The availability of more advanced, automated instruments and techniques will enable vision care professionals to more effectively correct vision problems and prevent blindness. That’s our goal at Visual Pathways - Preserving Vision and Preventing Blindness. The general public is rapidly becoming aware of these new techniques and patients are asking for the kind of innovative diagnosis and treatment Visual Pathways provides.
Of the top ten Medicare expenditures, three are related to vision disorders.
Gallup surveys have documented that Americans fear blindness more than any other disability. This fear is based upon the following facts about America:
- More than 80 million people have potentially blinding eye disorders
- 16 million diabetics in the U.S. alone are prime targets for blinding disorders.
- Diabetic retinopathy is the leading cause of preventable blindness in the working-age population, worldwide, yet less than 40% of diabetics receive routine screening for diabetic retinopathy in the U.S., far fewer in the rest of the world.
- 14 million have severe visual conditions not correctable by glasses
- 12 million are handicapped by motor sensory diseases such as amblyopia and strabismus
- 11 million experience corneal disorders, such as herpes and dry eye
- 10 million suffer visual loss caused by macular degeneration. Age-related macular degeneration is the leading cause of blindness in people over age 65, worldwide.
- 5.5 million have cataracts that obstruct vision
- 2.3 million endure visual loss from inflammatory diseases such as uveitis
- 2 million are visually impaired from glaucoma
- 1.1 million are legally blind
The International market is estimated at several times the U.S. market size.
The target markets for VPI's products include approximately 60,000 ophthalmologists worldwide, with more than 15,000 practicing in the U.S., about 2,000 acute care hospitals in the U. S. with ophthalmology departments, and optometrists, about 21,000 of whom are in private practice in the United States.
Frost & Sullivan has estimated that more than 3,000 fundus cameras are sold annually in the U.S. alone, comprising a market of about $90 million and growing an estimated 10% per year. VPI’s management views this information as dated and, most likely, understated. We’ve been directly involved in discussions with other industry leaders to identify ways to dramatically increase the availability of retinal screening. This is the goal of Tommy Thompson, U.S. Secretary of Health and Human Services, and it’s our goal as well.
Earlier detection and treatment of vision problems will prevent blindness, reduce healthcare costs, and vastly improve the quality of life for those who suffer from vision-related disorders. This can be accomplished by expanding the availability and ease of retinal exams and better utilizing ocular telemedicine to compensate for current shortages of ophthalmologists and optometrists. Faster, easier and more cost effective retinal exams will allow vision care professionals to better reach at-risk patients and those without access to high-quality medical care.
|
TARGET
MARKETS
|
| United States | International | |
| Ophthalmologists | 15K | 60K |
| Teaching Hospitals, Clinics, & HMO's | 2.5K | 10K |
| Optometrists/Opticians | 35K | 100K |
| Additional Physicians | 350K | 1Mil |
Replacement Market
Other independent sources estimate that there are
more than 10,000 fundus cameras presently in use, most of which are more
than five years old. The replacement market represents a significant opportunity
for VPI's ARIS technology. Optometrists represent an additional and significant
market for each of the Company's products, as more and more of these eye
care professionals are exploring new technologies that will enhance their
revenue generation through diagnosis of vision disorders, and referral
of the cases to ophthalmologists for treatment.
Revenues
Total revenues in Year 5 are estimated to exceed $60 Million, with significant
profitability projected in Year 3. VPI's revenue projections are considered
to be relatively conservative, in terms of sales, market penetration (less
than 20% in Year 5), gross margins and net income. VPI's management intends
to develop liquidity for its investors through possible merger or acquisition,
or if market conditions allow, a public offering, within the five-year
period discussed in the business plan.
Patented Technology
U.S. patent 6,296,358 covering our ARIS Automated
Retinal Imaging System (“Ocular Fundus AutoImager”) issued October
2, 2001. Additional U.S. and international patents are pending on the
ARIS as well as the DigiCat Imager™ and the GlucoScope™ Monitor.
Significant design improvements are being made to the VisPath Analyzer™,
after which patents will be filed for that product as well.
ARIS™
Currently, there is no fully automated stereo
fundus camera on the market. VPI ’s management team has conducted
an independent focus group study and contacted hundreds of vision care
professionals on this issue. Our research confirms the need for a medical
device that is capable of automating the acquisition of high-quality images
of the retina, which can be operated by technical level staff.
The ARIS is expected to be introduced in Q1 '04 in the United States, and internationally shortly thereafter. Two additional models of the ARIS are expected to be commercially available in 2004. The ARIS 70 is capable of sending high-resolution digital images via the Internet to Inoveon’s expert readers for scoring, interpretation of the images and treatment recommendation.
The second model, ARIS 110, has a wide angle (up to 110 degrees of the retina) and is designed for hospital, office and clinic use by ophthalmologists and optometrists. It will be marketed, sold and serviced b other marketing organizations on a worldwide basis.
A third model, the ARIS 20, is in the prototype stage and is expected to enter production in Q3 '04. This is a "scaled-down" model that is smaller, more compact, portable and has lower price point. It is intended for the smaller vision care practices, and for opticians, the non vision care physician market, military and third-world markets.
VPI’s management team is engaged in discussions with potential collaborators. This includes the U.S. Department of Defense; U.S. Department of Energy, and companies which already have a market position in biometric security products.
DigiCat Imager™
Presently there is no commercially available competitive cataract imaging
system that can provide the operating features and convenience of the
DigiCat Imager™ (DCI). Working prototypes have been developed and
it is anticipated that production can be begin by Q2 '04. The first U.S.
and international DCI patents are pending.
VisPath Analyzer™
Many current methods of extracting information on eye movement rely on
video images that are too slow to detect important diagnostic information
such as saccadic eye movements, which are completed in tens of milliseconds.
The VisPath Analyzer™ (VPA) provides pre-programmed visual stimuli
and automates the examination of eye movement, pupil function and visual
fields. It can easily collect saccadic eye movements and the vital properties
of saccadic movements, such as acceleration, maximum velocity and overshoot.
Like our patented ARIS technology, this extremely versatile instrument
can be operated by technician-level personnel after a brief training period.
The initial markets for the VisPath Analyzer are Neuro-ophthalmologists and Neurologists. Management expects that a much broader use of the VPA will occur among other medical specialties following publications on the diagnostic benefits of VPA technology to screen persons with medical conditions that affect vision. A clinical study underway at the University of Iowa Department of Neuro-ophthalmology has been designed to define specific groups of VPA tests that will assist a clinician in ruling a particular medical condition in or out. Publications on the results of this study are expected next year.
GlucoScope™ Monitor
The market opportunity for glucose self-testing is more than $2.5 Billion
in the United States and $1.5 Billion Internationally, growing at an estimated
18% per year.
