“Growth Strategies and Exit Alternatives for MedTech Companies”
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“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
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“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. Background. - PowerPoint PPT Presentation
Transcript of “Growth Strategies and Exit Alternatives for MedTech Companies”
“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
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?
Unilever, BTG, Genome Therapeutics, ActiveCyte, AnVil, Sequitur, Signet Laboratories, ProNAi, Launchpad Venture Group
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
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
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
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
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…
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
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’
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?
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
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’
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….
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!
New Use Old Drugs Cardiovascular – side effect hair
growth = Rogaine
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
We all need different medicine
