Ratio | About

The Company
Ratio, Inc is a biotechnology company developing a solution for conveniently administering large molecule drugs such as insulin. The technology was developed at the University of Wisconsin-Madison by several inventors, notably Dr. Michael MacDonald and Dr. David Beebe. Ratio was founded in 2005 by Tony Escarcega, a recent MBA graduate, and Dr. Beebe. This technology has been patented by the Wisconsin Alumni Research Foundation (WARF) and we have a license agreement with them.
Ratio is currently developing a micro-insulin pump, which we will compare to a current product on the market (insulin pump) to get 501(k) status from the FDA. With this strategy, we estimate getting FDA approval within three years. Once the pump is approved for one drug application, this will enable many other drug applications to go through the FDA easier.

The Product Description
Our product is a disposable, adhesive drug delivery pump worn on the skin. This device can be worn for up to 24 hours and deliver a steady dose of drug, then it is discarded and a new patch is applied. It is fully self-contained and is small in size (25mm in diameter, 5mm thick), making it convenient to wear and easy to hide. The key to this technology is the small non-electronic pump that allows for constant dosing. The method of injection is small, self contained catheter, but a painless microneedle array is being developed.

There are several competing products that can deliver large molecule drugs; insulin pumps, needles, injector pens, and inhalers. Our product is fundamentally different than these because it is small enough to be attached to the skin and can deliver a steady dose of drug over time. Our device is also designed to be mass produced and disposable, allowing for low switching costs for users to try our product.

The Customer Definition
Recent advancements in biotechnology have led to a proliferation of large molecule drug discoveries. These large molecule drugs (such as various proteins, monoclonal antibodies, hormones, and vaccines) have the potential to cure more complex diseases with targeted precision, specificity, and accuracy. A significant drawback to these large molecule drugs, however, is that they need to be injected subcutaneously or intramuscularly such as with a needle and syringe, which can be painful, requires the handling of needles and does not offer a steady infusion of the drug over time. Many of these large molecule drugs have a short half-life requiring that they be administered over a long period of time. This is a significant issue that most of the current drug delivery systems are incapable of overcoming.

Our target customer is a Type 1 diabetic that wants the benefits of an insulin pump, but does not want to pay for or cannot afford one. Ideal candidates are young children who are not ready for an insulin pump and need a reliable method of insulin delivery when they sleep.

Other target customers will want an easy to use and reliable way to take a drug over time. Current long-dosing large molecule drugs require the patient to be stationary while a slow IV drip is administered. A large benefit of our device is that it will enable the patient to be mobile while the drug is being infused.

Market Description
The U.S. currently has more than 1.7 million Type 1 diabetics (4 million in the world) and 30,000 new cases diagnosed each year in the U.S. Type 1 diabetics self-administer 4-6 daily injections to maintain their blood glucose levels. These drug delivery supplies can cost a substantial amount, averaging nearly $1,000 each year per diabetic, making it a $1.7 billion U.S. market.

Twenty large molecule drugs received final approval in 2002 and 15 received approvals for new indications, according to Burrill. From their small base in 2003- 8% of the $390 billion worldwide drug market—large molecule drugs are expected to reach 15% of a $550 billion market by 2006. An example of a single drug is Herceptin, a drug for the treatment of breast cancer, which had sales of $600 million in 2005. Drug delivery companies would earn between 5-10% of sales for use of its device.

Ratio will find the drugs that take advantage of our delivery system, at the same time have a large market potential. We will partner with a pharmaceutical company, using their expertise in the market, regulatory affairs and significant resources. Ratio can leverage its technology by licensing to several pharmaceutical companies at the same time, increasing the value of the company and reducing risks associated with a single drug.