Post on 13-Mar-2018
Go to Market StrategyThi t B C id dThings to Be Considered
BioPeoplePresented by: Patrick Kullmann
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Greetings from Minneapolisg p
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Our GoalOur Goal
Alleviate Pain Restore Health Extend LifeAlleviate Pain, Restore Health, Extend Life
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Develop a Self Sustaining Medical Technology Industry $$
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Patrick Kullmann MBAPatrick Kullmann, MBA
• Founder and Lead Strategist at CG3 Consulting• Author of the book: "The Inventor's Guide for Medical Technology".
30 t f th di l t h l fi ld • 30 year veteran of the medical technology field. • He has successfully exited two start medical technology companies for a combined
value of $220M S i di t t M dt i k l d t B t S i tifi J h & J h • Senior director at Medtronic, a key leader at Boston Scientific, Johnson & Johnson, EV3 and Baxter International.
• Founded CG3 Consulting in 2008 with offices in Minneapolis, Boston and San Diego. C t ib t b i l i t d h f• Contributor as a business plan reviewer, mentor and coach for:– LifeScience Alley– BioBusiness Alliance
Mi t A l N t k– Minnesota Angel Network– Minnesota Technology Cup
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The Inventor’s Guide for Medical TechnologyThe Inventor s Guide for Medical Technology
• The Inventor’s Guide for Medical Technology
M t b hi d th b k– My story behind the book– The need:
• Risk capitalRisk capital• Regulatory restraint• Skill and experience
• Free for you today!• Free for you today!
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Go to Market StrategyGo to Market Strategy
• We must:– have the “problem solving” product or service.– understand the future customer adoption of your
product.– know the regulatory, reimbursement and clinical
landscape.– have the right launch and distribution strategy.– successfully execute the business!y– drive customer product adoption for growth and
sustainment!62012‐CG3 Consulting‐All Rights Reserved
Evaluation of the InventionEvaluation of the InventionWh t t d d i ti l ?• What unmet need does my invention solve?
• Is it an idea, product or company?• What is my value proposition? Our product is:
b tt th titi d t– better than competitive products– as good as competitive products, but less
expensive– as good as competitive products and the
same price– better and less expensive– differentiated by:
better servicebetter distribution
• What will my business proposition look like?– how do we make a profit?
• What does the regulatory and reimbursement pathway look like in the U S ?pathway look like in the U.S.?
• What is my IP situation-USA, EU etc.72012‐CG3 Consulting‐All Rights Reserved
Success in the U S MarketplaceSuccess in the U.S. MarketplaceTh h d t di f th • Thorough understanding of the
• opportunity• dynamics and drivers in the market
k i th t k h ld• knowing the stakeholders• regulations, requirements, distribution/
sales channels.• Getting the right people on board • Getting the right people on board
• Contractors (“virtual company”)• Employees
• Optimal strategy for entering U.S. market
• Integrated planning and execution g gacross the company functional areas
• Timely execution of the many steps to commercialization
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Validating the BusinessValidating the Business• Most commonly neglected step in the Most commonly neglected step in the
start up• Why is it important?
– increase probability for success– manages risk
• We must determine market size– total market
potential market– potential market– available market
• What to validate?– customer needcustomer need– market size– regulatory, reimbursement and clinical areas– customer product adoption-what will it take?
t h l f ibilit– technology feasibility– competitive landscape– product, package, price, promotion and
positioningp g
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Customer Product AdoptionCustomer Product Adoption• Adopters Adopters
– Early – Main stream (drives valuation)– Late
• Adoption analysis:t f d ti– rate of adoption
– the drivers for success– obstacles and opportunities?obstacles and opportunities?– be realistic, will investor believe?
• Will main stream customers buy it at a price where a profit can be realized?
• This is a leading source of failure!
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Mainstream Buyers Drive ValuationMainstream Buyers Drive Valuation
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Tools for Assessing the M k t/P d t Ad tiMarket/Product Adoption
• Primary research data via publications, professional guidelines market reportsguidelines, market reports.
• Future customer surveysOn line tools– On line tools
– Phone driven• Focus groups **Focus groups
– Main stream adopters panel format, 5-6 panelists
– Well scripted– Tightly managed/moderated
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The Business PlanThe Business Plan• Executive Summary• Market Opportunity• The Company's Technology• Clinical/Regulatory• Reimbursement• Intellectual Property• Manufacturing/R&D• Market Penetration Strategygy• Financials• Summaryy
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Importance of FinancialsImportance of Financials• Plan drives activities, activities
drive assumptions and ti d i th bassumptions drive the numbers
• Financial schedulesP fit d l– Profit and loss
– Water fall cash flow statementstatement
• How much money do I need and when do I need and when do I need it?
– Balance sheetBalance sheet
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Selling Into U S HospitalsSelling Into U.S. Hospitals• Economic and clinical considerations• Hospital organizational buying structure
– Physician power and influence– New technology committees– Value validation committees– Executive review committees
• Hospital purchasing groupsHospital purchasing groups– GPO
• Group Purchasing OrganizationsOrganizations
– Amerinet– Health Trust
IDNs– IDNs• Integrated Delivery Networks
– MayoS f d H lth– Sanford Health
– Kaiser Permanente152012‐CG3 Consulting‐All Rights Reserved
Contractor TeamContractor TeamR&DR&D
Regulatory & Quality
Regulatory & Quality
Legal & Human Resources
Legal & Human Resources yy
Inventor &
General
Inventor &
General
Marketing, Sales &
Distribution
Marketing, Sales &
DistributionFund‐RaisingFund‐Raising
GeneralConsultant General
Consultant
ManufacturingManufacturingFinance & A iFinance & A i ManufacturingManufacturing
Cli i lCli i lReimbursement
&Reimbursement
&
AccountingAccounting
ClinicalClinical&Health Care Economics
&Health Care Economics
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Free Planning Tools LibraryFree Planning Tools Library
S bj t t l• Subject tools:– Master tool list– Regulatory– Reimbursement– Research and Development– Clinical– Manufacturing– Financial and Raise Preparation Structuring– Intellectual Property– Healthcare Economics– Corporate Governance and SEC– Human Power Needs/Contractors– Marketing
Contact me at:pkullmann@CG3 Consutling compkullmann@CG3 Consutling.com
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My Contact InformationMy Contact Information
Patrick KullmannCG3 Consulting LLCCG3 Consulting LLC3800 American Blvd West, Ste 1500Minneapolis, MN 55431Global Call Center: 866-CG3-8111Global Call Center: 866-CG3-8111pkullmann@CG3Consulting.com
*Reach out to me on LinkedIn
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Approach to Getting StartedApproach to Getting StartedD t i th d h t i th bl ?• Determine the need, what is the problem?
• Will my invention solve this problem, clinically and y p , yeconomically?
• Make preliminary and realistic market size Make preliminary and realistic market size opportunity calculationsVisit your patent attorney’s office and start the • Visit your patent attorney s office and start the patent process
• Create the detailed financial schedules to determine the financial performance picture of your venture
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Approach to Getting StartedApproach to Getting StartedE l t th fi i l h d l d th ti t f • Evaluate the financial schedules and the estimate of funding raise needed to commercialize.
• Conduct market and customer adoption research• Conduct market and customer adoption research.• Draft a business plan, create investor brief and slide
deckdeck.• Complete valuation work.
Hire an e perienced and accomplished management • Hire an experienced and accomplished management team, board of directors and advisory board.
• Raise capital $$$$• Raise capital $$$$• Operationalize and launch the business!
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Early Due Diligence Assessment Early Due Diligence Assessment P t t• Patents
• Regulatoryg y• Reimbursement• Estimate of manufacturing costs• Estimate of manufacturing costs• Market and customer adoption• Financials• Research and developmentResearch and development• Go to Market Strategy
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Minnesota Lake SuperiorMinnesota-Lake Superior
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The Marketing and Launch PlanThe Marketing and Launch Plan• Executive Summary • Executive Summary • Market Opportunity • The Company
The Compan 's Strategic Marketing • The Company's – Strategic Marketing Plan Outline
• Overview of Market/Audience Segmentation Segmentation
• Product Positioning/Value Proposition
• Projected Market Adoption • Projected Market Adoption Phases/Timeline
• Commercialization Scenario(s) • Tactical Marketing and Sales Plan • Tactical Marketing and Sales Plan • Sales potential for the Company • Strategic Marketing Budget • Summary • Summary ••••
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