Entrepreneurship

Summary

At "LETHE", we are pioneering a novel therapeutic solution for Alzheimer's disease, unlike anything currently available in the market. Our primary goal is to develop an innovative treatment with minimal side effects, while ensuring it is widely accessible and cost-effective. "LETHE" is designed for mass production, enabling broad accessibility, particularly in regions with limited healthcare infrastructure, such as remote areas in Greece.

The following graphics provide a clear overview of the company's strategic direction, identifying potential opportunities and threats while assessing market potential. These analyses support decision-making by highlighting strengths, addressing weaknesses, and optimizing resource allocation. Through visualizations of key components and financial projections, we offer a comprehensive roadmap for sustainable growth and success. Tools such as the Business Model Canvas, SWOT, PESTEL analysis, and market segmentation models (TAM, SAM, SOM), along with financial projections like the cash flow statement, are essential for building a solid foundation. Finally, our financial projections for the first five years are summarized in the cash flow statement and cost sheet.

This Business Plan provides a detailed explanation of the rationale and strategic foundation of our business strategy, which was developed in consultation with various industry experts. This ensures that it aligns closely with real-world conditions and addresses the needs of our start-up effectively.


How do we ensure cost-effectiveness?

Achieving cost-effectiveness in the development and delivery of our Alzheimer's treatment is central to LETHE's mission. We ensure broad accessibility while maintaining financial sustainability through strategic partnerships, streamlined production processes, and innovative distribution methods.


Our strategies for cost-effectiveness include:

  • To minimize overhead costs while maximizing accessibility, our therapeutic delivery model relies on mobile treatment units. These vans, equipped with refrigeration and essential medical facilities, will bring treatment directly to patients, eliminating the need for large, fixed infrastructure. Starting from Patras, Greece, the location of our University where this project originated, we will gradually expand by adding more vans instead of opening additional physical locations. This flexible approach significantly reduces the costs associated with setting up new clinics, and we will also offer our treatment to clinics that can modify their spaces accordingly.

  • By purchasing essential components such as viral vectors and miRNA materials in bulk, we can benefit from economies of scale, reducing procurement costs. This strategy ensures that we can produce at lower costs, making our therapy more affordable to a larger population.

  • To further enhance cost-efficiency, we will collaborate with specialized companies to supply induced pluripotent stem cells (iPSCs) rather than producing them in-house, particularly in the early stages. This approach not only minimizes the risk of mishandling due to human error but also significantly reduces operational costs. By focusing on partnerships, we can allocate resources to other critical areas like development and scaling.

  • In addition to iPSCs, we have already, in our initial stages, established partnerships with companies that provided us with Exosome isolation kits (e.g., ExoPrep) for free. Adhering to contractual agreements with these companies will allow us to keep costs manageable by reducing expenses for essential components. We also plan to partner with firms for plasmid production to further drive down costs.

  • Moreover, by purchasing essential components and materials in bulk, we benefit from economies of scale, further reducing procurement costs. This ensures that we can produce at lower costs and make our therapy accessible to a larger population.

  • As our start-up achieves greater profitability, we plan to incorporate automated systems into our production and quality control processes, reducing labor costs and minimizing human error. Standardizing the manufacturing process ensures consistent product quality while lowering overall operational costs. This approach helps streamline production and allows for scalable growth as demand increases.

Business Model Canvas

To structure and document our business effectively, we created the following Business Model Canvas, which provides a clear visualization of the key components of our company. It highlights critical elements that define how LETHE operates and delivers Alzheimer's treatment to the market.

Business Model

Market Analysis


SWOT Analysis

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is employed to identify and visualize our company’s strengths, opportunities, weaknesses, and threats, with strategies in place to mitigate weaknesses and threats.

Swot

PESTEL Analysis

PESTEL analysis is a strategic framework used to evaluate external factors that could impact an organization's operations and performance. It focuses on six key areas: Political, Economic, Social, Technological, Environmental, and Legal influences. This analysis helps businesses identify potential risks and opportunities in their market environment to make informed decisions.

Pestel


Target Market - Customers

Potential customers for our therapy include hospitals, clinics, Geriatric Care Units, and medical centers, while the end users will be patients diagnosed with Alzheimer's disease. Initially, our product will be sold to clinics and hospitals in Greece, where we have a deeper understanding of the local market and have built strong networks with industry stakeholders and the scientific community. After establishing a presence in the Greek market, we plan to expand to the broader European market, where the regulatory framework governing the production and distribution of pharmaceutical products is similar to that in Greece. With millions of patients worldwide and the numbers steadily increasing, there is a vast market for effective Alzheimer's therapies.

Defining the target market size is one of the most important evaluation criteria for business ideas. After extensive research and consultations with business experts, we determined that the TAM/SAM/SOM model fits our case appropriately.


  • TAM (Total Addressable Market/Total Available Market): Represents the total market demand for our product, or the overall revenue opportunity available if our treatment had 100% market share.

  • SAM (Serviceable Addressable Market/Served Available Market): The portion of the TAM that our product could serve, based on our business model and capabilities. Initially, "LETHE" will be sold to the Greek population, as Greece is the base country for our therapeutic tool.

  • SOM (Serviceable Obtainable Market/Share of Market): For our therapy, the SOM consists of hospitals, clinics, and Geriatric Care Units located in Patras, Greece.
tam-sam-som

Financial Analysis

Cost Sheet

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financialanalysis

Cash Flow Sheet

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Prospects

We outline our company's forward-looking strategy in the Gantt Chart below.

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Business Plan

Our business plan is more than just a roadmap - it's a bold vision for the future of healthcare. By diving into its pages, you'll discover how we're revolutionizing treatment accessibility and effectiveness. We detail not only our innovative approach, but also the rigorous research and strategic thinking behind every decision we’ve made.

Whether you're an investor, healthcare professional, or simply someone interested in groundbreaking solutions, our business plan offers valuable insights into how we're positioning ourselves to lead the market with the most cost-effective, high-impact treatments available.

Reading our plan will give you an exclusive look at our unique business model, our sustainable approach to minimizing costs without sacrificing quality, and our strategic partnerships that allow us to focus on delivering innovative, life-changing therapies.

Explore our vision, join us on our journey, and see firsthand why our approach will shape the future of healthcare.

You can find our Business Plan by clicking here…



References

  1. Alzheimer Disease—Neurologic Disorders. (n.d.). Merck Manual Professional Edition. Retrieved 20 June 2024, https://www.merckmanuals.com/professional/neurologic-disorders/delirium-and-dementia/alzheimer-disease
  2. Alzheimer's Disease Fact Sheet. (2023, April 5). National Institute on Aging. https://www.nia.nih.gov/health/alzheimers-and-dementia/alzheimers-disease-fact-sheet
  3. Dementia: Number of people affected to triple in next 30 years. (n.d.). Retrieved 20 June 2024, https://www.who.int/news/item/07-12-2017-dementia-number-of-people-affected-to-triple-in-next-30-years
  4. Global Dementia Observatory (GDO). (n.d.). Retrieved 20 June 2024, https://www.who.int/data/gho/data/themes/global-dementia-observatory-gdo
  5. György, B., et al. (2014). Naturally enveloped AAV vectors for shielding neutralizing antibodies and robust gene delivery in vivo. Biomaterials, 35(26), 7598-7609. https://doi.org/10.1016/j.biomaterials.2014.05.032
  6. NBC News, "FDA Approves Eli Lilly's Alzheimer's Drug That Slows Memory Decline" https://www.nbcnews.com/health/health-news/fda-approves-eli-lillys-alzheimers-drug-slows-memory-decline-rcna158794
  7. NPR, "FDA Greenlights New Alzheimer's Drug to Combat Memory Loss" https://www.npr.org/2024/07/02/g-s1-7930/fda-approves-alzheimers-drug
  8. JAMA Neurology, "Cost-effectiveness of Aducanumab and Donanemab in Early Alzheimer's Disease in the U.S." https://jamanetwork.com/journals/jamaneurology/fullarticle/2790531
  9. "Evaluating the Economic Value of Alzheimer’s Treatments: Aducanumab and Donanemab" https://pubmed.ncbi.nlm.nih.gov/38689398/
  10. PubMed "Comprehensive Statistics on Alzheimer’s Disease Prevalence and Impact" https://www.nia.nih.gov/health/alzheimers-and-dementia/alzheimers-disease-fact-sheet#causes