Breaking into an unchallenged field: My Journey into Medical Diagnostics
Ashley Uys
In 2006 at the age of 24, I established my first business, Real World Diagnostics. Real World Diagnostics is a marketing company for rapid lateral flow diagnostic test kits to retail outlets, pharmacies, laboratories and diagnostic service providers throughout South Africa.
Test kits include rapid tests for drugs-of-abuse, HIV, malaria, pregnancy, and ovulation/fertility. As a 24 year old, my age was a barrier to market entry as I struggled to get a meeting confirmed with relevant stakeholders. Some of the feedback that I received questioned what I, as a young person, could know about finding the sweet spot between products with social impact and profitability, especially being a young person who grow up on the Cape Flats? I constantly had to justify my opinions. Hence, I decided to have references to literature and used authorities as a foundation in my proposal to affirm my general assumptions. This helped me to re-focus the discussions on the value of my proposals instead of my age.
Being a young scientist with neither a personal or business profile, I decided to leverage off small business incubation provided by government.
My journey took me through the following general stages:
Stage 1: Utilise free services and grant funding
I came across an internship hosted by a small business incubator, which received funding from the Small Enterprise Development Agency and the Department of Science and Technology. They provided office space, assisted in business plan writing, and also provided their network. I therefore had the basic infrastructure to do market research and office space for meetings.
Post market analysis, I identified a gap in the diagnostic market in South Africa. The window-of-opportunity was open and I decided to piggyback off Corporate Social Investment. Methamphetamine became an epidemic in Cape Town and tools required to combat the drug were required.
Stage 2: Corporate Social Investment & Enterprise Development
Corporate Social Investment & Enterprise Development provides corporates with a good platform to give back to society whilst saving tax on profits. Since a much needed quick methamphetamine diagnostic test was required to fight drug abuse, I decided to target one of the largest pharmaceutical wholesalers in South Africa, Alpha Pharm.
Post procuring a methamphetamine test exclusively from the USA, I requested a 15 minute meeting with the relevant stake holders to present a product that could impact socially at affordable pricing. I only had 15 minutes to make a strong impression. My elevator pitch therefore had to tug on emotional strings of the stakeholders.
Stage 3: Impacting elevator pitch
Since most of the Alpha Pharm stakeholders were seasoned and most likely had children, I’ve decided to use graphical pictures of before-and-after drug abuse. I used statistics related to drug abuse amongst the youth and how it impacted development. I then offered Alpha Pharm to supply the imported methamphetamine test under the Alpha Pharm brand.
10 minutes after leaving the meeting I got a call from them to notify me of their acceptance of my proposal. Alpha Pharm was my first customer and they listed me nationally. I therefore opened a channel to provide other diagnostic products as well. Post listing Real World Diagnostic with Alpha Pharm, cash flow presented a major hurdle in my distribution pathway.
Stage 4: Cash flow
I had to find a way to negotiate favourable credit terms. I used the Alpha Pharm contract as leverage to negotiate 30 days from statement payment terms with my supplier. I then offered Alpha Pharm 30 days from invoice. This allowed me plan placing of orders with my supplier to assist in cash flow. I would place an order 1 day after statement, which gave me also two months before payment.
I would then distribute product to Alpha Pharm and they would pay me prior to my account becoming overdue with my supplier. All profits generated were reinvested in inventory. I then imported a pregnancy test and supplied this to Alpha Pharm as well. Post 2 years of trading, I decided to enter business competitions to develop a business and personal profile.
Stage 5: Profiling
Although my age was a liability to market entry, it was also an asset for competitions. I decided to enter the SAB Kick Start competition. SAB Kick Start provides entrepreneurs with a media platform and grant funding. I presented my Alpha Pharm model to the SAB Kick Start panel and fortunately for me they believed that it was good enough for first prize.
Although I won R325 000, the media profiling was more valuable. Without a marketing department, the public relations offered by the South African Breweries generated numerous leads. Since Alpha Pharm is a reputable company, my trade reference provided the authority to close sales. By 2008, Real World Diagnostics were generating good profits.
To increase the gross profit, I had to develop and manufacture my own test kits. I approach my old University, The University of the Western Cape, for laboratory space to conduct my experiments. They gave me a 4m2 space, but I had to procure my own raw materials. I used the SAB Kick Start grant and profits generated to fund research and development.
Fortunately, I was successful in developing intellectual property for diagnostic products. In 2010 I established Medical Diagnostech (Pty) Ltd as the manufacturing facility for diagnostic products. I then entered innovation competitions for the intellectual property I’ve development. In 2012 we won the SAB Innovation Award, and were a finalist in the Innovation Prize for Africa.
Forbes then recognized me as one of the most promising entrepreneurs and provided the cherry-on-the-top profiling. Since the Forbes recognition, I establish another company called OculusID (Pty) Ltd. OculusID specialises in the development of biometric solutions with impairment, disease, and physiological defect detection through the application of non-invasive, hygienic and cost-effective innovations, www.oculusid.com.
Mentorship
Mentorship has been very important to my entrepreneurial journey. It has helped me to think differently which is critical to being an entrepreneur and an innovators. My mentor was Clifford Jacobs, a tutor and demonstrator at the University of the Western Cape. He helped me to question the norm and motivated me to believe in myself. He posed questions like, “Ashley, how do you know HIV causes AIDS? There is a direct correlation to AIDS, but what if it’s just an initiating factor in a chain of events that must occur?” This kind of questioning has been critical to building an approach that does not accept mainstream thinking, just because it is popular but seeks to accept information because it is well substantiated. In another example, a fellow student made a mathematical error in a calculation to determine how much salt was required to have a certain concentration in a 500ml beaker. The student had calculated 52 kilograms. The next day Clifford Jacobs come to class with a cement bag to illustrate the fact that common sense must be applied to confirm scientific calculations. How can 52 kg fit in a 500ml beaker? In this manner, he promoted lateral thinking + common sense. As funny as I found his methods, they played a major part in me questioning everything prior to just believing in something I’m told. Don’t believe everything you Google!
The way forward
Currently, I employ 30 people and have diagnostic tests for drugs-of-abuse, HIV, malaria, pregnancy, fertility, and the OculusID platforms. We have SABS ISO 13485 accreditation, and are exporting products across the world. My journey as an entrepreneur is still in its infancy. Value creation that impacts socially is the space that we operate in. I am fortunate to have met an awesome team, which compliments my weaknesses. Our future plan is to list on the JSE and to setup additional manufacturing facilities in foreign markets.
Test kits include rapid tests for drugs-of-abuse, HIV, malaria, pregnancy, and ovulation/fertility. As a 24 year old, my age was a barrier to market entry as I struggled to get a meeting confirmed with relevant stakeholders. Some of the feedback that I received questioned what I, as a young person, could know about finding the sweet spot between products with social impact and profitability, especially being a young person who grow up on the Cape Flats? I constantly had to justify my opinions. Hence, I decided to have references to literature and used authorities as a foundation in my proposal to affirm my general assumptions. This helped me to re-focus the discussions on the value of my proposals instead of my age.
Being a young scientist with neither a personal or business profile, I decided to leverage off small business incubation provided by government.
My journey took me through the following general stages:
Stage 1: Utilise free services and grant funding
I came across an internship hosted by a small business incubator, which received funding from the Small Enterprise Development Agency and the Department of Science and Technology. They provided office space, assisted in business plan writing, and also provided their network. I therefore had the basic infrastructure to do market research and office space for meetings.
Post market analysis, I identified a gap in the diagnostic market in South Africa. The window-of-opportunity was open and I decided to piggyback off Corporate Social Investment. Methamphetamine became an epidemic in Cape Town and tools required to combat the drug were required.
Stage 2: Corporate Social Investment & Enterprise Development
Corporate Social Investment & Enterprise Development provides corporates with a good platform to give back to society whilst saving tax on profits. Since a much needed quick methamphetamine diagnostic test was required to fight drug abuse, I decided to target one of the largest pharmaceutical wholesalers in South Africa, Alpha Pharm.
Post procuring a methamphetamine test exclusively from the USA, I requested a 15 minute meeting with the relevant stake holders to present a product that could impact socially at affordable pricing. I only had 15 minutes to make a strong impression. My elevator pitch therefore had to tug on emotional strings of the stakeholders.
Stage 3: Impacting elevator pitch
Since most of the Alpha Pharm stakeholders were seasoned and most likely had children, I’ve decided to use graphical pictures of before-and-after drug abuse. I used statistics related to drug abuse amongst the youth and how it impacted development. I then offered Alpha Pharm to supply the imported methamphetamine test under the Alpha Pharm brand.
10 minutes after leaving the meeting I got a call from them to notify me of their acceptance of my proposal. Alpha Pharm was my first customer and they listed me nationally. I therefore opened a channel to provide other diagnostic products as well. Post listing Real World Diagnostic with Alpha Pharm, cash flow presented a major hurdle in my distribution pathway.
Stage 4: Cash flow
I had to find a way to negotiate favourable credit terms. I used the Alpha Pharm contract as leverage to negotiate 30 days from statement payment terms with my supplier. I then offered Alpha Pharm 30 days from invoice. This allowed me plan placing of orders with my supplier to assist in cash flow. I would place an order 1 day after statement, which gave me also two months before payment.
I would then distribute product to Alpha Pharm and they would pay me prior to my account becoming overdue with my supplier. All profits generated were reinvested in inventory. I then imported a pregnancy test and supplied this to Alpha Pharm as well. Post 2 years of trading, I decided to enter business competitions to develop a business and personal profile.
Stage 5: Profiling
Although my age was a liability to market entry, it was also an asset for competitions. I decided to enter the SAB Kick Start competition. SAB Kick Start provides entrepreneurs with a media platform and grant funding. I presented my Alpha Pharm model to the SAB Kick Start panel and fortunately for me they believed that it was good enough for first prize.
Although I won R325 000, the media profiling was more valuable. Without a marketing department, the public relations offered by the South African Breweries generated numerous leads. Since Alpha Pharm is a reputable company, my trade reference provided the authority to close sales. By 2008, Real World Diagnostics were generating good profits.
To increase the gross profit, I had to develop and manufacture my own test kits. I approach my old University, The University of the Western Cape, for laboratory space to conduct my experiments. They gave me a 4m2 space, but I had to procure my own raw materials. I used the SAB Kick Start grant and profits generated to fund research and development.
Fortunately, I was successful in developing intellectual property for diagnostic products. In 2010 I established Medical Diagnostech (Pty) Ltd as the manufacturing facility for diagnostic products. I then entered innovation competitions for the intellectual property I’ve development. In 2012 we won the SAB Innovation Award, and were a finalist in the Innovation Prize for Africa.
Forbes then recognized me as one of the most promising entrepreneurs and provided the cherry-on-the-top profiling. Since the Forbes recognition, I establish another company called OculusID (Pty) Ltd. OculusID specialises in the development of biometric solutions with impairment, disease, and physiological defect detection through the application of non-invasive, hygienic and cost-effective innovations, www.oculusid.com.
Mentorship
Mentorship has been very important to my entrepreneurial journey. It has helped me to think differently which is critical to being an entrepreneur and an innovators. My mentor was Clifford Jacobs, a tutor and demonstrator at the University of the Western Cape. He helped me to question the norm and motivated me to believe in myself. He posed questions like, “Ashley, how do you know HIV causes AIDS? There is a direct correlation to AIDS, but what if it’s just an initiating factor in a chain of events that must occur?” This kind of questioning has been critical to building an approach that does not accept mainstream thinking, just because it is popular but seeks to accept information because it is well substantiated. In another example, a fellow student made a mathematical error in a calculation to determine how much salt was required to have a certain concentration in a 500ml beaker. The student had calculated 52 kilograms. The next day Clifford Jacobs come to class with a cement bag to illustrate the fact that common sense must be applied to confirm scientific calculations. How can 52 kg fit in a 500ml beaker? In this manner, he promoted lateral thinking + common sense. As funny as I found his methods, they played a major part in me questioning everything prior to just believing in something I’m told. Don’t believe everything you Google!
The way forward
Currently, I employ 30 people and have diagnostic tests for drugs-of-abuse, HIV, malaria, pregnancy, fertility, and the OculusID platforms. We have SABS ISO 13485 accreditation, and are exporting products across the world. My journey as an entrepreneur is still in its infancy. Value creation that impacts socially is the space that we operate in. I am fortunate to have met an awesome team, which compliments my weaknesses. Our future plan is to list on the JSE and to setup additional manufacturing facilities in foreign markets.
Ashley Uys (BSc.)
Ashley Uys is a South African entrepreneur that is breaking new ground by innovating in the medical diagnostics field. One of the youngest entrepreneurs in the field at the time Ashley successfully set up and successfully grew his company Real World Diagnostics. To focus on research and development as well as manufacturing, he later set up Medical Diagnostech (PTY) Ltd. Ashley is a scientist turned entrepreneur having completed a BSc. Honours degree in Biotechnology at UWC, after which he was employed as a research assistant at UCT’s Institute of Infectious Disease and Molecular Medicine in the HIV/Aids research centre.
Ashley is passionate about innovatively employing science to contribute to solving social challenges. He has been recognised through a number of entrepreneurial programmes and media platforms including Forbes: Africa’s Most Promising Entrepreneurs List.
Ashley Uys is a South African entrepreneur that is breaking new ground by innovating in the medical diagnostics field. One of the youngest entrepreneurs in the field at the time Ashley successfully set up and successfully grew his company Real World Diagnostics. To focus on research and development as well as manufacturing, he later set up Medical Diagnostech (PTY) Ltd. Ashley is a scientist turned entrepreneur having completed a BSc. Honours degree in Biotechnology at UWC, after which he was employed as a research assistant at UCT’s Institute of Infectious Disease and Molecular Medicine in the HIV/Aids research centre.
Ashley is passionate about innovatively employing science to contribute to solving social challenges. He has been recognised through a number of entrepreneurial programmes and media platforms including Forbes: Africa’s Most Promising Entrepreneurs List.