The cost of goods sold (COGS) is estimated to be $300 due to the small size of the device, the limited number of components involved, and its compatibility with existing delivery systems. A market price of $1000 for the valve-in-stent device yields a 70% margin. After providing a 25% return to investors and accounting for the COGS, the five-year revenue is estimated to be $160M.
Projected growth and annual revenue as a function of percent market capture for the first five years after regulatory approval. Data labels indicate annual revenue for the corresponding percent of the market captured.
5-Year Projections
Predicted revenues are expected to grow rapidly during the first few years and will likely plateau around five years, when 30% market capture is achieved. Annual revenue is expected to stabilize after five years due to established customer relationships, the potential to expand into other markets, and continued device advancements.
Fundraising Strategy
Four rounds of fundraising will be completed over five years. Angel investors and venture capital firms will serve as the primary funding sources. It is estimated that the company will be acquired shortly after PMA approval.