Stimcore, Inc.
Revenue Projections Bitner, Kruger 8/28/21
What is Stimcore? 3 medical devices that treat patients with SBD, sleep apnea and other breathing disorders Different from the current, unappealing and ineffective CPAP and BiPAP devices. Stimcore utilizes electrical stimulation / bioregulatory signals that reshapes tissue in the throat, mouth and sinus – to open airways. Strong scientific basis and early clinical trial data Large underserved, addressable market – likely to convert many CPAP users, as well as millions of patients that simply go untreated.
This slide deck will focus on the revenue potential for the Stimcore devices – through 2027, US-only
Revenue modeling – basic assumptions •
The Stimcore product comes in three formats that treat specific breathing disorders
•
Our initial revenue build model is focused on the United States only – considerable potential exists outside of this market
•
Target practitioners/customers are PCPs, Dentists, and most other MD’s.
•
For modeling purposes, we limit this potential customer target group to only 325,000
•
To become a “user”, the practitioner is required to purchase a $5,000 start-up kit to be used on the first 5 patients
•
The ASPs (average selling prices) ranges from $475 to $500 per treatment
•
Highly remunerative for customer practitioners – they can charge for initial treatment and annual maintenance treatments
•
For Stimcore -- start-up kit revenues are modest, majority of revenues come from treatments
•
We assume an efficient distribution channel – small direct sales force calling on customer targets – combined with an extensive internet-based marketing campaign
Practitioner/Customer penetration •
•
The model below shows only a modest penetration of the 325,000 customer targets – approximately 2.4% or 30,000 committed customers by 2027 Start-up kit revenues climb to roughly $40 million by 2027 2022
Potential Dr./Practioners - Oriented to OSA
325,000
2023 329,875
2024 334,823
2025 339,845
2026 344,943
2027 350,117
% penetration
0.60%
0.95%
1.30%
1.65%
2.00%
2.35%
Customer/Dr. Acquisition (annual)
1,950
3,134
4,353
5,607
6,899
8,228
Cumulative Customer/Dr. Base
1,950
5,084
9,437
15,044
21,943
30,171
Start-up packs - percent compliant
100%
100%
100%
100%
100%
100%
Start-up packs sold
1,950
3,134
4,353
5,607
6,899
8,228
ASP - startup packs
5,000
5,000
5,000
5,000
5,000
5,000
9.8
15.7
21.8
28.0
34.5
41.1
Revenue from Start-up packs ($,m)
Practitioner’s patient capture assumptions • •
We assume that each practitioner could attract 35 patients to the therapy in the first year – this climbs to 70 patients per year by 2027 At these rates, (new Practitioners and new patients) the cumulative patients “under treatment” could rise to as many as 5 million by 2027
2022
2023
2024
2025
2026
2027
Annual Revenues - Consumables Active Doctors(Practitioners)
1,950
5,084
9,437
15,044
21,943
30,171
35
40
46
53
61
70
Total New Patients each year
68,250
204,623
436,793
800,800
1,343,235
2,123,934
Cumulative Patients in the mix
68,250
272,873
709,666
1,510,466
2,853,701
4,977,634
New OSA Pats. Treated per Dr.per yr.
New patients -- treatments • • •
The practitioner customer base produces new patients – up to 2 million by 2027 We assume some patients may get more than one product format (>100% mix) This generates millions of Stimcore units as we move through 2025, ‘26, ‘27 2022
2023
2024
2025
2026
2027
New Patient Focus New Patients to apply Tx on
68,250
204,623
436,793
800,800
1,343,235
2,123,934
Mix of product type Tongue-Stim
40%
40%
40%
40%
40%
40%
Sinus-Stim
55%
55%
55%
55%
55%
55%
Oropharyngeal
25%
25%
25%
25%
25%
25%
120%
120%
120%
120%
120%
120%
Total (greater than 100% - patients use >1 product)
Units Tongue-Stim
27,300
81,849
174,717
320,320
537,294
849,573
Sinus-Stim
37,538
112,543
240,236
440,440
738,779
1,168,164
Oropharyngeal
17,063
51,156
109,198
200,200
335,809
530,983
Total
81,900
245,548
524,151
960,959
1,611,882
2,548,720
After units projected (above) -- ASPs and Revenues • • •
We apply average selling prices to those units from the previous slide to drive our revenues projections Based on our assumptions, revenues could soar to $1 billion by 2027 This is still only the initial treatment revenues, not maintenance 2022
2023
2024
2025
2026
2027
Tongue-Stim
500
488
475
463
452
441
Sinus-Stim
475
463
452
440
429
419
Oropharyngeal
475
463
452
440
429
419
Average Total
483
471
459
448
437
426
Tongue-Stim
14
40
83
148
243
374
Sinus-Stim
18
52
108
194
317
489
8
24
49
88
144
222
40
116
241
430
704
1,085
ASP per treatment
Revenues ($,m)
Oropharyngeal Total
Maintenance therapy – modest assumptions •
We conservatively assume only 10% of patients elect to receive maintenance Tx 2022
2023
2024
2025
2026
2027
Maintenance Therapy Cumulative minus new that year
-
Compliance to maintenance Tx
10%
Patients receiving maintence Tx
-
68,250 10% 6,825
272,873 10% 27,287
709,666 10% 70,967
1,510,466 10% 151,047
2,853,701 10% 285,370
Mix of product type Tongue-Stim
40%
40%
40%
40%
40%
40%
Sinus-Stim
55%
55%
55%
55%
55%
55%
Oropharyngeal
25%
25%
25%
25%
25%
25%
120%
120%
120%
120%
120%
120%
Total (greater than 100% - patients use >1 product)
Units Tongue-Stim
-
2,730
10,915
28,387
60,419
114,148
Sinus-Stim
-
3,754
15,008
39,032
83,076
156,954
Oropharyngeal
-
1,706
6,822
17,742
37,762
71,343
Total
-
8,190
32,745
85,160
181,256
342,444
ASP per treatment Tongue-Stim
500
488
475
463
452
441
Sinus-Stim
475
463
452
440
429
419
Oropharyngeal
475
463
452
440
429
419
471
459
448
437
426
Average Total Revenues ($,m) Tongue-Stim
-
1
5
13
27
50
Sinus-Stim
-
2
7
17
36
66
Oropharyngeal
-
1
3
8
16
30
Total
-
4
15
38
79
146
Summing up these three revenue source •
The large patient populations lead to strong revenue growth -- $50 million in the first year reaching more than $1 billion by 2027
Grand Total Revenues ($,m) 2022 10 40 49
Start-up Pack Revenues New Patient Revenues Redo Revenues Total Growth
2023 16 116 4 135 174%
2024 22 241 15 278 105%
2025 28 430 38 497 79%
2026 34 704 79 818 65%
2027 41 1,085 146 1,272 56%
Stimcore’s impressive revenue ramp •
This would represent one of the steepest and largest revenue ramps of any early medical device over the last two decades – on par with drug-coated stents, implantable defibrillators and transcutaneous heart valves (TAVR)