MedNexis, Inc. (the company) is a medical device development company that has designed and patented medical devices which it plans to produce and market. An electromagnetic muscle stimulator/field generator has been developed with the collaboration of leading medical professionals and biomedical experts. Initiated patent number 1
Allopathic Medicine
One market addresses the unmet need for atrophy prevention/treatment in conditions that result in patient immobilization lasting more than two weeks. Two weeks of immobilization results in a muscle losing over 30%, which means that it will take longer to recover fully. MedStim, a novel and innovative design, was developed to meet this need. As more research about the benefits and uses of pulsed magnetic fields is conducted, the number of possible indications for this device will increase. For example, pulsed field magnetism has recently been shown in controlled studies to be an effective treatment in accelerating the healing of skeletal fractures.
The market for allopathic medicine magnetic stimulation devices is already there, though it’s still in its infancy and could explode once the technology proves economical. The potential market for magnetic stimulation devices in allopathic medicine has been estimated at 4.2 million Americans. MedStim was the name of the innovative, new device developed to target this particular market.
Alternative Medicine
Another market addresses a gap in the alternative market for a device providing a stronger and longer-lasting therapeutic magnetic field. Dynamic magnetic fields therapy (the treatment and manipulation of soft tissue using variable magnetic pulses) has been shown to have beneficial effects on the immune system, circulation, wound healing, and other aspects of alternative healthcare. The strength of the magnetic fields generated is thought to determine these effects. TheraMag is a new, innovative system that was created to address the need for stronger therapeutic magnetic fields in alternative medicine. The market exists and it is estimated that there will be approximately 40 million US customers by the time we start.
Technology
Patent applications covering the company’s initial market entries were filed by a biomedical device patent specialist patent agent. MedNexis’#8217TM technology uses the principle that a magnet in a coil generates a magnetic fields which, in turn creates a current through any conductive materials within this field. This model is used for diagnostic studies. Single nerves can be stimulated with magnetism to diagnose. MedNexis created an electromagnetic device to painlessly stimulate muscles to contract by using this model. Applications of this technology are numerous, with the following devices being those initially marketed:
MedNexis’#8217’s patented device will be able to stimulate muscle effectively. This device will need higher electrical currents, more functionality and a wider range settings. This device will not be sold in the mainstream of allopathic medicine.
TheraMag- MedNexis’ patented device will bathe tissue in a magnetic field without causing contraction of the muscle. This device will be used in other applications.
Strategy
MedNexis will target both allopathic and alternative medicines. The devices will be named separately in order to distinguish them from possible negative connotations associated allopathic medicine.
MedStim will only be available through major distributors. It will not be accessible to the general public via other channels. Partnership with these companies will be crucial for gaining market acceptance. MedNexis’#8217 will concentrate its initial efforts in this area on producing controlled, randomized study data.
TheraMag will be distributed in alternative medicine centers that are less centralized and direct sales of TheraMag will also be possible. This market will not require any scientific proof. Entry to the market is possible as soon as the FDA issues an Investigational Device Exemption.
Regulation Issues
Through obtaining an Investigational Device Exemption and clearly labeling the product “
FDA regulations will be met and market entry will be expedited. These products will be accepted on the basis of successful research results. It will significantly increase demand and facilitate expansion to foreign countries.
Major Milestones
Research and Development in the Animal Stages is underway, early Year 1.
- Expand patent coverage to Australia and Canada in the middle of Year One
- Human clinical trials underway, middle Year Two.
- Publication of research studies at the end of Year Two
- TheraMag on sale at the end of Year One
- MagnaStim available for sale, end-of-year two, labeled ‘For Investigational Only’.
- Year Four is the year of profitability
Competitive advantage
The MagnaStim & TheraMag devices work well and are user-friendly. But, other devices that are currently on the markets are less effective, or more difficult to use, for the recommended therapeutic treatment. MedNexis is utilizing its patent-pending designs to meet the market’s need for a better, easier-to use magnetic stimulator/field generator.
Financial
According to financial projections, the company will be profitable by year 3 if it receives $750,000 in funding. The company projects $23.5M in sales and a huge net profit by year 3. This projection is based upon penetration of less then 3% in every market segment.