Title: Growth Strategies and Exit Alternatives for MedTech Companies
1Growth Strategies and Exit Alternatives for
MedTech Companies
Lessons Learned from Successful MedTech
Companies Dr Richard D Gill
Board Member, Launchpad Venture Group
Mass Medic Meeting September 12th 2008
2Background
- What were the obstacles to growing the
business(es)? - What growth strategies were pursued and why?
- What were the exit alternatives, and what were
the key strategic decisions made that resulted in
success?
3Unilever, BTG, Genome Therapeutics, ActiveCyte,
AnVil, Sequitur, Signet Laboratories, ProNAi,
Launchpad Venture Group
4Relevant Portfolio
- Sequitur (sold to Invitrogen)
- Oligo RNAi Services Technology
- Signet Laboratories (sold to Covance)
- Oncology Neurodegenerative Diagnostics
- Catalyst Oncology (sold to Diagnocure)
- Colon Breast Cancer Diagnostics
- Neuroptix (B Round Financing 17.5M)
- Alzheimers Disease Diagnostic Device
- NABsys (A Round Financing 1M)
- Gene Sequencing Device
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6Resources
- What were the obstacles to growing the
business(es)? - Financing
- UnderCapitalized Fund the Froth
- Technical
- Intellectual Property Patents, TM, Branding
- Regulatory Third Party FDA Requirements
- Expertise
- Recruiting Can Do Teams
- Outsourcing Virtual Development
7Revenues
- What growth strategies were pursued and why?
- Direct Sales
- High Salary Costs
- OEM
- Sharing a Bigger Pie
- MA
- Realize value with /Stock/Earn Out
8Liquidity
- What were the exit alternatives, and what were
the key strategic decisions made that resulted in
success? - OEM
- Third Party Marketing With a view to MA
- MA
- Provide for Capitalization With Earn Out
Provisions - License
- Least Capital Intensive
9It has already happened
- (Outsourcing, that is)
- The large Biotechs have become Pharmas Amgen,
Genentech, Chiron, Biogen-Idec, Genzyme - The Pharmas Device Diagnostic Companies are
becoming the marketing distribution Houses - The small Biotechs Start Ups are the RD
Innovative Shops - Backed by the Academic Research Faculty
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11Its all about the IP!
- Without patents (intellectual property) you are
nowhere - You need the 20 year protection in order to
protect the huge investment needed - Originally patents were filed on pharmaceutical
diagnostic uses of chemicals from the paints
dyes industry - Now its biologys turn with genomics proteomics
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13Market is Demanding..
- Evidence Based Personalized Medicine
- vs
- Block Buster One Size Fits All
- Q? But can Pharma change?
- A Yes - Driven by cost escalation Pharma is
changing - A la Unilever Soap Powder/Liquid Detergent
14Evidence Based Medicine
- Hereditary Hemophilia BeneFIX (Wyeth)
- Cancer Her2 ve (Bayer) Herceptin (Genentech)
- Diabetes Blood Glucose /- Insulin
- What next?
- Alzheimers Diagnostic Treatment?
- Personal Genomic Profile Prognosis?
15HealthCare Reform
- Q? Why did Hilary Clinton fail at HealthCare
Reform? - Easy A Pharma lobby spent 280M to destroy the
reform - Small potatoes
- Harder A Bill Clinton Walks on Water
- Real A It was all about Gennifer Flowers
-
16Value Proposition For the Future
- Knowledge Management Interpretation of Same
- Horizontal Dx (Titrate Patients) in order to
administer Rx (Effective Therapeutics) - Vertical Portable Electronic Medical Record
Portable Medical Insurance (Medicare/Medicaid
Socialized Medicine) - Brazilian Soldiers
17Development Opportunity
- Drug Rescue Repositioning Old Drugs
- Orphan Drugs less than 120,000 patients RD
tax credits up to 6 years of monopoly
(regardless of IP) - Lifestyle Insurance Drugs.
18Life Style Insurance Drugs
- Life Style Viagra
- It will not ever not work for the patient or the
partner bound to make ! - Insurance Lipitor
- So you werent ill, but you might drop dead if
you stop taking it pay premium for life!
19New Use Old Drugs
- Cardiovascular side effect hair growth Rogaine
20That said
- Great way to make a living!
- You get to make
- see patients successfully treated
- Just dont assume its about curing folks -
folks!? - Dr Richard D Gill
- ActiveCyte Holdings
- RIKI4455_at_aol.com
- 781 864 7515
- Bb 269 823 8430
21We all need different medicine
22Questions?
RIKI4455_at_aol.com