What exactly is the business plan for Zenome, what are the ICO funds for, and what are your legal barriers that you need to conquer / in what country are you planning to operate first?
We understand that the certain regulatory constraints exist. For example, in the US and Germany it is impossible for a patient to get obtained genetic medical data without a doctor involved in this process. At the same time, it is possible to collect genomic information, as well as provide and release the information on ethnos / wellness or fitness practically in any country. The main legal barrier is to get a permission from medical regulators (such as the FDA in the US), but we are planning to work with a partner network of service providers that will meet all the necessary legal requirements.
We are going to collect prepared genomic data (for example, customers of 23andMe and others) and issue genetic reports (within the framework of local legislation) immediately after project launching and the world.
At the same time, the first pilot project that includes the connection of genetic service providers and data consumers will be conducted in Russia for a number of reasons: we have partner agreements with two local licensed service providers who are ready to work with us. We have a prepared scientific base, laboratory and consultants in SkTech (
http://www.skoltech.ru/en/) - and the development office is located in Moscow. In addition, Russia is one of the least explored countries in genomics, while possessing a very diverse gene pool of the local population (many ethnic groups and nationalities), economic potential and lack of regulatory constraints, which is typical of most developed countries. All these reasons make the Russian Federation the best place to start a project. After that, we plan to open a representative office in the UK for expansion into England and the EU countries. After that, we will start projects in other developing countries like Mexico and Brazil. And after all the processes of platform development and the establishment of cooperation with the regulators, we will start to develop projects in the US and China, since these are the largest, but highly regulated markets.
We are going to publish our business plan and the description of regulatory issues as a detailed document. Some crucial points for now:
1. We start taking genomic data from people who have already undergone genetic testing and want to receive a report and a secure decentralized repository for money. According to our estimates, there are about 3-4 million people who have genomic data and could load them into our system. In the beginning, we plan to use a subscription model of monetization for the first users at a rate of $ 50 per year (or equivalent in ZNA tokens). Later, users who uploaded their data will begin to monetize their genomes. The start date for this phase is February 2018. We estimate the volume of this market at $ 100mln per annum for now and $ 1bn per year in the next three years.
2. We create a partner network of laboratories and clinics. Who supply us with raw data, pay for processing and storage, attract new customers through our platform. There will be work in B2B format also on subscription. The approximate period for the pilot project in the Russian Federation is March 2018 - December 2018. The opening of the office in London is scheduled for September 2018. The size of this market today exceeds $ 20 billion.
3. When the critical size of the genomic database is reached, we begin to sell data to large companies from Big Pharma, FMCG, state structures and e-commerce companies such as Google, Alibaba and Facebook with Amazon. According to our estimates, our genetic database will contain 1 million genomes by the end of 2018. After having collected anticipated amount of genetic data in our database, we are going to allow users to exchange genetic data. In short, at that time we will begin the monetization of genetic data. After having collected anticipated amount of genetic data, the ZNA token price will increase.
The market for the personal genomic data purchasing by various companies is still difficult to assess, since it is in its infancy. To date, the total aggregate of transactions doesn't exceed $ 200 million, but we are confident that in the next 5-10 years this market will be one of the largest in the world.
4. After the genomic data critical volume achievement there will be more services on our platform. For example: services of genomic acquaintances, genomic social networks, definition of ethnos, search of relatives, companies providing telemedicine services, dietetics and many others.
We believe that with the help of the critical volume the system will start an independent development.
It is worth noting that Zenome is a non-profit company. This type of organization is reasonable for creating the best environment for other businesses on the platform. In order to give equal access to genomic service providers and medical centers and to exclude monopolization and to protect human rights, we deliberately abandoned the model of a commercial company.
In connection with the foregoing, the funds collected under the ICO (token sale) will be used for the following tasks:
- Development of a system for storage, processing and sharing of genomic data (including all operating expenses, business administration, bonuses, capital expenditures and own research, tax expenditures)
- Development of a partnerships wide range
- Marketing costs, advertising and improving people's knowledge of genomics and our platform
- Zenome Fund development, which will stimulate research and the start-ups around our platform
- Educational program by Zenome
- Legal support and interaction with regulators from different countries (representative offices in different jurisdictions, legal support, costs associated with obtaining various licenses and certification)
