David Kuraguntla 0:00
Good morning, everyone. I'm Dave Kuraguntla, co founder and CEO of Alio. Alio is bringing and empowering dialysis patients to live with peace of mind, we want to make sure that the issues that they face each and every day that technologies that have not been brought to them are able to allow them to live the life that they want to lead. And even though it's been a relatively small percentage of the patient population, about 1% of our Medicare population, it's an outsize cost. Everybody knows it's a problem, they realize that they need to federally mandate monitoring, that they want to make sure that these patients have a pathway that's well defined in terms of clinical workflow. There's international guidelines that say, if a patient is outside of a normal range, here's what we have to do. And despite it being well defined, we still see that they spent on average, almost two weeks a year in an ICU, there's costing almost $51 billion in care from Medicare standpoint. So how do we actually attack that and make something different? Instead of just taking mere photos and little snapshots, maybe once a month, or once a quarter of this patient's life? What if instead, you could actually get a continuous video of what they're going through. And what we've seen is that ability to get that video enables a decrease in not only therapeutic costs from drugs, but also being able to titrate the amount of treatment that the patient needs each and every day, as well.
From Alio's standpoint, we are a end to end remote patient monitoring company with a uniquely differentiated wearable, completely non invasive, that has a great robust portfolio of IP, with unique metrics, clinical grade data, and also the fact that we're kind of going into a market that people have ignored for almost 40 years. Under the hood of that non invasive wearable is the fact that we can do more than anybody else can all inside of one small patch, we've been able to push that past big areas where these patients have significant problems, two out of five being hospitalized for heart failure in any given year, one out of three having a problem with their access, one out of three having a problem with their arrhythmia leading to potentially sudden cardiac death. So once again, big issues, big problems, large number of patients that have a very clear pathway of how you can put them into a better clinical pathway if you get that data early. At the same time, we wanted to make sure it's really easy, it's really easy to deploy distribute to the patient. We've seen over 400 patients utilize a product already, they got a little box from us, they know where they have to place their patch, they plug a little hub inside of their home. That patch is without any intervention from the patient, intermittently collecting data throughout the day, they get within range of that hub, whether it's at their home, the dialysis clinic, wherever they might be, it's automatically uploaded to the cloud. And then we're able to utilize our series of proprietary algorithms to push out clinical notifications and clinically actionable data into either an EHR or our portal for the clinician to utilize and supplants what clinicians are used to getting from a fax or a phone call today.
Underneath the hood even further is the fact that we've taken what a lot of off the shelf sensors have done in terms of the work that all these great watches, and other wearables have done and really created a new way of getting a much stronger and more robust signal that creates a great pathway forward into more deeper areas, such as not just being the world's first non invasive potassium sensor, but other electrolytes such as sodium urea, as well. So at the end of the day, the clinician certainly want clinical grade data, it's not good enough to be close, you have to give them something they want. And what we've seen as we've gone through some of these extended studies is our ability to make sure that we are matching what they use today. What that means for the clinician is superior accuracy is compared to what they have on market that requires either a fingerstick or maybe requires a patient to come in or an expensive product. But for the patient, it's comfortable, it's convenient, and it also allows them to have the peace of mind that they're being monitored, and they can avoid that hospital stay. For something like potassium, being able to not just look at a trailing or lagging indicator in the ECG, but being able to come in even further with a predictive of where their actual electrolyte is likely to cause that arrhythmia to potentially happen. Now, I think we've explained the clinical value prop is very clear, we've seen some great traction, but there's also been some great macro trends that really make this a viable company for the future and why we're really excited about how we're going into the commercialization phase later this year. So the macro trends were that everybody realized it's a problem. Even Congress did say passed a law about two years ago. That said, we want to incentivize more home therapies, we want to make sure that patients are able to get into Medicare Advantage plans or other value based care plans as well. And we've really seen that enrollment take off so about two years ago, less than 20% of patients were in MA plan. As of this last open enrollment period late last year that's crossed 40%. We think it's going to be over 50% through 2022 as well. So once again, that drive towards value based care has meant that payers at this point are reaching out to us saying we have so many patients signing up for MA plans. How do we To help monitor them so that we can make sure they don't end up in the hospital? So what that's led to is a really robust pipeline right now with folks and partners that have skin in the game represents about 200,000 patients, overall.
For us as a company from a cash flow breakeven standpoint, we'd have to hit about 10% of those patients overall, right now, folks that are already deploying the product somewhere in their clinics, either through a clinical study with us right now as well. So from that standpoint, really leveraging as we head into commercialization later this year, with our partners entering the market, scaling the product within folks that are already using it, maybe in four or five or six clinics right now and being able to accelerate that adaption through those audience capitated and Medicare Advantage plans that are willing to be able to put in pay directly rather than having to go after a little bit more of a longer CPT based reimbursement strategy, which is really exciting for what we're doing. At the end of the day, as well, well, dialysis is certainly our initial target, this patient population has some of these really interesting issues that we face. And we've talked about, including, as you mentioned, heart failure, arrhythmia, access monitoring issues, which are really great platform for heart failure patients at large cardiac patients ,at large PAD and stroke patients as well, even in the ICU, where we've been able to do some of these monitoring for them as well. So we are uniquely positioned to become the standard of care for remote patient monitoring. We've got an exciting market that's growing, where there nobody really is. And they haven't been able to find a non invasive solution for this yet. It's differentiated metrics that nobody's been able to achieve non invasively and a lot of traction with some key stakeholders, both here in the US and globally that we're very excited to work with. So thank you so much for your time. Really appreciate it. I'm Dave, CEO of Alio. Please reach out at email@example.com We'd be happy to tell you a little bit more about what we're doing and what our plans are for for the next year. So thanks