Assumptions & COMPUTATIONAL METHODOLOGY

Development Cost Reduction: 15%. Source: Tufts Center for the Study of Drug Development. Research Finding: 15-20% reduction in total development costs through strategic adjustments informed by early market research. Mechanism: Early patient input prevents costly design iterations and reduces regulatory feedback loops. Revenue Premium: 23%. Source: Industry research (IQVIA). Research Finding: Companies with strong patient engagement achieve 23% higher peak sales. Mechanism: Better product-market fit, accelerated adoption, and community advocacy. Time Acceleration: 3 months. Source: Internal analysis. Typical Range: 3-6 months acceleration. Mechanism: Community support reduces adoption friction and regulatory resistance. Support Cost Reduction: 15%. Source: Internal analysis. Mechanism: Better user training and documentation reduce customer support burden. Applied Against: Annual marketing budget as proxy for support costs. Development Budget Baseline: $3.5M. Source: StarFish Medical (2020). Range: $2-5M for Class II medium complexity devices. Includes: R&D, clinical trials, regulatory costs.

Benefit Calculations. Development Cost Savings. Development cost savings are calculated by multiplying the total development budget by the development cost reduction percentage and the appropriate device classification multiplier. Example: $3,500,000 × 15% × 1.0 = $525,000. Applied: One-time savings during development phase. Revenue Premium Value. Revenue premium is calculated by multiplying the projected annual revenue by the revenue premium percentage, the calculation period in years, and the device multiplier. Example: $10,000,000 × 23% × 3 years × 1.0 = $6,900,000. Applied: Annual revenue increase sustained over calculation period. Market Acceleration Benefit. Market acceleration benefit is calculated by dividing the projected annual revenue by 12 to get monthly revenue, then multiplying by the number of months of acceleration and the device multiplier. Example: ($10,000,000 ÷ 12 months) × 3 months × 1.0 = $2,500,000. Applied: One-time benefit from earlier market entry. Support Cost Savings. Support cost savings are calculated by multiplying the annual marketing budget by the support cost reduction percentage, the calculation period, and the device multiplier.  Example: $500,000 × 15% × 3 years × 1.0 = $225,000. Applied: Annual cost reduction sustained over calculation period. Investment Calculation. Total investment is calculated by multiplying the annual patient engagement budget by the calculation period in years. Example: $150,000 × 3 years = $450,000. ROI Calculation. The ROI calculation follows these steps: Total Benefits: Add development savings, revenue premium value, acceleration benefit, and support savings. Net Benefit: Subtract total investment from total benefits. ROI Percentage: Divide net benefit by total investment and multiply by 100. ROI Multiple: Divide total benefits by total investment. Example Calculation. Total Benefits: $525,000 + $6,900,000 + $2,500,000 + $225,000 = $10,150,000. Net Benefit: $10,150,000 - $450,000 = $9,700,000. ROI: ($9,700,000 ÷ $450,000) × 100 = 2,156%. ROI Multiple: $10,150,000 ÷ $450,000 = 22.6x. 

Limitations. Linear Revenue Growth: Assumes consistent revenue performance across calculation period. Immediate Impact: Benefits begin accruing immediately upon patient engagement implementation. Additive Effects: All benefits are independent and additive (no interaction effects). No Discounting: Future cash flows not discounted to present value.