Kate Dilligan Presents Cooler Heads at LSI USA '23

Transcription

Kate Dilligan  0:05  

Good morning. This is Congressman Jamie Raskin at a congressional hearing last month. He's currently undergoing chemotherapy for lymphoma. As you can see, he's wearing a bandana. And he actually talks a lot about how some people look great bald, but he really isn't one of them. And here's the thing. This bandana represents to everybody, including him that he's sick. And this is a huge deal for cancer patients. Because hair loss from chemotherapy is a massive red light to the entire world that this patient is undergoing a massive medical crisis, and it prevents them from going about their day to day life as they would prefer to. And there is a solution for hair loss from chemotherapy. It's a therapy known as scalp cooling, which is known to be safe and effective. The challenge with this therapy is to date, it has been prohibitively expensive. It doubles the amount of time a patient is in an infusion chair, decreasing patient workflows, so it simply isn't financially feasible for most infusion centers to offer it. In addition, the model to date has been cash pay, it's been incredibly expensive for patients between two and $8,000 out of pocket, and the systems don't fit well. So patients often wind up with patchy bald spots which is just as disfiguring is going bald, which is the opportunity that we seized. We last year when commercial with a product we call Alma, which is the first portable, affordable and scalable solution for scalp cooling. Omma is designed so that when patients are done with their chemotherapy infusion, and they have several hours of therapy left, they get up and they complete their treatment someplace else in the waiting room in the atrium, and they cafe and sometimes even at home. Our patented cap system is designed to have superior fit, improving overall patient outcomes. And here's the real kicker, Medicare is now reimbursing for scalp cooling. So our business model not only doesn't change patient workflows for the infusion centers, but we now actually make this therapy profitable for them. So how does this work? What what how, what is this magic hope we providing. So our portable cooling units are sold to infusion centers at an average sale price of $11,000. And each patient needs their own cap system which we sell for $1,100. The machines are designed to be in service for about five years, hence the service contract for years two to five. Well, with Medicare reimbursement of $1,850, the portable cooling unit is paid off after the first 15 patients and since each machine should be able to treat a minimum of 30 patients a year. Within the first year, our machine is profitable for infusion centers returning almost $100,000 over the useful life of the machine. And so what that means for us as cooler heads we're generating for each of these systems $180,000 over their useful life. And this is really key for us because we're truly taking this therapy from being what I like to refer to as the redheaded stepchild of oncology for something that finally is really profitable and scalable. So we currently are commercial on the market. Our target this year is to sell total of 90 systems. Well, when you take that math about our recurring revenue from the sale of CAP systems, that leads trailing revenue over the next five years just for our first major year of scalable sales, over $16.3 million, which is a pretty great business. And what's very exciting for us is since we went commercial in the second half of last year, we've just had outstanding traction. We have signed a deal with McKesson that makes us the preferred provider of scalp cooling for us oncology, the largest private oncology network in the United States that touches over 30% of all cancer patients in the US. And in addition, over 80% of our first accounts are Greenfield accounts and actually we just got the Christ Hospital in St. Roper in South Carolina yesterday. So I couldn't update my slides. But what's really exciting is we're already growing this market. We're taking it therapy that really has been relegated to the major, you know, the major research institutions and bringing it to Tucson, Arizona, to Marietta, Georgia to Dubois, Pennsylvania. This is something we we truly I mean, everybody here is talking about democratizing access to health care. We're now making it possible for patients to have an affordable solution that allows them to control their privacy and their identity when they're going through a health crisis. And we're not just stopping with scalp cooling and So, fundamentally, patients want to have control when they're going through a cancer diagnosis. And we're developing an app that is going to be providing patients with coaching tips and tricks all throughout chemotherapy to how they can increase their hair preservation and get the best possible outcome and scalp cooling. We're going to leverage that connectivity that we have to the patients by developing our app to also include opportunities for us to start capturing patient reported outcomes that will then integrate into the electronic health records, providing the practitioners, their healthcare providers with information about how the patient is doing and those 1 2 3 weeks in between each chemo infusion. When patients are just sort of out in the wild and trying to cope the best that they can. It is extremely common for cancer patients to have interruptions in treatment, because they don't rebound well enough from chemotherapy, you have to postpone subsequent treatments. So our goal with our PR o platform is to start by mid next year flagging patients who are truly struggling to continue to help infusion centers and their healthcare providers provide them a with better care, but be reducing costs by reducing a lot of the waste and rescheduling time that goes into chemo. So does this work? Yes, it does. And so I'm really happy to show you just two of our case studies. We've seen truly outstanding outcomes for patients since AMR went commercial last year. And the feedback that we're getting from patients has been overwhelmingly positive. And we're actually at a bit of a crunch point because we get so much incoming from patients. We're kind of we're having the good problem to have that startups have of needing to build inventory even more quickly. So my name is Kate Gilligan. I'm a cancer survivor, but I'm also a Stanford MBA and I'm a serial tech entrepreneur. And so I found a cooler heads based on my experience as a cancer patient, identifying the disparity between the outstanding care that you get from your clinical team, but the complete lack of support that currently exists for patients dealing with complex side effects. Ryan Denny, our Chief Commercial Officer has been med device sales professional his entire career and he built the sales organization from Veron from zero to over $30 million, which exited to Olympus for over $340 million in 21. And Dan Glazman, our head of engineering has been doing med device engineering his whole career both at you know, big companies like Medtronic, but then scaling startups. So we're cooler heads. I look forward to talking to you about potential partnership opportunities because we believe truly that your identity matters. Thank you