Trends, issues and technologies on the minds of early stage med tech investors
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1 Trends, Issues, and Technologies on the Minds of Early Stage Med Tech Investors Presenters: Joshua A Garcia, Research Analyst Frost & Sullivan Viral Gandhi, Journalist Pharmawire - Financial Times Venkat Rajan, Industry Manager-Medical Devices Frost & Sullivan
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Transcript of Trends, issues and technologies on the minds of early stage med tech investors
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Trends, Issues, and Technologies on the Minds of Early Stage Med Tech Investors
Presenters:
Joshua A Garcia, Research Analyst Frost & Sullivan
Viral Gandhi, Journalist Pharmawire - Financial Times
Venkat Rajan, Industry Manager-Medical Devices Frost & Sullivan
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Today’s Presenters
Viral Gandhi, Journalist, Pharmawire – Financial Times
Josh Garcia, Research AnalystFrost & Sullivan
Venkat Rajan, Industry ManagerFrost & Sullivan
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Agenda
Overview: Josh
In Focus: Bridging the Gap to Strengthen the Economy: Josh
In Focus: Regulatory and Reimbursement: Viral
Medical Devices in 2020: Venkat
Questions and Answers
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Overview: US Venture Capital Spending in Med Technologies
Percent US Venture Capital Invested in Life Sciences
0
5
10
15
20
25
30
35
40
2000
2002
2004
2006
2008
2010
%
US Venture Capital Investments in Medical Technologies
0
200
400
600
800
1000
1200
2000
2002
2004
2006
2008
2010
US
$ (i
n m
illio
ns)
Q2 2010 rebound?
-VC Dollars Invested
-More IPOs
All industries: 50% jump in 1H 2010 over 1H 2009
Life Sciences (Biotech and Med Tech): increase of 52% in Q2 2010 over Q1 2010
Med Tech: 40% increase in Q2 over Q1, largest investment quarter since Q3 2008
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Overview: US VC Spending by Company Stage
VC Dollars Invested in Medical Technologies by Stage of Development (U.S.), in millions
0
200
400
600
800
1000
1200
1400
1600
1800
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Year
Dolla
rs in
Mill
ions
start up
early stage
later stage
expansion
Source: Pricewaterhouse Coopers and National Venture Capital Association with data from Thomson
Corporate VCs competing with institutional pretty well. Institutional VCs may therefore focus on very early stage single product companies.
May see increase in early phase institutional VC funds to both assist and compete with angel and incubators.
Start ups:
1H 2009 – $236 m
1H 2010 – $263 m
Later Stage:
1H 2009 – $449 m
1H 2010 – $499 m
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Top Level Overview: Ongoing Issues
Patent Reform
Health Reform
Economic Climate
Venture Capital Industry
Regulatory Uncertainty
Innovation
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In Focus: Bridging the Funding Gap to Rebound Economy
Attention to importance of university-private investor relationships and
inventor awareness
Efforts towards predictability for investors
Federal and state funding of start ups and innovation centers
Technology Based
Economic Recovery and Sustainability
FDA and USPTO bottleneck?
Founder’s market?
More mature technologies, more
technologies
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In Focus: Innovation Funding Gap
Flexibility in university technology licensing
Industry-inventor matchmaking forums
National Cancer Institute (NCI) bridge program
Regional considerations (infrastructure, entrepreneurial
environment, workforce, funds). Open small office in a hub?
Increased attention to importance of university-private relationships and inventor awareness
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In Focus: Innovation Funding Gap
Small Business Innovative Research (SBIR) grant increase, NCI bridge
program for SBIRs
NCI
12 million for university innovation centers?
2.8% NIH budget for SBIRs is not enough.
Increased sophistication and self evaluation of tech transfer offices
Federal and State funding of start ups and innovation centers
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In Focus: Innovation Funding Gap
Building on un unstable foundation
Patent reform
Regulatory pathways
Kauffman Foundation Letters
AUTM Letters
NVCA poll result: 49% say main concern is regulatory uncertainty.
Efforts to increase predictability for investors
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In Focus: Regulatory and Reimbursement
Viral Gandhi
510(k) Process Changes
Preliminary Recommendations
Reimbursement
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In Focus: Regulatory – 510(k) Process Changes
510(k) process timeline
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In Focus: Regulatory Preliminary Recommendations
Example of Alphatec’s OsseoScrew and OsseoFix
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Reimbursement pressures to continue for “me-too” products
CMS/FDA may collaborate for increased efficiency
Group Purchasing Oraganizations (GPO) increasing focus on price
Comparative effectiveness studies of great interest
In Focus: Reimbursement
Sept 22 MEDCAC meeting for Medtronic INFUSE® Bone Graft
Up to 85% off-label use due to phenomenal bone growth
CMS likely to extensively cut down on reimbursement for use outside of approved indications
Amount reimbursed may also decrease
Up to 85% off-label use due to phenomenal bone growth
CMS likely to extensively cut down on reimbursement for use outside of approved indications
Amount reimbursed may also decrease
Reimbursement for Transcatheter aortic heart valves in elderly patients
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Technology Then & Now
Artificial IntelligenceArtificial Intelligence
Antimicrobial MaterialsAntimicrobial Materials
TelemedicineTelemedicine
Tissue EngineeringTissue Engineering
Bioadsorbable/ BioerodibleBioadsorbable/ Bioerodible
Structural MaterialsStructural Materials
NanotechnologyNanotechnology Buzz Words Then Buzz Words Then
• Minimally Invasive• Non Invasive • Robotics- Navigation• Drug-Device Combinations• “Smart” Devices• Analog to Digital• Baby Boomers• U.S-Europe-Japan• Remote- Hospital
• Minimally Invasive• Non Invasive • Robotics- Navigation• Drug-Device Combinations• “Smart” Devices• Analog to Digital• Baby Boomers• U.S-Europe-Japan• Remote- Hospital
Buzz Words NowBuzz Words Now
• Interoperability• In-Situ • Bioadsorbable• Prevention• Quality of Life• Cost of Care• Tissue Engineered• Infection Control• Remote- At Home/ Anwhere
• Interoperability• In-Situ • Bioadsorbable• Prevention• Quality of Life• Cost of Care• Tissue Engineered• Infection Control• Remote- At Home/ Anwhere
•Cyber prosthetics• Adaptive•India-China-Brazil•Rural Care•Low Income Urban Care•Cloud Computing•Patient Centric•E-Health•Consumer Health•Patient Safety
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Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities(www.frost.com/news)
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For Additional Information
For Additional Information
Joshua A. GarciaResearch AnalystMedical [email protected]
Carol SklossDirector of Sales Healthcare & Life [email protected]
Daniel RupparDirectorHealthcare [email protected]
Viral GandhiJournalist
Pharmawire - Financial Times(646) 378-3187
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Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other? Please inform us by taking our survey.
What would you like to see from Frost & Sullivan?
