Phronesis_MS&E272_Presenation

Slide 1: 

Tamara G. Alexander Melissa J. Lau Sundaresan Chandrasekaran Stanford University 3 June 2009 The Real Time Chemical Analyzer Technology http://www.phronesis.com/

Executive Summary : 

Real time analytical platform for complex chemical solutions Decreases manufacturing downtime & failed batches Seeking $1.5 M Executive Summary “Phronesis’s technology could provide an opportunity to improve our processes by significantly reducing manufacturing costs” - Orchid Chemicals

Executive Team : 

Executive Team T. G. Alexander, MBA 6 yrs experience in R&D 4 yrs as Scientist in gene therapy startup President & CEO S. Chandrasekaran, CPA Senior Consultant with PWC Imperial Bank, a venture banking firm VP & CFO R. Burgess M. J. Lau, Ph.D E. Anslyn, Ph.D J. McDevitt, Ph.D D. Neikirk, Ph.D J. Shear, Ph.D L. Walker R. Capozza, Ph.D M. K. Marsden Advisory Board M.J. Lau, Ph.D Prod. Dev. at J&J Medical 8 yrs experience in pharmacology research Advisory Board

Complex Chemical Compounds : 

Complex Chemical Compounds ?!? Risk Strategy Pricing Roadmap Market Solution

The Problem : 

The Problem Weak Mix Bad Mix Traditional composition analysis is both time inefficient and expensive Risk Strategy Pricing Roadmap Market Solution

The Gap : 

The Gap Competitive Edge in Chemical Manufacturing “Robust techniques for real-time, highly reliable analyses in practical environments” – NIST Current methods are too slow to adapt to the above dynamic manufacturing trends Risk Strategy Pricing Roadmap Market Solution

Solution: iTongueTM Technology : 

Solution: iTongueTM Technology Each bead reacts (changes color) only in response to a specific chemical. The color pattern is captured by a digital camera and the resulting video signal is converted into data using a video capture board and a PC Risk Strategy Pricing Roadmap Market Problem Solution

Product Benefits : 

Product Benefits Key End-User Benefits Product Offerings Risk Strategy Pricing Roadmap Market Problem Solution

Value Proposition : 

Value Proposition iTongue Technology will reduce total number of lost batches by 66% Risk Strategy Pricing Roadmap Market Problem Solution

Slide 11: 

Phronesis, Inc. Liquid Process Automation and Control Specialists www.chroma-bg.com Chemical Analyzer Manufacturers Strategic Alliances Fine Chemicals www.theepochtimes.com; Courtesy: GEA Process Engineering Inc. www.chinatradegateway.com; www.ifpma.org; Clinical Diagnostic Systems Image Courtesy: Risk Strategy Pricing Roadmap Solution Problem Market

Market : 

Chemical Analysis Market Gas Liquid Process Control 6% annual increase 8% annual increase Risk Strategy Pricing Roadmap Solution Problem Market

Market Opportunity : 

Market Opportunity Risk Strategy Pricing Roadmap Solution Problem Market

Comparison of Competing Technologies : 

Comparison of Competing Technologies Risk Strategy Pricing Roadmap Solution Problem Market Illumina, Inc. – genomic’s industry drug discovery Cyrano, Inc. – process control systems and medical diagnostics in future Aromascan, Inc. – polyurethane process and personal care products industry

Product Development Roadmap : 

Product Development Roadmap Dec. 1999 Pre-manufacture prototype of Analyzer ready Jan. 2000 Begin a-Testing Feb. 2001 Receptor chemistry manufacturing setup Ready Feb. 2002 Product Launch Beyond 2002 Customization of iTongueTM Tech Reusable Cartridges Risk Strategy Pricing Market Solution Problem Roadmap

Unit Economics : 

Unit Economics > 1 M$ $100 / unit 10,200 Units Sensor Cartridge Risk Strategy Roadmap Market Solution Problem Pricing

Slide 18: 

$6,000 / unit 200 Units > 1 M$ $100 / unit 10,200 Units 1.2 M$ Risk Strategy Roadmap Market Solution Problem Pricing

Slide 19: 

Chemicals & Beads Chemicals & Beads R&D Laboratory (Develops Bead Chemistry) Industrial Laboratory (Bead manufacture) Assembly Area (Sensor Cartridge Assembly) Packaging QC Testing Cartridge Housings Silicon Wafers Sensor Cartridges Beads Sent to Cartridge Assembly vendor Finished Goods Supplies Phronesis Cartridge Vendor MEMS Vendor Arraying/Assembly Vendor Risk Strategy Roadmap Market Solution Problem Pricing

Slide 20: 

$1.5M $8M $12M Risk Pricing Roadmap Market Solution Problem Strategy

Slide 21: 

Image Courtesy: http://www.the-marketing-it-process-strategist.com/images/SaaS-Risk-Mitigation.jpg

Risk Mitigation : 

Risk Mitigation 2 provisional patent applications with USPTO Patent by June 2000 Licensing of iTongue technology Protocols to support FDA approval process Cross-licensing Illumina Inc. Cyrano Sciences Inc Image Courtesy: http://www.maximumpc.com Strategy Pricing Roadmap Market Solution Problem Risk

Thank you! : 

Thank you!

Appendix : 

Appendix

Income Statement ProjectionsPhronesis Inc. : 

Income Statement ProjectionsPhronesis Inc.

Income Statement Projections (Contd.)Phronesis Inc. : 

Income Statement Projections (Contd.)Phronesis Inc.

Balance Sheet ProjectionsPhronesis Inc. : 

Balance Sheet ProjectionsPhronesis Inc.

Cash Flow Statement ProjectionsPhronesis Inc. : 

Cash Flow Statement ProjectionsPhronesis Inc.