SECTION I: ESTIMATION OF COSTS
| 1 | Taking into account the rest of the cost evaluation please provide an overall estimation of the total costs for full deployment/production of the R & D result. |
| … in terms of IPR protection | |
| National: HUF 300 000 (€ 1000)
PCT: HUF 1 000 000 (€ 3400)
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| …in terms of product development | |
| 420 000 Euro
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| …in terms of mass production | |
| 340 000 Euro (The product is ready for mass production)
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| … in terms of marketing | |
| 100 000 Euro | |
| 2 | Based on the above assessment as well as the marketing information please provide the correct estimation of the price for R&D product in correlation with costs | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Fixed costs | 90000 | 90000 | 100 000 | 150 000 | 300 000 | |
| Personnel | 40 000 | 40 000 | 60 000 | 90 000 | 90 000 | |
| Other running costs | 10 000 | 10 000 | 20 000 | 30 000 | 120 000 | |
| Marketing costs | 50 000 | 50 000 | ||||
| TOTAL EXPECTED COSTS | 140 000 | 140 000 | 180 000 | 320 000 | 560 000 | |
| Price per Unit | 80 | 80 | ||||
| Type of Unit | ELISA plate with 8×12 wells | |||||
| Number of Units | 1000 | 5000 | ||||
| TOTAL Expected Revenues | 0 | 0 | 0 | 80000 | 400 000 | |
| CASH FLOW REQUIRED (REVENUES-COSTS) | -140 000 | -140 000 | -180 000 | -240 000 | -160 000 | |
| TOTAL CAPITAL required for five years | 860 000 Euro | |||||
SECTION 2: QUALITATIVE FACTORS
| 3 | Dimension of identified target groups |
| Hundreds of millions (Russian Federation, Republic of India, People’s Republic of China, and the resource-poor Sub-Saharan Africa).
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| 4 | Evaluation of financial Risks for R&D result |
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The R&D result is very promising. The experiments confirmed the theory and there are clear and solvable tasks to achieve the mass production. The risk is the market. Although it is a huge market if we regard the number of infections in the third world, the availability of it by a newly established small company is difficult.
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SECTION 3: IDENTIFICATION OF FINANCING SOURCES
After evaluating all the above mentioned criteria, please tick the best financing source for the achievement of R&D result (i.e. own capitals, banking credits, venture capital, business angels, etc)
| 1. European Funding
Define relevance of the product with the following potential funding sources and comment |
| 1. …
2. … 3. … 4. … |
| 2. National Funding |
| 1. GOP-2011-1.1.1…(Market oriented innovation, 40 – 500 million HUF available for a project)
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| 3. Private funding |
| 1. For co-financing the project (an investment of HUF 100 million would be necessary)
… |
| 4. Other |
SECTION 3: FINAL EVALUATION
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It is requested a final evaluation considering the funding opportunities you believe most suitable for the exploitation of the R&D result, considering the possibility of the creation of a spin-off, further research, in particular, a cost/benefit analysis and a financial projection for the R&D result, type of collaboration identified (i.e. Licensing Agreement, Technical Cooperation, Joint Venture, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, Joint further development)… |
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Over 2 billions of people, 1/3 of the present human population, are infected by M. tuberculosis and over 8 millions of people develop active tuberculosis annually. For decades, much of the industrialized world thought TB was defeated, and investment in TB R & D essentially dried up. The drugs, vaccine, and diagnostics used to fight TB were antiquated, slow, and ineffective, and they were being implemented in the context of weak health systems. This new research result can be the base of a spin-off company (it is the intention of the project owner too) and this company can penetrate to this huge market if acts fast enough. It requires an investor and a strong national funding from GOP.1.1.1. to start with adequate capital. The conditions with the university background are good enough to start the activity with an experimental production. A slower and therefore more risky solution is the two-steps creation of the deal. A spin-off company is necessary in this case too, but with a smaller amount of capital, and with a smaller national funding. If the small scale production is successful then investors can enter or the company can be sold for investors. |
Decision of evaluation (Please keep only the appropriate)
- The R&D has a high potential of exploitation
Tivadar Lippényi
