Medical Device
industry is one of the most profitable industries in the US. This
industry has attracted attention of investors of all walks. One
group that has been active and is very much interested in presence
in this industry is the corporate investment groups. Large corporations
that have investment arms looking to create good returns on the
company funds have been active in seeking deals in the medical
device industry. This activity and interest has intensified in
the last 10 years.
One challenge
that corporate investors run into is the understanding of the
medical device companies and technologies and assessing their
market potential. Unlike other markets, investment in medical
device and in general life sciences does not follow the norms
in valuation and market assessment. Life sciences in US work around
the reimbursement. Understanding what drives this market and what
warrants reimbursement is the key to market leadership. For example,
patient management is a service that patients and physicians are
and have been interested in. This industry offers technical solutions
that allow patients to be managed remotely at the comfort of their
home by the right physician or physician assistance. Though valuable
from perspective of all users, this industry has struggled to
generate revenue in the last 20 years. This is because the business
model of these companies does not match the criteria used by reimbursement
system to establish value for their services.
It is critical
for investors to understand the profile of successful companies
and elements that have to be present in any medical device venture
to generate revenue.
Emerging
Medical Solutions can offer services to corporate investors in
identifying investment opportunities in line with risk tolerance
profile of the corporation. We can also assist in proper valuation
of deals and right engagement strategy. Due to our years of experience
with corporate development groups, we can also assist in negotiation
and subsequent follow up.
Additionally
Emerging Medical Solutions can work with corporate investment
groups to define processes that would lead to consistent success
in identification, assessment and engagement in medical device
ventures. We can work on your behalf, as your advisor, internal
educator/coach, or negotiator/closer.