- When and how Does Value Come into Play When Creating a New Technology?
- How Do Entrepreneurs Account for Fluctuating Device Pricing?
- Where Does Consumerism Fit into the Formula?
- Is the Role of the Surgeon Entrepreneur Changing?
Hanson S. Gifford III, Managing Member – The Foundry
William Facteau, President & CEO – Earlens
Robert E. Atkinson, Founder, President & CEO – Prospex Medical
Fred Khosravi, Managing Director – Incept
A follower and fan of medtech for nearly two decades, Tom Salemi is the former bureau chief, venture capital, at Elsevier Business Intelligence, where he oversaw coverage of venture investments in medtech.
Bruce A. Machmeier
Bruce Machmeier is a partner at Fox Rothschild and has over 30 years of experience in representing medical device and other technology companies in transactional matters.
William M. Facteau
William M. Facteau joined Earlens Corporation as Chairman, President & CEO in November of 2013. Previously he acted as the Vice Chairman of ExploraMed Development, LLC and as an Entrepreneur in Residence at New Enterprise Associates (NEA).
Hanson S. Gifford III
Since 1998, Mr. Gifford has been a Managing Member of The Foundry, LLC. Its activities include the invention, identification and development of new technologies, and the formation, financing, and staffing of new companies.
Robert E. Atkinson
Bob has 25 years of experience in the medical device industry, including positions as Founder, Director, Executive, Corporate and Private Patent Counsel, and Research and Development Engineer. Associates (NEA).
Fred Khosravi is a Silicon Valley medical device entrepreneur who has co-founded eight medical companies and held senior management positions in both large and small enterprises. Fred is the Managing Director of Incept LLC a health sciences and technology development company.
50: How Did ExploraMed Factor Health Care Reform into Innovation
1:45; The biggest challenge we saw and continue to see is reimbursement.”
2:05 – How does Incept look at Private Pay?
2:35 – Khosravi on the paradigm shift of innovation. Reimbursement used to be the last consideration when developing a new technology.
4:11 – Gifford: If you’re going to bring a new device … it needs to be a dramatic breakthrough. Look at percutaneous valves. I think they’re costing more than surgery and no body cares because it’s a dramatic benefit.
4:55 – Where does economics come into question with innovation?
5:40 – Atkinson: “One of the fundamental questions we ask is, `If we need to fund this program through a VC route we really need to have a path to revenue within three years.”
6:40 – Atkinson: “One of the things we’re looking at now is structured deal with corporate partners. In Bophirima, 30% of the deals have corporate partners in match it’s only 10%.”
10:00 – Gifford: “The number of early stage VCs has dropped dramatically. You can’t take a syndicate forming for granted.” Hanson explains the rationale behind forming Fire1, which partners venture firms NEA and Light stone with Medtronic (then Covidien.)
11:10 – Khosravi says Incept also looking at new sources of capital: “On thing I would add to that is funding from areas China, Taiwan or Hong Kong.”
12:00 – After seven year drought, Incept sees three early-stage deals funded by VCs. Khosravi details Agama Medical, a venture born out of a partnership between Incept and Shamed as well as a China-based investor.
13:40 – Khosravi: “If a technology is meaningful, adds value and makes a difference it will eventually get funded but you have to be able to do the early-stage funding to get the technology to a point where you can do early-stage financing.”
14:00 – Khosravi discusses Ostia Corp., a venture with Cardinal Health.
14:30 – Does partnering with corporations constrict the innovation process?
16:30 – What are the unforeseen challenges of being a private pay device company?
16:50 – Facteau: “The consumer market is not an easy one. There are some benefits to regulation, although we have a tendency to complain a lot about it. In the consumer world it can be the wild, wild west so it can be hard to control your own destiny at times.”
16:40 – Facteau: “You have to get it right, right out of the gate.”
21:00 – Are physicians and surgeons still able to be part of the innovation process?
22:10 – Khosravi says breaking the link between the physician and medtech community is a blow to Medtech.
22:50 – Gifford: “Used to be you could go to a doctor, show him something and he would say great, let’s tell the cath lab manager to buy 10 of these and give it a try. That doesn’t happen any more.
25:30 – Machmeier: Says problems less of an issue with university-based physicians where royalty pools are available.
28:00 – Gifford: Say relationships with universities getting better. “They’ve gotten much more reasonable. They recognize there isn’t a huge fortune to be made. It’s more about getting the technology out there with a small return.”
31:00 – Do private pay companies have more freedom to work with physicians?
33:00 – Are good ideas in Medtech getting funded?
33:40 – Atkinson says it’s difficult to deny fund-raising is more difficult but companies need to find new funding.
36:00 – Gifford: We’ll find the money. That’s our job as entrepreneurs. We don’t complain about it.
37:40 – Khosravi: “There are a number of investors oversees who are interested in medical technology.”
38:20 – Khosravi: “Great opportunities that really make a medical difference do get funded. They’re just not getting funded like they have before.”
38:45 : Gifford: “Every country in the world is world is dying to invest in medical device companies and build a healthy medical device industry in their country except the United States. We get a tax.”