Trends, issues and technologies on the minds of early stage med tech investors

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Frost & Sullivan analysis 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

    1. 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
    2. 2. Today’s Presenters Viral Gandhi, Journalist, Pharmawire – Financial Times Josh Garcia, Research Analyst Frost & Sullivan Venkat Rajan, Industry Manager Frost & Sullivan
    3. 3. Agenda <ul><li>Overview: Josh </li></ul><ul><li>In Focus: Bridging the Gap to Strengthen the Economy: Josh </li></ul><ul><li>In Focus: Regulatory and Reimbursement: Viral </li></ul><ul><li>Medical Devices in 2020: Venkat </li></ul><ul><li>Questions and Answers </li></ul>
    4. 4. Overview: US Venture Capital Spending in Med Technologies 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
    5. 5. Overview: US VC Spending by Company Stage 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
    6. 6. Top Level Overview: Ongoing Issues Regulatory Uncertainty Innovation Patent Reform Health Reform Economic Climate Venture Capital Industry
    7. 7. 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
    8. 8. In Focus: Innovation Funding Gap <ul><li>Flexibility in university technology licensing </li></ul><ul><li>Industry-inventor matchmaking forums </li></ul><ul><li>National Cancer Institute (NCI) bridge program </li></ul><ul><li>Regional considerations (infrastructure, entrepreneurial environment, workforce, funds). Open small office in a hub? </li></ul>Increased attention to importance of university-private relationships and inventor awareness
    9. 9. In Focus: Innovation Funding Gap <ul><li>Small Business Innovative Research (SBIR) grant increase, NCI bridge program for SBIRs </li></ul><ul><li>NCI </li></ul><ul><li>12 million for university innovation centers? </li></ul><ul><li>2.8% NIH budget for SBIRs is not enough. </li></ul><ul><li>Increased sophistication and self evaluation of tech transfer offices </li></ul>Federal and State funding of start ups and innovation centers
    10. 10. In Focus: Innovation Funding Gap <ul><li>Building on un unstable foundation </li></ul><ul><li>Patent reform </li></ul><ul><li>Regulatory pathways </li></ul><ul><li>Kauffman Foundation Letters </li></ul><ul><li>AUTM Letters </li></ul><ul><li>NVCA poll result: 49% say main concern is regulatory uncertainty. </li></ul>Efforts to increase predictability for investors
    11. 11. In Focus: Regulatory and Reimbursement Viral Gandhi 510(k) Process Changes Preliminary Recommendations Reimbursement
    12. 12. In Focus: Regulatory – 510(k) Process Changes 510(k) process timeline
    13. 13. In Focus: Regulatory Preliminary Recommendations Example of Alphatec’s OsseoScrew and OsseoFix
    14. 14. <ul><li>Reimbursement pressures to continue for “me-too” products </li></ul><ul><li>CMS/FDA may collaborate for increased efficiency </li></ul><ul><li>Group Purchasing Oraganizations (GPO) increasing focus on price </li></ul><ul><li>Comparative effectiveness studies of great interest </li></ul>In Focus: Reimbursement Sept 22 MEDCAC meeting for Medtronic INFUSE® Bone Graft <ul><li>Up to 85% off-label use due to phenomenal bone growth </li></ul><ul><li>CMS likely to extensively cut down on reimbursement for use outside of approved indications </li></ul><ul><li>Amount reimbursed may also decrease </li></ul>Reimbursement for Transcatheter aortic heart valves in elderly patients
    15. 15. Technology Then & Now Artificial Intelligence Antimicrobial Materials Telemedicine Tissue Engineering Bioadsorbable/ Bioerodible Structural Materials Nanotechnology <ul><li>Cyber prosthetics </li></ul><ul><li>Adaptive </li></ul><ul><li>India-China-Brazil </li></ul><ul><li>Rural Care </li></ul><ul><li>Low Income Urban Care </li></ul><ul><li>Cloud Computing </li></ul><ul><li>Patient Centric </li></ul><ul><li>E-Health </li></ul><ul><li>Consumer Health </li></ul><ul><li>Patient Safety </li></ul>Buzz Words Then <ul><li>Minimally Invasive </li></ul><ul><li>Non Invasive </li></ul><ul><li>Robotics- Navigation </li></ul><ul><li>Drug-Device Combinations </li></ul><ul><li>“ Smart” Devices </li></ul><ul><li>Analog to Digital </li></ul><ul><li>Baby Boomers </li></ul><ul><li>U.S-Europe-Japan </li></ul><ul><li>Remote- Hospital </li></ul>Buzz Words Now <ul><li>Interoperability </li></ul><ul><li>In-Situ </li></ul><ul><li>Bioadsorbable </li></ul><ul><li>Prevention </li></ul><ul><li>Quality of Life </li></ul><ul><li>Cost of Care </li></ul><ul><li>Tissue Engineered </li></ul><ul><li>Infection Control </li></ul><ul><li>Remote- At Home/ Anwhere </li></ul>
    16. 16. Next Steps <ul><li>Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ( [email_address] ) 1-877-GoFrost (1-877-463-7678) </li></ul><ul><li>Join us at our annual Growth, Innovation, and Leadership 2010: A Frost & Sullivan Global Congress on Corporate Growth, September 12-14 2010, Fairmount Hotel, San Jose, CA ( www.gil-global.com ) </li></ul><ul><li>Register for the next Chairman’s Series on Growth : </li></ul><ul><li>The CEO's Growth Survey: Are CEO’s in Touch with Reality? (September 7th) ( http:// www.frost.com /growth ) </li></ul><ul><li>Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( www.frost.com /news ) </li></ul>
    17. 17. Your Feedback is Important to Us <ul><li>Growth Forecasts? </li></ul><ul><li>Competitive Structure? </li></ul><ul><li>Emerging Trends? </li></ul><ul><li>Strategic Recommendations? </li></ul><ul><li>Other? </li></ul>Please inform us by taking our survey. What would you like to see from Frost & Sullivan? Frost & Sullivan’s Growth Consulting can assist with your growth strategies
    18. 18. http://twitter.com/frost_sullivan Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter http://www.facebook.com/pages/Frost-Sullivan/249995031751?ref=ts http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan
    19. 19. For Additional Information <ul><li>For Additional Information </li></ul>Joshua A. Garcia Research Analyst Medical Devices 210-508-7500 [email_address] Carol Skloss Director of Sales Healthcare & Life Sciences 210-247-3810 [email_address] Daniel Ruppar Director Healthcare Research 210-348-1000 [email_address] Viral Gandhi Journalist Pharmawire - Financial Times (646) 378-3187 [email_address]
    20. 20. Your Feedback is Important to Us <ul><li>Growth Forecasts? </li></ul><ul><li>Competitive Structure? </li></ul><ul><li>Emerging Trends? </li></ul><ul><li>Strategic Recommendations? </li></ul><ul><li>Other? </li></ul>Please inform us by taking our survey. What would you like to see from Frost & Sullivan?

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