| DEALFLOWUPDATE Issue #20. Friday, October 26 |
Hello Everyone, We have generally discussed diagnostic devices and other noninvasive technologies. However, we do look at devices that are a part of surgical procedures, as there is still major potential in bringing value and, therefore, a good revenue and exit opportunity. This issue of the newsletter we’ll be following four deal examples to show how surgical devices and, specifically, those that can protect tissues during surgeries may have deal flow potential. When we look into the potential adoption and revenue for a product, the most important aspect to consider is who is the payer. In today’s environment, any regulated device must have a reimbursement pathway and, realistically, an existing reimbursement code. The time and effort it takes to create a new code makes it very difficult to rely on as the only pathway to revenue. In the cases where the device will be used in an outpatient setting, this is even more important as, although more and more procedures are being shifted to this setting, the reimbursement can be limited in amount. Two other pathways may also lead to higher chances of revenue: the consumer path and the surgical path. We do consider pathways where a product is strictly a consumer product, reliant on cash pay. If the product is appealing, then the market is much larger but relies even more heavily on marketing. For the surgical path, as long as the device shows a substantial improvement in outcomes, and thus costs, the acceptance will generally be high. In these cases, the entire surgery is reimbursed with a lump sum, with the hospital and physicians deciding what the best combination of products to use. Therefore, a more expensive device may cost more initially, but will save costs by preventing complications and more care down the line. We’ve provided clear examples within our following Dealflow section. -Neal P.S. Our readership continues to grow! please subscribe if you’re new and continue to share with others on social media. Connect with us, we would love to hear from you! |
Dealflow BARDA adds $26m to Stratatech’s StrataGraft development dealAlthough burns are significantly decreasing due to better prevention measures, there is still room for improvement in their healing. Research still continues to find better skin grafts or engineered graft substitutes. Such grafts can also be used to accelerate healing in major wound care and trauma cases. Read More  Boston Scientific closes $600m Augmenix buyout In another example, a very interesting gel was recently bought out by Boston Scientific. This is used to protect sensitive tissue in the prostate during radiation treatment, and is bio-resorbable. It can be injected prior to radiotherapy, then left in place, where it will resorb into the body harmlessly after some time. Read More  Sotera Medical receives funding from business accelerator Plug and Play Another case of an implanted device to protect tissue shows how this is a growing market for new innovations. Surgeries are still the best option in many cases, but potential complications and even injuries can affect the patient for many years. These supplemental systems can ensure good outcomes with lowered complications, which lead to clear adoption as we discussed above. Read More  Vascular Therapies raises $12m And lastly, implants including drug-eluting ones are still needing additional innovation. Most implants are remarkably similar, with some variations in materials and coatings. There are significant unmet needs in the use of these implants and stents, again trying to reduce complications from their own use. Read More Spotlight  #ZoicNews Zoic Capital recently attended the Creative Destruction Lab (CDL) event in NY held at the NYU Stern School of Business. Neal Mody, Zoic Capital Managing Director and CDL Mentor and Associate, discusses the importance of scaling big ideas and the grand scheme of success within the CDL sessions. The first and only CDL in the United States (the rest in Canada), CDL-NYC fosters an ecosystem to maximize the probability of success for science and technology-based, massively scalable startups. Video is below and also found here. ShareTweetForward What We’re ReadingHBR How Cloud Computing Changed Venture Capital AXI GDP Grows 3.5% in Third Quarter PIT New Billions Keep Piling Up in US VC Funds VER A Pioneering Scientist Explains ‘Deep Learning’ Connect With Zoic Capital |
| The Biweekly Dealflow Update, curated by the team at Zoic Capital. |
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