Posts Tagged ‘investor’

MedTech Investor: Check Out the Assumptions of Our Minimum Viable Product Scenario

August 2, 2016

Warhol, Andy, Dollar Sign, 1981Some time back, I published here a blog post titled “The Ovulona is not another ovulation kit, my dear” in response to a Jennifer K. who had written: How is this different from the other ovulation kits on the market today? It seems very similar to products I have seen before. At the time, my blog posts were addressed to all the fertility info-seeking Jennifers (and Jeffreys, too) out there in the social networks but not particularly to the women’s healthcare technology investors.

Now it’s the latter I am reaching out to. See the bioZhena pitch at

And I refer to Home Page of bioZhena’s Weblog to be reviewed in connection with the business assumptions. (Or, for a quicker and probably lighter intro, go to Reproductive Health IQ Does Matter, a LinkedIn post.)

In the present post, we present the bioZhena Business Assumptions in terms of the Total Available Market (TAM), the Serviceable Available Market (SAM) and the Serviceable Obtainable Market (SOM). This is to draw attention to the big picture that emerges even in the Minimum Viable Scenario (MVS), the detailed assumptions of which have been worked from bottom up (with due attention to the TAM, SAM and the SOM) and will be shared when appropriate. bioZhena Corporation’s goal is to implement the Full Value Scenario that was constructed based on the MVS. More on this in the closing paragraph of this post.



US Trying-To-Conceive (TTC) Serviceable Available Market $$ (at the TTC mean cost of $2,600 p.a.) is $21,320,000,000

US Serviceable Available Market $$ (at the TTC minimum cost of $200 p.a.) is $1,640,000,000

US Initial Off-Label Birth Control Serviceable Available Market (SAM) $$ is $82,492,000


FIRST PRODUCT SALES IN MONTH 16 POST FUNDING (first product application already FDA-cleared)


Summary Comparison of Minimum Viable Scenario (MVS) with Full Value Scenario (FVS)

FVS compared with MVSClick on the image for better legibility

(the URL is: )


And now for the assumptions – with pictorial embellishments for dividers.

Listing sources of market data (with some comments) followed by the resulting numerical market size assumptions.

‘Satyre et Bacchante’ by Jean-Jacques Pradier, marble, Palais des Beaux-Arts, Lille.

‘Satyre et Bacchante’ by Jean-Jacques Pradier, marble, Palais des Beaux-Arts, Lille.


Birth Control (BC) Market

CDC 2014 survey: 61.7% of the 60.9 million US women ages 15-49 practice contraception (= 37.6 million contraceptors), and of these 48.1% use the most common methods (the pill, sterilization, condoms, and long-acting reversible contraceptives). That leaves 38.3% or 23.32 million non-contracepting women. Trends in Contraceptive Use Worldwide 2015 Report, Annex Table II: Number of US married or in-union women using contraception = 28,600,000. Number of US women who have an unmet need for family planning = 2,560,000. Worldwide number of women using contraception is 758,000,000 and the number of women who have an unmet need for family planning is 142,000,000 (these are median data as of 2015). Couples often desire to control not just the number of children, but also the timing. We address this desire or need by design.

Next, per Guttmacher Institute 2016 fact sheet, nearly half (45% or 2.8 million) of the 6.1 million pregnancies in the U.S. were unintended in 2011 (and 42% of those ended in abortion). Contraceptive failure rate plays a big role in this. Meaning that, for 2.8 million of the 37.6 million contracepting women, their method fails (and they seek a solution). 43 million US women were at risk of unintended pregnancy in 2008. (Public expenditures on unintended pregnancies nationwide were estimated to be $21.0 billion in 2010.)

For this Minimum Value Scenario, the conservative assessment of the number of US women in the birth control market is to choose between the 43 million at risk in 2008 and the 2.8 million of unintended pregnancies in 2011 plus the 2,560,000 who have an unmet need for family planning. We choose the latter, which is much smaller, i.e. 2,800,000 plus 2,560,000 = 5,360,000 as the number of US women in the family planning (BC) market segment for our Serviceable Available Market. Indisputably conservative.

US costs of personal birth control average $1,006/year (Health Aff (Millwood) 2015 and 2012). Since average ACA saving was 20%, then 100% = $ 251.5 times 5 = $ 1,257.50.  So, $ 1,257.5 – $ 251.50 = $1,006. (ACA = Affordable Care Act.) Double-check the reasonableness via this tweet.

Hence Our Birth Control (BC) Numerical Assumptions For the Minimum Value Scenario Are:

Number of US Women in the family planning (BC) market is 5,360,000

US Serviceable Available Market (SAM) $$ is $5,392,160,000

Worldwide Number of Women in the family planning (BC) market is 758,000,000

Worldwide Total Available Market $$ is very large even with only the unmet-need number of 142,000,000 women

E.g. if the estimate is based on the above US cost average, TAM is $142,852,000,000

Oh joy  Found on


Initial Off-Label BC Market Upon the Ovulona Launch Assumed At 1%

Commercial market research compendium reports: The Trying-To-Conceive (TTC) tests are utilized for the unauthorized off-label use of aiding women’s natural birth control practice.

Quote: “About Half Who Use Tests Do Not Want Pregnancy”.


Here we assume only 1% of the 8,200,000 US Fertility-Impaired Women Ages 15-44 (see below the CDC data on the TTC market), which is 82,000 women, translating at the assumed mean annual BC cost of $1,006 into an off-label $82,492,000 SAM upon the Ovulona launch into the TTC Market. To reiterate, we assume that 1% of those in the market for a tech tool aiding conception are in fact in the market to help themselves to avoid pregnancy by fertility awareness and will be off-label Ovulona users as soon as the Ovulona becomes available in the marketplace.

This is a reasonable conservative assumption in view of the 69.5 million US Catholics (the largest religious body in the United States) comprising 22% of the population[1] as of 2015. The assumed 82,000 women represent a mere 0.1% of the Catholic population. See an example of unsolicited expression of interest in the Ovulona from a US Catholic. Ovulona market research with 5,000 US women revealed that 70% of those who would buy the Ovulona would switch from their present contraception method.

The assumed SAM number of $82,492,000  represents 30.5% (but read on) of the annual retail sales of ovulation prediction kits (OPKs or LH kits) in the U.S. as they were reported in 2008/2009 when OPKs outpaced the annual sales of home pregnancy tests. The NYT article at cited the annual OPK sales data of $270 million from IRI (Information Resources, Inc.). They derived it from in-store scanners at the retailer level for all of their major CPG clients (Consumer Packaged Goods companies) except for Wal-Mart. This info courtesy of Edward Saettone (via Linkedin Answers).

At annual growth rate of over 10% for personalized diagnostic tools (per PricewaterhouseCoopers), this suggests a SAM over $560,000,000 in 2016, and the assumed off-label SAM of $82,492,000 then represents ~15% of this documented and extrapolated figure for annual sales of OPKs in 2016. The SAM percentage (~15%) will be further reduced by the sales of the electronic ovulation predictor tests that have entered the market in the last decade or so.

For the worldwide assumption we take as base 6% of the worldwide number (758,000,000) minus the number in least developed countries (60,800,000) because: 1.  Only 6 per cent of married or in-union women worldwide used rhythm or withdrawal in 2015 (per …/trendsContraceptiveUse2015Report.pdf), and 2. it is well known that especially this sub-population of women (and men) keep looking for a better tool to help them practice fertility awareness/natural family planning.  6% of 697,200,000 = 41,832,000.

Hence Our Numerical Assumptions For the Minimum Value Scenario Are:

Number of US Women off-label users upon device launch into the TTC Market segment (below) is 82,000

US Off-Label Serviceable Available Market $$ is $82,492,000

Worldwide Number of Women off-label users upon device launch is 41,832,000

Worldwide Total Available Market $$ is very large

E.g. if the estimate were based on the above US cost average, TAM is $42,082,992,000

 pregnant 2


Trying-To-Conceive (TTC) Market

CDC PUBLIC HEALTH GRAND ROUNDS 2015, slide 36 titled “Impact of Lack of Insurance on Decision-Making”: Non-ART: $200 – $5,000 (and IVF: $10,000 – $15,000). Out-of-pocket costs can be substantial and impact patient decision-making and risk-taking – referring particularly to the IVF. (ART stands for Artificial Reproductive Technologies such as IVF, In Vitro Fertilization). We take $2,600 as the mean annual cost of TTC (Trying-To-Conceive, non-ART).

CDC Reproductive Health data last updated 2015: Number of US women ages 15-44 with impaired ability to get pregnant or carry a baby to term: 6.7 million or 10.9%. Number of US married women ages 15-44 who are infertile (unable to get pregnant after at least 12 consecutive months of unprotected sex): 1.5 million or 6.0%. The sum of the primary and secondary infertility sufferers in the U.S. is 8.2 million women.

NIH Analysis of 277 Surveys 2012: Worldwide in 2010, 48.5 million couples were unable to have a child, of which 19.2 million couples were unable to have a first child (primary infertility), and 29.3 million couples were unable to have an additional child (secondary infertility, and the figure excludes China). Due to population growth, the number of couples suffering from infertility has increased since 1990, when 42.0 million couples were unable to have a child. Also, from WHO Evaluation Of Surveys 2004: More than 186 million ever-married women of reproductive age in developing countries were maintaining a “child wish”, translating into one in every four couples or 25%. We note this but opt for the NIH data, above.

Hence Our TTC Numerical Assumptions For the Minimum Value Scenario Are:

Number of US Fertility-Impaired Women Ages 15-44 is 8,200,000

US Serviceable Available Market $$ (at the TTC mean cost of $2,600 p.a.) is $21,320,000,000

US Serviceable Available Market $$ (at the TTC minimum cost of $200 p.a.) is $1,640,000,000

Worldwide Number of Women Who Are Unable to Have a Child is 48,500,000

Worldwide Total Available Market $$ is very large

E.g. if the estimate were based on the US non-ART cost average of $2,600 (see above), TAM is $126,100,000,000

Boatswain is piloting the Eagle to the dock


In closing, the reader is reminded that the above are the Assumptions for the bioZhena Minimum Value Scenario (Minimum Viable Product Scenario), which scenario represents the proverbial “low hanging fruit”. This is because our core product’s first application has FDA 510k clearance for aiding conception & generating diagnostic menstrual profiles for physicians. Our goal is to pursue the Full Value Scenario of the bioZhena Business Plan because of the potential of the bioZhena technology – summarized in the single slide here (the URL is ). Aiming to go well beyond personal reproductive management (which is, admittedly, where it all started, as evident from the whole bioZhena’s Weblog and other web presence).

And for Investors – PPM at

Might check out first  Home Page of bioZhena’s Weblog

The Elevator: Swiss VC/PE deal-maker offers bioZhena to their investors

December 7, 2007

The Elevator, “The Magazine for a Wealth of Opportunity”, December 2007


This post is about the integral and unavoidable aspect of project development – seeking development capital. The title could conceivably read “From Switzerland With Love”, if a play on words were intended. Such as the name of The Elevator magazine is a reference to the phrase “elevator pitch”, a standard concept in the venture capital/private equity arena (meaning a very brief introductory pitch of the investment proposition; The Elevator articles are naturally somewhat more extensive than that).

The editor of The Elevator reviewed and published bioZhena after we responded to their invitation, “Seeking Deals to Fund”, .

The Elevator (“The Magazine for a Wealth of Opportunity”) is an impressively produced electronic magazine, attached. On page 3, the editor writes: “…since our first issue in March 2006 we have reviewed over 300 projects and retained 60 of them as features. More than 10,000 individuals have seen The €levator ; we’ve had a great diversity of projects, much interest and several deals closed over the past 12 months. … I invite all our readers to become active members of our investor’s forum …“.


Here are the headlines from the magazine’s title page, featuring a partial list of contents, and bioZhena is one of these featured listings:

  • How to open your own fund. An introduction by the experts of JP Fund Services
  • bioZhena. The turnkey technology for birth control
  • VentureLab. The professional matching platform
  • The Village Barbados. Prime Luxury Retreat seeking USD 31 million

The interesting thing about this presentation of bioZhena, by the Geneva-area international business VC/PE deal-maker, is their risk scale. We see a scale with 6 colors, from green and light green, through yellow, then light pink and dark pink, and finally the highest risk level is red.

The editor indicates the risk level of the bioZhena proposition as between light green and yellow (or level 4 on a scale of 1 to 11). This is the same as that of the real estate deal “The Village Barbados”, and it is better than the level 5 [yellow] risk level of the VentureLab deal, and it compares favorably with the various other listings in this December issue of the Elevator. Only the Yacht Club Mediterranean and the Castellan, New York real estate deals are assessed with lower risk levels, 2 and 1 respectively.

It is also interesting that bioZhena’s risk level is assessed the same as that of DealFlow, Toronto – “a television series that captures the drama and sport of global business as seen through the eayes of dealmakers”. DealFlow “is currently seeking US$620,000 in a US$875,000 Private Placement Offering of Convertible Preferred shares at US$20.00 per share”.

bioZhena’s investment opportunity is described as follows:

Investment Volume: Up to $ 15 Million (current Offering for $3M plus 1-year $3M Warrant)

Est. Return on Investment: 100%+

Est. Duration: Approx. 3 Years

Minimum Investment: $250,000 or a portion thereof at Company’s discretion



The Elevator, “The Magazine for a Wealth of Opportunity”, December 2007

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