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1. Financial Plan
SAPHVIDTM : For Early detection of Pre-eclampsia
Ms. H. Gwani
Ms. S. Jain
Ms. V. Varkey
Mr. A. Awosusi
Mr. D. Igwe
Mr. P. Waghmare

2. Mission:
To provide innovative point of care diagnostic products for early detection of
pregnancy related disorders
Vision:
To become the leading experts for providing diagnostic solutions in the field of
obstetrics

3. • 10% of all pregnancies
• Costs global health care system 2 billion GBP/year
• Pre-mature births (UK): 300 million GBP
• 8 deaths/year (UK)
*National Health Services, 2009

4. TM
Technology:
Involves three biomarkers: sEng, Plgf and sflt.
Intended Use:
Early detection of Pre-eclampsia.
Device Used:
Triage Meter

5. •To determine capital structure (Operating budget)
• To help the company frame financial policies as regards cash control,
lending and borrowing
•To aid maximal utilization of the limited resources made available to the
company
•To determine the NPV of G7 Diagnostics
•To forecast the profit for the forthcoming years
•To obtain the cash flow pattern & determine time for break even
•To decide G7 exit strategy

6. •G7 uses the Last in first out (LIFO) strategy for
marketing in UK
•Straight line depreciation

7. •R&D, Clinical trials and Regulatory approvals: 7 years
•Manufacturing and sales (sub-contracted): 8th year- 13th year
•Annual depreciation rate on the capital items: 15%
•Corporation tax rate: 18%
•Partnered with Alere Inc. (Device manufacturer)

8. Gantt Chart
ACTIVITY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13
Development (internal)
GMP manufacture pilot scale (subcontracted)
Clinical trials (subcontracted)
Regulatory approval (subcontracted)
Full scale GMP manufacture (subcontracted)
Internal Quality Control and Customer Support (internal)
Patent filing schedule
Patent 1
File PCT National
Europe
USA

9. Starting sales prices GBP per unit
Country/ (GBP):
Region
UK 40
Europe 40
China 37
USA 42
India 35
Africa 35
Cost per unit to manufacturer:
•8th year: £2.50
•11th year: £ 2.40
reduces further by £0.05 per annum thereafter.

10. KEY PERFORMANCE IN

11. Sales Volume
350
300
250 UK
No. of units (000)
200 Rest of Europe
150 China
100 USA
India
50
Africa
0
year 8 year 9 year 10 year 11 year 12 year 13
Sales revenue
Years
12,000
10,000
Revenue GBP (000)
8,000 UK
Rest of Europe
6,000
China
4,000 USA
2,000 India
Africa
0
Year 8 year 9 year 10 Year 11 Year 12 Year 13
Years

12. Retained profit/ loss
25,000
20,000
15,000
GBP '000
10,000
RETAINED PROFIT / (LOSS)
5,000
0
(5,000)
1 2 3 4 5 6 7 8 9 10 11 12 13
RETAINED PROFIT / (LOSS) (304) (169) (335) (429) (526) (243) (315) (415) 214 1,956 6,386 12,16 20,97
Year

13. Cummulative Cash flow (2011- 2023)
Cash flow (2011-2023)
45000
25000
40000
CUMMULATI
35000 VE 20000
CASHFLOW
30000
15000
25000
GB Pounds
20000 10000 CASHFLOW
15000
5000
10000
BREAK-EVEN
POINT
5000
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13
1 2 3 4 5 6 7 8 9 10 11 12 13 Year
-5000 Year -5000

14. Cumulative Cash flow
Cash flow
Year GBP( ‘000)
GBP( ‘000)
1 (383.9) (383.9)
2 (212.4) (596.3)
3 (368.6) (964.9) Pay back period:
4 (450.3) (1,415.2)
10 years+ (1954/ 6384)
5 (536.3) (1,951.5)
6 (191.8) (2,143.3)
Approx. 10 years and 4
7 (294.4) (2,437.6)
months
8 (395.1) (2,832.7)
9 219.6 (2,613.1)
10 1,953.5 (659.6)
11 6,383.9 5,724.2
12 12,162.3 17,886.5
13 20,973.6 38,860.1

15. Costs GBP ('000)
700
600
500
Cost GBP ('000)
400
Costs GBP (000)
300
200
100
0
1 2 3 4 5
Years

16. Total research expenditure
400
350
300
Cost GBP (000)
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9
Years (2011-2023) 10 11 12 13

17. S.No. Head count activity Duration (year) Salary per annum Working pattern
2 days per week during research, 1
1 CSO Till pilot scale GMP 5 55,000 day per week for manufacturing
2 Design consultant Till pilot scale GMP 5 950 per day 2 days per week
3 Scientist (Ph.d.) Till pilot scale GMP 5 26,000 Full time
4 Scientist (B.Sc.) Till development 5 20,000 Full time
5 CEO Entire project 13 70,000 1 day per week
6 Assistant From pilot scale 3rd year 23,000 1 day per week
7 General Manager Entire project 13 55,000 2 days/week
8 Assistant Entire project 2nd year 18,000 2 days/ week
QC maufacturing 4-5 year and from
9 manager Varies 8thyear 55,000 Full time
10 Assistant From manufacturing 8th year 18,000 Full time
11 Assistant From manufacturing 11th year 18,000 Full time
12 Finance Manager Entire project 13 years 55,000 1 day per week
13 Assistant 1 year before sales 7th year 18,000 1 day per week
Business Develoment
14 Analyst Entire project 17 50,000 1 day per week
Sales and Marketing 1 yr. before start of
15 director product manufacture 7th year 55,000 2 days per week
16 Assistant 1 Same as director 8th year 18,000 Full time
17 Assistant 2 Same as director 9th year 18,000 Full time
Customer support After sales and
18 Officer marketing 8th year 25,000 Full time
19 Assistant When sales start 8th year 18,000 Full time
20 Sales and order officer Year when sales start 8th year 25,000 1 day per week

18. 2011-2023 Total Managemt/Admin cost (£'000)
£800.00
£700.00
£600.00
£500.00
Cost in £'000
£400.00
£300.00
£200.00
£100.00
£0.00
1 2 3 4 5 6 7 8 9 10 11 12 13
Year 2011- 2023

19. S.No. Phase Duration Estimated Cost involved
(years) GBP (‘000)
1 Research and 3.5 1,273
development
2 GMP pilot scale 1.5 781
manufacture
3 Clinical trials 1.5 409
4 Regulatory approval 0.5 160
5 Full scale GMP 5 3,846
manufacture

20. • Exit at the end of 13th year
•Reasons:
- Enough profit to cover all the expenses
- Fierce competition
- New upcoming technologies
•Possible acquirers: Alere, Roche, Perkin Elmer

21. • According to our financial analysis:
• Break even: 10th year
• At the end of year 13:
• Sales: GBP 42.8 million
• Net present value: GBP 11.1 million
• Cummulative Cash flow: GBP 38.8 million