Through our stakeholder interviews, we have understood that the public market involving international and national institutions (e.g. WHO, Global Fund, Governments, Universities) are very focused on scaling up malaria Rapid Diagnostic Tests (RDT’s). Highest on the agenda of the public sector, was rapid screening, accuracy in both symptomatic and asymptomatic populations, as well as portability. RDT’s are the closest solutions that enable these three key requirements. We understand from our contacts at the WHO that the public body acquires malaria testing solutions through its dedicated procurement portal (FIND), of which we will tender a bid upon RAM’s industrial production. Alternatively, the private sector takes a slightly different direction. Having spoken to some of the largest distributors of malaria diagnostics tools (e.g. Bosch Healthcare, GV Meditech, IDEO Healthcare, Harmac Medical etc.), accuracy was also a concern, while cost-price and mark-up margins have been cited to be of primary interest. In particular, the ‘razor-blade’ business model was cited as the method of choice – where private hospitals and clinics are able to invest in a single device, while upselling each ‘razor blade’ which in this case would be the cuvette. Existing RDT’s are once again, the current solution of choice, and provide the closest semblance to enacting this business model. The business model importantly allows more margin to be spread across more channels, such as wholesalers, resellers, and agents etc. When accounting for both the public and private sector, RAM will have to excel on all 6 core metrics defined by the WHO, as well as the added component of portability (which is already pervasive in today’s RDT’s), in order to competitively penetrate the malaria screening market space.
The Phase 1 Feasibility Study was instrumental to investigating the market landscape, strengths, as well as lacking requirements, in order to ensure successful commercialisation of RAM. The Feasibility Study confirmed our initial inklings of choosing the European marketspace as the first spot of commercialisation, ahead of North American expansion. This took into consideration the core of the solution’s value chain being situated in Europe, including subcontractor producers DAS, as well as third-party assistance from the University of Mons and the Royal Tropical Institute of Netherlands. Additionally, it is noted that a mass majority of public institutions such as the WHO, Global Fund, and Bosch Healthcare, choose to hold European headquarter presence, considering its centralised ‘springboard’ ability (both logistical and bilateral trade agreements) to malaria locations throughout the globe, including malaria hotbeds in the Mediterranean and sub-Saharan Africa, as well as Latin America, South Asia, and South-East Asia. Initial European commercialisation also has the advantage of pursuing CE mark approval as the ideal benchmark for first regulatory requirements.
