The Interplay Between Nature & Medicine and a MedTech Outlook

A good commentary on medical technology, describing one source of inspiration (nature) and a perspective on the market outlook.
From the article, on financial opportunities:
“…the only limitations appear to be imagination and reimbursement…”
Despite the optimistic quote, the article is sensible. A good, quick read.

Via Advanced Medical Technologies.

 

NCSU Panel Discussion on MedTech

NC State University’s Office of Technology Transfer will be hosting a panel discussion on the future of entrepreneurship in the medical technology business. Panelists from various entrepreneurial backgrounds will be present for discussion. Registration is required, but the event is open the the public.

Wednesday, September 17, 2008

5:30 pm – 7:30 pm

McKimmon Center at NC State

More details can be found here.

 

NCIDEA grant program accepting applications

If you have formed (or will form) a North Carolina-based company, and you are looking for funding, NCIDEA has begun accepting applications. A preliminary application is due by September 12. Twenty semi-finalists will have until September 29 to finalize a full proposal for review. Grants in the amount of $50,000 will be awarded this December to at least 3 but up to 6 companies.

This is a good opportunity for entrepreneurs who have no previous funding and those who wish to avoid seeking venture capital.

 

Raleigh Networking/Tech Event

Saw this on a local calendar. Not sure of any other details. Should be helpful to those with little/no web presence. Personal branding is important for the entrepreneur.

What

Online Reputation Management Workshop

When

Aug 7 04:00 – 05:00

20080807T040000/20080807T050000

Where

map

Sigma Xi Center @ 3106 East NC Highway 54, Research Triangle Park, North Carolina

 

CED events

Some forums and speakers, as announced in a CED email:

Upcoming CED Programs

August 6, 2008 5:00 p.m. – 8:00 p.m. Register Today for Only $25	Medtech Forum: How To Achieve A Therapeutic Valuation For A Medtech Company MCNC Building # 1, RTP, NC 27709
August 12, 2008 12:00 p.m. – 1:30 p.m. (lunch provided) Register today!	Entrepreneurs Only Workshop™: Global Perspective: From The Southeast To The Far East’ CED Entrepreneurship Center, RTP, NC
August 26, 2008 12:00 p.m. – 1:30 p.m. (lunch provided) Register today!	Entrepreneurs Only Workshop™: Service Provider Vs. Service Partner CED Entrepreneurship Center, RTP, NC
February 16-17, 2009 Hold the Date!	Biotech 2009: Fusing Science, Technology & Industry Leadership Raleigh Convention Center, Raleigh, NC
April 22-23, 2009 Hold the Date!	Venture 2009: Where Great Minds Meet Smart Money Pinehurst Resort, Pinehurst, NC

 

CED layoffs

TBJ posted last week that CED laid off about 5 of its 19 employees. Chair Steve Wiehe remarked that the change was in response to a slowing economy and aims to optimize CED’s contributions and services to the community.

I speculated before that the new president Joan Siefert Rose might make some drastic changes, considering her background in managing non-profits. Officially, Rose is not yet employed at CED; perhaps the layoffs may be an internal decision that has been under consideration for some time?

A statement from Rose as posted by TBJ:

“My sense is we’re not looking at a significant change in direction with CED,” she says. “It’s focusing on the core areas where the organization can deliver the most value to the people that it serves.”

The current economic lull has definitely affected this business decision. It should come as no surprise that CED, a private non-profit group of business advisers to other Triangle business-men and -women would make some fiscal choices to increase ROI for its donors and members. After all, the organization does exist to serve the community.

On a possibly related note, WRAL posts that one CED executive left the organization for a management position at Frontier Capital.

As a counterpoint to discussing layoffs, Daily WTF posted an excellent summary of what the author terms “Employment 2.0″. This analysis of modern careers argues that the best philosophy an employer can have concerning employee retention is promoting the contrary: expecting employees to gain experience and then leave the company to further their careers. With this expectation, bosses can work toward win-win situations for both the company and the employee. It is a clever article and a great read.

 

NC small businesses enjoy a friendly climate

TBJ reports that the legal climate in NC is favorable to businesses, according to an annual study published in Directorship magazine.

Steven B. Hantler writes:

The state has maintained a fair and predictable liability climate that leads to growth and job creation. It ranks among the three best states for monetary tort losses, improving from 7th in 2006. However, North Carolina’s product liability losses rank 36th, which indicates heightened litigation activity and a rise in jury verdicts. Further, the state’s plaintiffs’ bar is very active in the state legislature: a bill defeated last year extending the statute of repose from 6 to 15 years would have made North Carolina one of three states with the longest period for filing claims. There is a rule-flaw majority on the state Supreme Court and the state business court serves as a model for the nation. North Carolina, however, is a state to be watched because of aggressive trial bar legislative efforts.

The present legal environment seems positive, if fickle. In the case of novel biomedical devices, I think that equal attention should be given to creating a solid legistlative foundation and to product development. That is, new technologies in areas such as tissue engineering, stem cell research, and genetic profiling should be introduced to markets only after preparing laws and regulations to preemptively limit inury and unethical activity resulting from the products’ introduction. The experts who develop these technologies should take some responsibility for the ultimate social and economic implications of their work. They are, after all, probably the most informed on the subject of their work. Whether in academia or industry, there is a need for concurrent technological and legislative development to prepare society for the introduction of potentially controversial medical technology.

The pharmaceutical industry is marked with many examples of litigation that may have been prevented. One example is the enormous lawsuit against Purdue Pharma for the unethical and unlawful marketing and litigations over their pain reliever OxyContin. In addition to monopoly, Purdue was accused of downplaying the fact that the drug was addictive. Clearly, opportinities abound that pit profits against the public’s best interest, and businesses can mandate product safety, availability, and pricing without transparency to any regulating body.

Fortunately, consumer advocate groups such as Community Catalyst are acting to protect (and inform!) the public. However as initiators of change, researchers, med tech businesses, and legislators share responsibility in preparing society for new technologies. It is not enough to bring a medical solution to fruition; one must acknowledge the responsibility of also creating a stable environment for the technology.

 

Startup advice

In San Jose Business Journal, Barbara Kosacz offers some professional advice for scientists interested in creating startup companies. Summary and commentary:

• No matter how solid your science or engineering argument for the product, more important is sound reasoning in the business of the product: Will it be financially successful?
• Sometimes it is better to promote the product without ever forming a business. I think this is a precious piece of advice — watch your return on investment soar when you sell an idea to an entity that can most efficiently handle bringing your product to market. Why fight a losing battle, investing untold hours and dollars acquiring the skills, training, funds, and influence to form a credible business and product when businesses like GE, Siemens, or BD would be elated to negotiate a price for your original idea? If they can carry the product to completion more effectively and more efficiently than you, then sell them your product! Everyone benefits. You become free to move on to other projects. Take advantage of the fact that as an individual entrepreneur you have agility and freedom that large medtech companies cannot achieve. A business like GSK has so much inertia, it could never make snap decisions and change its entire focus to another product at a moment’s notice. Herein lies an advantage for the small business owner.
• Outsourcing is common even in small companies. The result: employees become polarized into either senior staff or outsourced cheaper labor. This leaves no room for junior employees. This arrangement calls into question the business’ long-term security; once the senior employees retire or seek other jobs, who is able to take over the company? Perhaps this dilemma is best addressed with an exit strategy.
• A growing trend is turning to government funding and other grants for funding, as opposed to venture capital. Government support of science and research is not at its peak, but the hard-won dollars from grant money are often large sums of money. However, these grants have the stipend that the winner must produce a deliverable. One strategy, mentioned here, is to use grant money to postpone the pitch to venture capitalists, until more progress is made in development. According to Nanotechwire, the subtleties of venture investing in nanotechnology are too nuanced to be fully understood; still, the general trend is an upward climb despite nanotech’s unproven track record.

 

FastTrac registration ends tomorrow

Entrepreneurs interested in getting professional advice and critique for their potential or existing startup should consider registering for the Fast Trac Tech Venture program. According to an email communication from CED, registration and info for FastTrac can be found here:

Dates: June 17 – August 26, 2008 (Tuesday evenings)
Time: 5:30 to 8:00 p.m. with a hands-on personalized mentoring session from 8 to 9 p.m.
Location: CED Entrepreneurship Center, RTP, NC – Directions
Cost: CED Members $595; Non Members $695
Apply today: http://www.cednc.org/fasttrac

About CED’s FastTrac® TechVenture™: FastTrac Tech is an entrepreneurial training program of the Ewing Marion Kauffman Foundation in Kansas City that addresses the needs of start-up entrepreneurs practicing and refining their business pitches and seeking to grow high-tech or high-growth companies. Attendees receive one-on-one coaching from CEOs and business executives; hear presentations from successful entrepreneurs; and are provided an opportunity to present their business ideas in front of a panel of angel investors and venture capitalists.

 

NC IDEA Grant awards

Yesterday TBJ reported that NC IDEA (North Carolina Innovative Development for Economic Advancement) awarded six grants to technology-based startup applicants. Winners were:

iCustom, an Apex company offering an online marketplace for customized clothing;

Jute Networks, an Asheville company with software that helps individuals and small groups organize their business contacts;

MBright, a Durham company that makes products for digital displays;

Next Ray, a Chapel Hill company developing next-generation X-ray technology;

Physcient, a Durham surgical instrument company;

Valencell, a Raleigh company that makes a Bluetooth headset that measures a person’s vital signs.

–Triangle Business Journal

NC IDEA provides capital in the form of grants and venture investments to help NC startups reach milestones that are often unattainable unless outside capital is earned. The organization accepts applications twice yearly. Their website lists past recipients and a summary of their proposals; this information would be useful for preparing an application.

NC IDEA focuses on keeping businesses in North Carolina once they are established. It is yet another important entity important in providing funding and networking resources to tech startups in the Research Triangle.