The specific objectives of the feasibility assessment were:
1. A technical layout with competitive cost structure.
At the beginning of the project, it was unclear how large vendors consider detector cost. During the course of the phase-1 investigation, we have been able to accurately price our product, and dramatically reduce the projected cost of production.
2. A technical requirement specification
Our initial design has been improved to aspects of manufacturability, assembly and cost – vital for the vendors with which we want to close a deal. This was achieved in an iterative process where the design (hardware and dataflow architecture) was overhauled in close cooperation with industry consultants and suppliers. In high-level meetings with both some of the major vendors, we have scrutinized the technical system requirements. The goal has been to ensure that our technical solution is a good match for integration into a large system vendor’s CT portfolio.
3. Elaboration of business plan
During the feasibility project we have evaluated our business proposition with a special emphasis on the following items:
a) Competitor analysis
We have a clear global picture of the competitor companies and their technologies which are primarily based in the USA, Canada, Japan.
b) Further IPR analysis and Freedom to Operate
Prismatic has established a patent portfolio protecting all patentable aspects of technology. To date Prismatic has three granted patent families and four patent applications submitted.
The patents focus is on protecting key aspects of the photon counting silicon detectors and the subsequent data treatment.
We have performed extensive patent searches and have not identified any patent infringements. We have also performed a thorough FTO analysis and have found no foreseen problems with patent infringement issues.
c) Market strategy development, including which clinical segment to address
Our concept is to implement a development project, based on the findings of this Phase-1 feasibility study to commercialize a detection system that can be integrated into existing gantries in order to improve and speed up imaging diagnostics, initially focusing on stroke patients. Based on this feasibility assessment, the business approach is to collaborate with a downstream partner that can be intrinsically involved in the development of the detector as soon as possible. This is motivated by an in-depth analysis that has identified the advantages of this approach.
d) COGS projection, product development roadmap and financial forecasts
The global CT market was valued at 3.6 billion USD in 2012 and is expected to grow to 6 billion USD in 2019. This corresponds to a compounded annual growth rate of 10%, i.e. a very attractive market growth figure. This project targets the high-end stroke segment where a price premium can be claimed. A COGS projection has been calculated and has provided a potential EBITDA levelling out at 14 million EUR per year for the company.
e) Identification of vital resources (staffing need)
We have identified which parts of the production will need to be outsourced, and which parts will take place in-house at Prismatic Sensors. After completion of development (approx. 2-3 years), we estimate the need to expand to a production staff of 32, and a team of 6 for quality assurance and calibration of the detectors. Together with support staff and experienced physicists and electrical engineers the total staff is estimated to 56.
