Our main customer is large pharmaceuticals companies with more than 5000 formal staffs.
They should have the need of increasing their drugs' accuracy or decreasing the side effects of their drugs and want to achieve this by cooperating with other companies.
They should also have the ability of providing more than 100000$ per year to support the drug-load test and pre-clinical research for the iron oxide core nanoparticle complex loaded with their target drug.
Moreover, their drugs needed to be loaded in the complex should pass the rules set in the Chinese pharmacopoeia which means the drugs can circulate in Chinese pharmaceutical market.
Finally, they should agree with our safety and moral standards mentioned in our safety and responsibility format and follow them all over the cooperating process.

Market Scale Analysis

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Our product is only sold in China which has 1.4 billion people. The table below is the content of the market scale analysis. (The definition of unit product is mentioned in cost analysis part.)

Step	Item	Data
1	People in China	1.4Billion
2	In the need of using precise targeting drugs per people per year	0.05
3	The percentage of drugs mentioned in step 1 can be delivered by our product	20%
4	The percentage of mentioned drugs in step2's producer company who want to cooperate with us	10%
5	The success rate of the cooperation mentioned in step 3	20%
6	Average unit product needed in each treatment	60mg
7	Unit product needed in each treatment	16800g

According to the cost analysis part, the price of our unit product is 6633.3$/g. Since there doesn't exist any competitor in Chinese market now selling the same or similar product, we can assume that the product's price can just be the number we defined. So the market scale is 6633.3$*16800=111439440$

PESTEL Analysis

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Types of the factors	Content
Political	China's policy support and encourage the development of high and new technology research, especially this kind of research in pharmaceutical sector. The range of drugs covered by the medical insurance system in China is expanding annually.
Economical	Per capita disposable income increases, which means expensive high technical drugs like drugs loaded by our product will have a larger chance to be accepted by people.
Sociocultural	The number of people increase annually. Aging of population. The health awareness of people is increasing.
Technological	Our technology becomes mature. Competitor companies may occur. New technology may replace our technology.
Environmental	No significant influence.
Legal	No significant influence.

Future Analysis

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The political factors will influence the market scale of our product only when our product is covered by the medical insurance system in China. But this will not happen at least for 10 years since it takes for about 7 years for our product to come into China's market and it takes at least 3 years for the product promotion. So, we will not take these factors into account currently. The economic factors combined with sociocultural factors will let the number mentioned in step 4 increase for 6% per year by our team's estimation. The mature of our technology will let the numbers mentioned in step 3,4 and 5 increase. But the amplification of the increasement can't be estimated currently. The effect of the occur of the new competitor company and the occur of the new technologies which can replace our technology will not be very significant for at least next 6 years. All in all, the increasing rate of our market scale will be about 6%.

Since the core of our technique is the iron oxide nanoparticle and the drug capacity of our product is proportion to the mass of the iron oxide nanoparticle, we decide to use the complex with 1g our synthesized iron oxide nanoparticle as 1g unit product to analysis the cost of our product.

Raw Material Cost (take EDC-NHS method as an example)

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Our product is only sold in China which has 1.4 billion people. The table below is the content of the market scale analysis. (The definition of unit product is mentioned in cost analysis part.)

Item	Amount	Price ($)
Nanoparticle	1g	~4110
Antibody	0.103g	706
PBS (0.1M)	1000mL	1.7
EDC·HCl	0.96mL	0.2
NHS	1.15mL	0.2
3kDa tube	200	980
10kDa tube	200	980

Sum: ~6800$/unit product
When the product scale reaches 1000g unit product, the cost of the raw material can drop at least 20% (which is 5440$).

Labor Cost

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25 people work for 8 hours a day will finish the goal of synthesize 10000g unit product in about 150days. The hour salary is 8$, so the labor cost for synthesize is about 240000$. So the labor cost for 1g unit product is 24$

Package Cost

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Our package needn't to be very fancy, but it needs to have the function of maintaining the temperature and avoiding collision. So normal cardboard with sponge inside it for the outer package and EP tube for the inner package is a possible way. We decide to put 10mg our unit product into the EP tube, so we need 100 EP tube per unit product.

Package cost per unit product	number	Cost ($)
EP tube	100	20
Cardboard	1m^2	5
Sponge	100g	2
Sum	/	27

Delivery Cost

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We decide to send our product to the destination by the S.F. Express in China but we only pay the cost of transportation when the order quantity of our unit product is more than 10mg.
Set one order's average quantity is 100mg unit product and one delivery is about 3$, the total cost of the delivery is about 30$/1g unit product.

Equipment Depreciation Cost

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We set the rate of depreciation of our equipment to be 5%.
The sum price of our equipment is about 1350000$, so the equipment depreciation cost is about 67500$ per year. In our plan, we decide to synthesize about 10000g unit product per year so the equipment depreciation cost for 1g unit product is 6.75$

Item	Cost ($)
Raw material	5440
Labor	24
Package	27
Delivery	30
Depreciation	6.75
Sum	5527.75

We decide to have a profit rate about 20% to keep on research and investigation, so the price of 1g unit product is about 6633.3$.

Research Process Analysis

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Although our product is not a kind of traditional medicine, its developmental process which also contains discovery part, pre -clinical research part, clinical part which is very similar to the developmental process of the drug. It means we can regard it as a kind of “new medicine” in the technique development process analysis.

Our time and cost prediction for different stages is shown below as a format. We have already covered the discovery and development stage and about 15% of the pre-clinical test stage.

Time and cost prediction

Stage	Time	Cost
Discovery and development	1 year	10000$
Pre-clinical test	1.5 years	22000$-35000$
Clinical research phase 1	1.5 years	60000$-70000$
Clinical research phase 2	1.5 years	85000$-95000$
Clinical research phase 3	2.5 years	125000$-145000$

Business Canvas

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Item	Content
Key partners	Westlake university UCAS
Key activities	Animal experiment Clinical test Improvement of drug adaptation
Value proposition	Increase the delivery efficiency of drugs Decrease the side effects of other normal cells for the medicine Decrease the amount of drug used in each treatment Decrease the cost per treatment
Customer relationships	Conduct cooperative tests Provide advanced samples for free
Customer segments	Pharmaceuticals companies hospitals medical science research institutions
Key resources	Experimental facilities Production equipment Funds Patent for the technic
Channels	online purchase in the website offline flagship store
Cost structure	Experiments equipments and production equipments Raw material cost Transportation cost Packing expenses Labor cost Land cost
Revenue streams	collect patent fees sell mature products provide technical advice

SWOT Analysis

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	Strength Advanced experimental equipment Close relationship with some professors at Westlake University Flexible teamwork mechanism	Weakness Lack of research team members Lack of research funds In the initial stage of development Low current yield and efficiency
Opportunity In the emerging market Future demand will increase Environmentally friendly	Step up research and development Increase drug compatibility Increase production scale Increase the rate of integration of production and research	Recruit new team members Increase the strength of finance Accelerate the rate of research and development to increase the yield and efficiency
Threat Lots of competitors for the same market Substitution of other targeting techniques Distrust of target customers	Conduct in-depth mechanism research Optimize technology mechanisms	Collaborate with other peer companies Merge with peer companies to increase the scale