Do not distribute any part of this material without permission

13-06-2015
Professor Luis Filipe Lages www.lflages.com 1
The Value Creation Radar
An Example of an Application of the Value Creation Radar (VCR) and Value Creation Framework (VCF) developed by Professor Luís Filipe Lages
12th June of 2015
© Professor Luís Filipe Lages (do not distribute any part of this material without permission) Prof. Luís Filipe Lages
There is a need for tools that allow entrepreneurs, scientists and organizations to …
1. Find how to bring a technology/science to the market paradox of technology-push versus market-pull
2. Better justify the funds allocated to ideas & R&D projects Knowing the final market application is of interest to BAs, VCs & public funds
3. Decide among many and complex options paradox of choice; allows both benchmarking and disruptive ideas
4. Build team spirit when bringing technologies to market manage individual/team contribution & learn from feedback © Professor Luís Filipe Lages ( this version : 12/06/2015)
(Re)Defining product value
The value creation radar
Generating product value
Creating product value
Sustaining & capturing product value
.
.
.
.
Product (re)definition
Potential market applications
Value creation funnel
Sustainable market launch
© Professor Luís Filipe Lages ( this version : 12/06/2015)
• Definition of tech-attributes • Definition of context/space
• Experiences generator: • Market-pull perspective • Tech-push perspective
• Summary of experiences
• Market launch of final market application
Focus on Application of VCR to a Real Case: Experience & Creation
• Brainstorming of filters • Rating of filters • The value-creation funnel
1. (Re)Defining Product-Value
2. Generating Product-Value
3. Creating Product-Value
4. Sustaining & Capturing Product-Value
•Final presentations
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 2
Value Creation in Technology
(Re)defining product value
Generating product value
Creating product value
Sustaining and capturing product value
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Coverpage
Project name: OSTEODEX Names:  Cláudia Amorim  Mário Carvalho  Matilde Melo Advisors:  Doctor Miguel Gama  Professor Luís Filipe Lages  Professora Fernanda Llussá  Manuela Oliveira  Alexandra Rodrigues
Abstract: What is your Final Story? (last slide to be completed – this slide should have a maximum of 600 words and is only to be presented in the final report)
Our team identified a problem/need/market gap/ in the treatment of osteoarthritis (OA). In 2009 the United States spent $89.1 billion for the treatment of OA. Osteoarthritis is the most common degenerative joint disorder and is predicted to affect 67 million people in the United States by 2030. The current OA treatments are painful and inefficient in the reduction of the long-term pain. The solution to solve this problem is our hydrogel which has good properties to interact with tissues of the body and takes advantage of an innovative drug for the treatment of osteoarthritis. It is the most adequate solution to solve this problem because it is easy to apply, facilitating the doctors daily life and it is much more efficient and has a longer effect in the reduction of pain than the available solutions. Moreover it is cheaper than the products available. So, our product is the best solution available for the treatment of AO and people can recognize its benefits in long-term.
Value Creation Radar
(Re)defining product value
Generating product value
Creating product value
Sustaining and capturing product value
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 3
Ignite
Objective: create an hydrogel with interesting properties for biomedical applications
Deliverable: Mission and Vision; TOWS analysis; Team and partners; Competitors/existing products; New applications and new markets.
1. Ignite 1. Ignite
Abstract for this section: The aim of this project is to create an hydrogel with interesting properties for biomedical applications. We found an hydrogel made of dextrin, a natural source and very abundant, what makes it cheaper, with good biomedical properties (biocompatible, biodegradable, etc.) that can be use in medical applications like the regeneration of damaged tissues.
Vision and Mission of the Owner and the Team
 Owner of the project (if applicable): “The vision is improve patients recovery and facilitate doctors dailylife” “The mission is to develop natural products for biomedical applications”
 Our Team: “Our vision is to improve patients recovery and facilitate doctors dailylife.” “The mission is to develop quality products for biomedical applications.”
TOWS analysis
Open opportunities in regenerative medicine treatments, tissue engineering technologies and targeted drug delivery approaches. Use of/Search for biocompatible materials. Use of/Search for cheap biocompatible materials. Use of/Search for biocompatible materials capable of carying efective molecules. Use of/Search for easy-to-use biocompatible materials.
Product protection- easy-to-copy formulations. Very competitive market. Unknown product/methodology.
New type of products – low knowledge from potential consumers. Unsatisfied market – difficult to enter, but large market with high potential in terms of bebefits for patients and high prices (high revenues).
Reduce production costs, using natural and abundant source materials, to overcome high prices problems. High investment in R&D but with potential to grow to different applications.
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 4
Capabilities of the team and partners
Our team: Potential partners:
 Cláudia Amorim  Mário Carvaho  Matilde Melo  Miguel Gama  Manuela Oliveira  Alexandra Rodrigues
 FUNCARB  Enzimatic Technology and Biomaterials Laboratory  CEB  TecMinho  CNC-Ibili  Hospital de Coimbra
Target
Products
Tissue engineering
Musculoskeletal Drug delivery
Cardiovascular Spinal Bone Cartilage
NAME OF THE EXPERIENCE:
BioSyntech x x BioSyntech
Carticept x x x Carticept
Cartilix/ChonDux x Cartilix/ ChonDux
Dyneema Purity® Radiopaque fiber x
Dyneema Radiopaque fiber
Dyneema Purity® TG fiber x
Dyneema TG fiber
Dyneema Purity® UG and VG fiber x x x x
Dyneema UG and VG fiber
Dyneema Purity® membrane x
Dyneema membrane
NAME OF THE EXPERIENCE:
ReGen MuskGel Releaser CardioGel
Spino Gel
OsteoDex NeoCarti
Portfolio of existing products/ existing markets
Portfolio of existing products/ existing markets Portfolio of existing products/ existing markets
Target
Products
Tissue engineeri ng
Musculos keletal
Drug deliver y
Burns
Bon e
Cartila ge
Ophth almolo gy
Wound healing
NAME OF THE EXPERIENC E:
Meso BioMatrix® Surgical Mesh for Soft Tissue Repair
x
Meso BioMatrix
polyesteramide (PEA) polymers x x x x
polyestera mide (PEA) polymers
CADESORB (ointment) x CADESORB
SECURA◊ No-Sting Barrier Film x
SECURA Fil m
SECURA◊ Protective Cream Z30 x
SECURA Cream Z30
SECURA◊ Barrier Cream D x
SECURA Cream D GelrinC x GelrinC
NuOrtho Surgical x x x
NuOrtho Surgical
NAME OF THE EXPERIENCE:
ReGen MuskGel
Releas er
New Skin
Ost eoD ex
NeoCa rti
EyeGe l
Woun dHeal
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 5
NEW TARGET
EXISTING PRODUCT
Tissue Engineering
Musculokeletal
Drug Delivery
Cardiovascular
Burns
Spinal
Bone
Cartilage
Bleeding stop
Diabetes
Neurology
Periodontal/Teeth
Anti-septic
Ophthalmology
Wound healing
Plastic surgery
Prosthesis
Cleft pallat
Spina bifida
NAME OF THE NEW EXPERI ENCE:
Dextrin gel as a scafold
x x x x x x x x x x x x x x x x x
Scafold gel
Dextrin with incorporated drugs
x x x x x x x x x x x
Drug deliver gel
Dextrin gel x
Dextrin Gel
NAME OF THE NEW EXPERIENCE :
ReGen
MuskGel
Releaser
HeartGel
NewSkin
SpinoGel
OsteoDex
NeoCarti
BleedStop
DiaGel
NeuroGel
ToothGel
SepticGel
EyeGel
WoundHeal
NewTissue
ProGel
CleftGel
SpinaGel
New Experiences: Brainstorm of New Product(s) for Existing Target(s) with potential to be explored
NEW TARGET
NEW PRODUCT
Creative Food Gel nails
NAME OF THE NEW EXPERIENCE:
Dextrin gel x x Dextrin Gel
NAME OF THE NEW EXPERIENCE: CreatGel NailDexGel
New Experiences: Brainstorm of New Product(s) for New Target(s) with potential to be explored
Objective: Identify the product attributes; the market problem and the solution.
Deliverable: Product attributes; Problem/Market and Solution/Product.
2. Idea
Idea
2. Idea
Abstract for this section: Our hydrogel has several important attributes: it is biocompatible; biodegradable; non-toxic; non-immunogenic; it is fully eliminated from the body; has a favorable interaction with cells and tissues; it is made from dextrin which is a natural and abundant source, what makes it cheaper and it is available in medical grade. So, we proposed to develop dextrin hydrogels to solve problems of regenerative medicine.
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 6
Dextrin hydrogel
biodegradability
Abundant source material
favorable interaction with cells and tissues
Easy to produce
inexpensive source material
full elimination /excretion
Drug delivery
source material available in medical grade
nonimmunogenic
nontoxic
Biocompatibility
Attributes of the Selected Product (option1)
Preliminary Elevator Pitch (Market–Solution Match)
Tissue regeneration problems in many biomedical applications
Biocompatible hydrogel to favor tissue regeneration in vivo
Solution/Product Problem/Market
GloCal Experience? Hydrogel for tissue regeneration
What would you like to be your GloCal Code?
Find solutions for people worldwide. People worldwide have problems that need tissue regeneration processes. Our gel can be used in several application inside this field, serving only as a scaffold for cell growth, as a tissue to help in regeneration of skin (in burns, for example) mantaining the tissue aseptic or as a drug delivery system to facilitate the regeneration and including the delivery of stem cells too.
Value Creation Radar
(Re)defining product value
Generating product value
Creating product value
Sustaining and capturing product value
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 7
Intelligence
Objective: Gather market and product/tecnical, external and industry/competitors information.
Deliverable: Market potential and threats coming from competitors.
3. Intelligence 3. Intelligence
Abstract for this section: In order to have a sucessful entrance in the market, we need to analyse the market potetial and our potential competitors. The Regenerative Medicine is a large market with great potential to grow but we will have lots of competitors, from industries to research centers investing in this field.
Gathering Market Information
Regenerative medicine deploys small molecule drugs, biologics, medical devices and cell-based therapies. However, the term is more colloquially used to mean advanced therapies based on cells, tissue engineering, developmental and stem cell biology, gene therapy, cellular therapeutics and new biomaterials (scaffolds and matrices) [1]. The analysts forecast the Global Regenerative Medicine market to grow at a CAGR of 20.16% over the period 2014-2019 [2]. Even though the majority of people perceive regenerative medicine as something of the future, it is actually here and now [3]. A significant number of regenerative medicine products are already commercially and clinically successful [3]. In addition to over 60,000 stem cell transplants annually performed worldwide for the treatment of oncology and blood-based disorders, it is estimated by ARM that in 2012 cell therapy products distributed by biotherapeutic companies generated over $900 million with 160,000 patients receiving treatments [3]. It is widely believed that these numbers are easily doubled when including non-cell-based regenerative medicine products such as scaffolds and other materials [3].
Gathering Market Information
At the same time, more products are being approved and new data are becoming available from mid-stage and late-stage regenerative medicine clinical trials [3]. For example, in 2012, seven cell therapy products were approved by regulatory agencies around the world in contrast with five such approvals in the three previous years, and none from 2002 to 2008 [3]. Going forward, the industry expects to see multiple approvals annually [3]. Analysts suggest there are at least 2,500 ongoing regenerative medicine clinical trials involving tens of thousands of patients for a myriad of clinical indications [3]. An estimated 15 percent of this is industry-sponsored, and the remainder is being sponsored by leading academic centers around the world [3].
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 8
Gathering Product/Technical Information
The product is a novel hydrogel of oxidized dextrin that can be injectable, with potential for inclusion and transportation of biomolecules, drugs, dextrin nanogels, and granular compounds, as well as for cell encapsulation.
Technology: A hydrogel formulation of oxidized dextrin is reticulated with adipic acid dihydrazide, which may embody polysaccharides, proteins, nanogels, granular materials, bioactive molecules and cells for tissue regeneration and controlled drug delivery. A hydrogel can be injectable, highly biocompatible and biodegradable, for tissue regenerative applications, performing simultaneously as a vehicle e.g. for nanogels, granular materials and cells, and as controlled drug delivery systems, e.g. of hydrophobic molecules and therapeutic proteins.
Gathering Product/Technical Information
“The surgeons praised the manipulation of the product. Its toxicity is a matter of concentration and in the used concentrations no reaction was observed.“
“Tissue regeneration was noted. We already did studies in goats and the results were also very positive.”
Miguel Gama, FUNCARB – UMinho
Expert’s opinion
Gathering External Information
4. Technological Research in regenerative medicin has been increasingin the last decades [7]. In the last four decades, significant advances have been made in the progress of scaffolds for biomedical applications [8]. In the last few years a great variety of hydrogels — class of has been developed three-dimensional, highly hydrated polymeric networks — and applied in tissue regeneration [7] .
2. Economic Regenerative medicine shows great potential for treating serious conditions such as diabetes, liver disease, neurodegenerative disorders and injuries such as burns or spinal cord and could also go some way towards combating rising healthcare costs associated with an ageing population [6]. The costs of chronic disease are more than those simply of providing healthcare; chronic disease carries significant indirect and intangible costs such as the psychological dimensions of illness. Indirect costs include work absence, reduced productivity, early retirement, premature mortality, and the implications of family members needing to act as carers. [4] 3. Socio-Cultural The increase in average life expectancy implies an overload in tissue and organs demand. [5] Hope of new treatments for diseases or injuries difficult to overcome. People are more prone to accept this kind of treatment due to some known positive results using for example stem cells based products and they believe more in scientific research.
5. Environmental Search for biodegradable products and environmental friendly processes.
6. Legal Legal Protection (Intellectual Property Protection) Drug regulatory authorities (e.g. FDA and EMA) approval.
1. Political • Governments are under intense competitive pressure to fund and develop attractive national environments for embryonic stem cell science [1]. • Regenerative medicine is one of science’s new horizons, holding the promise of groundbreaking new therapies to repair, replace or regenerate disease-damaged cells, tissues or organs [2]. • Calls for budgets to do research on regenerative medicine [3]. • Significant investment and strategic support on regenerative medicine development [6].
Gathering Industry Information
1. Threat of new entrants High – Lots of industries and academia doing research in this field. Analysts suggest there are at least 2,500 ongoing regenerative medicine clinical trials involving tens of thousands of patients for a myriad of clinical indications [1]. An estimated 15 percent of this is industry-sponsored, and the remainder is being sponsored by leading academic centers around the world [1].
2. Threat of substitutes High – Lots of industries and academia doing research in this field and lots of clinical trials going on.
3. Bargaining power of buyers Low – Regenerative medicine shows great potential for treating serious conditions such as diabetes, liver disease, neurodegenerative disorders and injuries such as burns or spinal cord and could also go some way towards combating rising healthcare costs associated with an ageing population [2], so people can recognise the value of such kind of products. 4. Bargainning power of suppliers Low – Cheap raw material and easy to produce. 5. Intensity of Rivalry High – Lots of industries and academia doing research in this field and lots of clinical trials going on.
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 9
Gathering GloCal Codes Addressed by Existing Alternatives
(Be inspired by Dove, Philips, Porshe 911, …) GloCal Market Need: Treatments for diseases/injuries that affects a large number of the population worldwide GloCal Products: Use a natural, biocompatible and efficient tool for the regeneration of damaged tissues. GloCal Forces in the Industry: Diseases/injuries that affects a large number of the population worldwide and where the solutions are not enough. GloCal Teams Characteristics: Team members with different scientific backgrounds (engineering, biomedicine, biotechnology, marketing).
Attributes valued by target market(s)
Dyneema Purity® UG and VG fiber
Bionate® and Bionate® II Thermoplastic Polycarbonateurethane (PCU)
Vitoss® Scaffold FOAM™ ProductsVitoss® Scaffold FOAM™ Products
biocompatibility 5 5 5 5 non-toxic 5 5 5 5 non-immunogenic 5 5 5 5 favorable interaction with cells and tissues 5 5 5 5 biodegradability 5 1 1 1 full elimination/ excretion 5 1 1 1 Long-term application 0 4 4 4 User-friendly 5 3 2 5 Cheap 5 1 1 1
OUR IDEA
Gathering Competitors Information
Gathering Information about Potential Partners
We talked with the owners and people involved in the project and they became very interested in our work. They provided us useful information about the product and the market as shown already in an upper slide.
Miguel Gama, FUNCARB – UMinho
Gathering Experts Knowledge
DATA SOURCES:
• Companies
Abbiotec, Carticept, Biomet, Smith & Nephew, Regentis Biomaterials, NuOrtho Surgical and DSM
• Competitors
Abbiotec, Carticept, Biomet, Smith & Nephew, Regentis Biomaterials, NuOrtho Surgical, DSM and R&D Centers
• Consumers Hospitals, R&D Centers,doctors and patients • Developers Miguel Gama • Entrepreneurs Cláudia Amorim, Mário Carvalho and Matilde Melo • Experts Cláudia Amorim, Mário Carvalho, Matilde Melo and Miguel Gama
• Investors / B.Angels
Portugal Ventures, Federação Nacional de Associações de Businedd Angles, Espírito Santo Ventures, AdVENTURES
• Suppliers Lab Suppliers • Users R&D Centers,doctors and patients • Other(s) ______
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 10
Synthesis of Primary and Secondary Knowledge
Our product has important attributes for biomedical applications, namely for regenerative medicine. The market of regenerative medicine has a great potential – number of people affected, costs of the current treatments available, which can give rise to a higher value for our product in this kind of application, and potential to grow. Thus, now we need to find the best application for our product.
Integration
Objective: Evaluate the relevance of the product attributes for its implementation in the market
Deliverable: The product has good sophistication and is highly relevant for the market
4. Integration
4. Integration
Abstract for this section: This hydrogel has several properties that make it attractive not only from the production point of view but also for its biodegradable, biocompatible and costumizable properties. Its attributes can thus provide solutions to several problems still present in the already existing marktet, and enable to exploration of new markets. We have determined that our potential product is very relevant from a market perspective, and eventhough it is based on a brand new technology, its level of sophistication is not limiting for the implementation.
Brainstorm of products/services (Technology-Push Mindset)
What is the offer? (PRODUCT/ SERVICE ATTRIBUTE)
Who cares? Who needs & will pay for it? (TARGET MARKET)
What do they care about? Benefits: (ADRESS MARKET PROBLEM, MARKET PAIN, MARKET NEED)
THE UNIQUE EXPERIENCE Name/Brand of potential market application (IDEA/MARKET FIT)
Initial potential (Low, Medium, High)
Bioactive hydrogel with active molecules
Patients in need of bone regeneration
Improved life quality
Higher efficacy treatment -high
Injectable hydrated hydrogel
Patients and Health Care Providers
Better treatment, minimal invasiveness
Formulation provides for higher efficacy, easy application
-high
Dehydrated hydrogel
Health Care Providers
easy application during surgery for repairing bone fractures
Easy application to the surface of detached tissues
-medium
Patients and
Repeated administration without accumulation of
Complete elimination of the
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 11
Brainstorm of products/services (Technology-Push Mindset)
What is the offer? (PRODUCT/ SERVICE ATTRIBUTE)
Who cares? Who needs & will pay for it? (TARGET MARKET)
What do they care about? Benefits: (ADRESS MARKET PROBLEM, MARKET PAIN, MARKET NEED)
THE UNIQUE EXPERIENCE Name/Brand of potential market application (IDEA/MARKET FIT)
Initial potential (Low, Medium, High)
Dextrin is already available and inexpensive
Industry
Abundance and quaility of the production method
Dextrin is readly available and produce with medical-grade quality and biocompatibility
-high
Costumizabi lity of hydrogel characteristi cs
Industry and Health Care Providers
Modify gelling periods (5-30 min), porosity and mecanical properties according to surgery type
Hydrogel has properties that enable these characteristics
-High
Association of the hydrogel with a great number of
Idustry, Health Care Providers
Usage of different molecules provides treatment for different pathologies and
Enables association with bioactive granules, biomolecules, cells
-medium
Brainstorm of products/services (Technology-Push Mindset)
What is the offer? (PRODUCT/ SERVICE ATTRIBUTE)
Who cares? Who needs & will pay for it? (TARGET MARKET)
What do they care about? Benefits: (ADRESS MARKET PROBLEM, MARKET PAIN, MARKET NEED)
THE UNIQUE EXPERIENCE Name/Brand of potential market application (IDEA/MARKET FIT)
Initial potential (Low, Medium, High)
Dextrin has already been approved by the FDA for medical usage
Health Care Providers
Legal approval for the usage of the procedure
FDA-approved -high
Bioactive hydrogel with cultured cells
Patients
Tissue regeneration, improved life quality
Enables faster regeneration of connective tissue dependent on high levels of donor cells
-low
Applications of the technology
-Injectable hydrogel for treatment of orthopedic diseases (e.g. rheumatic), cancer or infecitons: diseases that need a controlled delivery of pharmacologically active agents -the hydrogel can also be used for nonpharmacological applications: liquid absorbent in for instance diapers, food industry, etc
What is the Predicted GloCal Code that could provide you uniqueness?
Your Market Code: Inexpensive and Efficient method for bone lesion reparation
Your Product Code: A biodegradable and biocompatible hydrogel
Your Industry Code: Inexpensive and easy to produce hydrogel
Your Team Code: Multidisciplinary team with materials and biomedical engineers, managers and marketeers
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 12
VLow Low Med High VHigh
VLow
Low
Med
High
VHigh Product Sophistication
Market Needs
Predicted Value of the Experiences
Pharmacological applications
Absorbent
Food industry
Value Creation Radar
(Re)defining product value
Generating product value
Creating product value
Sustaining and capturing product value
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Inspiration
Objective: Taking several filters to choose the best application of our technology
Deliverable: We suggest the usage of the hydrogel with a drug for the treatment of osteoarthritis is the best applicaton
5. Inspiration 5. Inspiration
Abstract for this section: Given the possible application for the dextrin hydrogel we applied a series of selected filters and determined that in order to maximize the potential of this technology it should be applied to the treatment of osteoarthritis, a widespread disorder, taking advantage of the most cutting edge findings that reduction of TGF-b signaling has a positive impact on the progression of the disease
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 13
Brainstorm of Filters Provided by Experts for the VCF Funnel
Filter Level* Expert Name
Potential**
Market size 2 high Production cost 3 medium Effectively treats the disease 1 high Reduced incidence of complications 4 high Invasiveness of application 5 medium Novelty 6 low
**Potential (Low; Medium; High) * Market, Product, Team, Industry?
Filters and the VCF Funnel for the Selected Experiences
Hydrogel injection for treatment of: rheumatic or orthopedic disorders; diabetes; infections; plastic surgery; neurology; contains either stem cells or bioactive molecules; can be in the hydrated or dehydrated form
Filter 1: effectively treats the disease
Hydrogel injeciton for treatment of orthopedic and rheumatic disorders, infections; the above characterisitcs
Filter 2: market size
Hydrogel with biomolecules for the treatment of Osteoarthritis (OA) or Spine Fusion (SF) surgery
Filter 3: production cost Hydrogel for OA or SF surfery with genetically modified MSC or bioactive molecules Filter 4: incidence of complications
Biomolecule hydrogel for OA or SF

Filters and the VCF Funnel for the Selected Experiences
Biomolecule hydrogel for OA or SF
Filter 5: invasiveness of application
Biomolecule hydrogel for OA
Filter 6: novelty
Anti-TGF-b hydrogel for OA

Objective: Taking together the possible applications of the hydrogel and the possible markets we choose the best
Deliverable: We arrive at the conclusion that the hydrogel with anti-TGF-b for the treatment of osteoarthritis is the best application of our technology Illumination
6. Illumination
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 14
Abstract for this section: In this phase we analyzed the applicability of the antiTGF-b containing hydrogel to different diseases where TGF-b inhibition would be fruitful and how our product could be modified to better fit the treatment of OA. We concluded a anti-TGF-b hydrogel will be relevant.
6. Illumination Define the final experience to be explored (2/2): -Focus on a single product for a single target –
Who cares? Who needs & will pay for it? (TARGET MARKET)
What do they care about? (MARKET PROBLEM, MARKET PAIN, MARKET NEED)
What can we offer? (PRODUCT/ SERVICE ATTRIBUTES)
THE UNIQUE EXPERIENCE Name/Brand of potential market application (IDEA/MARKET FIT)
Initial potential (Low, Medium, High)
Government, Patients, Health Care Professionals
-Inhibition of the local ossification process and degradation of the cartilage tissue
Injectable biocompatible, costumizable and antiinflammato ry gel carrying inhibitors of TGF-b
-Hydrogel capable of controllably preventing the disease at early stages or stopping its progression
-High
Target
Product/Service
OA
Hydrogel containing proliferated chondrocytes
-Medium
Hydrogel containing NSAIDs
-Low
Hydrogel containing Hyaluronic Acid
-Low
Hydrogel containing MSCs
-Medium
Hydrogel containing anti-TGF-b
-High
ReGen
Final experience to be explored (1/2): A line of products for a single target (Market-Pull Mindset)
Define the final experience to be explored (2/2): A line of products for a single target (Market-Pull Mindset)
Who cares? Who needs & will pay for it? (TARGET MARKET)
What do they care about? (MARKET PROBLEM, MARKET PAIN, MARKET NEED)
What can we offer? (IDEA ATTRIBUTES)
THE UNIQUE EXPERIENCE Name/Brand of potential market application (IDEA/MARKET FIT)
Initial potential (Low, Medium, High)
OA
Inhibition of the local ossification process and degradation of the cartilage tissue
Hydrogel containing proliferated chondrocytes
-Usage of a homogenic transplant, taking advantage of reduce immuno reaction probability
-Medium
Hydrogel containing NSAIDs
-Already widely used drugs, best from « public concern » point of view
-Low
Hydrogel containing Hyaluronic Acid
-Usage of endogenous biomolecule with antinflammatory properties, already used
-Low
Hydrogel containing MSCs
-Usage of an allogenic transplant -Medium
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 15
Target
Product/Service
Myocardi tis
Cancer
Rheumatoi d arthritis
OA
Hydrogel containing anti-TGF-b Medium Medium High High
Final experience to be explored (1/3): A product that satisfies different targets (Technology-Push Mindset)
Define final experience to be explored (2/3): A product that satisfies different targets (Technology-Push Mindset)
References (1/2) References (2/2)
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 16
Industry Health Care System
Clinicians Product Attributes
x
Costumizable Local drug delivery system
x
x Biocompatibility
X
X
X
Controled Delivery of bioactive proteins
X
Cheap and easy to produce
Define final experience to be explored (3/3): A product that satisfies different targets (Technology-Push Mindset)
VLow Low Med High VHigh
VLow
Low
Med
High
VHigh Product Sophistication
Market Needs
Predicted Value of the Selected Experience Versus Competitors
Hydrogel with anti-TGF-b
NSAIDS
Corticosteroids
Injectable hyaluronic acid
Milestone: Preliminary Elevator Pitch
Current Problem: OA is one of the most prevalent diseases in the world and with a tendency towards increasing incidence
Current Solution: Injectable gel to prevent or stop the progression of the disease
Current Team: Multidisciplinary team capable of developing and producing the product
Only paliative treatments available
Prevention and Stop of disease progression
Solution/Product Problem/Market
Final GloCal Experience?
Milestone: Preliminary Elevator Pitch
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 17
Milestone: Capabilities of the team and partners
Current situation What is additionally required?
Team
Cláudia Amorim, Matilde Melo, Mário Carvalho, Prof. Miguel Gama, Alexandra Rodrigues PhD, Manuela Oliveira PhD
Consulting Innovation Manager
Current partners
FUNCARB, TechMinho, University of Minho, HUC and University of Coimbra
Further discussion of the teams ideas with partners
Potential partners
Contract Research Organizations linked to orthepedic drugs testing, Pharma Industry
Consulting CRO to have a precise idea of the costs of clinical investigations and start negotiation of the usage of the proprietary antibody
Others

Incubation
Objective: Create a prototype based on the attributes needed from the market
Deliverable: Prototype was generated
7. Incubation
7. Incubation
Abstract for this section: Taking into consideration the characteristics needed to fullfill the market need, we devised a prototype. We aim at being clearly better than the competition. The SCAMPER method was used to explore how to improve our prototype.
Dextrin hydrogel
TGF-b inhibitors
Concept Generation: Form
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 18
Concept Generation: Attributes/Components
• An injectable hydrogel with the anti-TGFbeta antibody mixed, in the right proportion for an ideal delivery • The hydrogel should come in a vial, attachable to a needle for easy injection into the knee • The volume of the injection should be adjustable, to the size of the knee for instance
Attributes valued by target market(s)
NSAIDS
Corticosteroids Intraarticular hyaluronates
High efficacy of treatment
Low number of side effects Low invasiveness Acute reduction in pain Long-term reduction in pain
OUR PRODUCT /SERVICE 
Concept Generation: Final Added Value in comparison to drugs already available for OA
                  
Concept Generation: Final Added Value
Multidisciplinary team capable of producing and testing the drug
Hydrogel with antiTGF-beta Ab
Easy delivered drug for treatment of OA
Drugs already approved in the market, but with limited efficacy
Refinement of the Initial Product for Prototype
 SCAMPER technique:
 Substitute  One could substitute the antibody for other drug if it proves not to be possible to delivery at a higher efficacy with the hydrogel  Combine  Couple the needle into the vial  Adapt  One can make different dosages for people with different weights  Modify  The hydrogel composition can be more adapted to the knee intraarticular environment  Put to another use  The same formulation of the gel can be used in other joints  Eliminate  The vial can be disposed of altogether and the injection can be give in a different syringe  Reverse  Use the hydrogel to filtrate the liquid inside the knee, instead of being injected into the knee
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 19
The Initial Prototype
• An injectable hydrogel with anti-TGFbeta antibody added in the right proportion, easy to use, and capable of being injected in the knee and other joints
Value Creation Radar
(Re)defining product value
Generating product value
Creating product value
Sustaining and capturing product value
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Impression
Objective: To test the first impression of the product.
Deliverable: Globally, the impression was positive. The product was improved according with expert’s suggestions.
8. Impression 8. Impression
Abstract for this section:
The main goal of this step was to provide the first impression of the product, collecting the feedback opinions of the customers and experts. Different experts were interviewed in order to bring the problems and limitations of the product to our attention. Moreover, an image of the prototype was developed to make the product more tangible. In addition, a video was created to better present the problem/solution of the project.
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 20
Product/Technical Testing
Feedback:
“The surgeons praised the manipulation of the product. Its toxicity is a matter of concentration and in the used concentrations no reaction was observed.“
“Tissue regeneration was noted. We already did studies in goats and the results were also very positive.”
Miguel Gama, FUNCARB – UMinho
Market Testing
Feedback during the mid presentation:
• Very nice product and useful application • It was the best presentation and a good teamwork. Slides well organized • Need to explain better the IP • Should explain better other possible markets /drugs • Important point in terms of business models: it is a chronic situation and you will need to do repetitive injections. • You should evaluate the technology readiness level • Should explain better other possible markets /drugs • Contact: a.lopez@campus.fct.unl.pt • Business model: gel plus drug or only gel?
The Final Prototype
Dextrin HydroGel For osteoarthritis treatment
100 mL
Dextrin HydroGel injectable with adipic acid dihydrazide. Contains bioactive molecules for controlled drug delivery in osteoarthritis treatment.
Made in Portugal
Hydrogel: 20% polysaccharide s dextrin with a oxidation degree of 20% TGF-β antibody Composition:
NeoCarti
The Final Video
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 21
Introduction
Objective: To define the “glocal codes” and the business model
Deliverable: The “glocal codes” for Market, Product, Team and Industry were defined, as well as the business model Canvas.
9. Introduction 9. Introduction
Abstract for this section:
The main goal of this step was to delineate the strategy of introducing the product into the market. For that the “Glocal codes” were defined for market, product, industry and team. Furthermore, a business model Canvas was developed to define the Value Proposition, Key Partners, Key Resources, Key Activities, Channels, Customer Segments, Customer Relationships, Cost Structure and Revenue Streams .
What will be Your GloCal Code in Order to Grow?
Teams: team members with different scientific backgrounds (engineering, biomedicine, biotechnology, marketing).
For the Market : High efficient gel for cartilage regeneration applications.
For the Product: NeoCarti a natural, biocompatible and more efficient gel for cartilage regeneration applications.
For the Industry: NeoCarti made from cheap and abundant raw materials, and easy to produce.
Market Introduction
Segmentation, Targeting & Positioning: • Hospitals • Doctors (intermediaries) • Pharmaceutical drugs producers/distributers • R&D centers • Patient with knee cartilage damages Segmentation
• Hospitals (through doctors) Targeting
•Product: Basic •Price:Low Price •Promotion:Safe and Cheap •Distribution: Selective
Positioning
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 22
Market introduction
Product Premium
Price Premium
Product, Promotion, Pricing, Distribution
Distribution Selective
Promotion Prestige
Market Introduction
Business Model Canvas
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relationships
Customer Segments
Cost Structure Revenue Streams
Channels
R&D operations Marketing
FDA Hydrogel raw materials Human Resources
Regenerate knee cartilage to prevent OA through in situ application of a dextrin hydrogel. Low-cost and Biodegradable solution. Increase the efficiency of regeneration.
Businesses face to face; Keep a two‐way feedback to maintain sides’ needs; Personal delivery.
Hospitals and Clinics Doctors&Health Insurance (users/stakehold ers) Pharmaceutical drugs producers/ distributers R&D centers
Website Sales force Hospitals R&D centers
R&D costs Team Channel/Marketing costs
Product sales Hospital Assistance on the product
Starch and other materials suppliers Outsourcing manufacturing companies Pharmaceutical Distributors Hospitals Regulatory agencies FUNCARB TecMinho
Market Introduction
Comparison with an indirect competitor
NeoCarti Cartilix
Implementation
Objective: Development of the 3 M’s process
Deliverable: The Team, Budget and Calendarization were defined
10. Implementation
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 23
Abstract for this section: The main goal of this step was to operationalize the whole 3Ms process, namely the People/Team/Partnerships, Budget and Calendarization. The final elevator pitch was defined, highlighting the market problem that we will going to address and the proposed solution to solve it. Moreover, in this step it is presented the required resources for the project, what will be given in exchange to the one providing those resources, and where those resources will be invested.
10. Implementation Implementation
3Ms:
• Men (People/Team/Partnerships) • Minute (Calendarization) • Money (Budget)
Team
Miguel Gama CEO
R&D
Mário Carvalho
Cláudia Amorim
Matilde Melo
Marketing and Sales
Manuela Oliveira
Alexandra Rodrigues
Investors gathering
Miguel Gama
Partnerships: FUNCARB; Enzymatic Technology and Biomaterials Laboratory; CEB; TecMinho; CNC-Ibili; Hospital de Coimbra.
Minute – Timeline for typical Pre Clinical tests
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 24
Money Business Plan
Plan C – Change Disease/Drug
Plan D – Produce and Sell the hydrogel without drugs
Plan B – Change Partnership
Plan A – Partnership with SANOFI + Production of Hydrogel with the drug
Money
What is the deal you are offering to investors?
2nd GOAL: Partner with SANOFI for Pre-Clinical and Clinical Trials
From the Investors: We need 500 000 €
We offer: 20 % of the Company
1st GOAL: Increase value of OSTEODEX by performing the proof of concept and scale up studies
3rd GOAL: OSTEODEX will be the exclusive producer of the hydrogel for 7 years
Licensing the hydrogel for OA
From this deal we expect a profit of: 15 M$
Room for Licensing other applications
Plan A
Money Inspired by: License buying behavior of big-pharma (1996-2013)
(Nature, 2014)
Plan A Money Inspired by: Plan A
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 25
Money Financial Projections
Margin 18.6 %
-2,E+07
-1,E+07
0,E+00
1,E+07
2,E+07
3,E+07
4,E+07
EUR (Million)
Payback
Free Cash Flow
Cumulative Free Cash Flow
Selling Price
86 €/kit
Production cost
70 €/Kit
Plan A Money Financial Projections
-1,E+07
-5,E+06
0,E+00
5,E+06
1,E+07
2,E+07
2,E+07
3,E+07
3,E+07
EUR (Million)
Free Cash Flow
Investment (CAPEX)
Cash Flow From Operations Free Cash Flow
Growth Factor 10% 20%
Plan A
Money Financial Projections
Evaluation
Discount rate/ Opportunity cost of capital 15.00%
NPV (Net Present Value) EUR 10 137 043
IRR (Internal Rate of Return) 31.27%
Payback * Years 5 Years
Plan A
How come we have not seen yet?
Hydrogel developed only recently
TGF-β modifying drugs went to clinical trials only recently and have not yet entered the market
Only recently the importance of TGF-β for OA was unveiled
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 26
Final Elevator Pitch
Problem: The repair of knee cartilage, especially in osteoarthritis, remains a challenge. There are approximately 85 million patients demanding better solutions. Solution: Our product is the solution for this problem. We develop a low-cost hydrogel made of dextrin, which is a natural product, 100% biodegradable, and with excellent biocompatibility properties, that allows local delivery of innovative drugs. Amount of $500 000 for: Proof of concept and scale up studies (1 year)
Final VCF Validation

Target Market Opinion (1-5)
Experts Opinion (1-5)
Others Opinion (1-5) What to Improve?
Market
4 4 4
We should explain better the possibility of incorporating other drugs
Product
4 5 5
We should evaluate very well the technology readiness level
Team & Partnerships
5 5 5

Elevator Pitch
4 4 4

Value Creation in Technology
(Re)defining product value
Generating product value
Creating product value
Sustaining and capturing product value
© Professor Luís Filipe Lages ( this version : 12/06/2015)
Conclusion
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 27
Conclusion
All the VCM steps should be carefully followed since they correlate together in a dynamic way. Moreover, across all the process, it is crucial assembling technical, market and team knowledge from several sources and use it to strengthen the project. The experts in the field must be consulted to ask for advice and information. The brainstorming sessions should be done in a structured and productive way, in order to better build an overall picture of the project that contemplates all the necessary information and scenarios. Amongst the brainstorming, the feedback obtained from several sources, such as customers, experts, potential buyers, should be used to improve and revaluate the project or sometimes even to change the direction of the entire project. Other essential point that VCM emphasizes is the importance of the teamwork for the development of a successful idea to market. The team should be diversified in order to cover different skills and expertise. Thus, it is important to delegate different tasks according with the profile of each team element. Furthermore, this methodology highlights the importance of a solid pitch for the project promotion, as well as the importance of being concise when analysing the competition and bringing a market solution. Next stage we aim to find investors in order to start the preclinical studies. Furthermore, hospitals and clinics should be contacted for clinical trials. Depending on the results of the clinical studies and the potential of the product the business strategy may change and a possible scenario could be selling the company or the outsourced production of the product. The first market test should be the US due to its size and the structure of health organizations.
Improvement Plan Based in the Overall Feedback
• Put a higher focus on the unique selling point rather in other features.
• Be more clear in explaining technologies.
• A prototype is necessary for people to be able to visualize • our product.
• We believe it could be very beneficial to meet more people who developed similar products in other industries to get insights to how they managed to overcome difficulties and get inspired by their ideas.
Conclusion: The 10i-nova
 Major take aways: Our product has market potential, since it possesses unique features that that stands out from the competition. Teamwork is key to develop a successful market idea.  Major difficulties: To collect information about the costs associated to this specific clinical trial. To define a our market position, as well as a proper price for the product  How to improve the process? We believe it could be very beneficial to meet more people who developed similar products in other industries to get insights to how they managed to overcome difficulties and get inspired by their ideas.  Lessons learned from the whole project. It is crucial to focus on a certain market segment we would be most beneficial to. The feedback of experts and our constant revaluation were very important to improve the project. Finally, we realized how important competitor analysis is since our market is very dynamic and full with ideas and innovations that pop out very frequently.
Checklist of primary sources used during the whole VCF project
x
#Step(s) of the project
Data collection methods:
• Direct observation X 7
• Focus groups
• Interviews X 3
• Online surveys
• Prototype testing • Visits to FabLabs /Incubators • Written questionnaires
• Other(s): ____
Data sources:
X
Step(s) of the project
• Companies
X 4, 10
• Competitors
• Consumers
• Developers
X 3,7
• Entrepreneurs
• Experts
X 5-7
• Investors / B.Angels • Suppliers
• Users
• Other(s) ______ X 9 NOTE: The list of primary sources should be indicated in these tables and be explained in the bottom of the slides where it says “click to add notes”.
Do not distribute any part of this material without permission
13-06-2015
Professor Luis Filipe Lages www.lflages.com 28
The Value Creation Radar
An Example of an Application of the Value Creation Radar (VCR) and Value Creation Framework (VCF) developed by Professor Luís Filipe Lages
12th June of 2015
© Professor Luís Filipe Lages (do not distribute any part of this material without permission)
TO GET YOUR ASSIGNMENTS DONE AT A CHEAPER PRICE,PLACE YOUR ORDER WITH US NOW