Ourotech’s February 2017 investor deck presents a precision medicine solution for cancer treatment, specifically targeting the high failure rate of drugs due to tumor resistance. By growing patient tumor samples in a proprietary hydrogel and testing various drug combinations, Ourotech claims to predict drug effectiveness (IC50) more accurately than existing competitors like Alginate. The deck outlines a clear transition from academic and pharmaceutical pilots to a revenue-generating model based on drug testing services. While the deck provides specific proof-of-concept data comparing their re…
Key takeaways
- The company identifies four primary causes of tumor resistance: genetic mutation, tumor microenvironment, and interactions with both healthy and cancer cells (Slide 3).
- Ourotech's solution involves a five-step process: biopsy, growing tumors in a 96-well plate with proprietary hydrogel, testing treatments, calculating dosage, and treating the patient (Slide 4).
- Proof-of-concept data shows Ourotech’s IC50 prediction (600-650nM) is significantly closer to human IC50 (702nM) than Alginate (200nM) when testing Doxorubicin (Slide 5).
- The market is quantified at $500 per patient, targeting a total addressable market of $500M per year (Slide 6).
- The funding roadmap splits objectives between Seed (partnerships and revenue generation) and Series A (big pharma clinical trials and distribution) (Slide 7).
- Traction as of early 2017 included two pending patents, two academic pilots, and two pharma pilots with sales projected to start in May 2017 (Slide 8).
- The deck mentions a specific marketing partnership with a firm named Schwozny (Slide 8).
- One preclinical trial was reported as 'in progress' at the time the deck was finalized (Slide 8).
Ourotech Investor Deck Analysis
The Ourotech deck from February 2017 is a concise, technical presentation focused on precision oncology. It attempts to bridge the gap between laboratory drug testing and actual human patient outcomes using a proprietary material science solution. The deck is structured to move quickly from the clinical problem to a data-backed solution, though it leaves several business-operational questions unanswered in the provided slides.
Slide 1: Title Slide
The title slide features the Ourotech logo—a red, brush-stroke style circle—and the tagline "Cancer treatment with certainty." It is a minimalist opening that establishes the company's focus on oncology and diagnostic reliability.
Slide 2: Example: HER2+ Breast Cancer
This slide provides clinical context. It lists the four lines of treatment for HER2+ Breast Cancer: 1st line (Herceptin combination) , 2nd line (T-DM1) , 3rd line (Xeloda) , and 4th line (Hormone therapy) . By showing the progression of treatments, the deck implies that patients often fail earlier lines of therapy, necessitating a more predictive approach to avoid ineffective treatments.
Slide 3: The Problem
Ourotech identifies a specific gap in oncology: "Multiple drugs target the same cancer subtype but they don’t work on all patients." The slide lists four reasons for tumor resistance: Genetic resistance/mutation , Tumor microenvironment , Interaction with other cancer cells , and Interaction with healthy cells . This slide is critical because it establishes that genetic testing alone (which only addresses the first point) is insufficient, justifying the need for Ourotech's holistic tumor-growth testing.
Slide 4: The Solution
Obtain patient tumor sample from biopsy. · Grow tumors in 96 well plate using proprietary hydrogel . · Test the effectiveness of drugs and combination treatments. · Calculate necessary human dosage from test results. · Treat the patient.
The mention of "proprietary hydrogel" is the key differentiator here, suggesting that Ourotech has a unique medium that mimics the human body better than standard lab plastics or other gels.
Slide 5: Proof of Concept: IC50
This is the most data-heavy slide in the deck. It compares the IC50 (a measure of drug resistance) for the drug Doxorubicin across three environments. The Human IC50 is 702nM . Ourotech's IC50 is 600~650nM , while the competitor Alginate's IC50 is 200nM . The slide concludes that Ourotech can predict drug resistance better than the competition because its results are significantly closer to the human standard.
Slide 6: Market
The market slide is extremely brief, featuring a large dollar sign icon. It lists two figures: $500/patient and $500M/year . This suggests a high-volume, relatively low-cost diagnostic model, though it does not specify how many patients or which specific markets (e.g., US, Global) make up the $500M total.
Slide 7: Funding Roadmap
This slide outlines the company's trajectory. Under the Seed phase, the goals are: strategic partnerships with hospitals for preclinical trials, starting revenue generation via pharmaceutical drug testing services, and optimizing the product. The Series A phase focuses on strategic partnerships with big pharma for clinical trials and distribution. This indicates a B2B service model initially, followed by a more integrated pharmaceutical partnership model.
Slide 8: Traction
2 patents pending · 2 academic pilots · 2 pharma pilots , with sales to start May 2017 · Partnership for marketing with Schwozny · 1 Pre Clinical Trial In Progress
This slide provides the necessary validation that the technology has moved out of pure research and into pilot testing with external partners.
Slide 9: Product Visual
The final slide in the provided set shows a high-quality image of a syringe and a vial labeled "Ourotech Genesis 74k Hyaluronan BioInk." This gives a physical form to the "proprietary hydrogel" mentioned earlier, identifying it as a BioInk, which suggests applications in 3D bioprinting of tumor models.
What Ourotech Does Well
The deck is exceptionally focused on the technical problem and the data that proves their solution works. By comparing their IC50 results directly to human data and a named competitor (Alginate) on Slide 5, they provide a clear "reason to believe" for scientifically-minded investors. The workflow on Slide 4 is easy to understand, and the transition from academic pilots to pharma sales on Slide 8 shows a logical progression toward commercialization.
What is Missing from the Ourotech Deck
Based on the nine slides provided, there are several significant omissions: 1. Team Slide: There is no information regarding the founders, their scientific backgrounds, or their previous exits. In biotech, the pedigree of the scientific advisory board and the leadership team is often as important as the data. 2. Financials and Ask: While a "Funding Roadmap" exists, there is no slide detailing how much capital is being raised in the current round, the valuation, or a breakdown of how the funds will be spent (use of proceeds). 3. Competition: Beyond a brief mention of Alginate on the proof-of-concept slide, there is no comprehensive competitive landscape analysis. Investors would want to know how Ourotech stacks up against other organ-on-a-chip or 3D bioprinting companies. 4. Regulatory Pathway: For a medical technology, the lack of a slide detailing the FDA or equivalent regulatory roadmap is a notable gap, especially since they mention "treating the patient" as the final step in their solution.
Founder Takeaways
Use Benchmarks: If you are in a technical field, follow Ourotech's lead on Slide 5. Don't just say you are "better"; show your data alongside the industry standard and your closest competitor. Define the 'Why': Slide 3 does an excellent job of explaining why current solutions (like genetic testing) fail. By listing the specific biological factors their hydrogel addresses, they make a compelling case for their specific approach. Keep the Workflow Simple: Even for complex biotech, the five-step icon-based workflow on Slide 4 makes the business process accessible to non-scientific investors. Founders should aim for this level of clarity when describing their operations.
Frequently asked questions
- What is Ourotech's core technological advantage?
- Ourotech’s core advantage is its proprietary hydrogel used to grow patient tumor samples in a 96-well plate. According to Slide 5, this environment allows for a more accurate prediction of IC50 (the measure of drug resistance). Their testing of Doxorubicin yielded a result of 600-650nM, which is much closer to the human standard of 702nM compared to the 200nM result from Alginate.
- How does Ourotech plan to generate revenue?
- As outlined in the Funding Roadmap on Slide 7, Ourotech intends to start generating revenue by offering pharmaceutical drug testing services during its Seed stage. This is intended to transition into larger strategic partnerships with 'big pharma' clients for clinical trials and distribution once they reach Series A.
- What specific cancer type does the deck use as a case study?
- Slide 2 uses HER2+ Breast Cancer as the primary example. It illustrates the current standard of care, which progresses through four lines of treatment: Herceptin combination, T-DM1, Xeloda, and finally Hormone therapy. This sets the stage for the problem of drug resistance discussed in the subsequent slide.
- What is the stated market size and pricing model?
- Slide 6 defines the market opportunity with two figures: a price point of $500 per patient and a total market value of $500M per year. The deck does not explicitly state the geographic scope or the specific patient population included in this $500M calculation.
- What stage was the company at during this pitch?
- Based on Slide 7 and Slide 8, the company was in its Seed stage in early 2017. They had two patents pending, were engaged in academic and pharma pilots, and had one preclinical trial in progress. They projected that revenue-generating sales would begin in May 2017.
