Excerpt from Benchmark report for Qtinno. Hope this helps.
We estimate that NewCardio can earn 80%-90% gross margin on QTinno studies because this
revenue is primarily a software license. Management estimates that NewCardio has the capacity to
support 8-9 QTinno studies per quarter without adding additional staff. Management estimates
that the Company could be break-even at approximately 3-5 studies per month. We estimate that
to break even at a $350,000 monthly cash burn, NewCardio needs to generate approximately $0.4
million in monthly revenue at 85% gross margin. We estimate that NewCardio would break even if it
performed one Thorough and three ascending doses studies per quarter. Studies range in size but
our forecasts are based on revenue of approximately $200,000 per Thorough QT study and
$54,000 per ascending dose QT study, plus some related services and other revenue.
We estimate the total addressable market for ECG analysis in cardiac safety pharmaceutical trials is
approximately $750 million based on data from Health Research International and the current
industry leader, eResearch Technologies. Of this, we estimate the market available to
NewCardio for Thorough QT studies is approximately $12 million - $20 million at 60-100 Thorough
QT studies per year at an average of approximately $200,000 per study. We estimate the market
for ascending dose studies is $8.1 million - $13.5 million based on 150-250 studies per year at
approximately $54,000 per study. The majority of the market is comprised of ECG monitoring of
patients in phase-II, phase-III and phase-IV studies. This is not QTinno’s initial focus but offers
significant long-term expansion opportunity.
We estimate that CardioBip’s global market
opportunity in episodic diagnosis and cardiac monitoring is approximately $2.6 billion annually. We
estimate that Cardio3KG’s market opportunity in acute diagnosis is approximately $1.4 billion
annually.
