Philips Innovation KC Proposal EasyIscan to Healthcare Incubator

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					EasyISCAN   Right to Sight
            TOC



                       1. Overview of EasyIScan proposition
                       2. Value Proposition House
                       3. Selection criterion - Healthcare Incubator




PHILIPS CONFIDENTIAL          EasyISCAN, Vinay Shenoy: Slide number 2
                       Overview of EasyIScan
                            proposition




PHILIPS CONFIDENTIAL        EasyISCAN, Vinay Shenoy: Slide number 3
  Blindness is prevalent
  in developing world

   45 million blind people                                              Nine out of ten blind people live in
          worldwide                                                           the developing world

   9 million blind people in India
                                 Glaucoma
                       Diabetic retinopathy
                        childhood blindness
 Refractive
                                              Others
   errors
                                               17%
    20%




                                                                             Globally, every five
                                                                           seconds a person goes
                               Cataract                                             blind
                                 63%


PHILIPS CONFIDENTIAL                              EasyISCAN, Vinay Shenoy: Slide number 4
  They are treatable, though




               80% of blindness can be prevented or cured

                        Regular screening is key!!




PHILIPS CONFIDENTIAL         EasyISCAN, Vinay Shenoy: Slide number 5
  However…
  • Large scarcity of ophthalmologists
         – 12000 practicing in India
         – 800 graduate every year in India
         – Most practice in cities/large towns

  • Hence
         – Only 7% in various stages of blindness are screened and
           treated
         – Less than 10% of Non-Cataract diseases are
           detected/treated
         – Less than 8% of children requiring spectacles wear them
         – Less than 15% of people over 50 yrs requiring spectacles wear
           them

  Screening (access and cost) is the first major bottleneck

PHILIPS CONFIDENTIAL           EasyISCAN, Vinay Shenoy: Slide number 6
  If only screening can be done locally and
  affordably

  • Not requiring an ophthalmologist

  • Simple for operators to learn and use

  • Quick and easy to interpret diagnosis

  • Can be deployed in rural areas

  • Can operate with limited hours of grid power

  • Screening for under Rs. 30 (Eu cents 70)


PHILIPS CONFIDENTIAL    EasyISCAN, Vinay Shenoy: Slide number 7
  There is a large market for it

  Global visual                 =                 162 million people (2002 data)
  impairment                                      (4 x blind people)

  India visual                  =                 35 million people
  impairment




PHILIPS CONFIDENTIAL   EasyISCAN, Vinay Shenoy: Slide number 8
         India Business Creation Center
                                                                                    + Fully digital & intelligent
         has a proposition                                                          - No hydraulics
                                                                                    - No chin rest
                                         ~ 15,000 $
               ~ 10,000 $                                                           - No dedicated computing
                                                                                    - No special chair
                            Retinal                                                 = Low cost all in one
                                                         Keratometer
                            camera                       (Curvature of
                            (Image of                    Cornea)
                            Retina)                                                                     NC Tonometer
                                                                                                        (pressure in the eye)
  ~ 8000 $



                                                                                ~ 6,000 $


              Slit Lamp &
              Refractor(Myopia
              Hyperopia)
                ~ 4000 $




                              Slit Lamp
                              (image of cornea)
                                                                          ~ 3,000 $

                                                                          Head Mount Display with Camera
                                                                          & Constant pressure Air Jet unit
                                                                          + PC interface
                                                                          Hospital go to patient
PHILIPS CONFIDENTIAL                      EasyISCAN, Vinay Shenoy: Slide number 9
  With a family of products

                                            Stand alone – portable
                                            Intelligent Imaging                     Low cost Image enhancer
                                            With pressure meter                     For low vision patients


                                            $ 3500                                       $ 1200




                                            Intelligent Imaging                          Personal Intelligent Imaging
               Intelligent Imaging          With pressure meter                          With pressure meter

               $ 2500                         $ 3000                                      $ 2000




               X 5,000                       X 7,500                                       X 10,000



                                     2007                               2008                                   2009




PHILIPS CONFIDENTIAL                          EasyISCAN, Vinay Shenoy: Slide number 10
  And others in the value chain are willing to
  partner
  • Aravind Eye Hospital
         –   India’s leading Eye Care Institution
         –   30 Years of Existence
         –   16 M Out Patients, 2.4 M eye Surgeries till date
         –   More Surgeries per year than whole of UK, 11% of US
         –   Plan 100 hospitals in the next 5 years
         –   Manufactures and sells to over 120 countries with 7 % Market
             share worldwide.


  • Pharmaceuticals companies
         Initial discussions with Eye drop manufacturers

PHILIPS CONFIDENTIAL            EasyISCAN, Vinay Shenoy: Slide number 11
  Estimated Market Potential over 5 year
  period
  • Institutional buyers                                    2000 units
  • Government Bodies                                       20000 units
  • Opticians                                               12000 units

  • Total Market Potential of                               34000 units

                       Total sale value of 100 Million Euros




PHILIPS CONFIDENTIAL             EasyISCAN, Vinay Shenoy: Slide number 12
  Philips has strengths to succeed


  • Optical technology
  • Image acquisition
  • Image processing
  • Decision support systems
  • Synergies with Diabetes monitoring project in Philips
     Research




PHILIPS CONFIDENTIAL    EasyISCAN, Vinay Shenoy: Slide number 13
  If only


  • Philips Medical Systems includes ophthalmology in its
    market scope

  IBCC is funded for developing this proposition
         – Need 300 kEuros in 2006 & 2007
         – First demonstrator in April 2006
         – Trials start at Aravind mid 2006 (committed)
         – Screening software development for Complex diagnostics
         – Excludes cost of other organizations (Philips Research for
           example)
         – Includes the cost 15 units needed in field trials

PHILIPS CONFIDENTIAL          EasyISCAN, Vinay Shenoy: Slide number 14
  A first prototype is being developed at PIC
  Bangalore
  • Focus on 83% opportunity
         – Cataract, Refractive errors


  • Platform from Maastricht
    Instruments, Maastricht Univ


  • Resources from CE, AppTech




PHILIPS CONFIDENTIAL           EasyISCAN, Vinay Shenoy: Slide number 15
                       If action is not taken
                       to reduce blindness,
                       the number of blind
                       people in the world is
                       estimated to increase
                       from 45 million in 2000
                       to 76 million by 2020,
                       creating an enormous
                       economic       burden.
                       Developing countries
                       could        potentially
                       achieve a £192 billion
                       boost in economic
                       productivity over the
                       next 20 years if they
                       adopt      appropriate
                       measures to reduce
                       blindness.


PHILIPS CONFIDENTIAL     EasyISCAN, Vinay Shenoy: Slide number 16
 People do not go blind by the million, they go
 blind one by one…and for each person the
 impact is enormous.
 Poverty and blindness are a formidable
 combination, depriving many people in the
 developing world of basic human rights. Loss of
 sight often results in social exclusion, making
 blind people vulnerable to abuse, poverty and
 early death.
 Less than half of all children who lose their sight
 will survive to adulthood. The figures appear
 overwhelming, yet providing help is simple.
 Let’s make a start….
PHILIPS CONFIDENTIAL   EasyISCAN, Vinay Shenoy: Slide number 17
                       Value Proposition House




PHILIPS CONFIDENTIAL         EasyISCAN, Vinay Shenoy: Slide number 18
                                                                                                              EasyIScan           version 1.0


 Benefits                                      Reasons to Believe                                   Discriminator

 • Affordable eye screening close to rural     • Trust in Philips Brand                             • Affordable, Accurate and Timely service
   areas by leveraging CE technologies and     • Endorsement by Hospital Partners                     at the doorstep
   eliminating the need for ophthalmologist    • Advocacy by Government and                         • Operation by a trained operator or a
                                                 healthcare NGOs                                      paramedic without the need for an
 • Help prevent over 80% of the blindness in   • Instant and simple to interpret reports              ophthalmologist
   developing world by timely intervention     • Short confirmation cycle by Hospitals




 Competitive Environment                       Target                                              Consumer Insight

 • Current ophthalmic equipment are            • Population in early stages of visual              • People are willing to spend on treatment
   designed to operate in Hospitals or           impairment that cannot afford to visit              if they are sure of a disease
   specialty clinics                             hospitals in cities – direct and indirect         • Very low emphasis on prevention
 • They are designed around an                   costs are prohibitive                               amongst people – primarily due to access
   ophthalmologist                             • Hospitals will use this as a rural                  and cost
 • They are expensive as they offer full         catchments step                                   • Conventional process steps for diagnosis
   diagnostic capability                       • Primary Healthcare Centers – Vision 2020            in rural areas are not practical and
 • They are not easily portable                  supported by WHO and IAPB                           economically not viable for Hospitals


                                                         Concept Signature        EasyIScan – for your right to sight!


                                                  Designed Around You                  Easy To Experience                         Advanced
                                               • Quick screening process          • No specialized training              • Highly accurate results
                                               • Simple installation and            required to operate and                almost instantaneously
                                                 calibration                        maintain                             • All digital experience –
                                               • Affordable at your               • Ophthalmologist can                    scan can be
                                                 doorstep                           relate to the screening                electronically sent to
                                                                                    results for follow-up                  hospitals for follow-up



PHILIPS CONFIDENTIAL                                EasyISCAN, Vinay Shenoy: Slide number 19                                                          36
                        Selection criterion
                       Healthcare Incubator




PHILIPS CONFIDENTIAL       EasyISCAN, Vinay Shenoy: Slide number 20
  Market Attractiveness
  qualitative profile
                                  L                         H Comments

    1      Market Size                                            35 million visually impaired in India and 150
                                                                  million in developing countries. 80% is
                                                                  preventable.

    2      Market Growth                                          Market is highly underserviced. Less than 10%
                                                                  have access to screening and treatment

    3      Market Profitability                                   Assuming unit price of Eu3000, a screening price
                                                                  of Eu cents 60 yields a margin of over 15% for a

    4      Financial Value                                        Size of Indian market for equipment is over Eu
                                                                  100 million. Size of Indian market for screening is
                                                                  over 60 million annually. Developing world
                                                                  market is four times this size.

    5      Barriers to entry                                      Few ophthalmic equipment companies have
                                                                  access to consumer electronics technology
                                                                  and image processing software. Most focus on
                                                                  image acquisition only. Philips will also have
                                                                  Pioneer’s lead.




PHILIPS CONFIDENTIAL                  EasyISCAN, Vinay Shenoy: Slide number 21                                          6
  Strategic Fit
  qualitative profile
                                    L                                H Comments
      1      Mission / Vision                                                  Technology and Healthcare to
                                                                               prevent blindness – fits well into
                                                                               Philips strategy. Also brings care
                                                                               cycle earlier in the process.

      2      Growth                                                            New market for Philips Medical
                                                                               Systems – Ophthalmic diagnosis
                                                                               equipment

      4      Designed around you                                               Bring screening service outside
                                                                               hospitals to people’s doorstep at
                                                                               affordable cost

      5      Easy to Experience                                                No specialized training required to
                                                                               operate and maintain
                                                                               Ophthalmologist can relate to the
                                                                               screening results for follow-up

      6      Advanced                                                          Instantaneous, automatic and
                                                                               reliable result that is easily
                                                                               endorsable by Ophthalmologists

      7      Building on Philips’                                              Optics, Image acquisition, image
             capabilities                                                      processing, consumer electronics


PHILIPS CONFIDENTIAL                EasyISCAN, Vinay Shenoy: Slide number 22                                         7
  Commercial chance of success
  qualitative profile
                                    L                               H Comments
   1      Non-invasive solution                                            Non invasive


   2      Knowledge of                                                     Strong partnership already formed with
          Healthcare market                                                Aravind Eye Hospital for delivery and
                                                                           process steps related to diagnosis

   3      Knowledge of                                                     Strong partnership already formed with
          consumer market                                                  Aravind Eye Hospital for knowledge of
                                                                           consumers

   4      FDA approval                                                     Not investigated yet. No major issues
                                                                           foreseen

   5      Consumer channels                                                Via Hospitals, Government agencies
                                                                           and rural entrepreneurs

   6      IPR protecting benefits                                          IPR possibilities primarily in image
                                                                           acquisition and diagnosis algorithms.

   7      Reimbursement                                                    ??


   8      Pricing model                                                    Will yield over 20% margin for operators




PHILIPS CONFIDENTIAL                    EasyISCAN, Vinay Shenoy: Slide number 23                                      8
  Technical chance of success
  qualitative profile

                                     L                                H Comments
      1      Technical competitive                                              Image capture uses standard off the
             strength                                                           shelf instrumentation. May require
                                                                                specialized optics later, which Philips
                                                                                possesses. Will utilize philips strength
                                                                                in image processing for diagnosis.

      2      Productization                                                     Key to produce locally or in low cost
                                                                                countries to benefit from cost
                                                                                competitiveness. Technology is
                                                                                amenable to this.

      3      Industrialization                                                  No major bottlenecks perceived.


      4      IPR                                                                Especially in the area of image
                                                                                acquisition and analysis (algorithms)

      5      Competing                                                          Competing technologies today
             technologies                                                       focus on Hospitals and designed
                                                                                around Ophthalmologists.




PHILIPS CONFIDENTIAL                 EasyISCAN, Vinay Shenoy: Slide number 24                                              9
Auxillary slides
PHILIPS CONFIDENTIAL   EasyISCAN, Vinay Shenoy: Slide number 26
  Global visual impairment




PHILIPS CONFIDENTIAL   EasyISCAN, Vinay Shenoy: Slide number 27
  Causes of blindness as a percentage total
  blindness




PHILIPS CONFIDENTIAL   EasyISCAN, Vinay Shenoy: Slide number 28
  Global patterns of visual impairment




PHILIPS CONFIDENTIAL   EasyISCAN, Vinay Shenoy: Slide number 29

				
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