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Modular Medical is a development stage medical device company seeking to produce a next generation insulin pump to expand access to a higher standard of glycemic management for people with diabetes.
Founded by Paul DiPerna, founder of Tandem Diabetes (TNDM) and original designer of its popular t:slim pump. 30-year veteran of the medical device industry.
Large portfolio of patented technology makes insulin pumps easy to learn, use, and afford.
Addressable Market: $3 Billion unmet market need
MODD1: Anticipated FDA submission Q2
Headquarters: San Diego, CA
Represent the gold standard in glycemic control. Better outcomes, better patient health, lower A1C. (Market share leaders: Medtronic, Tandem, Insulet)
Better outcomes lead to systemic savings: fewer trips to ER, reduced comorbidities. Saves $10k/patient year (40%) even after cost of pump.
Feature-heavy and complex systems have hampered adoption. These products are for "superusers." Prohibitive for many to learn and manage.
Expense of current offerings has placed them out of reach of many patients and insurance plans. Difficult reimbursement, large out of pocket expense.
1 in 4 Healthcare dollars in the US are spent on diabetes and diabetes related complications.
Only 1 in 3 Americans with type 1 diabetes use a pump. This number has been materially unchanged for 15 years.
Only 8% of insulin dependent Americans with type 2 diabetes use a pump. This number is just starting to rise.
Only 21% of T1D' reach ADA guidelines for glycemic control. Overall outcomes have not been getting better.
US Market Size. Pumps CGM MDI
27 million people with diabetes. 3.6 million require daily insulin (1.6M Type 1,2.0M Type 2).
Only 20% of insulin dependent people with diabetes use a pump for insulin delivery.
80% rely on multiple daily injections (MDI).
Continuous glucose monitors (CGM) have nearly 3X the user base of pumps.
Patients estimates device type and therapy are forT1 D and T2D combined. MDI defined as needing rapid acting and long-acting insulin. OtherT2D not included are those on generic orals or diet and exercise only. 2020 National Diabetes Report (CDC).
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 transition.
"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. "
FreeStyle Libre vs. Dexcom
HCPs fairly consistently indicated that about 25% of their MDI population are "almost pumpers", meaning that they have considered going on a pump, understand pump therapy benefits, but want something simpler that doesn't have all the "bells and whistles"...*
*Seagrove Partners LLC, HCP Perspectives August 2021.
What are almost pumpers asking for?
45% expressed a desire to go on pump
Make it easy for my doctor
Make it easy to get coverage
Make it easy to share my data with my care team
"I cannot spend more time managing my diabetes."
1-Seagrove Partners LLC, HCP Perspectives August 2021 2-Precision Xtract September 2018
Insulin Delivery for Almost Pumpers.
Push button to bolus
90-day reusable pump
No external controller required
No charging or battery replacement Removable
Eliminate trade offs to expand the market.
Same accuracy as leading pumps. Smoothest, most natural basal administration in the industry.
Only patch pump with full sized 3ml reservoir.
Latest low power Bluetooth, Near Field Communications (NFC) and mobile app for ease of pairing and data-connectivity
a New Level of Precision and Safety.
MODD Pumping Mechanism
Disposable Cartridge
Precision micro-dosing limits excessive insulin exposure and preserves insulin molecule integrity
Can be used with the latest ultra rapid insulins
More natural insulin delivery with small increments as needed, not locked into five-minute intervals like other pumps
8 family patents underway to provide a sustainable competitive advantage
Ultra high-volume major components make low cost manufacturing a reality for the first time in the industry
50% lower cost of goods than leading patch pump
Simple Design Enables Automated, High-Volume Manufacturing.
Lever arm pushing gear wheel
Lever arm pushing gear wheel
Designed with the Patient & Provider in Mind.
Direct sales Force Focused on Providers
Free Samples to Encourage Trial
Point of Prescription Couponing
Simple to Teach and Support Patients
Only product that you can take home today from doctor's office
App to Learn Product
Free 30-Day Trial Coupons
Reduced outlay of time and money
Telehealth Optimized
Endocrinologists are perfect candidates for telehealth. They are overworked, underpaid, and need to drive more volume through their practices. Most of what they do can be done online (tests, guidance). There are only 4,000 patient facing endos in the US.
"Remote Patient Monitoring is still a relatively new concept for most respondents, and few knew about the five codes established by CMS However, upon education about the requirement and reimbursement amounts behind these codes, HCPs indicated an
overwhelming amount of interest in this mode of
patient management, with 85% saying that it was worth their time and effort."
Recently established remote monitoring codes offer $200-250 reimbursement rate per patient month.
-Seagrove Partners Aug 2021 HCP Perspectives
Our 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 Omnipod
National Payor Survey
Retained ISA to perform National Payors Survey on 1/3 of all commercial lives in US (50 million lives)
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."
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
Regional Health Plan
Price: FREE Cost: $34
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
Price: $349.20 Cost: $76.80 = $76.80 Gross Profit: $272.40
Omnipod CPT code with 20% discount
Costs based on internal estimates
New microfluidics technology allows for low-cost pumping of insulin.
New design philosophy makes product simple enough for provider driven sales. Enables a classic pharma style business model