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“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.

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“Growth Strategies and Exit Alternatives for MedTech Companies”

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  1. “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

  2. 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?

  3. Unilever, BTG, Genome Therapeutics, ActiveCyte, AnVil, Sequitur, Signet Laboratories, ProNAi, Launchpad Venture Group

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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…

  9. 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

  10. 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’

  11. 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?

  12. 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

  13. 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’

  14. 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….

  15. 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!

  16. New Use Old Drugs • Cardiovascular – side effect hair growth = Rogaine

  17. 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 RIKI4455@aol.com 781 864 7515 Bb 269 823 8430

  18. We all need different medicine

  19. Questions? RIKI4455@aol.com

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