Northwood Implants Limited

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Northwood Implants Limited

• Creating new medical treatments with
  bio-compatible implants
• Richard Malczyk
• Managing Director

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Our First ApplicationThe Problem Prominent Ears

• A psychologically distressing condition
• Patients suffer
• Teasing/bullying
• Loss of self-esteem
• Lack of self-confidence
• Most would prefer not to have them

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Ear Correction todays approach
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Ear Correction todays approach
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Ear Correction todays approach
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Post-surgery complications
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Ear Scaffoldswww.earscaffolds.com

• A new minimally-invasive surgical approach to
  correct prominent ears
• Ear Scaffolds transform a complex 1.5 hour
  surgical operation into a 10 min outpatients
  procedure

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How Ear Scaffolds work
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How Ear Scaffolds work
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Patient FeedbackEar Scaffolds

• 100 preference for Ear Scaffolds
• Key reasons
• Less Surgery
• Faster recovery
• Quicker procedure instant results
• Wider patient spectrum
• 5050 male to female
• 50 aged below 18 (rest up to age 60)
• Low price sensitivity (other factors more
  important)

Based on direct market research undertaken with
100 patients
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Target CustomersCosmetic Surgeons Clinics

• 3 out of 4 surgeons willing to try it
• Key reasons
• Quicker procedure
• Less complex
• Less patient trauma
• 42 believe demand may increase
• Significant cost reduction in fees (34)
• Positively received by top UK cosmetic surgery
  centres
• Transform Medical Group
• Spire Health
• Nuffield Health
• BMI Health group

Based on direct market research undertaken with
270 UK surgeons 66 clinics
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UK Cosmetic Surgery Market

• UK Market Growth
• 42 in 2005
• 53 in 2006
• (Key Note Jan 2007)
• 42 in 2006
• 49 in 2007
• (Mintel Nov 2007)
• 534 growth - last 5 years
• Market value 900M in 2007
• Forecast to grow to 2.5Bn by 2011 (Mintel Nov
  2007)

Less invasive surgical techniques are driving
growth (Mintel Nov 2007)
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Market PotentialProminent Ear Correction

• Approx 5 to 10 of the human population has
  prominent ears

Ear Scaffolds potential could be 10x or even 100x
current demand by appealing to the majority.
(Analogy Teeth brace)
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UK Market DistributionCosmetic Clinics
Spire, BMI, Nuffield
Transform Medical Group 200 independents
Healthcare Commission Licensing
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Competition current methods
External Splints
Otoplasty surgery
Ear Scaffolds

• Broad age range (7 yrs)
• Treats wide range of ear deformity
• Flexibility via different techniques

• Instant results predictable outcome
• Patient choice
• Less patient trauma
• Lower complication rate

• Relatively low cost
• Non-invasive

• Limited application
• Lengthy treatment period
• Low compliance rate
• Unreliable

• Heavily dependant on surgeon skill experience
• Risky high post-op complication rate
• Outcome not guaranteed

• Foreign body
• May not fix extreme ear deformity

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IPR Position

• National patent applications derived from
  WO2007/0232964 covering EU and 11 other key
  national economic territories
• IPR search confirms no barriers to commercial
  exploitation
• Extension of IPR portfolio will occur with
  further RD

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Business Model Partnership Approach

• Northwood Implants promotes licences a novel
  ear correction procedure
• Limited access to Ear Scaffolds available only to
  licensed Practitioners
• Training/Certification Fee
• Fee per procedure
• (Ear Scaffolds accessories provided inclusive)
• Quality controls, practitioner approval device
  distribution controlled by Northwood Implants

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Partnership ModelBusiness Forecast
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Business Model Partnership Approach

• Pros
• Potentially higher profit
• Protected market pricing
• Greater control over procedure quality
  availability
• Lower-skilled practitioners possible

• Cons
• Unproven no precedents
• Growth is constrained by ability to train new
  practitioners
• Requires monitoring controls
• Potential abuse of inclusive pricing

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Financials
Product Development Phase
Market Development Phase

• High Gross Margin
• Breakeven achieved by end of 1st year of sales
• Investment recovery within 2 years of starting
  sales
• Profit triples in the last 2 years

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RD DevelopmentCosts Timescales
Design development
Tox
Animal Study
Human Study
Year 1
Year 2
Year 3
Total 1.07M
200k
Costs
420k
450k
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Funding requirement
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Partnerships
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Management Team

• Norbert Kang FRCS Inventor, Founder, CTO
• Extensive plastic surgery medical innovation
  experience
• Considerable clinical trials experience
• Strong links with private hospitals, NHS
  surgeon community

• Richard Malczyk MBA CEO
• Business management experience (start-up,
  marketing, finance, operations legal)
• Programme management experience for new product
  introduction
• Global sales marketing experience

• Supported by
• Dr Paul Seabright of NHS Innovations East
  Non-executive Director
• Extensive IP management medical innovation
  development/commercialisation experience
• ANO of West Herts Hospital Trust Non-executive
  Director
• Extensive operational experience and contacts in
  the health sector

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Milestones