MedNexis, Inc., which is the company, is a medical-device development company that has created and patented medical products it plans to market. With the help of top medical professionals and biomedical engineers, a magnetic muscle stimulator/field generation device was developed. One patent was initially filed.

Allopathic Medicine

One market addresses the unmet need for atrophy prevention/treatment in conditions that result in patient immobilization lasting more than two weeks. Two weeks of immobilization results in a muscle losing over 30%, which means that it will take longer to recover fully. MedStim is an innovative, new device designed to treat atrophy. As more research is done on the benefits of pulsed magnet fields, there will be more indications for this device. Studies have shown that pulsed field magnetism can be used to accelerate the healing time of skeletal fractures.

The market for allopathic medicine magnetic stimulation devices is already there, though it’s still in its infancy and could explode once the technology proves economical. The potential market is estimated to have reached 4.2 million people in the United States. The new and innovative device designed to target this market has been named the MedStim system.

Alternative Medicine

Another market addresses a gap in the alternative market for a device providing a stronger and longer-lasting therapeutic magnetic field. A dynamic magnetic field therapy (treatment of soft tissue with variable magnetic pulses), is being studied in the alternative healthcare market. It has been found to have beneficial results on circulation, immune function, wound healing and other health outcomes. These effects are thought to be proportional the strength of magnetic field. The new and innovative design created to answer this need for a more powerful therapeutic magnetic field in alternative medicine has been named the TheraMag system. This market is already in existence, and we expect to see approximately 40,000,000 customers in the United States by our start date.

Technology

Patent applications on the company’s first market entries have been filed using a patent agent specializing in biomedical device patents. MedNexis’#8217 technology relies on the principle of a current flowing through a coil creating a magnetic field that will in turn generate a current in any conductor material within the field. This model is used for diagnostic studies. Single nerves can be stimulated with magnetism to diagnose. MedNexis created an electromagnetic device to painlessly stimulate muscles to contract by using this model. There are many applications for this technology, and the following devices were first marketed:

MedNexis’#8217’s patent device will be specifically tailored to stimulate muscle. This device will need higher electrical currents, more functionality and a wider range settings. This device will be marketed for mainstream, allopathic medicine

TheraMag MedNexis’#8217’s patented device will heat tissue with a magnetic field. This will not cause contraction. This device will be marketed for alternative applications.

Strategy

MedNexis targets the following markets: allopathic and alternative medicine. The devices will be named separately in order to distinguish them from possible negative connotations associated allopathic medicine.

MedStim distribution will be through large distributors. This will make it easier to gain acceptance in this market. Physicians will also demand controlled, randomized study data. This will be the main focus of MedNexis’#8217’s early efforts in this market.

TheraMag will be distributed in alternative medicine centers that are less centralized and direct sales of TheraMag will also be possible. Less scientific proof is required by this market, and entrance will be immediate once the FDA issues an Investigational Device Exemption.

Regulatory issues

You can get an Investigational Device Exemption for your product and clearly label it.

FDA regulations will be satisfied, and market entrance will quickly be expedited. These products will be accepted based on the successful research results. This will greatly increase demand and open up new markets.

Milestones

Research and Development in the Animal Stages is underway, early Year 1.

• Extend patent coverage to Australia, Europe and Canada, middle Year One
• Human clinical trials underway, middle Year Two.
• Published Research Studies, Year Two.
• TheraMag for sale, end of Year One.
• MagnaStim, available for sale. Labeled « For Investigational use Only », end of Year Two.
• Year Four is the year of profitability

Competitive advantage

The MagnaStim and TheraMag devices have multiple home healthcare applications and are very user-friendly. However they are only half as effective as other devices, which can make it difficult to get the treatment you need. MedNexis will use its patented designs to fill the need in the market for an easier to use, more effective magnetic stimulator/field generator.

Financial

Based on financial projections, the company can operate profitably in Year 3 if it gets $750,000 of funding. The company projects $23.5million in sales, with a tremendous net profit in year 3. Projections are based on penetration less than 3% in any market segment.