Medtronic, struggling to hold onto its sizable share of the shrinking spinal market, made a bid for publicly traded Osteotech, a maker of a demineralized bone matrix agent that will broaden the company's regenerative product portfolio.
Despite the slumping economy, the diabetes market continues to be a very active area, with treatment-changing products recently launched or in late-stage development. Although no industry has been able to escape the effects of the US recession, and certain segments of the diabetes market have seen a decline in sales, other areas continue to move forward. Once the economy returns to healthier levels, the overall market is expected to see a renewal of growth. Meanwhile, an expanded emphasis on emerging international markets could help offset some of the sluggish numbers in the US and parts of Europe.
Glaucoma is of serious interest to VCs and strategic investors because of its sheer size; the disease affects 3 million people, most of them managed by drugs. Glaucoma drugs have created a $4 billion market, but have several problems, the greatest of which is non-compliance. Glaukos and other device companies aim to introduce devices that are safe and efficacious enough to compete directly with drugs, rather than standing in as an alternative to today's glaucoma surgeries reserved for end-stage patients. Glaukos recently marked a first of its kind victory; with a tiny implantable ophthalmic stent, Glaukos emerged from a PMA clinical trial that convinced an FDA panel of the benefit-to-risk ratio of its approach when used as a first-line therapy in a select group.
Cross-industry cooperation may be needed to develop more effective bone morphogenetic proteins to promote bone growth and fusion, according to a Medicare advisory panel.
FDA's device center will increase its focus on advertising and promotion enforcement efforts, as well as policy development, with recently expanded staff resources.
Brief summaries of recent medtech market and industry developments. This month we cover trial results for PFO closure devices, the launch of Edwards Lifesciences' transcatheter valve, Accumetrics' push for platelet testing, J&J's acquisition of Micrus, the slowdown in the hip and knee market, and the new federal rule on covering preventive screening.
A year and a half after the September 2008 collapse of Lehman Brothers and the official start of the economic recession, a panel of venture capitalists and other financiers in the medical device industry came together at the IN3 meeting in Boston. We asked them if they've had to change the way they look at deals. What is the trade-off between expensive, de-risked later stage deals and the kinds of returns that can be achieved by backing a winning company from start to finish? Where would they place their bets: cost-effective technologies for tried-and-true markets or novel products for unmet clinical needs, the "evolutionary vs. revolutionary" debate? And what can one do about tired syndicates? Our panel lets us in on the kinds of discussions they've been having around the table at weekly partners' meetings.
