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SILS 2015 - Insights on the Key Success Factors of Global MedTech Commercialization


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By: Steven G. Arless, Soundbite Medical
At Sherbrooke International Life Sciences Summit - 2nd edition | September 28/29/30 2015

Published in: Health & Medicine
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SILS 2015 - Insights on the Key Success Factors of Global MedTech Commercialization

  1. 1. soundbitemedical.comSeptember 30th, 2015 SILS Presentation “Insights on the Key Success Factors of Global MedTech Commercialization”
  2. 2. PRELIMINARY THOUGHTS • Always Looking for the Next Inflexion • Understanding Megatrends and their Implications on Current and Future Solutions • Differentiating Incremental vs Transformational • Identifying Niche Strategies & Related Unmet Needs • Translating to a Great Value Proposition (both clinical and economic) • Avoiding Traditional Commercialization Pressures @SteveArless
  3. 3. PRESENTATION OUTLINE • Smith & Nephew – Lessons Learned • CryoCath – Lessons Learned • CardioInsight – Lessons Learned • Latitude-49 – Lessons Learned • Key Takeaways and Principles Looking Back • My Canadian Medtech Vision Going Forward
  4. 4. A FORTUNATE TRACK RECORD • 14 MedTech start-ups • 8 successful exits ranging from $10-400 MM • 2 unsuccessful exits • 4 ongoing • Cumulative value creation of $900 MM • Cumulative invested capital of $300 MM • Less than 100 VC “pressure sores” @SteveArless
  5. 5. SMITH & NEPHEW INC Advanced Wound Care Orthopedic Devices
  6. 6. S&N – LESSONS LEARNED Working and Learning on My Way up the Totem Pole (from $6MM to $150MM in 17 years) Lessons learned: -loyalty and hard work -customer intelligence is powerful -entrepreneurial innovation can be tricky -advance on your merits….not on others’ failures -politics is not fair and not for me @SteveArless
  7. 7. CRYOCATH – THE RIDE Persisting Through Game-Ending Challenges….Daring to Be the First Lessons learned: -”son, its like trying to build a snowball in hell” -stopping the IDE! -daring the Strategics -the Arctic Circler heartbreaker -an IPO through the bubble
  9. 9. CRYOCATH – LESSONS LEARNED Canada’s first ever PMA Transforming the World of AF Ablation “Ahead of the Curve” Lessons learned: -”ahead of the curve” demands visionary creativity -supportive, functional SAB critical -titration is better in therapeutics -criticality of an international funding strategy -KISS to the user @SteveArless
  10. 10. CARDIOINSIGHT Non-invasive 3D Electroanatomic Mapping of Persistent Atrial Fibrillation The Setting: -Cleveland-based company near expiration -in the depths of the Great American Depression -controversy over the “math” -in FDA’s bad books -poor business model
  11. 11. UNIQUE, TRANSFORMATIONAL TECHNOLOGY @SteveArless First advanced mapping system to non-invasively generate real- time, 3D electrical maps of the whole heart in a single beat.
  12. 12. CARDIOINSIGHT SENSOR VEST EVOLUTION 1st Vest (2006) 2nd Vest (2007-2009) Alpha Vest (2009-2010) Beta Vest`
  13. 13. CIT – LESSONS LEARNED @SteveArless World’s First-ever Non-invasive 3D Electroanatomic AF Mapping System Lessons learned: -no business plan/model… money -working with technology founders is tricky -go with the best….no compromise -American VC’s are brutal on their own -get the strategics involved early
  14. 14. L-49 – LESSONS LEARNED Canada’s first ever, dedicated MedTech fund, targeting $75MM for 15 “ rising stars” Lessons learned: -first-time funds are challenging -realization of the MedTech opportunity is poor -adequate seed funds for good early stage flow -dirth of leadership for Series A funding -enough innovation to sustain critical mass
  15. 15. SOUNDBITE – SHOCKWAVE CROSSING WIRES FOR CTO’S First to deliver powerful mechanical shockwaves down a 0.014” wire @SteveArless
  16. 16. CRYOLOGIX – HIGH POWER CRYOABLATION FOR VT First to deliver liquid nitrogen in a flexible catheter to ablate cardiac arrhythmias
  17. 17. COMMERCIALIZATION PRINCIPLES • Don’t succumb to “dumb” investor pressures • Dilution • Early sales • Strategic vs ”shotgun” sales • Oversupport early adopter sites • Focus on clinical adoption, not # of sites • Respect the competition • Prepare for abuse from the “Strategics”
  18. 18. FUNDAMENTAL ME-CEO PRINCIPLES • Predict the next “curve” • Be fully cognizant of “unmet needs” • Spend more time with KOL’s than your staff….and don’t ignore the “average guy” • Know your technology as well as the engineers • Always address the “weakest link” • Practice “controlled” salesmanship to obsession • Humility helps
  19. 19. CANADA’S MEDTECH SILICON VALLEY • Get off the “learning curve” • Capitalizing on our successful entrepreneurs • Educating our LP’s • Coordinate balcanized initiatives • Developing a focused VC effort • Enabling our institutions • Having fun while creating value!