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Investor Presentation. OTCQB:MODD
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The Future of Diabetes
Insulin Pumps provide a higher standard of diabetes care. Better glycemic control reduces co-morbidity prevalence, trips to the ER, and leads to higher quality of life.
Despite decades of advances in insulin delivery technology, only a minority of individuals with Type 1 diabetes use a pump.
The cost and complexity of today's offerings mean that, for many, multiple daily injections remain the only practical Solution.
People with Type 1 Diabetes are a cross section of society with widely varying motivation levels, technical sophistication, and resources.
You cannot make the people more motivated. To grow the
market, you need to make the best care more usable.
1. 2022 Est. based on 2015 actuals reported by ADA
An Unmet Need in Type 1 Diabetes Care.
There are 1.6 million individuals with Type 1 Diabetes in the US. 100% of patient population require daily insulin injection. Only 1 out of 3 currently use an insulin pump.
32% of population utilizes insulin pumps for diabetes management
Multiple Daily Injections (MDI's)
68% of the population rely on multiple daily injections for diabetes management
Almost Pumpers are 30% of the market. They would go on pump if it were less
expensive, time consuming, and technically intimidating.
New kinds of offerings attract a
Abbott Freestyle Libre made continuous glucose monitoring easier and more affordable. This expanded the product category and doubled its size.
We believe the insulin pump market is ready for a similar
FreeStyle Libre vs. Dexcom Revenue
"In short, Flash Glucose Monitoring is fundamentally trying to take something that is more "professional" (i.e., traditional CGM) and make it more accessible to the masses. In consumer- packaged goods, examples of this strategy include home espresso makers (Keurig), cleaning products (e.g., dilatable floor cleaners, spray cleaners, wipes, toilet wands), and teeth whitening (e.g., whitening strips).
In these cases, the new innovation completely changed the entire category; we look forward to seeing if Flash Glucose Monitoring does something similar in diabetes."
2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20
Dexcom FreeStyle Libre
Expanding access to pumps requires a new kind of pump.
Insulin pumps on the market today require a substantial amount of time to learn and manage ongoing therapy
High out of pocket costs of today's pumps place these technologies out of reach for a large part of the population
Feature-heavy and complex systems have hampered adoption. These products are for "superusers" not for "the rest of us"
It's Time to Change.
Specialty products can be expensive, complex, and have difficult learning curves.
Mass market products must be easy to afford, easy to learn, easy to take home, and easy to use.
At Modular Medical, our mission is to expand access to high quality, modern diabetes care by taking insulin pump delivery systems from a specialty market to a mass market.
We aspire to develop technology that liberates and empowers people to improve their health and well-being and take back more of their lives.
Technology should simplify your life and make it better, not add new projects and new to do lists.
Designed to meet patient needs:
? No External Controller Required
? Push Button to Bolus
? No Charging or Battery Replacement
? Learn to Use at Home
Upfront Cost to Patient or Payor
New microfluidics technology for a new kind of product.
New design philosophy for a new kind of user.
For provider driven sales
Enables Telehealth and Distance care
Technology that Transforms Diabetes Care.
(and diabetes company models)
Traditional Pumps Use Expensive Machining
and Complex Modalities To
5 Years Development:
Off the Shelf, High Volume
Components from consumer
electronics supply chain
Less Expensive to Manufacture Than Omnipod2
Recurring Revenue from 2% Market Share of US Type 1 Diabetes
Of Revenue Spent on Discounting and Free Samples
Operating Margin 30 months after Launch.
1. Based on 20% discount to published CPT codes for Omnipod., revenues net of rebates and returns.
2. Calculation based on Omnipod US data from SGP 2019 diabetes bluebook and internal cost estimates
Profitable From the First Sale
First month: 1 Re-Usable + 10 Disposables
Cost: $34 + $76.80 = $111.80
Gross Profit: $238.40
Subsequent Months: 10 Disposables
Cost: $76.80 = $76.80
Gross Profit: $272.40
*Omnipod CPT code with 20% discount
Designed to make adoption easy.
Telehealth Optimized
2020 saw personal telehealth go from beta test to mainstream. Customers and providers have become comfortable with it.
? Direct sales Force Focused on Providers
? Point of Prescription Couponing
? Only product that you can take home today from
? App to Learn Product
? Free 30-Day Trial Coupons
There are only 4,000 patient-facing endos in the US. The treatment of diabetes will be significantly enhanced with telehealth to drive more volume and clinical enhancements through
Telemedicine is a force multiplier to better
MOD1 was designed to be affordable enough for self-guided user training. This is the product
the industry has needed to take the step into
? Simple to Teach and
? Reduced outlay of time and money
National Payor Survey
Retained ISA to perform National Payors Survey on 1/3 of all commercial lives in US (50 million lives)
Modular Medical products are designed to attain preferential reimbursement and avoid the coverage pitfalls many other pumps have experienced.
? 20% Discount vs Insulet (PODD) Will Drive Preferred Status
? Designed to use PBM codes as a disposable
? No New Code: Reimbursed at Launch
? Saves Provider $1,062/Patient/Year vs
Survey data1 shows that a product with Gen-1 features set at 10-20% discount
to Omnipod will gain equivalent or preferential reimbursement at launch.
"I would say that if they could come in with an average monthly cost of, say, 20% less than Omnipod we would make this our preferred." - IDN
Data shows that discounting and rebates have been uncommon and small in insulin pumps. 5% is currently the largest in the space.
"We expect that the manufacturer will come to the table, probably with an access rebate [of approx. 5%]. This is based on the fact that Medtronic has already come to us with this kind of rebate."
- National Health Plan
Payors showed an interest in a simple product that was less expensive.
"I like the simplicity and so as a consequence, it's attractive to me mostly because I'm very price sensitive. I don't think there's any meaningful evidence basis for all those fancy and high-tech products."
- Regional Health Plan
1. Primary research, Precision Xtract, Modular Medical Insulin Pump Rapid-Pulse Payer Assessment, June 2019.