Innovations in Medical Devices: Medtronic Advanced Energy

University of New Hampshire

September 27, 2012

Suzanne Foster, VP & General Manager

2 | MDT Confidential

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New Building

• Leadership transition ‘07

• Moved to new facility ‘08

• Turned EBITDA positive ‘09

• Treated 500,000th patient in ‘10

• Acquired August ‘11

• Founded in 1999 with technology licensed from Medtronic

• First product sold ‘01 into solid organ resection

• Entered ortho market in ‘02

• Entered spine in ‘06


Aquamantys Has Treated 1,000,000 Patients

0

50,000

100,000

150,000

200,000

250,00020

01

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

It took us six years to treat our 100,000th patient

1,000,000th Patient

It took us two years to treat our 250,000th patient

It took us 18 months to treat our 500,000th

patient


Peak Surgical

• Technology developed at Stanford in 1998• PEAK Surgical, Inc. founded in May 2005• Peak licensed IP from Stanford


Peak Surgical Rapid Growth

CommercialSuccess

20122006 2007 2009 2011

Series A & B $9M Lehman, Venrock

Mgmt team

Series C $23M Signet

Pre-clinical data

510(k) multiple surgical specialties

Mfg ramp-up

R&D PlasmaBlade & generator

Market research

Clinical study completed

US sales distribution

Strategic partnership Medtronic ENT

CE Mark OUS sales

2009 $3.5M US revenue

Focus on growth

Market penetration

50,000 cases

$8M US revenue

2008

08

2010

Commercial Release Continued

market penetration

100,000 cases/yr

$14M US revenue

MDT acquisition

Integration of PEAK into ST

PEAK Global Market Presence

PEAK Acquired


Medtronic, Inc. • The Largest Medical

Device Company in the World

• 120 countries• 40,000 Employees

Worldwide• $14 Billion WW Revenue


The Aquamantys® System

Transcollation technology Family of single-use sealers

Epidural Vein Sealer (EVS)MBS

2.3 Bipolar

6.0 Bipolar

BSC 9.1


Transcollation® Technology

Soft Tissue:

Broad Tissue Planes

Transcollation Target Tissues

Bone

=+

Solid Organs

• Delivers controlled thermal energy to target tissue

• Integrated saline and RF energy

• Proprietary algorithm controls power / saline flow relationship

Hemostatic SealHemostatic Seal


Total Hip Arthroplasty

Total Knee Arthroplasty

Spine Surgery

Orthopaedic Trauma

Surgical Oncology

Applications of Transcollation® Technology


Continuity of Care: Plays to our Strengths

Primary Care Pre-op Peri-op Post-op Discharge

Blood Management

Advanced Energy

Focus?


4.0 3.0S Needle PULSAR II

The PlasmaBlade Family


PlasmaBlade Solution…

Single Instrument Surgery…

− Precision cutting− Minimal bleeding − Less tissue damage

Less EnergyLess Heat

Reduced Collateral DamageReduced Inflammatory Cell Count

Improved Courseof Healing

PlasmaBlade


PlasmaBlade TPS Insulation

TPS – Thermal Protection Shield

1% pulsed RF plasma discharge along– 12.5 microns wide exposed edge (~ width of human hair)

By reducing the amount of active electrode surface area, the system focuses and concentrates the energy to only the perimeter of the active electrode.


PlasmaBlade TechnologyTissue Temperature Range: 40 – 170°C

The Difference…

Scalpel PlasmaBlade Electrosurgery

Electrosurgical PencilTissue Temperature Range: 250 – 370° C

17 | MDT ConfidentialFor Internal Use Only

Published March 16, 2011

From Dr.Viktor KrebsThe Cleveland Clinic


Enforcement and Penalties

J&J - $81M & 5 Year CIA

AstraZeneca - $520M & 5 Year CIA

Pfizer - $2.3B & 5 Year CIA

GlaxoSmithKline - $3B

Medtronic - $40M & 5-Year CIA

Medtronic (Kyphon) - $75M & 5-Year CIA

Stryker Biotech – Former President and 3 Sales Managers indicted for

false statements and fraudulent marketing. Possible 20 years and $250K fine.

Synthes– Indictment and imprisonment of 4 senior executives

for off-label promotion– filed 510(k) for general indication with the intent to

rely on physician research and publication to target spine uses…BUT then promoted sine use w/out new 510k


US Business Conduct Standards

• No gifts to customers, even for major life events• No logo items to customers, for example: pens,

notepads, mugs, and “reminder items”• Can provide occasional educational items and items

that benefit patients-must be less that $100 in value unless the item is a textbook or anatomical model

• No customer entertainment or recreation• No spouses or guests of customers (unless they are

qualified to attend in their own right)

Innovations in Medical Devices: Medtronic Advanced Energy

Technology

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