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Home Tonometer
The University of Arizona

    Eniko Enikov - PI
  Vasco Polyzoev – EL
  Emre Toker - Mentor
Here’s What we Thought
• Serial tonometry was exotic and under-utilized
  procedure with low volumes
• The market for serial tonometry is negligibly
  small
• Drainage of ocular fluid is a new
  function/market and of potential interest to
  doctors
So Here’s What we Did
• Interviewed several ophthalmologists
• Searched FDA data base for predicate
  instruments and approved applications
• Searched commercial market study reports
  and Medicare re-imbursement data to
  identify market size in US
Here’s What we Found (Cont.)
Serial Tonometry: Reimbursable
           procedure
Here’s What we Found (Cont.)
• Only 35,000 claims are filed annually, while there are 5M
  patients with glaucoma
• Doctors and patients find serial tonomery impractical and
  cumbersome to perform
• Doctors feel that all glaucoma patients should be
  undergoing serial tonometry, if there was a practical way of
  performing it.
• At $90 per claims the annual revenue to doctors would be
  $450 M in US.
• Doctors would like to capture near all of the insurance
  revenue and potentially recoup the cost of tonometer
  within 1 year (larger sample needed to get more accurate
  estimate)
Here’s What we Found from FDA
                 (cont.)
• Is there a defined pathway to FDA approval (predicate 510(k) device
  for home use)? YES
• Is the procedure reimbursable? YES
• Do we have enough clinical data to gain physician endorsement?
  NOT YET
• Do we know what we need to demonstrate to gain physician
  endorsement? YES; +/- 2mm Hg; equal to gold standard
• Do we have an estimate of the potential market? YES; one device
  per 5 patients; 5M patients => 1M devices at ~$500 each => $500M
  market potential
• Do we know the biggest business risk factor going forward
  (assuming technology works as planned)? YES; Medicare cuts
  reimbursement for home tonometry.
Here’s What we Found (cont.)
      Predicate Device (Pro View)
• Low-risk FDA 510(k) route with predicate
  device
Here’s What we Found (cont.)
 Why is Proview not currently in use?

• Mechanical and not accurate.
• Subjective – requires patients to take reading
  based on perceived light.
• Doctors need comparison with Goldman and
  minimal accuracy of +/- 2 mm Hg.
• Cannot gather data electronically.
Here’s What we Found (cont.)
                Market Size
• The interviewed ophthalmologist might be able to prescribe 2000
  tests per year requiring 40 tonometers for his office assuming the
  device is used for 1 week by each patient.

• Based on 5M patients and 20,000 opthalmologists in US, the
  average number of patients per doctor seems to be around 250,
  leading to each doctor purchasing or leasing about 5 tonometers.
•
• Might be able to get higher reimbursement as “M-code device”
  similar to ecocardiography at home (Holter monitor.)

• Serial tonometry might be prescribed once per year per patient
  with glaucoma
Concerns from Doctors
• Possible damage to the instrument by home
  use.
• Acceptance – need a clinical trial
  demonstrating efficacy
Here’s What we Are Going to Do
• Continue interviewing potential customers to
  find out if “M codes” can be used.
• Determine delivery/distribution method, i.e.
  lease vs. sale, data collection and processing
• Validate assumption of price point, acceptable
  profit margins to doctors.
• Prepare prototype for clinical trials

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Tonometer presentation Lecture 4 Channels

  • 1. Home Tonometer The University of Arizona Eniko Enikov - PI Vasco Polyzoev – EL Emre Toker - Mentor
  • 2.
  • 3. Here’s What we Thought • Serial tonometry was exotic and under-utilized procedure with low volumes • The market for serial tonometry is negligibly small • Drainage of ocular fluid is a new function/market and of potential interest to doctors
  • 4. So Here’s What we Did • Interviewed several ophthalmologists • Searched FDA data base for predicate instruments and approved applications • Searched commercial market study reports and Medicare re-imbursement data to identify market size in US
  • 5. Here’s What we Found (Cont.) Serial Tonometry: Reimbursable procedure
  • 6. Here’s What we Found (Cont.) • Only 35,000 claims are filed annually, while there are 5M patients with glaucoma • Doctors and patients find serial tonomery impractical and cumbersome to perform • Doctors feel that all glaucoma patients should be undergoing serial tonometry, if there was a practical way of performing it. • At $90 per claims the annual revenue to doctors would be $450 M in US. • Doctors would like to capture near all of the insurance revenue and potentially recoup the cost of tonometer within 1 year (larger sample needed to get more accurate estimate)
  • 7. Here’s What we Found from FDA (cont.) • Is there a defined pathway to FDA approval (predicate 510(k) device for home use)? YES • Is the procedure reimbursable? YES • Do we have enough clinical data to gain physician endorsement? NOT YET • Do we know what we need to demonstrate to gain physician endorsement? YES; +/- 2mm Hg; equal to gold standard • Do we have an estimate of the potential market? YES; one device per 5 patients; 5M patients => 1M devices at ~$500 each => $500M market potential • Do we know the biggest business risk factor going forward (assuming technology works as planned)? YES; Medicare cuts reimbursement for home tonometry.
  • 8. Here’s What we Found (cont.) Predicate Device (Pro View) • Low-risk FDA 510(k) route with predicate device
  • 9. Here’s What we Found (cont.) Why is Proview not currently in use? • Mechanical and not accurate. • Subjective – requires patients to take reading based on perceived light. • Doctors need comparison with Goldman and minimal accuracy of +/- 2 mm Hg. • Cannot gather data electronically.
  • 10. Here’s What we Found (cont.) Market Size • The interviewed ophthalmologist might be able to prescribe 2000 tests per year requiring 40 tonometers for his office assuming the device is used for 1 week by each patient. • Based on 5M patients and 20,000 opthalmologists in US, the average number of patients per doctor seems to be around 250, leading to each doctor purchasing or leasing about 5 tonometers. • • Might be able to get higher reimbursement as “M-code device” similar to ecocardiography at home (Holter monitor.) • Serial tonometry might be prescribed once per year per patient with glaucoma
  • 11. Concerns from Doctors • Possible damage to the instrument by home use. • Acceptance – need a clinical trial demonstrating efficacy
  • 12. Here’s What we Are Going to Do • Continue interviewing potential customers to find out if “M codes” can be used. • Determine delivery/distribution method, i.e. lease vs. sale, data collection and processing • Validate assumption of price point, acceptable profit margins to doctors. • Prepare prototype for clinical trials