners are key success factors
  for this venture

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Financials

• Biosignal has established connections to a few
  companies
• Estimated personnel expenses may not be big
  enough
• RD expenses ought to rise as time goes by -
  Biosignal is aware

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Our conclusion

• Start with any of the applications that are
  outside the human body to get cash flow
• The biomaterials market is very tricky
• Get experience in manufacturing, sales and
  running a business before entering the markets
  that require FDA approval

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THANKYOU!