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Revolutionizing

Stroke Therapy

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Noah Sonenstein | Lauren Shim | Jason Chien | Anna Gong

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Noah �Sonenstein

Lauren Shim

Hung-Yang (Jason) Chien

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Wenjun (Anna) Gong

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Houston Bionics Team

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Did you know?

Every 40 seconds, someone in the US has a stroke

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Source: CDC, NINDS, Medicare

800,000 people a year suffer from a stroke in the US

66% need LIFETIME rehabilitation

On average, rehab costs around $30,000 in the first year alone

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Considering 800,000 people a year suffer strokes, the demand for rehabilitation is widespread. However, current stroke therapy options are extremely expensive and go beyond just its cost, but also the dependence on others.

Houston Bionics has created the ExoRehab X, a nerve rehabilitation and training machine that allows patients to do physical therapy from the comfort of their own home at a fraction of the cost of conventional treatment. The results with use are curated, gamified, and thorough in the feedback it provides.

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Problem

Solution

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Houston Bionics

Ali Utku Pehlivan - Founder

Alex Altomare - CEO

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Founded in 2019 in Houston, Texas

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Competitive Landscape of the

Current Industry

RIVALRY AMONG EXISTING COMPETITORS

THREAT OF SUBSTITUTES

The current stroke therapy industry is comprised of Home Health Care Services, Offices of Physicians, Offices of Physical Therapists, and Telehealth. The treatments offered by businesses within these subdivisions are the status quo and what stroke survivors entrust their lives with.

Houston Bionics ExoRehab X is an innovative disruption to this industry. Other at-home stroke therapy technology exists, but pales in comparison in terms of sophistication, quality, and clinical proof of concept. As a start-up, the biggest challenge is convincing the target market to entrust their future in a machine versus a medical professional.

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Partnership

Purpose

Partnering with Stroke Centers

01

It is in the stroke centers’ best interests to have cutting edge, effective technology to offer their patients the best technology and beneficial for Houston Bionics to establish credibility. Patients will be more inclined to use and buy the machine with their doctor’s testimonial.

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Forming an alliance with the stroke centers allows the consumer to try before they buy. As a startup, the biggest challenge is convincing the stroke survivor to entrust their recovery in a machine versus a medical professional.

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%

Sell ExoRehab X at Consumer Cost

Center Receives Cut of Sales Following

Implementation

Sell the machine to the centers for the same price you charge the consumer. This is a small fee for what the ExoRehab X provides but conveys equal partnership.

To incentivize these centers to act as a platform for exposure, we propose giving them a percentage of the revenue generated from sales made because the customer was exposed to the machine at that center.

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Market Sizing: Why Stroke Centers?

  • Strokes very in level of severity. We are targeting those who have experienced a stroke, still possessing full cognitive function but need physical therapy to rehabilitate their motor skills: 532,800 people seeking therapy in US.
  • One physical therapy session on average is $150. If done on a daily basis, which is paramount to achieve noticeable results, then for one person it costs over $30,000 annually in therapy alone.
  • Therefore, the potential market for just stroke therapy in the US, excluding other significant costs, is about $15,984,000 in one year.
  • Coastal cities on both the east and the west evidently capture the most stroke survivors and stroke centers.

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Crude Prevalence(%) of Strokes by State

Source: CDC

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1,660 Stroke Centers in US

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7 Million Survivors Currently in US

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Proposal in Practice: Houston, TX

With a market this large, capturing even a portion of the market just in coastal cities is a profitable start. ��Houston, Texas

  • Finest hospitals
  • 11 stroke centers
  • Over 91,200 people with strokes in Houston
  • 60,192 receiving treatment from strokes centers

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Even at an underestimate of successful partnership with only 2 of the 11 centers with them buying at least 2 machines at a price point between $4-6k, that is $16k-24k in revenue from machines sold alone and exposure to around 10,944 stroke survivors in each center.

Source: UTH

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Continuing to Directly Sell to Consumer

Along with our first recommendation of partnering with stroke centers, we recommend Houston Bionics to continue selling directly to the consumer. However, HB does not have a strong market power because it is not being exposed through a platform. This is what the current calculations are without any partnerships, solely through Houston Bionics effort as an e-commerce business.

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02

  • 3 months with Google Ads =120 leads
  • 50% buys ExoRehab X
  • 60 * ($4K- $6K)= $240k-$360k

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Stroke Center Partnerships In 3 Months

Let’s say we build 10 partnerships with the purchase of 2 machines.

20 machines sold between $4K-$6K= $80K-$120K

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Pricing Based on Stroke Center Partnership

  • 1,660 clinics in the U.S., 20% build partnership & 2 machine per clinics => $2,656,000 - $3,984,000 in revenue from clinics
  • Stroke Center’s share of revenue would be $531,200- $796,800
  • 528,000 stroke patients who need stroke therapy purchase, 20% purchase ExoRehab X => $422,400,000 - $633,600,000 in revenue
  • Plus, $29/month of subscription per patient

If the stroke center approach is adopted:

Source: AHA Journal

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Recommendations & Summary

  • Partner with the Stroke Rehab Centers
  • Using Stroke Rehab Centers as the platforms to reach more customers and build trust
  • Selling the machine at the same price for both the clinics and the consumers ~ ($4,000 – $6,000)
  • Share a part of the revenue with the Stroke Rehab Centers for those machines that sell via Stroke Rehab Centers & Clinics
  • Lite version for rent

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Thanks!

Do you have any questions?

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https://houstonbionics.com/

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CREDITS:

This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik and illustrations by Stories

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