i+MED LABORATORIES: EXPANDING BEYOND THAILAND Jennifer Jeng, Laura Rieber, Gautam Shewakramani, Irina Starikova (NIA), i+MED became the sole licensee of two patented technologies developed by Thailand's leading biotechnology researchers at Chiang Mai University: . CD4 SELECT: a low-cost, non-flow-cytometry CD4 lymphocyte enumeration method, which employed unique monoclonal antibodies (Exhibit 3). . AlphaTHAL: the world's first rapid test for the genetic disorder Thalassemia. This once-in-a- lifetime test, cheaper and faster than the current standard, determined whether a patient was at risk for this anemia-producing condition. i+MED commercialized both CD4 SELECT and AlphaTHAL and started selling these diagnostic products in Thailand in 2008. In January 2009, Thailand's National Health Safety Office (NHSO) granted i+MED approval to sell CD4 SELECT to government-funded labs and hospitals providing care to HIV/AIDS patients. i+MED was now considering launching these products in other developing markets where Thalassemia and HIV/AIDS were prevalent. This third phase of i+MED's evolution reflected the company's long-term vision: to bridge the gap between Thailand's national R&D labs and the biotechnology markets by leveraging its manufac turing capabilities, lab service, sales force, and market knowledge. To this end, the company had already earned a solid reputation as one of the leading biotechnology companies in Thailand. Not only had i+MED been recognized as one of the Top 10 Innovative Companies by the NIA since 2006, but in 2008, CD4 SELECT had been chosen as one of the Top Innovative Products by Thailand's National Science and Technology Development Agency (NSTDA). Sales and Marketing In Thailand, medical device and supplies sales were based largely on relationships and reputation. i+MED's strong reputation in the industry and its local knowledge had enabled it to grow its business by acquiring new customers and selling multiple products to existing ones. i+MED also gained credibility by offering prospective customers free samples of products before the customer made the commitment to purchase. Starting in 2007, i+MED's sales model shifted away from selling 100% of its products via third-party distributors and toward direct sales. By 2008, approximately 80% of sales were generated through direct sales and 20% through distributors. Overall, i+MED realized a higher margin on direct sales, as the final prices to hospitals were the same. The firm intended to grow its sales force as needed for the domestic market, and for international sales select a few distributors who had a competitive advantage and specific regional knowledge