BIOSIGNAL Pty Ltd Tove Ringbom Lotta Ekman Business Plan Evaluation

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)

Biofilms

How are biofilms formed?

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

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

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

Evaluating the Business Plan Plan dated December 6th 2000 Clear purpose stated - $5.3 million to expand R&D - to hire an experienced chief executive officer - raise money in order to register its patented compounds with the EPA and FDA

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

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

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

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

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

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 Biosignal’s product with an “American specialty chemical manufacturer” Multinational partners are key success factors for this venture

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

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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