Presentation on theme: "“Growth Strategies and Exit Alternatives for MedTech Companies”"— Presentation transcript:
1“Growth Strategies and Exit Alternatives for MedTech Companies” Lessons Learned from Successful MedTech CompaniesDr Richard D GillBoard Member, Launchpad Venture GroupMass Medic MeetingSeptember 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?
6Resources What were the obstacles to growing the business(es)? FinancingUnderCapitalized – Fund the FrothTechnicalIntellectual Property – Patents, TM, BrandingRegulatory – Third Party FDA RequirementsExpertiseRecruiting – Can Do TeamsOutsourcing – Virtual Development
7Revenues What growth strategies were pursued and why? Direct Sales OEM High Salary CostsOEMSharing a Bigger PieM&ARealize value with $$/Stock/Earn Out
8LiquidityWhat were the exit alternatives, and what were the key strategic decisions made that resulted in success?OEMThird Party Marketing With a view to M&AM&AProvide for Capitalization With Earn Out ProvisionsLicenseLeast Capital Intensive
9It has already happened… (Outsourcing, that is…)The large Biotechs have become Pharmas… Amgen, Genentech, Chiron, Biogen-Idec, GenzymeThe Pharmas & Device & Diagnostic Companies are becoming the marketing & distribution HousesThe small Biotechs & Start Ups are the R&D Innovative Shops…Backed by the Academic Research Faculty…
11Its all about the IP!Without patents (intellectual property) you are nowhereYou need the 20 year protection in order to protect the huge investment neededOriginally patents were filed on pharmaceutical & diagnostic uses of chemicals from the paints & dyes industryNow its biology’s turn with genomics & proteomics
13Market is Demanding.. Evidence Based Personalized Medicine vsBlock Buster ‘One Size Fits All’Q? But can Pharma change?A: Yes - Driven by cost escalation Pharma is changing…‘A la Unilever Soap Powder/Liquid Detergent’
15HealthCare Reform Q? Why did Hilary Clinton fail at HealthCare Reform? Easy A: Pharma lobby spent $280M+ to destroy the reform‘Small potatoes’Harder A: ‘Bill Clinton Walks on Water’Real A: It was all about Gennifer Flowers
16Value Proposition For the Future Knowledge Management & Interpretation of Same…Horizontal = Dx (Titrate Patients) in order to administer Rx (Effective Therapeutics)Vertical = Portable Electronic Medical Record & Portable Medical Insurance (Medicare/Medicaid & Socialized Medicine)‘Brazilian Soldiers’
17Development Opportunity ‘Drug Rescue’ Repositioning Old Drugs‘Orphan Drugs’ less than 120,000 patients; R&D tax credits; up to 6 years of monopoly (regardless of IP)Lifestyle & Insurance Drugs….
18Life Style & Insurance Drugs Life Style – ViagraIt will not ever not work for the patient or the partner – bound to make $$$!Insurance – LipitorSo you weren’t ill, but you might drop dead if you stop taking it – pay premium for life!
19New Use Old DrugsCardiovascular – side effect hair growth = Rogaine
20That said… Great way to make a living! You get to make $$$ & see patients successfully treated‘Just don’t assume its about curing folks - folks!?’Dr Richard D GillActiveCyte HoldingsBb