MDDI_Medical Device & Diagnostic Industry

MDDI, June 2014

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32 | JUNE 2014 Agents of Change in Medtech NO. 9: MC10 No. 8: Interoperability Interoperability is an issue that pits patients and providers against medical device companies. On one hand, a lack of interoperability among medical devices costs the U.S. healthcare system more than $30 billion annually, according to PricewaterhouseCoopers. On the other, device makers have a vested interest in preserving their pro- prietary systems. But some companies are starting to see the benefits of interop- erability. The Continua Health Alliance, an industry organization dedicated to establishing a system of interoperable personal con- nected health solutions, now counts more than 200 technology and healthcare companies, including Covidien, GE Healthcare, and Philips, among its members. The alliance publishes design guidelines annually and works with standards organization such as IEEE to advance its cause. Even electronic health record (EHR) providers, which have an especially strong incentive to re- main siloed, are starting to see the light. At the Health Informa- tion Management Systems Soci- etyÕs annual conference in 2013, five EHR providers announced the creation of the Commonwell Health Alliance, a trade group that will create an infrastructure for interoperability across health IT organizations and adopt common standards and protocols to provide access to patient data. The alliance has been slow-growing (more than a year after its founding, its membership consists of just nine companies), and notably absent from its ranks is Epic, the largest EHR vendor in the United States, but itÕs a step in the right direction. With FDA planning the release of a draft guidance on medical de- vice interoperability sometime this year, itÕs likely that more compa- nies will start taking a closer look at how their systems can play nice with others. No. 7: RiverVest Venture Partners Passion or the desire to make a difference alone cannot bring about radical changes in the world of medtech. Money and the right guidance are equally crucial. ThatÕs where venture capitalist firmsÑ especially RiverVest Venture PartnersÑcome in. RiverVest, with offices in St. Louis and Cleveland, has stuck it out in the field of early-stage life science investing when others have fled, unwilling to invest in medtech companies that have high regulatory hurdles. The firmÕs model of scoping out opportunities, and then founding and incubating companies around interesting technologies has served it and the medtech world well. In 2012 and 2013, RiverVest saw four portfolio companies make exits, the highest of any venture firm that invests in medical devices, according to PrivCo, which provides financial intelligence on private companies. Here are some of the notable exits RiverVest has had in the medi- cal device realm in recent years: ■ In 2011, Lutonix Inc., which developed drug-coated angioplasty balloons, was sold to C.R. Bard for $225 million upfront and an additional $100 million when it achieves regulatory milestones. ■ In 2012, Cameron Health, which developed a novel subcutaneous ICD with no leads in the heart, sold to Boston Scientific for an up- front payment of $150 million, plus an additional potential $150 million payment upon FDA approval and up to $1.05 billion more if it achieved specific revenue-based milestones over a six-year period following FDA approval. ■ In 2013, IDEV Technologies, which developed a stent system to treat peripheral artery disease, was sold to Abbott Laboratories for $310 million net of cash and debt. Images courtesy of (top) MC10, ( bottom) MATTJEACOCK/MALERAPASO/iSTOCKPHOTO.COM Stretching the boundaries of imagination is the goal of any innova- tive company. And that seems to be the raison d'•tre for MC10. The Cambridge, MA, firm makes flexible, stretchable electronics that aim to transform historically rigid devices into something easily wearable and, in some cases, virtually invisible. MC10 is developing consumer, digital health, and medical device applications of its platform technology. In the medtech world, the company is attempting to give interven- tional catheters a high-tech makeover by fit- ting sensors at their tips. This helps the cath- eters measure everything from temperature to electrophysiological data. And when used in conjunction with radiofrequency elec- trodes, they can also ablate tissue. Further, MC10 is developing small skin patches that can monitor patients, store information, and deliver drugs as needed. This could have implica- tions for the treatment of ParkinsonÕs disease. The patch, only a few centime- ters wide and the thickness of two sheets of paper, is built in layers that contain a sensor, a drug layer in- fused in an adhesive layer, and a memory module. When attached to skin, the sensors can de- tect when they are stretched because of skin movement caused by muscle tension. The frequency of this stretching enables the sen- sors to detect whether it was a normal movement or was caused by a tremor. The patch can then record this data and, if necessary, release drugs to manage any tremors. It is a testament to MC10Õs capabilities that drug companies such as Novartis and device companies including Medtronic have invested in the company. Mc10's flexible skin patches can detect movement. MC10 has equipped interventional catheters with sensors. ES451733_MD1406_032.pgs 06.05.2014 03:19 UBM black yellow magenta cyan

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