Digital Health Funding is Accelerating beyond that of Traditional Healthcare

During USC's 2014 Body Computing Conference, experts agreed that digital health funding is accelerating beyond that of traditional healthcare. According to Rock Health (a company that provides startups with funding and full-service support), digital health is one of the fastest growing niches overall in venture funding today and is attracting investors from several different areas. Unexpectedly, it is surpassing medical devices in aggregate funding.

Casper de Clercq, a partner at Norwest Venture Partners, a leading investor in medical device firms, pointed to a trend in data collection. “There are other industries that are way ahead. Walmart, Target, Amazon, and Google know way more about our healthcare and our health situation than probably most of our providers do.” He mentioned the famous case of a Target store discovering that a customer was pregnant simply by monitoring her buying habits.   

Malay Gandhi, managing director of seed fund Rock Health, stated that large medical device companies are transforming their business models from a pure hardware business into a services business. “Technology enabled services in this category, where the medical device becomes a data acquisition mechanism, and you have software, analytics, and a services or patient management platform is really the future of medical devices.”

References: http://www.mddionline.com/article/venture-investment-digital-health-surpasses-medical-devices-141006

Risk and Challenges of Healthcare Systems Internationalization

Medical device manufacturers have identified “emerging markets” as their principal source of revenue growth in the coming years. However, during the last Economist’s Health Forum in Boston, major academics and industry’s players discussed the risks and challenges associated with rising demands in these countries.

The discussion explored a growing concern that the healthcare model in the United States and Europe isn’t sustainable or even necessary to meet the healthcare needs in many cultures. These nations will need to create a “more of an outpatient-oriented and prevention-oriented delivery system” that will require behavioral changes by physicians and patients.

“(...) replicating a hospital-based system in less-developed nations requires not only new infrastructure, but wholesale change in the behavior and practice of patients and physicians. (...) also demand a financial investment that even Western nations are having difficulty paying(...)” Peter Berman, a professor at Harvard University’s School of Public Health

Victor Joseph Dzau, MD, president of the Institute of Medicine brought an academic, clinical, and corporate perspective. He stated that every culture is different and needs specific solutions. “You won’t succeed unless you are really on the ground and really understand the culture”. Device companies must create local solutions to local problems in order to succeed.

References: http://www.mddionline.com/article/%E2%80%98globalization-not-americanization%E2%80%99-when-it-comes-healthcare-09-22-2014

Scenario of the Brazilian Medical Devices Market

MedTechWorld MD&M Brazil 2014, one of the main events of medical devices in Brazil, happened on August 26-27 at Transamérica Expo Center in Sao Paulo. This edition gathered together more than 3,000 professionals and 40 exhibitors.

One of the many interesting presentations was a study, conducted by Dr. Kleber Stelmasuk and Dr. Vitor Asseituno, both from Empreender Saúde, outlining the market scenario of research and development of medical devices in Brazil. The study revealed the strengths and weaknesses to enlarge the exports, increase the contact between university and industry for research and development, and identify what are the proposals to consolidate Brazil as a major global competitor of medical devices and nursing material. It also pointed out the concern about the deficit in the healthcare sector, since the industry doesn’t keep up with the patients’ demand.

References: http://www.empreendersaude.com.br/pesquisa-e-desenvolvimento-de-medical-devices-no-brasil-2014/

2014: So far, a great year for the MedTech Industry in the USA

      According to the MedTech Half-Year Review, issued by EPVantage, 2014 has been telling an optimistic story for the medical device sector.

     Some points of this report have to be mentioned: merger and acquisitions stands at US$27.2 billion, compared to US$19 billion of 2013. The report also notes that the value of M&A in 2013 was close to being the lowest in a decade. More merger and acquisitions are to be announced until the end of 2014/beginning of 2015. During the first six months of 2014, medtech venture capital investments stand at US$1.9 billion, less than half of the US$3.9 billion raised in all of 2013. But second quarter of venture capital investment was up 33% from the first quarter of the year, so the expectations are still high. FDA approvals are also moving very fast. For PMAs, the average review time was 18.4 months compared to the average of 35.9 months in 2013.

References:http://www.mddionline.com/article/5-points-showing-why-medtech-having-great-2014-so-far

Sales Increase in the Brazilian Medical Device Market

       Brazilian medical device sector is optimistic this year and companies expect sales to increase due to a growing demand boosted by the construction of new hospitals and labs, also because of the renovation of existing infrastructure.

      Regarding foreign firms, the Swedish manufacturer Sectra plans to replace the imports by a local production until 2016, by building its own factory or through a strategic partnership with a Brazilian manufacturer. The US-based Stryker, although it has no intention to produce medical equipment in Brazil yet, has an aggressive sales increase plan by exploiting other market segments with products made in the USA and Turkey. The company’s main concern is to recover the imports, which in 2013 fell by 15% because of the unfavorable exchange rate and inflation effects.

        As for the Brazilian companies, the expectation is optimistic as well. The surgical table-manufacturer Mecsul registers a sales increase of 20% each semester. 25% of Olsen’s production, medical and dental equipment manufacturer, is meant to the foreign market. Its medical line, for example, is sold in 50 countries. Over the past few years, Olsen’s foreign sales declined due to the competition with Chinese products, but the company expects this scenario to change.

References: http://www.abimo.org.br/modules/news/article.php?article_id=514

Crowdfunding: How to Raise Money Online

When it is time to raise capital, crowdfunding is not a usual way chosen by medtech companies. Especially because investors want to finance opportunities less risky which can bring faster return, like softwares, than some complex device that might take years to be approved by the FDA.

However, when a medtech company choses crowdfunding to raise money, it is important to know what can increase chances of success. GoGetFunding, a company that has helped people from all over the world to raise millions, names the best practices of raising money from online donors, for example, updating a company's Facebook status as daily marketing activity might ensure the crowdfunding. 

Some statistics are shown below:

 * Campaigns with day-to-day marketing plans raise 180% more;

 * Projects with an average word count of between 300 and 500 words raise the most money. Explain who, what and why;

 * Campaigns that have a personal video raise 105% more than those that don't. If a picture is worth a thousand words, than a video is worth a million.   

     Finally, GoGetFunding suggests 10 steps to use their statistics and raise money online:

1. Nurture relationships with your inner-circle of friends, family and extended networks,

       2. Evaluate how much you need to raise,

       3. Set a realistic deadline,

       4. Gather a small fundraising team,

       5. Have a marketing plan,

       6. Create an awesome, personal fundraising page,

       7. Launch!

       8. Reach out to your inner circle and then extended networks,

       9. Engage, update and thank,

       10. Success!

References:

http://www.mddionline.com/article/crowdfunding-best-practices-how-get-funded-

online-infographic 

A Role Model for the Medical Device Industry

Germany has more to proud of than the World Cup championship. While the European Union is suffering from an economic crisis, Germany has maintained a growing healthcare industry, showing impressive strength in all areas ranging from R&D and medtech startups to regulation and market growth.

The medical device sector is the largest employer in Germany, according to BVmed 2011/2012 industry report. With 5.4 million employees, almost one in seven jobs in Germany can be found in the healthcare industry. Germany represents 14.6% of medical device global share (second only to the United States) and exports 65% of medical technologies made in the country. To fight against the effects of an ageing population, Germany has implemented a series of major healthcare reforms over the past 20 years.

It seems like the medical device industry has a lot to learn from Europe’s strongest country.

References: http://www.mddionline.com/blog/devicetalk/whats-germany-better-soccer-medtech-140714

http://www.mddionline.com/article/what-germany%E2%80%99s-secret-how-world-can-learn-thriving-medtech-industry

http://www.emdt.co.uk/article/western-europe%E2%80%99s-medical-device-market-under-increasing-pressure