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Avian Influenza H5N1 Reactive Antibodies BA 468x Technology Commercialization
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Christopher Bush Computer Science, Entrepreneurship Kevin Irish Marketing, Multimedia, Entrepreneurship Kyle Winkler Construction Engineering Management, Entrepreneurship Dr. Manoj Pastey Inventor, Assistant Professor of Veterinary Medicine Rob Schneider Mentor, Self Employed Sukanya R engaswamy Mentor, Hewlett-Packard The Team
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Source: Foreign Agricultural Service/USDA Office of Global Analysis, April 2007 http://www.who.int/csr/disease/avian_influenza/en/index.html Definition & Status Avian Influenza H5N1 “Bird Flu” & H7N2 virus Found in wild ducks & geese (host) Spread by droppings and nasal fluids Highly pathogenic in poultry High fatality rate What is Bird Flu? Current Status Over 150 million birds destroyed 291 human cases / 172 human deaths Stage 3 of 6 WHO Global Pandemic Alert
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Spread of Avian Influenza Bird MigrationH5N1 Outbreaks
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Global Distribution Channels Since 2003, human cases of avian flu has been confirmed in 12 countries, and has been found in animals in 40 countries: Why License? Source: WHO Speed to Market 6 countries have reported avian influenza deaths in 2007. Complimentary product Diagnostic companies have a wide range of testing products.
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Our Technology Antibodies to specifically detect the deadly H5N1 and H7N2 strains Easy to incorporate into existing “on-site” tests Used for chickens and humans Results in 10 minutes Easy to use
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Why We Win Current Lab Test AvianLabs Antibodies Current Field Test Positive Field Test $13 + Shipping 15 min – 1 hour Generic Flu Virus On-site Moderate AvianLabs $13 + Shipping 10 min H5N1 & H7N2 On-site Low Lab Test $120 3 days – 1 week H5 & H7 Strains Off-site Very High Cost Time Specificity Location Complexity
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Proof of Concept Finalize Patent Claims – 6 mo Completion of R&D – 6 mo Licensee Internal Review – 2 mo Licensing Negotiations – 4 mo Initial Marketing/Sales – 6 mo Manufacturing ramp up – 8 mo PrototypingProduct Intro.Manf. Ramp Technology Timeline USDA Research Grant Awarded PrototypingProduct Intro.Manf. Ramp Initial R&D – 8 mo Research Potential Licensees – 2 mo 2008200720092006
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Target Market Governments Monitor Migratory Wild Birds Prevent Spread into Country Protect its citizens Prevent Global Pandemic Regulate Poultry Industry Farmers Target Market Prevent Large Scale Economic Loss Provides “Insurance” Policy Testing Market Migratory Wild Bird Testing Poultry Testing Farmers Governments/ Regulatory Agencies Governments/ Regulatory Agencies
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Sales Forecast Assumptions: 6 Billion Chickens (Asia) 0.5% - 1.0% tested monthly Source: Cheok Soh Hui, ICIS Chemical Business, 2006 In millions excluding “price per kit” Year Market Potential % Increase of Chicken Production Est. Market Share # of Tests Price per TestRevenue 1360-5.00%18$13.00$234 23641.00%9.00%33$12.50$409 33671.00%14.00%51$12.00$617 43711.00%16.00%59$11.50$682 53751.00%18.00%67$11.00$742
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Revenue Forecast All $ in millions Excluding “price per kit” Year012345 Unit Sales0.018.032.751.459.367.4 xPrice per test$13.00$12.50$12.00$11.50$11.00 =Revenue$0.0$234.0$409.1$617.0$682.5$741.7 -Royalty Fees$0.15$11.0$19.2$29.0$32.1$34.9 Gross Profit$0.0$124.0$216.8$327.0$361.7$393.1 Operating Profit($0.2)$35.1$61.4$92.5$102.4$111.3 Net Profit($0.2)$19.8$34.5$52.0$57.5$62.5 Net Cash Flow($5.2)$20.9$35.7$53.2$58.8$63.8 Cumulative Cash Flow($5.2)$15.7$51.4$104.6$163.4$227.2
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Current Issues/Future Potential Issues Solutions Virus Mutations Technology IP Lab Predictions Escape Mutants Currently Strengthening Claims Future Markets & Potential Customs (Border Crossings) All Species Human Antivirals & Vaccines
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Contact Information Thank you for allowing us to present our technology. Questions or Comments? Christopher Bush BushC@onid.orst.edu Kevin Irish IrishK@onid.orst.edu Kyle Winkler WinkleKy@onid.orst.edu
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