The Crucial Drivers That Large Medical Device Companies Want to See in Medtech Startups

Uncertainty. It’s the one constant in today’s healthcare environment. And of course, uncertainty causes a multitude of questions to arise.

How will the 2.3% medical device tax affect small medical device companies? How long will it take the FDA to issue a 510(k) approval? Are we really looking at $60 million for this PMA? What will the reimbursement picture look like? How much time and money will it cost to comply with the Sunshine Act?

Tons of questions, but few concrete answers. With all of these external forces squeezing the medtech industry, we can be certain of one thing. All medical device companies will be forced to step up their game. More diligence, additional scrutiny, etc. And this certainly applies to M&A activity. Large, strategic medical device companies will become even more selective in their pursuit of pre-revenue startups and technologies.

So if you’re an early-stage medical device startup, how you can best position your company and technology with prospective buyers and/or licensors? Enter Don Urbanowicz, Principal at Urbanowicz Consulting. In this interview, Don will help us discover what medical device buyers are looking for in early-stage medtech startups.

Interview Highlights with Don Urbanowicz

• What are the 3 “must-haves” that are typically at the top of a prospective buyer’s list of requirements?

• Is their room left for the traditional model of incremental product improvements (with minimal clinical data) at higher market prices?

• How important is strong medtech IP?

• How do prospective medtech buyers review deal opportunities?

• What are the 6 steps of a typical transaction process. And how long does this usually take?

• Will too much risk outweigh the value drivers when a potential acquisition has been identified?