EMDT_European Medical Device Technology

European Medical Device Technology, Spring 2015

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emdt.co.uk European Medical Device Technology Spring 2015 | 11 that may enable future opportunities for BD. In partnership with investors and infrastructure providers, we recruit, evaluate and select start-ups based on the uniqueness of their technology and capa- bility of their team," Al Lauritano, direc- tor, strategic technology partnerships for BD Technologies, told EMDT. "In return, BD provides these start-ups with business mentors and subject matter experts to better understand market needs, customer requirements and regulatory, clinical and reimbursement hurdles. We do not charge for these support services, but do it to help them be successful to raise further capital. It's also important to note that we are typically not taking equity stakes in these companies (at this stage) nor are we coinventing." Those activities are strategically rather than financially motivated. The compa- nies use the experience to study the impli- cations of new technologies, the reactions of customers and potential business models. The start-ups that participate in BD's accelerator programs are typically preseed or seed stage. "We are not considering acquisition at this stage. We are more likely to establish a research collaboration, license agree- ment or incubation relationship with accelerator graduates," Lauritano said. "Presently, we are looking to accelerate start-ups that are combining medtech and high tech to make medical devices smarter. We are also looking at Big Data opportunities that will help improve clinical decision making and healthcare outcomes." For Mirjam Göhrlich, director of business development at GE Europe, the major areas of interest are healthcare IT and the Internet of Things. Another trend, she said, is the growing importance of value-driven innovation that takes costs out of the system. According to Göhrlich, GE also seeks to engage in partnerships with interesting start-ups with its own venture capital department that supports start-ups. While the main objective of these activities is usually to gather information about new technologies and capabili- ties, these partnerships can eventually lead to the acquisition of the start-up. For Göhrlich, the sweet spot for acquisi- tions are deals in the area of $ 200 to $300 million. Lauritano said that com- panies that are worthwhile acquisition targets usually are already in the market and have an existing revenue stream; however, even companies at an ealier stage can be interesting if the technology shows enough potential. For example, BD acquired the relatively small GenCell Biosystems recently as it enables the com- pany to enter into the next-generation sequencing market. -T.K.

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