A Feasibility Study for a NonInvasive, NonToxic Cancer Treatment Delivery System

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A Feasibility Study for a Non-Invasive,
Non-Toxic Cancer Treatment Delivery System
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OVERVIEW

• New Product Concept
• Cancer Treatment Delivery System
• Market Analysis
• Demand
• Environment
• Positioning
• Marketing Strategy
• Organizational Technological Issues
• Financial Analysis
• Investment Opportunity

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NEW PRODUCT CONCEPTCancer Treatment Delivery
System

• Non-Invasive
• Unique pH Targeting System
• targets malignancy
• minimizes toxicity to healthy tissue
• Loading and release characteristics
• variable, selective
• Optimally sized Microspheres

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NEW PRODUCT CONCEPTA Physicians Perspective
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NEW PRODUCT CONCEPTCancer Treatment Delivery
System
Hepatic Artery
Liver
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MARKET ANALYSIS

• Demand
• Scope of Problem
• Environment
• Competitor Analysis
• Positioning
• Marketing Strategy

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DEMANDScope of Problem

• Cancer is the Second Leading Cause of Death in
  the U.S.
• Over ½ million U.S. Deaths are Cancer Related

Percentage of All Causes of Death in U.S., 2001
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DEMANDScope of Problem

• Unlike Nearly All other Cancers, the Death Rate
  for Liver Cancer is on the Increase

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DEMANDScope of Problem

• All Cancer
• 1,368,030 new cases in 2004
• 563,700 deaths in 2004
• 5-year Relative Survival Rate 65.5

• Liver Cancer
• 18,920 new cases in
• 2004
• 14,270 deaths in 2004
• 5-year Relative Survival Rate 8.0

Liver Cancer represents only 1.4 of new cancer
cases, but accounts for 2.5 of all cancer deaths
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ENVIRONMENTCompetitor Analysis

• Complements
• Substitutes
• Traditional Non-Surgical Treatments
• chemotherapy
• radiation therapy
• Novel Treatment Strategies
• targeted chemotherapy
• targeted radiation therapy
• targeted hyperthermic therapy

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ENVIRONMENTCompetitor Analysis
Treatment Option Targeting Threat To
System New Product
Radiofrequency Ablation None Medium-low to
Medium
Cryosurgery None Low
Percutaneous Ethanol Injections None Low
External-Beam Radiation Therapy None Low
Interstitial Radiation Therapy None Low to
Medium-low
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ENVIRONMENTCompetitor Analysis
Treatment Option Targeting Threat To
System New Product
Hepatic Arterial Infusion of Chemotherapy None
Low to Medium-low
Chemoembolization None Low to Medium-low
Targeted Hyperthermia Therapy (Thermo-Spheres) Ant
ibodies Medium-low to Medium
Targeted Chemotherapy (Dox-Spheres) Antibodies
Medium to Medium-high
Targeted Radiation Therapy (SIR-Spheres) Antibod
ies Medium to Medium-high
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MARKET ANALYSISPositioning

• SpHereTEK is uniquely positioned in the Market of
  Novel Cancer Treatments
• Its patented pH targeting system is unlike any
  other
• Microsphere technology enables customized
  treatment regimen (loading release)
• Treatment is only of the tumor and can include
• chemotherapy
• hyperthermia
• radiation
• Damage to healthy tissue is minimized

Non-Invasive, Non-Toxic Cancer Treatment Delivery
System
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MARKET ANALYSISMarketing Strategy

• Long-term relationships would be developed with
  Nationally Recognized Cancer Research and
  Treatment Facilities

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ORGANIZATIONAL ISSUESCompany Structure
Initial Structure
Business Development
Operations
Finance
As Business Develops a more Hierarchical
Structure Implemented
Marketing Sales
QA / Regulatory Compliance
Mature Business Structure
Business Development
QA / Regulatory Compliance
Marketing Sales
Operations
Finance
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ORGANIZATIONAL ISSUESManagement Team
R. Marshall, BSc, MD, PhD Medical
Director
D. Rivera, BSE, MBA Chief Executive
E. Hart, BSE, MS, MBA Regulatory
Affairs Mgr.
E. Trotzke, BSE, PhD Project Manager
R. Mehta, BA, MBA, CPA Comptroller
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TECHNOLOGICAL ISSUESStart Up Activities
30 Months Total Start-Up
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FINANCIAL ANALYSISProjected Sales Costs
Sales
30.00 million
7.50 million
3.54 million
0.58 million
2.61 million
4.25 million
5.9 million
Operating Expenses Cost of Goods
20.76 million
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FINANCIAL ANALYSISProjected EBIT
9.2 million
1.6 million
0.03million
0.71 million
0.96 million
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INVESTMENT OPPORTUNITY

• Cancer is Major Cause of Death in U.S. with Liver
  Cancer on the Increase
• Most Current Treatments are NOT Curative
• High Probability of FDA Approval of IDE
• Experienced Management Team

• Affiliation with Major Research and Treatment
  Centers
• Profit Potential of over 9 Million in 5th Year

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