| DEALFLOWUPDATE Issue #26. Friday, February 22 |
Hello everyone, For this edition of the Zoic deal flow newsletter, we’ll be once again looking at a broad range of deals that are examples of significant acquisitions, raises, and approvals that represent the major innovations and market validations that we look for. The scale and pace of exits in the device space, even for seemingly incremental innovations only seems to be accelerating. -Neal We’re trying a different format for this issue, please send us comments if you enjoyed the different layout or if you preferred the previous approach. If this is your first issue, please subscribe and consider sharing with others. Additionally, we welcome news from our readers, if you’re up to something interesting, let us know. Email chad@zoiccapital.com |
Dealflow The most significant example from the last two weeks of significant acquisitions, raises, and approvals were in the surgical robotics space. We have covered this space before, either the robotics themselves or for tools that support their implementation such as real-time diagnostics that can guide the operations autonomously. A major acquisition was announced recently that shows that this space continues to grow. Although the device is stated to be initially developed for lung cancer, it is a potential platform for other surgeries. Even smaller scale, incremental innovations continue to show strong acquisition potential. For example, a device to assist in the repair of heart valves was recently acquired for above the typical previous average for medical device acquisitions. Acquisitions do seem to be valued well in the cardiovascular and orthopedic space, as these are growing markets with many competitors and commoditized products. Any improvement can be a significant competitive advantage. Also in the cardiovascular space is an upcoming IPO for a device platform that has had promising results. The ShockWave system uses sound waves to break up deposits in the vascular system, promising to be as effective as current, much more invasive methods. This also shows the rise of new, noninvasive methods that use methods of action such as ultrasound. There were also significant movements in our constant topic, diagnostics. Blood testing itself continues to advance, particularly with smaller, cheaper and easier to use devices. Cartridge based systems can also be implemented to test multiple markers at the same time. Companies such as one with a recent successful raise combine the hardware with software analysis to ensure useful, actionable results from the data. Finally, we do often get asked how devices that are major innovations can still have short regulatory timelines. There are multiple ways to achieve this, and the FDA does actually provide pathways to accelerate approval. For example, a recent diagnostic blood test for concussions has been accepted through an accelerated pathway (breakthrough designation), which greatly reduces the time the system needs to get to market. This designation can be potentially applied to a technology that represents a major innovation and addresses an area of significant need without an adequate standard of care. Spotlight #ZoicNews At Zoic we strongly believe in our unique and thorough structure to company diligence. Behind our system of metrics is also a great team however, providing sector insight and a fluid dynamic towards our company vision. We work endlessly to continue adding business acumen and knowledge within our team and truly believe any company is only as good as the people behind it. That being said, we’re excited to welcome Frank Prendergast as our newest Senior Advisor and look forward to learning more from his more than 50+ years as a healthcare practitioner, administrator, and innovator. #PortfolioNews  We’ve covered the progress of one of our portfolio companies, Optina Dx previously, but recently the team at Optina Dx received recognition on their own success in team building. Like Zoic, Optina Dx is flourishing in their success in having built a team that not only works well together but does so due to their ability to fill management and leadership gaps by recognizing their overlapping soft skills. Learn more about why they chose to work together and how they work so well together in a recent profile conducted by Vator. Read more What We’re ReadingCBI Do Ex-Startup Founders Make The Best VC’s? HBR When Small Teams Are Better Than Big Ones WSJ Healthcare Spending Projected to Accelerate as Population Ages SMI “Young Blood” Transfusions Are Ineffective and Dangerous, FDA Warns Connect With Zoic Capital |
| The Biweekly Dealflow Update, curated by the team at Zoic Capital. |
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