“Technology powered by the mind.”
April 2008
w w w. b e l l u m i n n o v a t i o n s. o r g Contact: Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Market: Pharmaceutical Advertising and Education
$57.4 Billon (2008) Market [5][11]
Approximately $10,000 per U.S. physician, directly [5][11][9] 197 public and private pharmaceutical companies in United States [4][11] Only $1.1B spent in online marketing development [10]
Problem: Congress has limited the current drug-marketing strategies [2]
Limited contact with physician base Zero on-campus contact with student physicians/student health professionals permitted Zero physician incentives permitted
Need: Massive increase in online marketing planned, but no common platform
Pharma needs better, legal platform to advertise/market to health professionals Pharma needs platform to inform health professionals of approaching pharmaceutical technologies
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Overview
Market opportunity
Medical education and student technology industry, $13B
• • • • • • •
[6][8]
Medical Education Institutions need resources that reflect current technology and teaching methodology Students require single source for newly integrated information 197 public and private pharmaceutical companies in United States [1] Approximately $10,000/yr spent per U.S. physician, directly. Must decrease this average [5] Only $1.1B spent in online marketing, will increase this figure Pharma needs to maintain marketing efforts despite sales rep. lay offs Pharma needs less costly, legal platform to advertise/market to health professionals due to more stringent legislature VIMAP (Virtual Integrated Medical Applications Platform) single information source patent pending visual techniques integrated system format latest pharma studies resource for health professionals
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
[4][11]
Pharmaceutical advertising and education, $57.4B [5][11]
Bellum Innovations’ solution
• • • • •
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
Bellum Innovations, LLC
Overview (continued)
Financials
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Overview (continued)
Financials overview (continued) Start up funds needed
•$15M
Profitability time frame
•Five years *Bellum Innovations did not follow gap procedure in capitalizing research and development
Exit Opportunities
Register the company’s stock with the NASDAQ Merge Bellum Innovations with larger industry player
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Market: Medical Education and Technology
Medical Education Technology
Specific market size for medical education technology not available for emerging industry, over $3B spent on medical education in 2008 [8] Customer base includes all medical education institutions, or institutions teaching medical human sciences, including medical, nursing/allied health, dental. Resources sought that reflect current technology and teaching methodology
Student textbooks and resources
$10B market (2008) Institutions, student organizations pushing for electronic information sources, wiki Seeking resources to meet requirements of integrated curriculum
[6] [3][8]
Problems
Institutions pressured to maintain modern curricula and meet student needs [6] Cost of traditional textbooks and supplies increasing No single source of information to reflect integrated curriculum
[3]
Need
Single platform that meets needs of integrated curriculum Institutions feeling pressure to maintain modern curricula and meet student needs
Ryan Johnson 704.756.2602 ryan@belluminnovations.org * Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
VIMAP provides single platform that meets the needs of the evolving marketplace
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Target customers
Initial target customers: Institutional Administration
• • have authority to insert VIMAP into student curriculum/budget. possess influence needed to encourage subsequent institutions and student bodies Can help construct pharma platform for accessibility to student doctors and health professionals Will promote Bellum Innovations’ sites/mutual benefit Loma Linda University School of Allied Health
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Pharma Companies
• •
Current customers:
•
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
Bellum Innovations, LLC
Market Entry strategy
Use existing relationships to target institutional administrations
Form marketing partnership with Loma Linda University, Meharry-Vanderbilt Alliance Push to include VIAMP in student curricula or as recommended study resource
Combine interaction with student organizations and Loma Linda University work.
Contact local chapters of AMSA, ANSA, and ADSA, inform of approaching technology and benefit to student body. Develop joint marketing projects to connect with other students
Reality checks
Third party web traffic monitoring and analysis Pharma sales/ad hit analyses Student organization surveys and evaluation Institutional comparative academic studies and research
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Outline of marketing strategy
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Financials
Please refer to attachment for detailed financial documentation
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Product and market roadmap
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Revenue Model
Software-as-a-Service
Annual fee for Institutional Licensure: $65,000 Yearly subscription for Students: $120
Pharmaceutical Advertising
$55-65 per 1000 general “hits” [4] $90 + per 100 “hits” from physicians [4]
Note: The following projections are based on calculated revenue model and pricing/marketing strategy alone. For complete profit projections please refer to attached documentation.
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Revenue Model (continued)
Data Assumptions
Baseline goal assumptions despite large capacity, outsourced marketing in year two • First full year goal of 10 institutions, additional 12 in year two if outsourced marketing services (second year total of 22 institutions) • Average 400 students per institution = 4000 students in first year, • 8800 total students in second year • Average log on per week: 28 (approx. four daily) • 25% annual gains following second year [7] United States target student base: 2,100,000 students • Assume only graduate level students in medicine, nursing and allied health [7] • 120 U.S. medical schools [7] • 57 U.S. dental schools [7] • 2000 accredited colleges and universities in the United States Includes allied health and nursing programs, biology, physical therapy
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Revenue Model and Two-Year Projections
Mathematical Model
Total revenue (with assumptions) =
[(number of institutions) x ($65K annual license fee)] + [ (student base) x ( $120 annual registration fee) ] + [ (student base/1000hits) x ($65/hit) x (4 logs/student-dy) x (180 semester dys/year) ]
Total projected first full year of sales revenues = $2,999,200
• Institution saturation: < .5%, student saturation: < .25%
Total projected second full year of sales revenues without outsourced marketing = $3,897,840
• Institution saturation: < 1%, student saturation: < .5%
Effect of economic conditions
Current economic conditions increase need for less expensive study materials (fewer textbooks and manuals) [6] Federal budget to provide institutions with resources needed to update and improve educational [3] technology
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
Bellum Innovations, LLC
Competitive landscape
Existing Players: early recognition of trends toward e-learning is ensuring their continued success.
3 Leaders: Amerra, Medical Education Technologies, WebMD All major medical textbook publishing companies Representational/educational medical imaging technology None target student-base, but target high level specialties or non-medical consumers
New Entrants: utilization of their massive resources provides an advantage getting a foothold in emerging e-learning industry.
Harvard School of Medicine, MIT, Duke University SOM • Promoting completely electronic curricula • Offer advanced degrees in medical software development • Research institutions seeking to replace most published information with electronic forms. • Electronic books not interactive or multimedia-based
Ryan Johnson 704.756.2602 ryan@belluminnovations.org * Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Competitive landscape (continued)
Bellum Innovations’ application architecture places it beyond any current technology
forward compatibility with emerging high speed internet technology Integrated. online tool mobile comprehensive video instruction gaming-like platform virtual labs with comprehensive application
The founders of Bellum Innovations, LLC met with instructors and students of health professions to analyze the changes in medical education, and to form an image of what would be the “ideal” learning tool. VIMAP was the result.
Ryan Johnson 704.756.2602 ryan@belluminnovations.org * Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Exit Opportunities
Register the company’s stock with the NASDAQ
Prepare the company for eventual lisiting with NASDAQ
Merge Bellum Innovations with larger industry player Option to “buy out”
Owners are prepared to purchase shared at their market value
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Ownership
Ryan W. Johnson Anissa C. Johnson Dr. Eileen White, Ph.D. Dr. O.C. White, III, M.D.
39% 39% 20% 1%
1% Dr. Webb-Mitchell, et al 1% O.C. White, M.D.
Dr. Elnora Webb-Mitchell .5% Mrs. Christy Blue .5%
39.9% Ryan Johnson
20% Dr. Eileen White, Ph.D.
*Provisions have been made for the allotment of any required ownership to investors 39.9%
Anissa Johnson
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Management team brings sector skills
Ryan Johnson, Founder, CEO Eight years in 3D graphics and virtual construction Six years graduate studies in biomechanical engineering Dr. Eileen White, Ph.D., Founder, Marketing Director Andrews University Ph.D., School of Education Dissertation: “Institutional Effectiveness” Adjunct faculty, LEAD, Andrews University Twenty-five years higher education instruction Ten years higher education consulting Edward Brame, CFO/Financial Advisor Fifteen years experience managing multimillion dollar project accounts Ten years working with software development firm Rodney Johnson, Public Relations
10 years customer service, housing industry Brother of Ryan Johnson, spending 5 years in virtual co-construction and architectural presentation
Ryan Johnson 704.756.2602 ryan@belluminnovations.org * Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Research and Development
iFlair Technologies, Inc.,
Team of over 40 qualified computer and web programmers iFlair has developed teams exclusively for development of Bellum Innovations technology Currently developing web software for Bellum Innovations Efficient, and effective Over 200 clients in their portfolio India-based company
*Bellum Innovations did not follow gap procedure in capitalizing research and development
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Advisory team brings medical, pharma expertise
Dr. O.C. White, M.D. Five years experience psychiatric medicine Dr. Tisla White, DPT Five years experience, clinical physical therapy Dr. Godia Peabody, D.D.S. Six years experience, dentistry One year experience, oral surgery Dr. W. Brown, M.D. Thirty years experience, OB/GYN Two years experience, body sculpting Dr. Carl Petersen, Phar Five years experience, pharmacology Rick Robins CEO, Trialogic, Inc., Clinical trials and phase III drug testing
Ryan Johnson 704.756.2602 ryan@belluminnovations.org * Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Organizational Chart
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Website advertising sales
e-Healthcare Solutions, Inc.
Fifteen years experience Highly diversified client/customer portfolio Superior knowledge of sector Collections and ad management
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Bellum Innovations, LLC
Summary
Management experienced in software development, higher education, medical practice, software dev. accounts management. Market changes: Limited pharma access to health professionals, no access to students, poorly designed drug education platform, new integrated medical curriculum, institutional migration toward electronic information, and training platforms. Current customer: Loma Linda University School of Allied Health Massive revenue potential despite baseline assumptions Market combined $72B, and growing Competition mostly involved in specialty education Low capital requirements
Ryan Johnson, CEO 704.756.2602 ryan@belluminnovations.org Dr. Eileen White, Ph.D., Marketing Dir 702.498.5991 eileenwhite@cox.net
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
Bellum Innovations, LLC
References
• • • • • • • • • • •
1. Center for Media and Democracy (www.prwatch.org ) 2. Continuing Education of the Bar- Business Law 3. Department of Education 4. eHealth Care Solutions 5. Marketing Vox (www.marketingvox.com) 6. NACS (National Association of Colleges) 7. National Library of Education 8. New England Journal ofMedicine 9. Nursing Online Education Database 10. www.marketingcharts.com 11. Science Daily (www.sciencedaily.com )
Ryan Johnson 704.756.2602 ryan@belluminnovations.org
* Dr. Eileen White, Ph.D. 702.498.5991 eileenwhite@belluminnovations.org