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.
