What Early-Stage Device Medical Firms Need to Succeed? Lawton Robert Burns, Ph.D., MBA The James Joo-Jin Kim Professor Dir...
Start-Up Measures of Success <ul><li>Entry </li></ul><ul><li>Idea that addresses unmet clinical need </li></ul><ul><li>Suc...
Multiple Levels of Analysis <ul><li>Entrepreneur characteristics </li></ul><ul><li>Firm characteristics </li></ul><ul><li>...
 
Predictors of Successful Exit <ul><li>Firm age and size </li></ul><ul><li>Moderate number of executives </li></ul><ul><li>...
New Case from Stanford GSB
Physicians play crucial roles in several aspects of medical device innovation “ Physicians when they are really involved i...
Strategy & Execution Issues <ul><li>Produce differentiation / franchise value </li></ul><ul><li>Market scope / Niche selec...
<ul><li>Thank you for listening </li></ul>
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Dr. Lawton Burns

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  • Amgen Corporate Template
  • Dr. Lawton Burns

    1. 1. What Early-Stage Device Medical Firms Need to Succeed? Lawton Robert Burns, Ph.D., MBA The James Joo-Jin Kim Professor Director – Wharton Center for Health Management & Economics Department of Health Care Management The Wharton School University of Pennsylvania 215-898-3711 [email_address] Presentation to Medical Technology Innovation London (Ontario) – June 2011
    2. 2. Start-Up Measures of Success <ul><li>Entry </li></ul><ul><li>Idea that addresses unmet clinical need </li></ul><ul><li>Successful collaboration between clinician and engineer </li></ul><ul><li>Triumvirate including business acumen </li></ul><ul><li>Continued financing </li></ul><ul><li>Growth and sales </li></ul><ul><li>Successful exit - IPO </li></ul><ul><li>Successful exit - Acquisition </li></ul>
    3. 3. Multiple Levels of Analysis <ul><li>Entrepreneur characteristics </li></ul><ul><li>Firm characteristics </li></ul><ul><li>Firm’s technology sector conditions </li></ul><ul><li>Adjacent technology sector conditions </li></ul><ul><li>Regulatory / Payer environment in US and ROW </li></ul>
    4. 5. Predictors of Successful Exit <ul><li>Firm age and size </li></ul><ul><li>Moderate number of executives </li></ul><ul><li>Smaller board </li></ul><ul><li>Access to capital via more VC financing rounds </li></ul><ul><li>Amount of capital raised during these rounds </li></ul><ul><li>VC firms ’ experience with investing in these companies </li></ul><ul><li>Firm ’ s track record in acquiring other firms </li></ul><ul><li>Firm ’ s cumulative history of good exits </li></ul><ul><li>Specific industry (VEIC) firm participates in </li></ul><ul><li>Level of entry within VEIC </li></ul><ul><li>Number of competitors within VEIC </li></ul>
    5. 6. New Case from Stanford GSB
    6. 7. Physicians play crucial roles in several aspects of medical device innovation “ Physicians when they are really involved in this (medical device innovation) process are involved all the way through the end. - Tim Fischell interview “ Physician involvement is a necessary part of maturing the technology so that it can be applicable to patients” – Peter Fitzgerald, SU, Sep 2005 “ The industry cannot do anything without physicians and physicians could do very, very little without industry” – Tom Fogarty interview (Wharton) Key stages of medical device innovation involving physicians
    7. 8. Strategy & Execution Issues <ul><li>Produce differentiation / franchise value </li></ul><ul><li>Market scope / Niche selection </li></ul><ul><li>Clinician marketing & distribution strategy </li></ul><ul><li>Understanding of the economic customer </li></ul><ul><li>Execution of: manufacturing, supply chain, marketing, sales </li></ul><ul><li>Capitalization </li></ul>
    8. 9. <ul><li>Thank you for listening </li></ul>

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