1. Commercial Options for Medical Devices
Bill Gibbons
Cook Medical

2. “Eureka!” You have the next great… Properties known
Material
Device
Coating
Properties known
Clear understanding of method of use
Patents filed (with university)
Now some choices…

3. Options License the idea Develop a technology & sell it
Develop a device & sell it to a company
Start a company

4. License the idea Patent applications in place
Work through Technology Transfer at the University to understand the terms of licensure
Overhead
Money to the department/lab/your salary
Personal gain
Network to companies OTT knows
Personal contacts

5. Terms of licensure Usually low or now upfront money
Expect royalty on sales (i.e. commercial success)
Quality/breadth of idea
Development timeline
Participation (i.e. further research) possible
Understand the terms of research with University
Overhead charges
Time allotment
Expected cost for development to saleable point

6. Develop a technology & sell it
Idea that has been developed further
Understand the uses of the technology
Understand its benefits
Understand its shortcomings
More likely to lead to research funding
More valuable to a company (higher royalty?)
Licensure by field?
Bigger company with be able to utilize technology more widely

7. Develop a Device Turn an idea into something real Make prototypes
Functional
To scale
Bench-top tested
Understand competitive landscape
Understand the functional advantage & disadvantage
Expect some upfront payment (likely low)
Royalty on sales

8. Start a company Turn your ideas into a company $$$$ Staff Seed Angel
Venture Capital (“VC”)
Staff
Leader first! (and most expensive)
Technical
Financial
Regulatory (FDA, Europe, & Japan)
Can be consultants

9. Start a company-Expectations
Detailed business plan
Understanding of the marketplace
Positioning of company/products
Clinical trials complete
FDA/EU availability
Testimonials from thought leaders
Pathway to market
Exit strategy
Your company has to be a threat!

10. Start a company-Considerations
Facilities
Name (incorporation)
Detailed business plan
Go to market strategy
Funding in 2010 is extremely slim
Going public is not an option today
Understand the expected return from each investor
Understand the value of the company
Funding≠value!!!

11. THE presentation Know the device Know the market Know your situation
Usage/procedure/context
Understand the risks
Understand both advantages and disadvantages
Know the market
Size
Competition
Pricing/costs
Know your situation
Patents
OTT expectations
Your availability and process

12. The deadly sins Lack of knowledge Exaggeration Know your audience
Know the strengths
Know the weaknesses
Exaggeration
Know your audience
Myopia
Greed
University
Personal

13. Summary Understand what you have Patent, patent, patent
Idea, technology, or device(s)
Market-competition, pricing, advantages
Work the details
Patent, patent, patent
Work closely with Tech Tranfer
Know your objective
Call Cook first!