300 likes | 383 Views
“Entrepreneurship in the Bio-Medical Equipment Industry” Bio-Medical Engineering National Student Conference. Shimon Eckhouse June 18, 2009. Med tech business sector - mid 2009. Ageing population induces continuous growth of need for new solutions
E N D
“Entrepreneurship in the Bio-Medical Equipment Industry”Bio-Medical EngineeringNational Student Conference Shimon Eckhouse June 18, 2009
Med tech business sector - mid 2009 • Ageing population induces continuous growth of need for new solutions • Environmental and cultural trends create new healthcare problems • Healthcare business less sensitive to changing economic environment • Very multidisciplinary in its nature • Israel has unique advantages due to its strong defense technology infrastructure • Fed by fast progress in areas such as: • Computing • Material science • Biotechnology
Example - Obesity Landscape • The US Centers for Disease Control & Prevention estimates that one-third (~133M) of all US adults are overweight or obese • The World Health Organization’s estimates that >70% of European adults (55-64 years of age) are obese or overweight • The overall obese population could rise to more than 700 million by 2015, with nearly 2.3 billion overweight globally • Aug 2006 study published in New England J of Med (527,265 patients) concluded that the risk of death at midlife (50) is higher by 20-40% for overweight people and by a factor of 2-3 for obese people without other risk factors • Due to cultural obsession with thinness & the societal & psychological associations of obesity, it has been estimated that: ~50% of American women and ~25% of American men are attempting to lose weight • Total size of US weight control market $46.3B in 2004, expected to grow to $61B in 2008 (Market Data, Orlando Fl) • Obesity is a complex, multi-factorial chronic disease with limited solutions available
Age- and region-adjusted frequencies of CVD and diabetes mellitus across gender specific quintiles of WC in the overall study population of (A) men (n=69,409) and (B) women (n=98,750). From: A Study of Waist Circumference, Cardiovascular Disease, and Diabetes Mellitus in 168 000 Primary Care Patients in 63 Countries. Circulation Oct 2007
Some Important Success Factors • Market Understanding • Winning Technology/Products • Business Model
From Lasers to IPL ESC 2nd generation skin treatment products 1970 1980 1990 1994 Intense Pulsed Light Lasers Epidermis Dermis Subdermal Fat & Collagen
PhotoDerm VL ESC’s 1st IPL product PB 000-7005 9/97
ESC market share evolution-”organic growth and acquisitions
ESC Medical funding history • ESC was founded in 1992, started sales of its first product in 1994 and reached profitability at the end of 1994 • Total investment in ESC until it became cash flow positive $2.25M • ESC went public on Nasdaq in January 1996. In 1997 ESC reached a valuation of ~$1B and sales of $110M • ESC completed 3 public offerings and raised a total of $220M
From Lasers to elōsTM – Technology Evolution 3rd Generation Technology 1970 1980 1990 1995 2000 Intense Pulsed Light Lasers elōsTM Conducted RF Light Epidermis Dermis Subdermal Fat & Collagen
eLight – Skin Rejuvenation and Skin Tightening R hand treatedL hand not treated
ELOS Vela Treatment: skin tightening and skin rejuvenation Before Post 4 tx Post 8 tx
Syneron funding history • Syneron was founded end of 2000, started sales of its first product in 2002 and reached profitability at the beginning of 2003 • Total investment in Syneron until it became cash flow positive $3.5M • Syneron went public on Nasdaq in August 2004. In 2005 Syneron reached a valuation of ~$1B and sales of $54M
Aortic Stenosis 2-4% of Population > 65 age 1.5m Americans 65 Million People in US 3rd most Common CV disease 63% of valve Disease CV Disease Valve disease Aortic Stenosis Healthy Valve Stenotic Valve
Tomorrow Minimal invasive $10-25,000 30 minute procedure 1-2 day hospital stay Fast recovery Surgical vs. Minimally invasive valve replacement Today Technique Open-heart surgery Procedure cost $25-50,000 Patient Impact 3+ hours of surgery 5-7 day hospital stay 2 month recovery Global 2007 aortic valve market ~$1B
Ventor Exit • Ventor was acquired by Medtronic in February 2009 for $325M in cash • Total investment in the company until it was acquired ~$13M • Company founded in 2004
High accuracy tracking inside the body for radiation oncology
10mm NanoCyte Nature’s Drug Delivery
Anemone Cultivation Facility Experimental Unit
Insulin / Diabetes Changes in glucose levels in response to insulin administration
Summary – Med Tech and the Israeli perspective • Growth opportunities (even today) • Highly qualified scientific and engineering work force • Advanced hospital system and highly qualified medical staff • More than 30 years of companies active in med tech (Elscint)