David Kuraguntla Presents Alio at LSI Europe '23

Alio's SmartPatch is a discrete patch that continuously monitors and tracks vitals, including O2 saturation, temperature, blood pressure, and more.
David Kuraguntla
David Kuraguntla
CEO, Alio



David Kuraguntla  0:01  
Hi, everyone, I'm Dave from Alio. It's a pleasure to be here. That being said, many of you that have been to LSI events before have heard me share Mandy's story. But that being said, it was a very exciting about a month ago, Maddie did celebrate her 25th year on dialysis, which is not a celebration for most people, but certainly is for Maddie. That's because that milestone for her wasn't almost achieved. But a couple years ago, Maddie was hiking started to feel a little faint. Thankfully, a friend was with her and was able to take her to a&e. And the reason for that, and it's a very common issue for dialysis patients is that their access starts to fail, their potassium spikes, they go into afib. And what's almost resulted in a mortality risk of about 40% of these patients either have a stroke or a cardiac event. But thankfully, Mandy's friend was there was able to help her out. And that's certainly what Alio is trying to do as well. If you look at it from a US perspective, despite being a very small percent of the Medicare budget, it's a very large amount of our expenditure. And you might think that's different here in Europe. And the fact is, it's not, in fact, about 10% of GDP across Europe is spent on kidney disease each year. And most of it is because they're flying blind and not actually on the delivery of dialysis. But don't actually what happens are what we like to call preventable hospitalizations. And that's despite the fact that everybody knows it's an issue. They've tried to tackle it with monitoring, mandating it federally up to twice a week in some locations. And still, so many patients slipped to the clot the cracks. So many issues happen. And it results in quite a large amount of preventable cost each year. And that's what we're bringing in all in one patient management solution. We started off with dialysis patients. But this is certainly true for the future as well, where clinicians can actually see those patients are about to go off the rails go outside of those guidelines that are mandated today, and put them into a clinical workflow which already exists, enable them to reduce those hospitalizations and reduce those costs. At the patient level, it certainly is a very simple, easy to use, this gets delivered directly to the patients, they can put it on themselves, there's nothing for them to do, they don't have to have a nurse sit there, help them calibrate it or do something else, it's ready to go. It works on all different skin colors for any type of patient. And that's because we've taken over two dozen granted patents push past were the kind of traditional technology for optical sensing that folks like Massimo and Philips have utilized for for decades, and really gone after where there's a differentiated set of metrics that we can get from those major vessels inside of the body. So taking blood draws and ultrasounds and other issues all into one convenient wearable. Now, we started to make this a little bit of a trend here at LSI. This will be our third LSI in a row that we're announcing our newest feature. So just like earlier this year, we announced we're the world's first company to be able to do potassium, non invasively. Now we're able to tell you whether or not a vessel is blocked or not for your clinician. So before patient, you're waiting for them to come to you waiting for an imaging study. And now leveraging our AI back end, we can tell you in advance when that patient is about to have a critical issue with that vessel. And what's going to happen, we've got to put a lot of pressure on the team to keep delivering that not only looking at your basic vitals, your hemodynamics some of those initial electrolytes that we're tackling, but also pushing past that into other arenas, like other electrolytes, and effectively blood pressure as well. It's kind of three year goal. If you want to do all of your vitals, hemodynamics and a basic metabolic panel completely non invasively. You can do that. With Aleo. We are not Theranos. We have multiple FDA clearances, a whole lot of data. And we've certainly been able to push past what's out there as well, at the outcomes level. This is just a quick vignette. From a recent study, looking at an observational cohort. This really matters to patients, things can change really quickly. People are flying blind, as we kind of mentioned for this patient, if they had been in our treatment cohort, they may have been able to treat it and would not have been unfortunately would not have reached their demise. I think that really matters as well, for a very broad amount. As we mentioned, for kidney disease, it's been ignored. Often people don't typically understand how many different issues and multibillion dollar issues are out there. But Illios, the first company can actually tackle all of those in one simple spot, being able to tackle multibillion dollar problems for these patients, and then also for kidney disease patients in general. And I think that sets us apart, right? Look, there's been a lot of great folks and we certainly stand on the shoulders of giants. But I think taking not just your basic vitals, maybe not just one metric. But pulling it all into one place certainly differentiates us and helps us stand apart at the patient level. I think it's important as well. Being able to make sure bringing them on that journey with us has been really key for what we're trying to accomplish allowing them to make sure that they're with us as well. Fundamentally for the for the payers. It's a big issue. As you mentioned, the delivery of dialysis is not the cost the aspect of this. It's a preventable hospitalizations that we need to tackle and it was what has led to payers coming to us value based care providers. And although there are CPT codes and reimbursement in the US already for what Alio does, the VB CS and the massive transition towards VBC has led a lot of inbound to what we're tackling here at Alio. So with this initial market, we're able to tackle but greater than $2 billion market for what we're trying to do with dialysis, expanding into that into an even larger kidney disease market globally. And then going into some of the adjacencies of the same patient problems that we see in things like heart failure, PID, stroke, and other arenas. Now also, what we've changed since the last time we spoke here was the fact that we were pre commercial, we are now commercial we launched last month, we're revenue generating at this point, we've landed some great contracts that cover about 15,000 patients, that's more than our cash flow breakeven number, as well. So it's kind of harvesting not hunting at this point to allow us to keep moving forward. In short, we're a highly differentiated technology, tackling a market that has a large amount of tailwinds not only in growing size and growing patient populations, but also from a change in towards value based care. And people looking for a solution to help them drive down that cost of care. long lifetime value in these patients as well. This is not an episodic sort of device, it is very much a where this until because of the federally mandated monitoring, these patients have to wear this until they're done their treatment or they get a transplant or wherever else they might end up. So in short, we've raised $60 million to date so far that has allowed us to get to where we are from a commercialization standpoint, we anticipate needing to raise another $30 million to get us to cash flow breakeven in 2025. And we're looking forward to doing that and welcome you to join us on that journey. Thanks so much.

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