![Page 1: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/1.jpg)
“Growth 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
![Page 2: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/2.jpg)
Background 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?
![Page 3: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/3.jpg)
Unilever, BTG, Genome Therapeutics, ActiveCyte, AnVil, Sequitur, Signet Laboratories, ProNAi, Launchpad Venture Group
![Page 4: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/4.jpg)
Relevant 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)
Alzheimer’s Disease Diagnostic Device NABsys (A Round Financing $1M)
Gene Sequencing Device
![Page 5: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/5.jpg)
![Page 6: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/6.jpg)
Resources 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
![Page 7: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/7.jpg)
Revenues What growth strategies were
pursued and why? Direct Sales
High Salary Costs OEM
Sharing a Bigger Pie M&A
Realize value with $$/Stock/Earn Out
![Page 8: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/8.jpg)
Liquidity 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 M&A M&A
Provide for Capitalization With Earn Out Provisions License
Least Capital Intensive
![Page 9: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/9.jpg)
It 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 R&D Innovative Shops…
Backed by the Academic Research Faculty…
![Page 10: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/10.jpg)
![Page 11: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/11.jpg)
Its 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 biology’s turn with genomics & proteomics
![Page 12: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/12.jpg)
![Page 13: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/13.jpg)
Market 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’
![Page 14: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/14.jpg)
Evidence Based Medicine Hereditary – Hemophilia – BeneFIX (Wyeth)
Cancer – Her2 +ve (Bayer) = Herceptin (Genentech)
Diabetes – Blood Glucose +/- = Insulin
What next?Alzheimer’s Diagnostic & Treatment?Personal Genomic Profile & Prognosis?
![Page 15: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/15.jpg)
HealthCare 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
![Page 16: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/16.jpg)
Value 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’
![Page 17: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/17.jpg)
Development 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….
![Page 18: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/18.jpg)
Life 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 weren’t ill, but you might drop
dead if you stop taking it – pay premium for life!
![Page 19: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/19.jpg)
New Use Old Drugs Cardiovascular – side effect hair
growth = Rogaine
![Page 20: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/20.jpg)
That 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 Gill ActiveCyte Holdings [email protected] 781 864 7515
Bb 269 823 8430
![Page 21: “Growth Strategies and Exit Alternatives for MedTech Companies”](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815dfa550346895dcc340c/html5/thumbnails/21.jpg)
We all need different medicine