MedNexis, Inc., (the company), is a medical device design company that has developed and patented medical devices. It plans to produce these devices and sell them. With the help of top medical professionals and biomedical engineers, a magnetic muscle stimulator/field generation device was developed. One patent is initially incorporated.
Allopathic Medicine
One market addresses the unanswered question of atrophy prevention/treatment in conditions that lead to patient immobilization for more than two week. After two weeks of immobilization, the average muscle loses over 30% of its mass, resulting in an increased time to complete recovery. The MedStim system is a new, innovative device that addresses this need for an effective and simple-to-use atrophy prevention/treatment tool. As more research becomes available on the potential benefits of pulsed magnetic field fields, it is likely that this device will have many more uses. Recent studies have demonstrated that pulsed-field magnetism is an effective treatment for accelerating the healing and prevention of skeletal bone fractures.
The market for magnetic stimulation devices in allopathic medicine is existent, but in the embryonic stages and subject to explosive growth once the technology proves cost-effective. The potential market reached approximately 4.2million patients in the United States. MedStim is the name of the new, innovative device that targets this market.
Alternative Medicine
Another market addresses a need in alternative medicine for a device that will generate a stronger and more consistent therapeutic magnetic field. Dynamic magnetic therapy, which is the treatment of soft tissue using magnetic pulses, has been proven to have beneficial effects in alternative healthcare. These effects are believed to be proportional with the magnetic field strength. The TheraMag system is an innovative new design that addresses this need for a stronger therapeutic magnetic field in alternative medicine. The market exists and it is estimated that there will be approximately 40 million US customers by the time we start.
Technology
Patent applications for the company’’s first market entries were filed with a patent agent that specializes in biomedical device and patent patents. MedNexis’#8217 technology relies on the principle of a current flowing through a coil creating a magnetic field that will in turn generate a current in any conductor material within the field. This model has been used in diagnostic studies. Only single nerves have been stimulated with magnetism. MedNexis created an electromagnetic device to painlessly stimulate muscles to contract by using this model. These are just a few of the many possible uses of this technology.
MedNexis’#8217’s patent device will be specifically tailored to stimulate muscle. This will require greater electrical currents and greater functionality. This device will be used in mainstream, allopathic medicine.
TheraMag MedNexis’#8217’ patented device will use magnetic fields to bathe tissue without causing it to contract. This device will be used in other applications.
Strategy
MedNexis aims to target the two markets of alternative and allopathic medicine. The devices will be named separately in order to distinguish them from possible negative connotations associated allopathic medicine.
MedStim distribution will be through large distributors. This will make it easier to gain acceptance in this market. Physicians will also demand controlled, randomized study data. This will be the main focus of MedNexis’#8217’s early efforts in this market.
TheraMag will be distributed in alternative medicine centers that are less centralized and direct sales of TheraMag will also be possible. This market will require less scientific proof, and access to the market will be instantaneous once the FDA issues an Investigational Device Exemption.
Regulatory issues
Achieving an Investigational Device Exemption is necessary in order to clearly label the product.
For Investigational Use Only,†FDA regulations will be satisfied and market entrance will be expedited. The acceptance of these products will dramatically increase demand and expand foreign markets.
Milestones
Research and Development in the Animal Stages is underway, early Year 1.
- Expand patent coverage to Australia and Canada in the middle of Year One
- Human clinical trials underway, middle Year Two.
- Published research studies, End of Year 2.
- TheraMag is on sale at the close of Year 1.
- MagnaStim is available for purchase, marked ‘For Investigational Purpose Only’ at the end of Year 2.
- Year Four sees the establishment of profitability.
Competitive advantage
While the MagnaStim and TheraMag devices are effective and user-friendly, with multiple home healthcare applications, all the competing devices currently on the market are only partially effective or difficult and awkward to use for the recommended therapeutic treatment. MedNexis will utilize its patented designs in order to meet the market demand for a simpler, more effective magnetic stimulator/field generation device.
Financial
Based on financial projections, the company can operate profitably in Year 3 if it gets $750,000 of funding. The company projects $23.5million in sales with a remarkable net profit in Year 3. These projections are based on penetration of less that 3% in each market segment.