288 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
Confidential
In
formation
e information in this Business Plan is the confidential and proprietary writ-
ten property of PolyMedica Industries, Inc. (“PolyMedica” or the “Company
”)
and is being submitted to prospective investors in the Company solely for each
investor’s confidential use with the express understanding that, without, prior
written permission of the Company, those persons will not release this docu-
ment, discuss the information contained herein, or make reproductions of or
use this Business Plan, for any purpose.
By accepting delivery of this Business Plan, a prospective investor agrees t
o
promptly return to the Company this Business Plan, and any other docum
ent
or information furnished, and all copies of any of the foregoing, if so requested
by the Company.
Confidential PolyMedica Industries, Inc.
Writing a Winning Business Plan ◾ 289
THE COMPANY AND ITS PRODUCTS
CO
MPANY HISTORY
e Company was seed funded in November 1989, under the name of Emerging
Sc
iences, Inc., to commercialize a proprietary family of polyurethane elastomers which
ca
n betailored to specific products. Application of these polyurethanes includes controlle
d
me
dical and cosmetic delivery systems as well as a wide range of other industrial products
.
It
s initial round of financing was provided by Commonwealth BioVentures, Inc. in the
am
ountof $400,000 and enabled the founders to secure a facility and prove the technology.
Ea
rly success brought about cooperative projects with a number of large cosmetic and
me
dicaldevice joint-venture partners.
In June 1990, Emerging Sciences, Inc. secured an additional $2.4 million of financing
wh
ich enabled the Company to purchase the assets of a former public company called Matri
x
Memb
ranes, Inc. (“Matrix”). Matrix had developed a wound dressing product based on
a
complemen
tary aromatic polyurethane technology. This acquisition broadened the technical
ba
se of the Company and brought a unique capability to tailor polyurethanes to numerous
me
dical applications. In July 1990, the name of the Company was formally changed to
Po
lyMedica Industries, Inc., to clearly reflect its core technologies. PolyMedica manufactures
pr
oducts based on aromatic or aliphatic polyurethanes and solutions or solid polymers, as well
as
photopolymers and heat-cured polymers.
ST
RATEGIC MISSION
PolyMedica is committed to leadership in advanced polymer technology and it
s
a
pplication to growth businesses. e Company can formulate and manufacture
po
lyurethane-based products to solve problems where no other material is suitable.
e polyurethanes which PolyMedica can synthesize have unusual physical an
d
chem
ical properties which are tailored to the special needs of the medical field and other
hi
gh technology industries. Our ability to customize complex polymers, and the processes
to
manufacture them, is unique. e Company has a broad technical base which include
s
th
e ability to manufacture raw materials. ese skills position PolyMedica to tak
e
ad
vantage of new and rapidly growing medical, personal care and industrial markets.
Confidential PolyMedica Industries, Inc.
290 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
FACILITIES
PolyMedica currently has two combination manufacturing and laboratory facilities located
at
separate sites. One is in Woburn, Massachusetts (9,000 sq. ft.) and the other in Wheat Ridge
,
C
olorado (10,000 sq. ft.). e Woburn plant will manufacture UV curable, aliphatic polymers
wh
ich are formed as films and microparticulates. e Company took possession of the Woburn
fa
cility on November 1, 1990. Under the terms of a five year lease, the Woburn facility was buil
t
to
PolyMedica’s custom specifications. e equipment will consist of mixing tanks, film forming
eq
uipment, an irradiation chamber exposing the product to long wave length UV light, an
d
gran
ulators. e manufacturing process transforms the proprietary chemical formulations into
thin
layers of polymer which are then used as films or microparticulates. e products which will
be
manufactured at the Woburn plant are currently being developed with major pharmaceutical,
pe
rsonal care and industrial partners who are seeking to apply the technology for the products i
n
su
ch areas as implants, transdermal patches, vascular grafts and cosmetics.
e Wheat Ridge, Colorado facility manufactures Mitraflex
TM
wound dressings and
de
rivative products. e types of equipment in place consist of chemical reactors, customized
castin
g and polymer forming machinery, d ie c utting equipment, a nd pouching and sealing equip-
men
t. is equipment is used to prepare and transform proprietary polyurethane formulations
an
d manufacturing processes into the various layers of the wound dressing (namely, membra
ne,
top
thin film layer, and adhesive). ese three layers are laminated together to form the unique
Mi
traflex
TM
wound dressing. After the product is die cut, pouched, and boxed, it is sent to
a
contract sterilizer where it receives appropriate gamma radiation before being shipped to
cust
omers.
e Company uses materials requirement planning (MRP) systems for its manufacturing
op
erations, with appropriate financial and cost accounting reporting.
PE
RSONNEL
e Company currently employs 24 people.
PR
ODUCTS
PolyMedica can design and manufacture polyurethanes as liquids, solids, films, particles
an
d membranes. e Company’s products can be broadly classified into wound care, biostable
po
lyurethanes, microparticulates, and photopolymers. e following is a discussion of each of
th
e Company’s products.
Confidential PolyMedica Industries, Inc.
Writing a Winning Business Plan ◾ 291
1. MITRAFLEX
TM
WOUND CARE PRODUCTS
1.1 General Description of Wounds
A wound is a disruption in the anatomy or physiology of tissue. Wounds are caused either
su
rgically or accidentally as in burns or trauma. ey vary in severity from minor scratches to
compl
icated trauma.
Wound management has developed rapidly i n the past few years w ith the advent of new woun
d
dr
essings and a better understanding of the physiology of wound healing. Implementation by the
Fe
deral Government of new regulations for medical reimbursement increases the opportunit
y
fo
r innovative products that speed wound healing in hospital situations. In addition, deman
d
fo
r wound care products has expanded in alternative sites such as nursing homes and individual
pa
tient homes.
1.2 Decubitus Ulcer Wounds
Decubitus ulcers, or pressure sores, are common complications in bedridden patients
.
ese ulcers are caused by unremitting external pressure that impedes blood flow to
su
rrounding tissues and results in necrosis. PolyMedica’s wound dressings are especially effec-
ti
ve in treating this common type of wound.
Approximately 70% of all pressure sores occur in elderly patients. e cost of treating
de
cubitus ulcers is surprisingly high. However, government payment for therapy treatm
ent
th
at usually requires 15 inpatient days is only $6,500, or $430 per day. is funding level does
not
cover the room cost and medical supervision to treat this serious problem. ere is no
pa
yment for hospital-acquired pressure sores and when these occur in hospitalized patients,
th
e hospital facility must underwrite the expense of the treatment.
Pressure sore development can become a malpractice issue if the wound develops while a
pa
tient is in the care and custody of the hospital. e incidence of decubitus ulcers ranges from
1.
5 to 3 million occurrences per year.
1.3 Wound Care Markets
e annual U.S. market for wound care products was $1.76 billion in 1988 and is forecasted
to i
ncrease to $2.27 billion by 1992. Some of the major areas are (in $ million):
Confidential PolyMedica Industries, Inc.
292 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
Year Bandages & Dressings Burn Care Wound Closure
1988 $ 93.2 $46.8$ 851.9
1989 97.0 48.7 923.4
1990 101.1 50.8 1,004.5
1991 105.7 53.1 1,091.0
1992 110.5 55.4 1,187.4
Source: Biomedical Business International
Within the context of the overall market, the newer generation of synthetic products is
fore
casted to grow at 21 % annually. Newer dressings can accelerate wound repair and also
pr
event infection. e favorable trade-off between the higher cost of these synthetic wound
dr
essings and the reduced cost of treatment and liability will produce rapid growth in the mar-
ke
ts for the newer dressings.
CROSS SECTION OF MITRAFLEX
TM
WOUND DRESSING
Transparent Film
Absorptive
Membrane
Porous Adhesive
Release Paper
Confidential PolyMedica Industries, Inc.
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.