Session 8-2: Business Plan of DrinCure Inc.

M. D. Anderson Cancer Center
Date: April 2008
Duration: 0 / 06:48

Ning Tsao, Rakshandra Talpur, Xaio Ni.

Rakshandra Talpur:

Hi, my name is Rakshanda Talpur, and this is Xaio Ni. So, we will be doing the presentation as a team.

So, we are presenting the cancer prevention drink for team number three. So, I will talk about the background, mission and purpose, risk factors for cancer, our product information, marketing analysis, and Xaio Ni will talk about the financial analysis and conclusions.

So, basically, our company is a biomedical company that intends to design, patent, develop and market biomedical drinks mostly related to cancer prevention. The founders of our company are investigators as well as managers, and we like working as a team, so we have four products already which have been designed.

So, our company's mission is cancer prevention and facilitate healthy lifestyle. Our purpose is to facilitate the healthy lifestyle by the cancer prevention drink. So, first of all in order to be in a healthy lifestyle, we have to get smart, get fit and get annual cancer screening. So, risk factors for cancer. Cancers are caused by genetic mutations, and then there are these other non-genetic causes, which are our unhealthy lifestyles related to food, unhealthy behavior, excessive fat intake and excessive alcohol intake.

Our products are focused on cancer prevention drinks, so we have this patent drug X which selectively acts on the cancer cell growth without damaging the normal cells, and our products are focused on this drug X. So, we have, like, four distinct products, and we call our products Beta products. We have drink 1 and 2, which is mostly given to cancer prevention for breast cancer and lung cancer, and we plan to market this drink in the grocery stores and cafeterias and everywhere, so the general public can have access to this drink; however, drink 3 and drink 4 are for patients, which already have, like, diagnosis of breast cancer and lung cancer, and this is given by, like, with a prescription, so it has to be in the pharmacy.

So, this is how our drink product will look like. So, cancer prevention drink is fairly a new market, and it is estimated there are like approximately three million women living with breast cancer, and there is a 10 times risk of developing breast cancer, so we have like a potential of 33 million customers in U. S. without competition, and in the lung cancer market, it is predicted to be four billion customers between 2010 and 2015, so that is overall, like, 100 million potential customers.

So, our promotional plan is making cancer history. So, the first thing we will have to do is, like, inform our patients with the option of the cancer prevention drink that it exists, and it is there and they should drink it. So, we will use our news media, newspaper, magazine, radio and television, and we will publish ads in the scientific journal. Then, in our, since this is a fairly new market, so we have to educate our clients through TV, radio, internet, and make sure like everybody is aware of our products; we have to be careful about our future competition, and we have to make sure we patent our products and keep focusing on new formulation and new development and only strong research energy can keep us moving in the forward direction. So now, Xiao Ni will talk about the financial plan and conclusion.

Xiao Ni:

Okay, our drink here will have a factory base and obesity center, which will require equipment to operate. So, major start-up costs will be equipment and the spaces for which we will invest the personal funds at the beginning. It is about 150 thousand dollars. The variable cost including salary for person, hiring utilities, storage, maintenance and the marketing expenses. Regular demands to expense is around 16 thousand dollars and drink heal business center will generate around 515 thousand dollars in the first year of the operation with estimated gross profit of 40% we expect it would about 220 thousand dollars to cover administrative expenses. So, we estimated the business we're breaking even in its first year operation.

[Applause]