CRYOFLUX

Case Prompt

Your client, Nexus 3 Capital is an EU based venture fund that invests in attractive early medical devices technologies in hopes to quickly gain a positive ROI. Nexus 3 is evaluating whether to invest in a joint venture with the Charité Institute to fund a new therapy for acute hemorrhagic stroke (“AHS”) called CRYOFLUX. Nexus 3 wants to know if they should invest in this technology?

Case Background:

• Client/Company information: Nexus 3 focuses on funding technologies that gain positive ROI within 3 years. Nexus 3’s strategy is to develop the technology to the point where a strategic buyer (i.e. Siemens Healthineers) would want to buy the technology from them.
• Industry/Competition information: Acute Hemorrhagic Stroke is a disease that can be deadly and can cause ER stays of up to months.
• Product information: CRYOFLUX provides therapeutic relief by cooling the brain. It has been extremely successful at treating animal AHS, reducing mortality rates in AHS from 90% to <10%. The technology is patented by Charité Institute. This therapy is a medical device, and the patient still needs to take additional drugs, etc to fully recover from AHS.
• Value Chain/Revenue information: Medical Device manufacturers revenues’ rely on insurance reimbursements. The industry is highly competitive and innovation is a clear competitive advantage. Interviewees should keep in mind regulations in healthcare.

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General response summary

General Framework Buckets:

• Market
  • AHS Market Size and Growth
  • Consumer Base:
    • Physicians
    • Insurance Companies
    • Patient effect / Comfort
  • Current Standard of Care
  • Competitive analysis in:
    • Care level
    • Development cost
    • Pricing & Patents
• Product
  • Economics:
    • Investment Required
    • Potential Market Capture
    • Pricing
  • Characteristics:
    • Product Value Add
    • Substitutes
  • Team
    • Team expertise to develop the technology
    • Trust and confidence