Financial Plan

SAPHVIDTM : For Early detection of Pre-eclampsia

Ms. H. Gwani Ms. S. Jain Ms. V. Varkey Mr. A. Awosusi Mr. D. Igwe Mr. P. Waghmare

Mission: To provide innovative point of care diagnostic products for early detection of pregnancy related disorders Vision: To become the leading experts for providing diagnostic solutions in the field of obstetrics

 10% of all pregnancies Costs global health care system 2 billion GBP/year Pre-mature births (UK): 300 million GBP 8 deaths/year (UK)

*National Health Services, 2009

TM

Technology: Involves three biomarkers: sEng, Plgf and sflt. Intended Use:
Early detection of Pre-eclampsia.

Device Used:

Triage Meter

To determine capital structure (Operating budget) To help the company frame financial policies as regards cash control, lending and borrowing To aid maximal utilization of the limited resources made available to the company To determine the NPV of G7 Diagnostics To forecast the profit for the forthcoming years To obtain the cash flow pattern & determine time for break even To decide G7 exit strategy

G7 uses the Last in first out (LIFO) strategy for marketing in UK

Straight line depreciation

R&D, Clinical trials and Regulatory approvals: 7 years Manufacturing and sales (sub-contracted): 8th year- 13th year

Annual depreciation rate on the capital items: 15%

Corporation tax rate: 18% Partnered with Alere Inc. (Device manufacturer)

Gantt Chart
ACTIVITY

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13

Development (internal) GMP manufacture pilot scale (subcontracted) Clinical trials (subcontracted) Regulatory approval (subcontracted) Full scale GMP manufacture (subcontracted) Internal Quality Control and Customer Support (internal)

Patent filing schedule Patent 1 File PCT National Europe USA

Starting sales prices GBP per unit (GBP): Country/ Region

UK
Europe China USA

40
40 37 42

India
Africa

35
35

Cost per unit to manufacturer: 8th year: 2.50 11th year: 2.40 reduces further by 0.05 per annum thereafter.

KEY PERFORMANCE IN

Sales Volume
350

300
No. of units (000)

250 200 150 100 50 0 year 8 year 9 year 10 year 11 year 12 year 13
Years

UK Rest of Europe China USA India Africa

Sales revenue

12,000 10,000
Revenue GBP (000)

8,000 6,000 4,000 2,000 0

UK Rest of Europe China USA India Africa

Year 8

year 9

year 10 Year 11 Year 12 Year 13

Years

Retained profit/ loss

25,000

20,000

15,000

GBP '000

10,000

RETAINED PROFIT / (LOSS)

5,000

(5,000)

10

11

12

13

RETAINED PROFIT / (LOSS) (304) (169) (335) (429) (526) (243) (315) (415)

214 1,956 6,386 12,16520,976

Year

Cummulative Cash flow (2011- 2023)

45000 40000 35000 30000
15000 25000

Cash flow (2011-2023)

CUMMULATI VE CASHFLOW

20000

GB Pounds

25000 20000 15000 10000 5000 0 -5000 1 2 3 4 5 6 7 8 9 10 11 12 13 Year

-5000 5000 10000 CASHFLOW

BREAK-EVEN POINT
0 1 2 3 4 5 6 7 8 9 10 11 12 13

Year

Year
1 2 3 4 5 6 7 8 9 10 11 12

Cash flow GBP( 000)

(383.9) (212.4) (368.6) (450.3) (536.3) (191.8) (294.4) (395.1) 219.6 1,953.5 6,383.9 12,162.3

Cumulative Cash flow GBP( 000)

(383.9) (596.3) (964.9) (1,415.2) (1,951.5) (2,143.3) (2,437.6) (2,832.7) (2,613.1) (659.6) 5,724.2 17,886.5

Pay back period:

10 years+ (1954/ 6384)

Approx. 10 years and 4 months

13

20,973.6

38,860.1

Costs GBP ('000)

700 600 500 Cost GBP ('000) 400 Costs GBP (000) 300 200 100 0 1 2 3 Years 4 5

Total research expenditure

400 350 Cost GBP (000) 300 250 200 150 100 50 0 1 2 3 4 5 6 Years (2011-2023) 7 8 9 10

11

12

13

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13

Head count CSO Design consultant Scientist (Ph.d.) Scientist (B.Sc.) CEO Assistant General Manager Assistant QC maufacturing manager Assistant Assistant Finance Manager Assistant Business Develoment Analyst Sales and Marketing director Assistant 1 Assistant 2 Customer support Officer Assistant Sales and order officer

activity Till pilot scale GMP Till pilot scale GMP Till pilot scale GMP Till development Entire project From pilot scale Entire project Entire project Varies From manufacturing From manufacturing Entire project 1 year before sales

Duration (year) 5 5 5 5 13 3rd year 13 2nd year 4-5 year and from 8thyear 8th year 11th year 13 years 7th year

Salary per annum 55,000 950 per day 26,000 20,000 70,000 23,000 55,000 18,000 55,000 18,000 18,000 55,000 18,000

Working pattern 2 days per week during research, 1 day per week for manufacturing 2 days per week Full time Full time 1 day per week 1 day per week 2 days/week 2 days/ week Full time Full time Full time 1 day per week 1 day per week

14
15 16 17 18 19 20

Entire project 1 yr. before start of product manufacture Same as director Same as director After sales and marketing When sales start Year when sales start

17
7th year 8th year 9th year 8th year 8th year 8th year

50,000
55,000 18,000 18,000 25,000 18,000 25,000

1 day per week

2 days per week Full time Full time Full time Full time 1 day per week

2011-2023 Total Managemt/Admin cost ('000)

800.00 700.00 600.00

Cost in '000

500.00
400.00 300.00 200.00 100.00 0.00 1 2 3 4 5 6 7 Year 2011- 2023 8 9 10 11 12 13

S.No.

Phase

Duration (years) 3.5

Estimated Cost involved GBP (000) 1,273

Research and development GMP pilot scale manufacture Clinical trials Regulatory approval

1.5

781

3 4

1.5 0.5

409 160

Full scale GMP manufacture

3,846

 Exit at the end of 13th year Reasons: - Enough profit to cover all the expenses - Fierce competition - New upcoming technologies Possible acquirers: Alere, Roche, Perkin Elmer

 According to our financial analysis: Break even: 10th year At the end of year 13:
Sales: GBP 42.8 million Net present value: GBP 11.1 million Cummulative Cash flow: GBP 38.8 million