14. Product Marketers
if 100 reps call on
a physician*...
100 20 8
8 speak with
physician for an
80 don’t get to see 12 speak with average of 10 minutes
the physician physician but aren’t
remembered
* “Making more of pharma's sales force” Martin E. Elling, Holly J. Fogle, Charles S. McKhann, and Chris Simon The McKinsey Quarterly, 2002 Number 3
15. $20 Billion
spent on detailing physicians*
* “Drug promotion saps innovation” Houston Business Journal, Friday, February 15, 2008
17. Product Marketers
Revenue Access to market
business model
Access Platform
Health Professionals
18. 203,000
US physicians posting online
primary research
need to find medical information
simplify collaboration
*data taken from physician surveys of 1300 to 1500 physicians 2006 (manhattan research)
“Physicians and Web 2.0” Manhattan Research. 2007
19. $500M online advertising to physicians*
20% growth year over year*
*“Doctors, Patients Respond; Internet Usage Increases” Med Ad News. June 1, 2006
21. Opportunity from the Ground Up
80,000
60,000
Physicians 40,000
20,000
0
2008 2009 2010 2011 2012
Year
2000 Physicians Physicians
13000 80000 Physicians
Partnerships
Incentives Word of Mouth
23. competition
online medical literature
what they do why we’re different
online CME and peer- collaborative content and
reviewed medical literature networking
24. critical risks
market
primary and secondary research
legal and liability
ongoing legal consultation
management
advisory board
competitive
differentiation | innovation | implementation
25. Management
Andrew Ray Gianluca Dan
Powers Amador Roma Richter
CEO COO VP Marketing CTO
B.S. EE B.S. EE M.S. Biology B.S. CE
M.E. BME MBA MBA Marketing MBA
MBA Nokia Inc. Gen-Probe Inc. 1011i Inc.
Arthrosurface Inc.
Advisory Board
Dr. Gunther James Jim Robert Ken
Eysenbach Hannah Beasley Amador Eliasen
Founder - Journal of Intellectual Property President Bard Peripheral HIPAA Specialist and Founder -
Medical Internet Attorney Vascular Attorney Arthrosurface
Research Angiolink - Spirus
26. key metrics
$23,000,000
$17,000,000
revenue
net income
$11,000,000
$12.5M
$5,000,000
net income
$-1,000,000
2008 2009 2010 2011 2012
1,700 physicians physicians physiciansphysicians physicians
13,000 43,000 60,000 80,000
32. milestones Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4
2010 2011 2012
incorporate company
launch alpha
form advisory board
$400K seed round
launch beta
first revenue
launch core product
attract 1700 physicians
Fund $3M Round B
Launch Interactive Detailing
reach positive cash flow
attract 40,000 physicians
launch platform developer kit
international launch
advanced revenue model
earn $12.5M net income
IPO/Acquisition
33. use of cash
Projected Uses of Funds 2008 2009
Product Development $100,750 $293,800
Sales and Marketing $68,500 $216,025
Incentives $56,006 $227,831
G&A $142,500 $428,475
Total $367,756 $1,166,131
34. offering
Investment Offering Series A Series B Total
Pre Money Valuation 1,200,000 6,000,000
Initial Investment Amount 400,000 3,000,000
Post-Money Valuation 1,600,000 9,000,000 97,352,914
Percentage Ownership 25.00% 33.33% 58.33%
Investment Date Q3 2008 Q1 2009 Assumes 12/31/2012 exit
Months to Exit 54 48
Annualized IRR 179% 120%
Valuation Methods at 2012 Exit Low Range Mid Range High Range
Cash Flow Multiple 10x-12x EBITDA 116,737,829 136,194,133 155,650,438
Revenue Multiple 1x-3x $10,964,364 $21,928,729 $32,893,093
Average 63,851,097 79,061,431 94,271,766
(less debt) plus cash $18,291,483 $18,291,483 $18,291,483
Exit Valuation 82,142,580 97,352,914 112,563,249
35. net income summary
eDoctr, Inc. For the fiscal year ending December 31,
Projected Income Summary 2008 2009 2010 2011 2012
Gross Revenues 877 249,822 2,082,105 9,626,691 12,810,937
Cost of Goods Sold 0 0 0 0 0
Gross Profit 877 249,822 2,082,105 9,626,691 12,810,937
Operating Expenses 371,090 1,186,131 1,767,272 2,543,573 3,052,732
EBITDA (366,879) (916,309) 378,161 7,223,335 9,988,513
Net Income (370,212) (936,309) 226,680 5,099,845 7,025,907
Net Cash Flow 46,075 1,825,317 (1,591,348) 4,744,859 6,180,300
36. health professionals
customized
internal
ideal
systems
literature
rigid flexible
boards
phone email
unstructured
37. comprehensive but
not technical*
discussion specific but
published boards informal
literature
credible but slow
and not specific
Dr.
* “Taking the Pulse 7.0” Manhattan Research
38. Business Model
informatics
Informatics
100
75
$
50
Journal Pub.
25 FDA
0
Time
time value of information
performance monitoring
