Glucose Monitoring Smart Watch

Business Model for Glucose Monitoring SmartWatch

MT5016 Business Models for Hi-Tech Products

ADRIAN HO A0027118M

MO HAO A0039466W

XIAO YU A0034303Y

TAN JIAN AN A0098418R

Agenda

Diabetes

Evolution of Glucose Monitoring

Market Analysis

Technology Comparison

Value Proposition

Customers Selection

Scope of Activities

Value Capture

Strategic Control

Conclusion

Diabetes

Diabetes• Diabetes mellitus (DM) is a group of diseases characterized by

high levels of blood sugar (glucose) resulting from defects in insulin production, insulin action, or both.

Type 1 diabetes• Body does not produce insulin (insulin dependent)• Usually diagnosed in children or young adults• Approximately 10% of all diabetes cases

Type 2 diabetes• Body does not produce enough insulin or does not

use the insulin properly (insulin resistance)• Approximately 90% of all cases of diabetes

Gestational diabetes• Insulin receptors do not function properly• Affect 2 – 10% of females during pregnancy

TYPE 1

DIABETES

TYPE 2

DIABETES

Prevalence of Diabetes

• Diabetes has evolved into one of the

world’s leading healthcare crisis

• Diabetes imposes a large economic burden on the individual, national healthcare system and economy

Source: IDF Diabetes Atlas, 6th edition

Is There a Cure for Diabetes?

• There is no cure for diabetes

• Goals of diabetes treatment are to control blood glucose levels and prevent diabetes complications

• Type 1 diabetics must take insulin to control diabetes

• Type 2 diabetics may be able to control blood glucose by making lifestyle changes (diet adjustment & more exercises). However, in the long term they may need medications (and insulin) to help control your blood glucose levels

• Require constant monitoring of glucose levels to introduce appropriate amount of insulin

• Blood glucose levels in the body are very dynamic

Evolution of GlucoseMonitoring

Monitoring of Blood Glucose

Monitor the effect of diabetes medications and managing insulin dosage.

Judge how well in reaching overall treatment goals

Understand how diet and exercise affect blood sugar levels

Understand how other factors, such as illness or stress, affect blood sugar level.

Identify blood sugar levels that are dangerously high or low

Finger-stick Testing

• Most common method to monitor blood glucose

• Procedure:

A drop of blood is obtained with a lancet

Blood sample placed on test strip

Test strip inserted into glucometer to display glucose concentration

• Frequency of glucose monitoring depends on how well diabetic’s blood glucose levels are controlled

• Some diabetics may have to perform testing 4 or more times daily

• Highly uncomfortable for diabetics, leading to neglect in monitoring of blood glucose

Evolution of Blood Glucose Monitor

Minimal Invasive Glucose Monitoring

Subdermal Implant• Measures glucose in skin fluids• Sensor lifespan 72 hours

Source: Google contact lens

Source: Minimed Paradigm RTS, Medtronic Inc

Smart Contact Lens • Sensors and microchip

embedded in contact lens • Measures glucose in tear

fluid in the eye

Non-Invasive Glucose Monitoring (1)

• Spectroscopic techniques, transdermal glucose extraction & other techniques

GlucoTrack (Integrity Applications)

• Ultrasound, electromagnetic and heat capacity

• Spot measurements on earlobe with a ear clip

• Sensor lifespan (ear clip) is6 months

Source: Losoya-Leal A et al, State of the art and new perspectives in non-invasive glucose sensors

Source: GlucoTrack, Integrity Application Inc

Non-Invasive Glucose Monitoring (2)

Symphony (Echo Therapeutics)

• Advanced micro-abrasion system• Enhances the flow of interstitial fluids

and molecules across skin to transdermal sensor

• Sensor lifespan 24 – 48 hours

Source: Echo Therapeutics, Inc.

Market Analysis

Voice of Market Needle-free (painless) blood glucose monitoring

• Pricking finger is painful, while minimal invasive methods bring some discomfort to user

Convenient, continuous and cost-effective• Easy to operate, short initialisation time & measuring time

• Continuous glucose monitoring devices provide a more complete picture glucose situation

• Traditional glucometers are cheap. Yet, they are not cost effective in long run as cost for test strip are very high. Replacement of minimal/non-invasive sensors are costly

Reliable & high precision measurement• 95% accuracy for majority of devices in the market (Approx. 90% for device using

test strip)

Smart wearable technology• Recordable data & analysis capabilities

• Tailored healthcare advice

Continuous Glucose Monitoring Market Analysis

• In 2020, continuous glucose monitoring market is expected to reach $568.5 million globally CAGR 14.8%

• Highest growth in Asia Pacific

• Key Drivers Rise in diabetes cases Convenience offered by CGM Increase in awareness of the

benefits of CGM

Source: Allied Market Research

Technology Comparison

Infra V’s Smartwatch

• Continuous Glucose Monitoring (CGM)Non-invasive spectrometric process

• Other biometric sensorsContinuous Blood Pressure Monitoring

Calories Burned and Current Burn Rate

Heart Rate Monitor

Oxygenation Level

ECG Waveform

• Use as stand alone or pair with smart phone

• Alert based on customized plan and targets

• Realtime data tracking and historical data storage

• Emergency locator and Medic Alert

Company Infra VEcho

Therapeutics Integrity

ApplicationsMedtronic DexCom Roche

ModelCGM

SmarwatchSymphony GlucoTrack

MinimedParadigm RTS

SEVEN PlusACCU-CHEK Aviva Plus

Device

Needle-free Yes Yes Yes No No NoSensor Lifespan

1 year * 24 - 48 hours 6 months 72 hours 168 hours NA

Accuracy 95 – 98% * 97 - 100% 96.2% 98.9% 97% 88.10%

Initialisation time

15 min *Approx. 1

hoursNA 2 hours 2 hours NA

Frequency of Reading

20 sec * 1 min NA 5 min 5 min NA

Glucose range (mg/dL)

40 – 400 * 38 to 399 70 - 500 40 - 400 40 - 400 20 - 600

Calibration required

Every 6 months *

No data6 month

upon earclipreplacement

Every 12 hours

Every 12 hours

Upon opening new box of test strips

Measuring Time

NA * NA 1 minute NA NA 5 seconds

Size (mm) 200 x 45 x 15 * 25 x 25 x 10 102 x 56 x 20 76 x 51 x 20 114 x 58 x 22 94 × 53 × 22

Weight (g) 100 g * 57 g114 g

(ex earclip 40g)102 g

(sensor 7 g)100 g

(sensor (6.7 g)Approx. 60 g (with

battery)

* Values based on assumptions

Technology ComparisonModel

(Company)Technology Description

ACCU-CHEK Aviva Plus (Roche)

Invasive(Traditional glucometer)

Pierce skin to draw blood, then apply blood to a chemically active disposable 'test-strip'

MinimedParadigm RTS (Medtronic) Minimal

invasive

Measurement of interstitial fluid (IF) by small sub-dermal implant.

Smart contact lens(Google)

Measurement of glucose levels directlyfrom tear fluid in the eye

GlucoTrack(Integrity Applications)

Non-invasive

Combination of ultrasonic, electromagnetic & thermal technology to measure glucose from earlobe

Symphony(Echo Therapeutics)

Measure transdermal glucose levels via transdermal permeation system

RocheACCU-CHEK Aviva Plus

Google Inc.Smart contact lens

Integrity Applications GlucoTrack

High

Low

Comparison of Products on Various Dimensions

Value Proposition

Value Proposition

Diabetics

Painless method of glucose monitoring

Affordable and easy to operate device

Healthy individuals

Tracking glucose metabolism during intense activities

Value Proposition

Hospitals

Historical glycemic data can help doctors to provide tailored advice on lifestyle activities and medications

Insurance companies

A convenient way to get the glucose data for the customers of the insurance companies

Customer Selection

Customer Selection

Healthy Individual

Hospitals

DiabeticsInsurance

Companies

Customer Selection

Diabetics

Type 1 diabetics: extremely high blood sugar levels, > 3 times testing per day;

Type 2 diabetics: high blood sugar levels, > 1 time testing per day;

Gestational diabetics: high blood sugar fluctuation, regular monitoring.

Healthy Individual

Intense sport activities causing high blood sugar fluctuation;

Regular monitoring is required.

Customer Selection

Hospitals

Medical device to monitor patient’s blood sugar level;

Record the blood sugar level of pregnant women

Insurance Companies

Only sell the glucose information upon the agreement of customers;

Discount price for customers willing to share the glucose information

with the insurance company.

Customer Selection

Diabetics

> Health individual> Hospitals

Insurance companies

Scope of Activities

Company Focus

Out-sourcing

• Raw Material Supplier

• Component manufacturer

• R&D

• Design & Engineering

• Assembly & Testing

• Sterilisation & Packaging

• Marketing

• Distribution

Customers

• Diabetics

• healthy individuals

• Hospitals

• Insurance Company

Straps

Misc. Devices (screw, buttons, etc)

Key Components

Battery

Sensor

Housing

LCD Screen

Microprocessor

Motherboard

Straps

Sensors are designed and engineered by infra V;

Appearance of the smartwatch (housing, straps) are also designed by infra V;

Motherboard, Microprocessor, LCD screen, Battery are manufactured outside the company;

Components are then assembled and tested under the surveillance of the company.

Putting them all together

New Services can be derived with the use of the Smartwatch to open up new opportunities

Continuous monitoring of glucose level and health tips provided;

Remote monitoring of glucose level;

Real time insulin dosage adjustment;

Possible alliance with insurance companies;

Valuable data collection of the use of research.

Healthcare Informatics

In House Out Source

LCD screen, Battery

Microprocessor, motherboard

Sensor

Appearance (housing, straps)

Misc. Devices

Healthcare Informatics

In-house or Open Innovation

Value Capture

Value Capture

Money

Direct sale of devices to diabetics, healthy individuals and individuals

Subscription of apps for advanced functions of the device, e.g. professional advice

Sale of historical data to the insurance companies

Source of Revenue

At the early stage, revenue mostly comes from the sales of product; In the long term, revenue mostly come from the add-on services and the insurance companies; Aggressive pricing strategy; Discount to be provided to users;

Value Capture

Data

Historical glycemic data collected from the diabetics and healthy individuals, owned by Infra-V

Generate revenue by providing information on individuals to the insurance companies

Provide the information to the researchers and doctors for free

Value Network

Diabetics

product

money

Hospital

money

service

Healthy Individual

product

money

Subscription Subscription

money

product

Apps Apps

Insurance Company

Historical Data

money

money

InsuranceInsurance

money

Company

Value Network

DiabeticsHealthy

Individual

Company

Research institutions

Historical Data

Strategic Control

• Leveraging on both Intellectual Property protection and

complementary assets to endure continued profitability for the

company

Strategic Control

Intellectual Property

Complementary Assets

Sustaining Profitability

Strategic Control:Intellectual Property

Patent

- Infra V has to patent their design (non-invasive glucose measurement using low-cost wavelength specific transmitters and receptors ) with USPTO

Tacit Knowledge

- Complete knowledge of how non-invasive glucose measurement technology integrates with hardware (PCBA designs, ICs selection, etc) and firmware into smartwatch maintained in tacit form

- Tacit knowledge to reside in key R&D personnel (CTO, R&D manager, key R&D engineers with non-disclosure agreement)


Tacit Knowledge (continued)

- Developmental work on further improvements to core technology be kept in tacit knowledge till technology is patented

Segregation of Duties

- Maintain strict segregation of duties (engineers from different areas to develop niche knowledge in respective areas)

- Minimum cross functional knowledge so complete knowledge of technology and how it integrates with smartwatch is held in tacit form with key personnel


Documentation Control

- Engineering drawings, work instructions, engineering change documents, etc, to be made company confidential and electronically controlled

Strategic Control:Complementary Assets

Bundled package

- Basic cost of smartwatch made affordable to targeted customers (creating a pool of users)

- Smartwatch bundled with subscribed apps draw users attracted to value added services (professional advice, historical glucose measurements, healthcare analysis, etc)

Ecosystem

- Ecosystem of users, doctors, researchers, pharmaceutical and insurance companies

- User data attracts pharmaceutical companies for drug development opportunities

- Insurances companies uses data for creation of targeted insurance policies for smartwatch


Ecosystem (continued)

- Doctors uses data to provide customized healthcare advice which in turn attracts users

- User data provides opportunities to researchers for medical research and development

Distribution channel

- Smartwatch to be made easily available through participating hospitals and clinics specializing in diabetes

- Marketed as off-the- shelf item with major wellness stores (brick / mortar and online) frequented by targeted customers. Reason is to create a strong brand awareness.


Reputation

- Brand image of product user friendliness with robust online platform and subscribed apps providing desired healthcare applications

- User recognition of strong after sales product support

Partnership

- Establish tie ups with reputational pharmaceutical companies such Eli Lilly in the area of insulin administer

- Partnership provides product complement and assures users that it has industrial exposure and support from partners


Marketing

- Advertise in health publications popular with targeted users (Men’s Health, Women’s Health, WebMD, etc)

- Participation as sponsored user on popular health forums where Infra V can provide product advice and referrals to participating hospitals and clinics to forumers

Conclusion

Conclusion• Diabetes is a world wide phenomenon that needs to be addressed and tracked closely by patients on a daily basis

• Current available methods of glucose measuring are a bane to diabetics

• Infra V’s CGM Smartwatch answers the need of diabetes patients; non-invasive, accurate, cost effective and convenient with additional analytical capabilities available as a service.

• Value capture of Infra V’s CGM Smartwatch revolves around sales of the smartwatch, subscription of apps / online services and sale of user data to insurance companies.

• Sustaining profitability in the longer run involves protecting the core technology of the smartwatch as well as complementary assets.

Thank You