1. Sweet Sensors
Small form factor Types of targets
diagnostic devices that
can detect a variety of • Recreational drugs
biological markers. • Heavy metals
• Toxins
• Inexpensive • Bacteria
• Quantitative • Viruses
• Adaptable to many • Pharmaceuticals
kinds of tests (targets) • Environmental hazards
• Food safety targets
Yu Xiang and Yi Lu, Nature Chem. 3, 697-703 (2011).

2. Meetings/Conversations From the Past Week
• Tecan group
– Global provider of laboratory instruments and
solutions in biopharmaceuticals, forensics, and
clinical diagnostics.
• Teleconference with Director
of Strategic Alliances and three of her associates
in a major pharmaceutical company
• Abbott
• Director of Economic & Technical Development
Zone, Shanghai China
• Food Safety and Quality Conference
• Dr. Bill Olson, Market Medical Director - Pacific
Region United Healthcare

3. Upcoming Conversations
• Sword Diagnostics
• Abbott Labs
• Blue Cross Blue Shield innovation team
• Retired Hospital executive
• Biotech entrepreneur
• Michael Rosen, life sciences entrepreneur
and executive
• Other VCs

4. Key findings:
• Big pharma company is interested in low cost
drug monitoring during clinical trials and after the
drugs are approved to ensure safety and
effectiveness of the drug to individual patients
– Site visit in December
• Work with glucose meter manufacturers
– Our technology makes a particular glucose meter
more competitive on the market
• Look for biomarkers for diseases that associated
with diabetes
• Invitation to give a presentation @Abbott in
December
• Emergency room, rapid toxicology screen

5. Business Model Canvas # 8
Yi Lu, Tian Lan, Brian Wong
Sweet Sensors Neil Kane 11-15-2011
Chris Sorensen
Conferences
R&D
Pharmaceutical Immediate results Pharmaceutical
companies Publicity companies
Direct
Convenient monitoring
Diagnostics Insurance Reimbursement and safer dosage Long term
companies Diagnostic
Robust/extensible companies
Contract research
organizations
Inexpensive Contract research
organizations
Simple Pharmaceutical Cos
IP Investors
Glucometer mfr Personnel
Pharmaceutical Cos
Strip mfr
Licensing Licensing?
R&D Product Sales

6. Partners
• As noted on the Business Model Canvas, key
partners are pharmaceutical companies and
glucose meter manufacturers.
Sweet Sensors
Glucose meter Pharmaceutical /
manufacturer • Added value for meter diagnostic companies
• Meter engineering manufacturers • Provide the target of
• Strip design • Low cost, fast interest
• FDA approval monitoring improves • Key customers
clinical trials • Key market knowledge

7. Action plan
• Put together a compelling
presentation and go pitch
pharmaceutical
companies and diagnostic
companies. We’re getting
inconclusive results talking
to KOLs and consultants.
• We are on second revision
of a pitch to use.

8. Sweet Sensor Revenue Model
Factors
COPD MARKET All Segments
Market Size 16,000,000
Revenue Model
Market Share Target 10%
Channel Capacity 100%
Customer Activations 1,600,000
Attrition 10%
Net Customers 1,440,000
Missing: Revenue Model
Usage per Year 52
Lifetime value of customer Number of Uses per Year
Revenue per Use $4
74,880,000
$4
and amortization of Total revenue $299,520,000
acquisition costs over EXPENSES
Cost Per Customer Acquisition $25 $25
lifetime Cust. Acquisiiton Expense $40,000,000
Channel Split 30% 30%
Cost of Channel Sales $89,856,000
COGS $0.25 $18,720,000
Net Operating Income $150,944,000
Operating Margin 50%
Operating Expenses
GSA $5,000,000
EBIDTA $145,944,000
Net Margin 49%

9. Service Channel Distribution Model
Payment
Insurance Doctor
Company
Medical
Payment Services
Data
Service
Service Provider Patient
“Healthways”
In House Care
Services
Payment
Sweet
Sensors