From March 2015 – October 2015 our SME's team performed a feasibility study under the EU H2020 Phase 1 grant, for the action entitled:
“Objective delirium detection with an innovative EEG-based spot Monitor – Delirium Monitor”.
The work packages defined for Phase 1 were carried out:
1. Assess technology robustness and performance, in collaboration with international EEG expert ABV Sciences (Dr. P. Zeman, Canada) based on the analysis of existing and new patient clinical data.
2. Involve 10 European hospitals in the Early Access Program (EAP). Mount Medical & Team travel to potential lead customers and involve them in EAP.
3. Perform market analysis, customer development, financial planning, reimbursement strategies (with specialist Crefact Consultancy), development & production costs, to develop a detailed business plan.
4. Prepare final product engineering phase (Phase 2) by, among other things, finalize user requirements, start technical file (CE marking and FDA approval), and contracting necessary engineering partners.
5. Prepare H2020 Phase 2 SME Instrument proposal to enter end-product engineering.
The deliverables are summarised in our Feasibility report dd October 2015:
1. our technical feasibility report shows that it is technically feasible to develop a commercially successful Delirium Monitor; our team has (access to) all technical components to build an EEG-based monitoring device for routine use by nursing staff at the patient’s bedside in hospitals.
2. 6 signed buying intentions from hospital departments (EAP participation forms) and 2 support letters proof that a) delirium is a problem that needs to be addressed more seriously, b) clients embrace the Delirium Monitor as the right solution, and c) clients are willing to pay the proposed sales price. We are in advanced talks with 4 more hospital departments, that are most likely to sign up in the coming months. Gaining commitment for signing up will become easier when the device is at a more final stage than the current demonstrator.
3. a complete business plan for the Delirium Monitor has been written, and it is reviewed and approved by our Phase 1 coach Plock Consultancy. With this plan we attracted some local funds, a loan, enrolled 2 informal investors and attracted positive attention from several Dutch Health Investment Funds (IFs); 2 IFs are about to sign a termsheet for investment in our venture as we are writing this report. The businessplan confirms all of the most important components that demonstrate commercial feasibility, meaning that generating a profitable business from the Delirium Monitor is possible, and that it is worthwhile to invest in this venture.
4. Our venture is well positioned to realise the next technical and commercial steps. During phase 1 all preparations are made to proceed to the next step: the final product engineering. Partners for the final product engineering have been pre-selected and their quotations (containing realistic budgets and timelines) are submitted to us and they are in line with our business plan. With the currently secured funds we can continue for 6 months; after that we anticipate to speed up with the support of venture capital investments and a secured H2020 SME Instrument Phase 2 grant.
5. a H2020 Phase 2 SME instrument proposal will be submitted in November 2015.
After completion of Phase I we conclude that the overall objectives for the Delirium Monitor are feasible, validated and our team is prepared and equipped to reach them:
1. Clinical: to objectively detect brain function known to correlate with delirium severity
2. Technical: to transform the observed EEG biomarker into a practical, robust medical device (the Delirium Monitor) for use in routine clinical practice, with low production costs
3. Market: Our SME sells the Delirium Monitor in European in 2017, and in the USA in 2018. As the new parameter for delirium gains acceptance, other care departments and territories are conquered in 2018-2020. B2B deals with monitor integrators in 2018 expand the market further.
Therefore we will submit the EU H2020 SME Phase 2 application “Clinical Validation of biomarkers or diagnostic medical devices” for our biomarker based diagnostic medical device (aka the Delirium Monitor) in November 2015.
Further clinical studies, to demonstrate cost-effectiveness of using the Delirium Monitor, are required for general market uptake. Access to funds to conduct such studies will speed up the process as well as the European market uptake. The benefits for the European healthcare system, the healthcare workers, the patients and the job creation will then be reached at shortest notice.