Stroke is the fifth-leading cause of death among Americans, claiming more than 130,000 lives each year. Almost 800,000 people suffer a stroke each year in the United States, one every 40 seconds. These grim statistics are actually not as grim as they used to be. New technologies and treatments are increasing the survival rate among sufferers of the most common type of stroke caused by a clot blocking a blood vessel supplying blood to the brain. A procedure known as thrombectomy busts or removes clots and increases survival rates if patients are treated within six to 24 hours of symptom presentation. However, fewer than 5 percent of patients present symptoms within this short time window. Neural Analytics, Inc. has a solution—its Lucid Robotic System. The system is a combination of two products: transcranial ultrasound and a robotic system. The ultrasound, taken from a natural “window into the brain” near a patient’s ear, lets medical professionals see if a clot is blocking blood flow. The robotic system, using artificial intelligence (AI), then compares the image to thousands of stored images of severe strokes to identify candidates for the life-saving thrombectomy procedure. This device will help hospital emergency departments to better identify the 10–15 percent of stroke patients who qualify for a thrombectomy and send them to one of the country’s 100 certified stroke centers. Neural Analytics plans to market its Lucid Robotic System to hospitals first, with the ultimate goal of getting a lower-priced portable system into every emergency response vehicle in the United States.

1.There are 5,534 certified hospitals in the United States, and 95 percent have emergency departments. Assuming the price of the Lucid Robotic System is $50,000 and that hospitals with emergency departments purchase one system, use the chain ratio method described in Market Potential and Sales Estimates in Appendix 3: Marketing by the Numbers to calculate the market potential for this product.

2.There are approximately 50,000 emergency response vehicles operated by private ambulance companies, municipal fire departments, and hospitals. Assuming the price of the portable Lucid Robotic System is $5,000 and that each emergency response vehicle would be equipped with one system, calculate the market potential of this target market.