MECHAGEN

ENGINEERING LIFE, PART BY PART

Company Overview

Company Overview
MechaGen is a biomedical and biomaterial device development company that
intends to design, patent, and market biomaterial products related to surgical
markets. MechaGen have already designed and patented biomedical and
biomaterial devices which it plans to produce and market. Some of which
products are an aluminum femur replacement with a unique antimicrobial
property that prevents adhesion of microbes and prevent potential infection, an
ultra-sensitive mechanical muscle simulator to aid surgeons in meticulous
surgeries, and a synthetic mechanical organ, the MechaGen Heart, a
mechanical lung replacement that functions 99% like a real heart.

Company Overview
VISION
Company Objectives
To revolutionize peoples way of living;
To take body enhancements (internal and/or external) to a

more advanced state, and possibly minimize mortality rate

due to organ failures and lack of donors;
To strictly abide by the Bioethics Code.

Company Overview
MISSION
Company Goals
To aid doctors, surgeons, and other medical clients in successfully executing their
respective duties in any way we can;
To distribute high-end, state of the art, 100% functional and filtered through strict
quality control, biomechanical organ products in which our clients will not suffer
any inconveniences;
To be responsible in training its own staffs and workers to ensure the workmanship
and quality of our products and services.

MechaGen
Type of Business: Services and Manufacturing
Service

Made-to-Order
Product Customization
Product Installation
Maintainance

Business Days/ Hours:Day

Manufacturing
All products with MechaGen
are made by MechaGen Co.

Time

Monday-Friday

8:00 AM 5:00 PM

Saturday

9:00 AM 3:00 PM

MechaGen People

MechaGen Management
Jian Ogario
Position: Chief Executive Officer and President
BS Biological Engineering (2001)
MS BioMedical Engineering (2005)
Past Occupations/ Affiliations:
Unilever (2006-2007): R&D Scientist Personnel
St. Lukes Medical Centre (2007-2009): R&D Consultant
Philippine Lung Centre (2009-January 2013): Chief
BioMaterials and Hospital Supplies Consultant

MechaGen Management
Merebeth Ann Pedroso
Position: Executive Vice President
BS Biological Engineering (2001)
MS Engineering Management (2008)
Past Occupations/ Affiliations:
GSK (2008-Present)
2008-2009: Senior Supervising Officer
2009-2010: Marketing Senior Consultant
2010-2014: Marketing Department Head

MechaGen Management
Atty. John Andrew Ynzon
Position: Chief Finance Officer (Accountant/Treasury Head)
BS Accountancy (2001)
Post-Grad: Law (2008)
Past Occupations/ Affiliations:
PAO (2008-2011): Public Attorney
2011-2013: Practicing Lawyer

MechaGen Management
Dr. Xyrell Monta, MD
Position: Chief Scientist, R&D Head, Production, QC and Marketing
Head
BS Biological Engineering (2001)
Licensed Chemist (2001)
Post-Grad: Medicine (2011), Specialization: Surgeon
Past Occupations/ Affiliations:
UST Medicine School (2008): Part-time Professor
St. Lukes Medical Centre (2011-2012): Doctor/Surgeon
Philippine Lung Centre (2012-2013): Doctor/Surgeon, Consulting Surgeon
(2010-2013)
De los Santos Hospital (2013-2014): Consulting and Supervising Surgeon

Management Salary
Top Level Managerial Positions Php 100, 000.00/month
Middle Level Managerial Positions Php 70,
000.00/month

Personnels
MechaGen Personnels and labor force are all qualified
by subjecting them in a series of interview.
No part time jobs are offered in the company, all are full
time.

CEO/President

Executive Vice
President

Chief Science
Officer
(Department
Head)

Chief Finance
Officer

Accountant I

Sales
Inventory
Personnel

Marketing
Head

Accountant II

Sales
Inventory
Personnel

Sales
Representative

Sales
Representative

R&D Head
Scientist

Sales
Representative

Research Team

Development
Team

Scientists

Scientists and
Engineers

Assemblers

Personnel Competitiveness
All non-managerial positions are required to have at
least one (1) year experience in the job they are
applying for.

Personnel Competitiveness
While for managerial positions (Top, Middle, and Front
Line), requires at least two (2) or more years of
experience on the field.

Personnel Training
Each group of personnel, both managerial and nonmanagerial staffs are trained accordingly.
Necessary demonstrations and supervised hands-on
training are provided by the companys top training
instructors.
Before being permanently working for the company,
trainees are first required to pass three (3) examination
procedures: two (2) pen and paper examination, and
one (1) hands-on (different from supervised hands-on
training)

Orientation
Company Overview
Briefing of instruments
and materials

Field Demonstration
Hands-On Exam

Done by accredited
trainer

Ocular Training
Over-all Recap

Trainee is paired w/ one

permanent worker to
observe how work is
done

Personnel
Training
Pen-and-Paper
Exam 2

Pen-and-Paper
Exam 1

Supervised HandsOn Training

Field Demonstration
Recap

Personnel Starting Wages

Accountant I and II Php 15,000.00
Marketing Head Php 15,000.00
R&D Head Php 18,000.00
Sales Representatives Php 10,000.00
Sales Inventory Personnel Php 10,000.00
Scientists Php 13,000.00
Assemblers Php 7,000.00
Trainee Php 2,400.00

*per 15 day salary

DESCRIPTION OF THE
BUSINESS

Description of the business

The business offers the life saving device called Total
Artificial Heart (TAH)
A total artificial heart (TAH) is a device that replaces the
two lower chambers of the heart.
Patients might benefit from a TAH if both of ventricles
don't work due to end-stage heart failure.

Description of the business

You might need a TAH for one of two reasons:
To keep you alive while you wait for a heart transplant.
If you're not eligible for a heart transplant, but you have endstage heart failure in both ventricles.

Materials

Business Days/ Hours

Research and manufacturing.
24/7

Sales/ Office
Monday-Friday (8:00 am-5:00 pm)
Saturday (9:00 am- 3:00 pm)

Demographics
Many patients suffer from heart failure which leads to
death (82,290) in year 2004-2008 according to statistics
(Department of Health).
Patients may be transplanted with an artificial heart to
prolong theirs lives or while waiting for the heart donor.
Rich patients or their families are willing to pay for an
artificial transplants that are ridiculously expensive.

Demographics

www.doh.gov.ph

5 out of 10 Filipinos die because of

Heart Disease.

As of 2009: 100, 908 people died of heart disease.

Source: National Statistics
Office (NSO)

Cause of Death in 2009

Heart Disease; 21%

Other Diseases; 79%

Other Diseases

Source: National Statistics

Office (NSO)

Heart Disease

Out of 85, 705 deaths due to heart disease, 51, 074 of the victims were females, while
34, 631 accounts for males.

It was noted that the most number of deaths was at the age of 80 and over. The age
group 10 to 14 had the least number of deaths, accounting for only 1 percent of all
total deaths.
Source: National Statistics
Office (NSO)

Deaths Due to Heart Disease

Males; 40%

Females; 60%

Males

Source: National Statistics

Office (NSO)

Females

Size
Target market
Patients with heart disease
Patients who need heart transplant

TARGET

http://www.asianhospital.com/depart
ments/cardiology-subdep/

Potential Growth
Diversification of mechanical organ production.
Artificial bone production using titanium with the
intervention of carbon fiber technology.

DESCRIPTION OF
COMPETITORS

SynCardia Systems, Inc.

Industry: health care equipments and services

Founded: 2001rtificial Hea
Founders: Richard G. Smith, Jack G. Copeland, Marvin J.
Slepian
Revenue of 26M USD as of February 2013
Products: The SynCardia temporary Total Art and Freedom
Portable Driver
Price: 125,000 USD
Over 1,350 implants account for more than 400 patient,
years on the SynCardia Total Artificial Heart
30 years of reliability

FREEDOM PORTABLE DRIVER

SynCardia temporary TOTAL ARTIFICIAL HEART

Both ventricles of the heart
are failing to pump enough
blood to sustain the body

The left and right

failing ventricles
are removed
The four native
heart valves are
removed
The atria, aorta
and pulmunary
artery remain

Quick connects are sewn

into the atria, aorta and
pulmonary artery
The TAH is implanted and
attached via four quick
connects
The donor heart is
transplanted

SynCardia temporary TOTAL ARTIFICIAL HEART

REFERENCE:
http://www.syncardia.com/totalfacts/total-artificial-heart-facts.html

SynCardia temporary TOTAL ARTIFICIAL HEART

The SynCardia temporary Total

Artificial Heart is the only device
that eliminates the symptoms and
source of end-stage biventricular
heart failure and native heart
failures: arrhythmia, failing
ventricles and malfunctioning
heart valves

SynCardia temporary TOTAL ARTIFICIAL HEART

Founded: 1981
European division: Aechen, Germany
Worlds Smallest Heart Pump
First Total Artificial Heart
Product: AbioCor
Price: 350,000 USD (after surgery); 75,000 USD 100,000
USD (device)
Pioneer and global leader in healthcare technology and
innovation
Focused the companys efforts on developing groundbreaking technologies designed to assist or replace the lifesustaining pumping function of the failing heart

THE COMPETITORS

THE COMPETITORS

Founded: 1996
Develops, produces and markets innovative devices for mechanically
supporting the heart
Strategic partnerships with three of the world's leading heart centers:
the German Heart Institute in Berlin, the Hospital for Sick Kids in Toronto,
Canada and the Texas Childrens Hospital in Houston, Texas
Products: EXCOR Pediatric VAD, EXCOR Adult and INCOR BP
Employs a total of 210 people, including 199 in Berlin, and turns over 28
million EUR.
More than 500 patients have benefited from the system, some for
several years. Until now, the longest support period has been six
years, explains Dr. Thamasett
Price: more than $100,000, including procedures and hospitalization.
Treatment with the heart-lung machine costs the same
Annual Revenue Estimate: $10 to 20 million

THE COMPETITORS

EXCOR VAD for children and

adults

THE COMPETITORS

LOCATION OF THE
BUSINESS

Address
OFFICE
Near C&E
Bookstore,
Quezon Avenue,
Quezon City,
Philippines

Address
Laboratory
Near Trinity
College, E.
Rodriguez
Avenue,
Quezon City,
Philippines

Physical Features

Php 90,000 for lease

250 m2

BRAND NEW building

private and common toilets

with parking slots

Minimum 3 years contract

Physical Features
77.78sq.m
Price: Php35,000/month
Security deposit: 2 months
Advance: 2 months
With 2 Brand New Aircon units
2 Bulletin Board
1 Bulletin Board
1 Reception Table
2 Toileth and Bath
Pantry
Kitchen
Newly painted!

Zoning

I-1 Low Intensity Industrial Zone (Section

20)

Non-pollutive,
non-hazardous

Other Businesses
Laboratory

Hospitals

Office

St. Lukes Medical Center

Philippine Heart Center
Quezon Institute
Philippine Childrens
Medical Center

Academic Institutions

University of the Philippines

TV Networks

Malls

Location Considerations
Accessibility
Quezon City
Manila

Zoning Permit

FINANCIAL ANALYSIS

Sources of Fund

Php14,712,635.00

Source

Percentage

Company

30%

Angel Investors

20%

Venture Capitalists

50%

Start up Capital
Start Up Expenses
TI and Construction Costs

Php

Cost of Reagents

1,197,370.00
438,515.00

Cost of Equipments

3,000,000.00

Permits

11,750.00

Legal Expenses

5,000.00

Initial Stock

25,000.00

Grand Opening Promotion

35,000.00

Cash On Hand Continguency Funds

10,000,000.00

Consulting Fees

500,000.00
Php

14,712,635.00

Uses of Fund
Cost of Materials
Salary
Rent
Interest
Operating Expenses
Taxes
Permits (DTI, Quezon City Govt, etc)

Vertical drill press/miller

(Microtec mini)
$630.00

Compact lathe (EMCO)

$850.00

Band saw (Craftsman)

$545.00

Analytical balance (Mettler MS204S)

$4,172.40
Mettler Toledo
MS204S New
Classic Analytical
Balance 220 g
Capacity, 0.0001 g
Readability with
Draft Shield

Specific surface and porosity measuring

system (Micromeretics Flowsorb II 2300)
$55107.49

Sigma-Aldrich
polyurethane (194 SGD/1L)
9700 SGD /13.21Gallons

Polyester (124 SGD/1L)

2489 SGD/5.28 Gallons

Polyethylene (34 SGD/1kg)

340 SGD/10kg

Pro Forma Balance Sheet

Excel

Financial Goals: First Year

Excel

Pro Forma Cash Flow: First Year

Excel

Expense Breakdown
Office Supplies

Rent
Downpaym
ent
Office Space
Laboratory

Monthly
Fee

140,000.00 35,000.00
360,000.00 90,000.00

Utility Bills

Aircon

30,000 x 5 150,000.00

Chairs
Swivel

2,500 x 4 10,000.00

Monobloc
Guest Waiting
Area

700 x 5 35,000.00
9,000 x 1 9,000.00

Desks

1,500 x 1 15,000.00

Worktables

10,000 x 3 30,000.00
22,000 x 6 132,000.00

Water

650.00

Laptops

Electricity

53,475.00

Printer
Paper

3,500 x 2 7,000.00
350 x 4 1,400.00

Expense Breakdown
Production Line

Salary

Materials/ Reagents

Top Level

4 x 100,000

400,000.00

Polyurethane (194 SGD/1L)

339,500.00

Polyester (124 SGD/1L)

87,115.00

Accounting

1 x 30,000

30,000.00

Polyethylene (34 SGD/1kg)

11,900.00

R&D

1 x 36,000

36,000.00

Sales

1 x 30,000

30,000.00

Equipments
Vertical drill press/miller

28,350.00

Compact lathe (EMCO)

38,250.00

Band saw (Craftsman)

24,525.00

Analytical Balance
Specific surface and porosity
measuring system

187,758.00
2,479,837.05

Heads

Full Time
Sales
Representatives
Production
Line (FT)

10 x 20,000

200,000.00

15 x 14,000

210,000.00

Trainee

25 x 4,800

48,000.00

Pro Forma Income Statement: 3 Year

Projection
Excel

Break Even Analysis

Excel

Business Case
Scenario
What do we do?

Business Case Scenario

Scenario
Metric

Calculation

Mostlikely
case

700

(0 x 20%) + (200 x 60%) + (700

x 20%)

260

15%

30%

(0 x 20%) + (30 x 60%) + (50 x

20%)

21.6%

36

18

11

(36 x 20%) + (18 x 60%) + (11 x

20%)

20.2

20%

60%

20%

Worst

Forecast

Best

Clients (say
1, 000)

200

ROI (%)

0%

Payback
Period
(Months)
Weight

Business Case Scenario Planning

Uncertainties

Cost
Competition
Client

Likely Scenarios

High costs of raw

materials, including
shipping and
transportation of goods.
Low costs of raw
materials, including
shipping and
transportation of goods.

Price increase of
competitor.
Price decrease of
competitor.
High number of
clients.
Low number of
clients.

Impact Evaluation

Outcomes/Resolutio
ns
Chang
e
costin
gs

(+)
(-)

Product
Innovation
More
Affordable
Financing
Options
Discounting
(not
recommende
d)

Basic
Law of
S&D

Sensitivity Analysis

Science Behind our

TAH

Types of heart diseases

Ischemic
heart failure from injury to the heart that cause heart
blockages in the coronary arteries

Dilated cardiomyopathy
cause unknown
the heart progressively gets larger and larger over a period of
time

Prevention of heart diseases

Diet
Exercise

Interventional therapies
Catheter interventions
Catheter interventions
Patient is opened, and operation is perfomed to:
1.) bypass an artery
2.) Replace a valve
3.) correct some abnormality in the heart muscle itself

 TAH consists two artificial

ventricles:
each made of a semi-rigid
polyurethane housing with four
flexible polyurethane diaphragms
separating the blood chamber from
the air chamber.
The diaphragms allow the artificial
ventricle to fill and then eject blood
when compressed by air from the
external console.
Mechanical valves, mounted in the
inflow (27mm) and outflow (25mm)
ports of each artificial ventricle,
The maximum dynamic stroke
volume of each ventricle is 70 ml
which allows for generating a flow rate
up to 9.5 liters per minute.

Removal of the Native Ventricles

External Console
The controller is the major component of the external
console, and supplies pulses of pneumatic pressure to
the right and left drivelines
connect into the air chambers of the respective implanted
artificial ventricles.
These pulses cause the diaphragms to distend eject blood
from the right artificial ventricle into the pulmonary circulation
(typically 50-70mmHg) and from the left artificial ventricle into
the systemic circulation (typically 180-200mmHg).

Electrical
Training Center USA Power Requirements:
Input Voltage: 115 VAC
Flow Meter: AA battery

Materials