Strategies for Weathering the Economy Whos Doing Well

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Strategies for Weathering the Economy Whos
Doing Well

• Peter DeLange, President/CEO, Devicix, LLC

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Overview of Devicix

• Product Development and Engineering Firm
• Founded in 2004
• 100 Medical Device Focus
• Electrical, Mechanical, Software, Biomedical
• Currently 33 Employees with 15,000 sq ft office,
  lab and mfg space.

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Overview of Devicix

• Projects in US and abroad in many medical
  specialties
• Orthopedics
• Spine
• Total Joints
• Trauma Products
• Cardiology
• Respiratory Therapy
• Dental
• General Hospital Capital Equipment
• Urology and others

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Whos doing well? Whats the problem?

• What Devicix sees
• Changing Regulatory Environment
• Cost and Uncertainty
• Surgeon / Industry Relationships
• Innovation, new models needed
• Financial
• US Economy and impact on funding
• Changing Healthcare
• What to develop, new innovations? Profit
  incentive? Risk?

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Success Examples

• Mid 2008 to end of 2009 who did well?
• Surgeon Inventor
• Unique implantable lumbar fusion system
• Napkin to 510(k) in 12 months lt 2M
• Personal / friends and family funding
• Serious interest by multiple strategic partners
• Traditional Startup DGIMed Orthopedics, Inc
• Novel technology for orthopedic trauma
• Implants, electronics, software system
• 4M raised in the last 9 months (local money)
• 510(k) submitted in May, approved in Nov
• Product Launch early 2010!

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Keys to doing well? Compare and Contrast

• At least some hints for early stage
• Deals have the basics (Market, IP, Team, etc)
• Technology is novel, but understandable
• Clear regulatory path, strong predicates, cost
  and patient benefit
• Management Team must have credibility or
  partner with folks who can help build that
  credibility
• Reduce Risk! (and increase value!)
• technical, regulatory, market

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How about Devicix?

• The right market helps
• International markets and opportunities are
  compelling
• Changing environment will create opportunities,
  they just may look different
• Take care of the basics
• Customers
• People
• Cash Flow but not at all costs
• May need investment, not just entrenchment

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