Medsider: Learn from MedTech and HealthTech Experts

Uncertainty. It’s the one constant in today’s healthcare environment. And of course, uncertainty causes a multitude of questions to arise. How will the 2.3% medical device tax affect small medical device companies? How long will it take the FDA to issue a 510(k) approval? Are we really looking at $60 million for this PMA? What will the reimbursement picture look like? How much time and money will it cost to comply with the Sunshine Act? Tons of questions, but few concrete answers. With all of these external forces squeezing the medtech industry, we can be certain of one thing. All medical device companies will be forced to step up their game. More diligence, additional scrutiny, etc. And this certainly applies to M&A activity. Large, strategic medical device companies will become even more selective in their pursuit of pre-revenue startups and technologies. So if you’re an early stage medical device startup, how you can best position your company and technology with prospective buyers and/or licensors? Enter Don Urbanowicz, Principal at Urbanowicz Consulting. In this interview, Don will help us discover what medical device buyers are looking for in early stage medtech startups. Here's What You Will Learn - What are the 3 “must haves” that are typically at the top of a prospective buyer’s list of requirements? - Is their room left for the traditional model of incremental product improvements (with minimal clinical data) at higher market prices? - How important is strong medtech IP? - How do prospective medtech buyers review deal opportunities? - What are the 6 steps of a typical transaction proccess. And how long does this usually take? - Will too much risk outweigh the value drivers when a potential acquisition has been identified? - And much more! This Is What You Can Do Next 1) You can listen to the interview with Don Urbanowicz right now: Download audio file (DonUrbanowicz_MedsiderInterviews_2012.mp3) 2) You can also download the mp3 file of the interview by clicking here. Don't forget – you can listen to this interview and all of the other Medsider interviews via iTunes.  And if you get a chance, leave us an honest rating and review. 3) Read the following transcripts from my interview with Don Urbanowicz.  Also, feel free to download the transcripts by clicking here. Read the Interview with Don Urbanowicz Scott Nelson:             Hello, everyone.  It’s Scott Nelson, and welcome to another edition of Medsider, the program where you can learn from med tech and medical device experts on your own terms without having to go to school, and on today’s program we have Don Urbanowicz, who is the founder and principal at Urbanowicz Consulting.  Don has a 30-year track record in the healthcare industry with multinational companies.  He's held various leadership roles spanning general management, global marketing, sales, strategic planning, and business development at companies like Stryker, Smith and Nephew, Sofamor Danek, and Aircast.  So without further ado, welcome to the call, Don.  Really appreciate you coming on. Don Urbanowicz:      Scott, thank you. Scott Nelson:             Alright, so I took a lot of that information from the bio I found online but for those listening, can you provide a little bit more detail into your experience within the med tech arena? Don Urbanowicz:      Sure, Scott.  I think you did a great job, first of all.  The only thing I might add is that I do work primarily with pre-revenue technology-based companies and what I would call microcap companies in providing business growth strategy and transaction advice. Scott ...

Is medtech venture capital like a rare, nearly extinct animal? You know, similar to one of those odd, but interesting animals we’ve all seen on the Discover Channel? Like the Passenger Pigeon. In fact, as recently as 200 years ago, Passenger Pigeons weren’t anywhere near extinction. They were actually the most common bird in North America. So what’s the parallel between the Passenger Pigeon and medtech venture capital? Answer: Scarcity! VCs are becoming less and less interested in healthcare because of diminishing returns. With that said, will medtech venture capital eventually see the same fate as the Passenger Pigeon? Or is well-known VC Terry McGuire right in declaring that, “Darwin was an optimist”? To help answer those questions and a host of others, enter Kevin Bitterman, Principal at Polaris Venture Partners. In this interview, we learn what medtech venture capitalists like to see in a startup and how these early stage medical device companies can best position themselves for success. Here's What You Will Learn - Will the IPO market for medtech companies ever open up again? Also, what requirements would make for an attractive IPO candidate? - Where do large medical device companies see the greatest opportunity for growth? - What questions should medtech startups have already answered before approaching a potential buyer? - In terms of a potential exit, what is more important for a medical device startup – clinical data or commercialization? - Besides venture capital, where else should medical device startups look for money? - What is Kevin’s personal medtech investment psychology? - After receiving his Ph.D. from Harvard Medical School, what attracted Kevin to the medtech venture capital space? - Kevin’s lasting advice for early stage medical device companies. - And much more! This Is What You Can Do Next 1) You can listen to the interview with Kevin Bitterman right now: Download audio file (KevinBitterman_MedsiderInterviews_2012.mp3) 2) You can also download the mp3 file of the interview by clicking here. Don't forget – you can listen to this interview and all of the other Medsider interviews via iTunes.  And if you get a chance, leave us an honest rating and review. 3) Read the following transcripts from my interview with Kevin Bitterman.  Also, feel free to download the transcripts by clicking here. Read the Interview with Kevin Bitterman Scott Nelson:             Hello, hello everyone.  It’s Scott Nelson, and welcome to another edition of Medsider, the program where you can advance your medical device or med tech career on your own terms without going to school.  And on today’s program we’ve got Kevin Bitterman, who is a principal at Polaris Ventures.  He's been with Polaris since 2004.  He obtained his PhD at Harvard Medical School, earned his BA with honors from Rutgers with a major in Biological Sciences and a minor in Philosophy. So thanks a ton for coming on to the program today, Kevin.  Really appreciate it. Kevin Bitterman:      Thanks Scott, glad to be here. Scott Nelson:             Alright, so let's first start out with the one big question, as I mentioned in kind of our pre-interview talk, is making the assumption that the IPO market is pretty dried up.  What do med tech startups need to do in order to see an M&A exit as that's the most likely option probably moving forward, at least for the foreseeable future.  So that's the big question that we’re going to try to answer in this interview.  But before we go there, do you agree with that assumption, that IPO market for med tech is pretty dried up and almost nonexistent? Kevin Bitterman:      Yeah, I would say ...

“We will NOT invest in your company because it’s clear you’ll need a PMA.” That’s the stance that some medtech venture capitalists are currently taking. Why? Because costs continue to rise for early stage medical device companies at a significant clip. While the approximate cost to obtain a PMA approaches $100 million, 80% of medtech exits over the last several years have been LESS than $250 million. Do the math. Those numbers are less than impressive. In this interview with Rich Ferrari, Managing Director of De Novo Ventures, we’ll learn more about the current state of medtech venture capital and the corresponding impact on medical device startups. Here's What You Will Learn - Novel ways to fund early stage medical device companies. - The differences between a “medical device generator” model an “incubator” model. - Why late stage medtech deals are so popular today. - How does Rich identify and validate an idea that is truly disruptive? - Why does the FDA “runway” seem to get longer and longer over time? - Product vs. founding team: What is most important? - And much more! This Is What You Can Do Next 1) You can listen to the interview with Rich Ferrari right now: Download audio file (RichFerrari_MedsiderInterviews_2012.mp3) 2) You can also download the mp3 file of the interview by clicking here. Don't forget – you can listen to this interview and all of the other Medsider interviews via iTunes.  And if you get a chance, leave us an honest rating and review. 3) Read the following transcripts from my interview with Rich Ferrari.  Also, feel free to download the transcripts by clicking here. Read the Interview with Rich Ferrari Scott Nelson:    Hello, hello everyone.  It’s Scott Nelson, and welcome to another edition of Medsider, the place where you can learn from med tech and medical device experts on your own terms without going to school.  And on today’s episode we have Rich Ferrari who is the cofounder and managing director of De Novo Ventures.  So thanks for taking some time out of your day today, Rich.  I appreciate you coming on. Rich Ferrari:    No problem.  Glad to do it. Scott Nelson:    Alright.  So let's start out with a quote, or a statement I should say, that I recently read in MassDevice, I believe, if I remember correctly, but it was from Jody Hatcher who’s the CEO of Novation, and his quote was something along the lines of, “Hospitals have a burning platform to reduce cost.”  So when you first read a statement like that as a storied med tech VC yourself, what’s your gut reaction tell you about a statement like that? Rich Ferrari:    Well, I think he's fundamentally right in that hospitals are constantly looking to reduce cost.  Now, whether or not that relates specifically to medical devices or relates to, let's call it inefficiencies of the delivery system, you know, overall I’m not sure what he's referring to.  But be that as it may, there's always pressure on reducing costs and devices, at least on the device side, and things that are commodity-related, commodity-oriented devices, things that don’t really offer significant benefit, you have to ask yourself, why wouldn’t those be really scrutinized if you’re put under tremendous pressure to, if they all look alike, if they all do the same thing, there should be a way to lower the cost of them. Scott Nelson:    Right. Rich Ferrari:    So yeah, I mean I think the margins for the hospital business is kind of like [00:01:52], and a lot of it’s due to inefficiencies and some of it has to do with the devices they’re buying and why they’re buying and how they’re used. Scott Nelson:    Right, ...

In the mad rush to arm your medical device sales force with the latest iPad apps, have you stopped to consider whether your digital marketing efforts truly align with your overall marketing and sales objectives? It's a mistake that a lot of medical device companies are making. Perhaps more important, have you placed enough emphasis on training your sales force how to properly use the expensive digital tools you've provided them with? In this interview with Asher Cameron, VP of Account Services for Infuse Medical, we learn how to differentiate between “marketing digital” and “digital marketing” in an effort to define a strategic digital marketing plan for your medical device company. Here's What You Will Learn - The 6 digital marketing categories that medical device companies should consider. - What digital marketing option carries the most potential for disrupting the traditional medical device sales channel? - The anatomy of effective medical device mobile applications. - What is the #1 digital marketing request from physicians? - And much more! This Is What You Can Do Next 1) You can listen to the interview with Asher Cameron right now: Download audio file (AsherCameron_MedsiderInterviews_2012.mp3) 2) You can also download the mp3 file of the interview by clicking here. Don't forget – you can listen to this interview and all of the other Medsider interviews via iTunes.  And if you get a chance, leave us an honest rating and review. 3) Read the following transcripts from my interview with Asher Cameron.  Also, feel free to download the transcripts by clicking here. Raw Transcripts of Interview Scott Nelson:    Hello everyone, it’s Scott Nelson, and welcome to another edition of Medsider.  This is the place where you can learn from med tech and medical device experts on your own terms without going to school.  And on today’s program we’ve got Asher Cameron, who’s VP of Account Services for Infuse Medical.  Thanks for taking some time out of your busy schedule, Asher.  Welcome to the program. Asher Cameron:       Thanks, Scott.  I appreciate being here. Scott Nelson:    Okay, so it was either last week or the week before, you presented at the Medical Devices Digital Marketing Conference hosted by ExL in Minneapolis and you started out your presentation with digital marketing or marketing digital, and I thought that was an interesting phrase.  Can you expound on that a little bit more? Asher Cameron:       Yeah, it’s a great question.  One of the things that we’ve noticed, as technology expands across the entire not just medical devices but across any industry that's benefitting from mobile technology in particular, is that it’s very easy to be so enthralled by the technology that we get in the mode of rather than continuing to focus on our marketing plans, marketing sales and training objectives and matching those objectives with the best option digitally, that sometimes we can fall into the trap of not doing digital marketing but marketing digital or marketing a digital solution, pushing a tool or application out because it’s cool and it’s neat and it’s high-tech versus ensuring that we are lining all the tools that we’re developing to meet our marketing and sales objectives. And so that's why I felt like at the conference starting out with that.  But it’s important that, again, the iPad hasn’t changed marketing, and the iPad 12 with Siri and hologram Siri or whatever technology may come out here 10 years from now is not going to change marketing.  We still have the same core marketing objectives, it’s just we have a lot more effective tools now digitally to achieve those objectives, and so I feel it’s important ...

It's somewhat hard to believe. But in 2010, the pharmaceutical industry eliminated 43,334 jobs. Stop and think about that. Over 40,000 people received the infamous pink slip! Okay, so you might be thinking, “But that's pharma. I'm in medical devices. I'm safe.” Think again, my friend. Regulatory timelines are long. PMAs and 510ks are incredibly expensive. Venture capitalists are white-knuckling their cash. Oh yeah, don't forget about the 2.3% medical device tax and the Sunshine Act. With that in mind, it's paramount that medical device marketers and sales people begin to stretch. As in…stretch your mindset. Think outside the box. Employ aggressive, non-traditional avenues. Are you with me? Okay then… Enter Bob Harrell, VP of Marketing for Appature, a technology company that provides a “surprisingly simple” cloud-based relationship marketing software platform for pharma and medical device companies. Before joining Appature, Bob served as Director of Integrated Marketing at Shire. Bob's 20 years in the pharma industry began in hospital sales for Merck, followed by field sales for Astra Merck. He then assumed a variety of positions with increasing responsibility at Astra Merck and AstraZeneca headquarters, including Product Communications Manager, Director of Field Communications, and Director of Strategic Communications. Enjoy our conversation. Better yet, don’t just sit in the audience of life. Employ just one of the principles we discuss and you’ll have a fighter’s chance against the headwinds that face the healthcare industry. This Is What You Can Do Next 1) You can listen to the interview with Bob Harrell right now: Download audio file (BobHarrell_MedsiderInterviews_2012.mp3) 2) You can also download the mp3 file of the interview by clicking here. Don't forget – you can listen to this interview and all of the other Medsider interviews via iTunes.  And if you get a chance, leave us an honest rating and review. 3) Read the following transcripts from my interview with Bob Harrell.  Also, feel free to download the transcripts by clicking here. Interview with Bob Harrell of Appature Scott Nelson with Medsider.com: You were recently quoted as stating, “The industry can no longer rely on the blunt instrument of mass campaigns to reach customers…” Where are medical device companies missing the boat when it comes to marketing strategies? Bob Harrell with Appature: Since the 1940s, there has been mass marketing via TV, as well as print and radio, for cigarettes, soap etc., and that was state of the art at the time. Markets were greenfield, consumers were easily influenceable, and mass marketing had a big return. This was also the case in pharma during the age of the 'detail men'. That is, men who exclusively educated doctors on the 'details' of the product. This was at a time when access to the doctor was easy and sales reps were viewed as the primary and trusted source of information about products. Then came the 90s where we had the sales force arms race. By the 2000s, there was nearly a rep for every valuable doctor in the US. That of course was unsustainable, which is why you've seen sales forces decline in the intervening years. At the same time, doctors got busier, managed care took more control, and technology began to enable self-service for key information about products. So life sciences companies found themselves with a broken model. Sales reps are EXTREMELY expensive when you consider fully loaded costs. And when the number of calls per rep decreases, you end up with a crazy cost per call. Currently, a large portion of docs enforce “no see” policies with sales reps, and most others are very hard to reach. Well over 75% of calls end at the sample closet (no interaction) and only a small fraction result in more than 2 minutes of dialogue. So let's say the fully loaded cost of a rep is ...

How do you add value to your physician customers? How do you get doctors to “lean forward” in a conversation? Stop right now and take 10 seconds to think about those questions. If your answer is to offer lower pricing, you need to think again. Let's face the facts. Medical device sales and marketing is incredibly competitive. We're operating in an age where it's a dog fight just to get a few minutes of time with a physician. If you're savvy enough to get those precious few minutes, what are you doing with them? Are you earning the doctor's attention? Will that physician even remember you by the end of the day? What if you could deliver a resource that actually helps doctors learn faster, deeper, and more memorably? Something that would cause them to say, “I wish I had this in med school.” Do you think they would remember you then? Would that sort of resource help you to stand out versus your competition? Well, Dr. Doug Seifert has developed that resource. He's the Founder, President, and CEO of Syandus. Healthcare companies partner with Syandus to offer doctors a faster, more memorable way to improve their clinical skills, using an active “learn by doing” approach. Dr. Seifert holds a PhD in biochemical engineering from Lehigh University and a BS in biology from Bucknell University. Prior to Syandus, he led large, complex projects at Merck Research Laboratories. In this interview with Doug Seifert, we learn how the Syandus platform can help to change physician behavior through experiential promotional learning. Here's What You Will Learn - The challenges and problems Doug experienced that led to the creation of the Syandus platform. - How Doug has helped healthcare companies overcome their “technology allergies” in order to adopt the Syandus platform. - What does it take for physicians to change or re-evaluate their treatment approach? - How do experiential simulations work and why are they so much better? - How does the Syandus platform add value to physician interactions? - Why is Syandus extending their platform to patients and how did this come about? - Doug's advice for ambitious medtech doers. - And much more! This Is What You Can Do Next 1) You can listen to the interview with Doug Seifert right now: Download audio file (DougSeifert_MedsiderInterviews_2012.mp3) 2) You can also download the mp3 file of the interview by clicking here. 3) Don't forget – you can listen to this interview and all of the other Medsider interviews via iTunes.  And if you get a chance, leave us an honest rating and review on iTunes. It really helps out. 4) Read the following transcripts from my interview with Doug Seifert.  Also, feel free to download the transcripts by clicking here. Read the Interview with Doug Seifert Scott Nelson:    Hello, everyone.  Welcome to another edition of Medsider.  This is your host Scott Nelson.  For those of you who are listening to the show for the first or the second time, the goal is simple.  I bring on dynamic and interesting med tech and medical device stakeholders with the simple goal of learning as much as possible, to glean insights, to glean experiences, learn from successes and failures so we can take that knowledge and apply it to our own careers, our own little ecosystem, so that we can become better and become the linchpin with whatever aspect we’re in in terms of our job.  So today’s guest is Doug Seifert.  He is the President and CEO of Syandus.  So welcome to the show, Doug.  Appreciate you coming on. Doug Seifert:    Oh, thank you very much, Scott. Scott Nelson:    Okay.  So let's first start with Syandus, and then we’ll learn a little bit about your background, and then we’ll dig in to the rest of the content of the interview. Doug Seifert:    Sure.  ...

Referral communication within the healthcare setting is often one-way, damn near impossible to track, and sometimes does not include the required patient information. Don't believe me? Check out these stats: 25% of primary care providers (PCP's) do not receive timely information from specialists after the patient referral is made. 68% of specialists receive no information […] The post Can This Fix the Healthcare System? appeared first on Medsider.

Sequoia Capital, Thrive Capital, and Greylock Partners reportedly made a x2 ROI in just 2 weeks when Facebook acquired Instagram for $1 billion. Yes, x2 ROI in 2 weeks! With that said, why in the hell are VC firms still interested in funding medtech companies when only 50% of all reported exits are less than […] The post What it Takes to Get a Medtech VC to Say “Yes” appeared first on Medsider.

China is one of the largest and fastest growing medical device markets in the world. Given the sheer size of the market, the fragmented nature of distribution, and the cultural differences from one province to the next, it is important to consider a number of implications unique to the China market. First, do you even […] The post The Most Critical Considerations for Selling Medical Devices in China appeared first on Medsider.

In today's world of commoditized medical devices, differentiating your products is extremely challenging. In fact, the only difference between your company and the next might be how effectively you collaborate with KOLs and other medical device stakeholders. The end goal for any KOL program is increased sales. But how do you manage growth in the […] The post Best Practices for Implementing a Rock Star KOL Program appeared first on Medsider.

Stryker, Hill-Rom, and Zimmer. What's the common denominator between all three of these large medical device companies? Come on, this is a total softball. For those of you that went to public school, the answer is LAYOFFS. All three device companies have attributed their recent layoffs to the impeding 2.3% medical device excise tax. But […] The post Will the Medical Device Tax Force You to the Unemployment Line? appeared first on Medsider.

It is well known that medical device companies rely heavily upon input from physicians to help identify and develop new ideas for innovative medical devices. But how will the impending Sunshine Act affect the relationships between manufacturers and physicians? Are there any loopholes? As a medical device professional, what else should you know about the […] The post The Essential Elements of the Sunshine Act and the Corresponding Impact on Medical Device Companies appeared first on Medsider.

If you were to submit your resume for a medical device or medtech job, what is the single most important thing that's on the mind of the hiring manager? Come on, take a guess. Is it that you made President's Club last year? Wrong. That you were instrumental in the marketing launch of a successful […] The post The Most Common Resume Mistakes You Need to Avoid When Looking for Your Next Medical Device Job appeared first on Medsider.

One of the best ways ambitious achievers can find an edge within their industry is to listen and learn from the experiences of others who have succeeded in their field. And there is certainly no disputing the incredible success of medical device entrepreneur and investor Rudy Mazzocchi, who is currently the CEO of Elenza. Rudy’s […] The post Behind the Curtain of an Incredibly Successful Medical Device Entrepreneur appeared first on Medsider.

In a world where healthcare budgets are being constantly squeezed, it's incredibly important to ensure that one of the most fundamental steps in medical device development – the clinical trial – is planned as effectively and efficiently as possible. Therefore, we enlisted the help of Molly Blake-Michaels to enlighten us on the challenges unique to designing […] The post Reducing the Costs of Medical Device Clinical Trials. Is This an Overlooked Aspect of Healthcare Reform? appeared first on Medsider.