Medtech fundings for December 2014

Fundings for medical technologies in December 2014 now stand at $710 million, led by the enormous $410 million funding of Neusoft Medical, part of an overall $610 million funding of China’s Neusoft. The “lesser” fundings for the month include the $59 million funding of INSIGHTEC, the $50 million funding of CardioKinetix (by Edwards Lifesciences), and the $34 million funding of Xeltis AG.

Below are the top fundings for the month:

Company, funding Product/technology
Neusoft has raised $610 million in funding, with $410 million to be applied to its Neusoft Medical company, according to Neusoft Imaging in CT, MRI, X-Ray, ultrasound and PET
INSIGHTEC has raised $59 million in a round of funding according to the company Magnetic resonance-guided focused ultrasound treatment in neurology, oncology, and gynecology
CardioKinetix, Inc., has raised $50 million in funding from Edwards Lifesciences according to the companies Catheter-delivered intraventricular implant for the treatment of congestive heart failure
Xeltis AG has raised $34 million in a Series B round of funding according to press reports Endogenous tissue growth stimulated by synthetic biodegradable implants
Coventus Orthopaedics, Inc., has raised $24 million in a round of funding according to press reports Self-expanding device for fracture fixation

For the complete list of medtech fundings in December 2014, see link. For a historical list of the fundings in medtech, by month, since 2009, see link.

New technologies at Medtech Startups, November 2014

Below is a list of the technologies under development at companies recently identified and included in the Medtech Startups Database.

  • Handheld ultrasound, MRI imaging device.
  • Needle-free injection drug delivery.
  • Lenses designed to correct imbalance between eyes and brain that cause certain migraines.
  • Continuous blood glucose monitoring in diabetes.
  • Customized prosthetic aortic valve.
  • Cystoscope-implanted, stent-like device to treat urinary obstruction associated with benign prostatic hypertrophy.
  • Endovascular treatment for abdominal aortic aneurysm.
  • Respiratory therapy device based on “high frequency chest wall oscillation” for treatment of COPD, other respiratory disorders.
  • Treatment of arrhythmia.
  • Medical device commercialization company active in cardiovascular care, tissue ablation, medical infusions, hand surgery and laparoscopic surgery.
  • Surgical visualization systems.
  • Arthroscopic bone tunneler and other orthopedic surgical instrumentation.
  • Brain stimulation to treat multiple disorders.

See link for a month-by-month listing of the technologies at companies in the Medtech Startups Database.

Advanced and basic wound closure markets in contrast globally

In a prior post, I noted the migration of advanced technologies from countries/regions with well developed medical technology markets (U.S., Europe, Japan) to countries/regions such as China, which have large economies but relatively undeveloped markets for these technologies.

To elaborate on that, one of the more advanced technologies in wound closure is for the devices used in vascular closure, represented in the majority of cases by those used for closure of femoral artery puncture following diagnostic and interventional catheterization procedures. By contrast, perhaps the most basic wound closure technology is surgical tapes.

Diagnostic and therapeutic catheterizations are advanced procedures designed to reveal and treat vascular pathologies, respectively, and require access to the vasculature through a femoral artery. Following the procedure, the prompt and effective closure of the femoral puncture is critical, given the size of the artery and the potential for its inadequate closure leading to rapid blood loss and death. The overall procedure comprises advanced technology in the catheterization and the closure that is therefore relatively common in advanced economies, such as the U.S., Europe and Japan, and relatively scarce or non-existent in markets, such as China.

By contrast, surgical tapes are the simplest form of wound closure with minimal technology. However, the caseload for use of surgical tapes is enormous, given the incidence of simple lacerations that can be addressed through surgical tapes. Given advanced alternatives to closure (sealants, glues, hemostats, etc.) in the U.S., Europe and Japan, surgical tapes have considerably lower demand than in China.

The contrast is illustrated in the two forecast graphs of global sales of surgical tapes and vascular closure devices.

Screen Shot 2014-11-24 at 8.36.49 AM

Source: Report #S192, “Worldwide Surgical Sealants, Glues, and Wound Closure Markets, 2013-2018″; MedMarket Diligence, LLC.

Screen Shot 2014-11-24 at 8.36.30 AM
Source: Report #S192; MedMarket Diligence, LLC.

 

Technology Migration in Global Wound Closure Markets

Drawn from our recent report on the global market for wound closure products, Report #S192, the distribution of the technologies on the market now, and in the future, for wound closure encompassing sutures & staples, tapes, hemostats, sealants & glues and vascular closure devices reveals the continued migration of advanced technologies (vascular closure, hemostats, glues & sealants) from western economies to the developing markets. Simultaneously, the more well established technologies (tapes, sutures & staples) are showing modest growth in western economies and robust growth in developing economies.

Below are illustrated the percentage of total worldwide market for each wound closure technology type by country/region.

Screen Shot 2014-11-10 at 10.29.31 AM

Source: MedMarket Diligence, LLC; Report #S192

Screen Shot 2014-11-10 at 10.29.41 AM

Source: MedMarket Diligence, LLC; Report #S192

Screen Shot 2014-11-10 at 10.30.22 AM

Source: MedMarket Diligence, LLC; Report #S192

Screen Shot 2014-11-10 at 10.30.58 AM

Source: MedMarket Diligence, LLC; Report #S192

Screen Shot 2014-11-10 at 10.31.08 AM

Source: MedMarket Diligence, LLC; Report #S192

Medical technology fundings in November 2014

Funding for medical technologies in November 2014 reached $591 million, led by the $126 million initial public offering of Nevro, the $100 million seed funding of Butterfly Network, and the $73 million funding of JenaValve Technology.

Below are the top fundings for the month:

Company, funding Product/technology
Nevro, Inc. has raised $126 million in an initial public offering according to press reports Neuromodulation device for spinal cord stimulation in the treatment of chronic pain
Butterfly Network has raised $100 million in seed funding according to the company Radical innovation for handheld ultrasound, MRI imaging
JenaValve Technology, Inc., has raised $73.37 million in a round of funding according to a regulatory filing Transcatheter aortic valve implantation
Quanta Fluid Solutions Ltd has raised £27 million ($43.2 million) in a round of funding according to the company Advanced hemodialysis systems

For the complete list of medtech fundings in November 2014, see link. For a historical list of the fundings in medtech, by month, since 2009, see link.

New technologies at medtech startups, October 2014

Below is a list of the technologies under development at medical technology startups recently identified and included in the Medtech Startups Database.

  • Prosthetic disc nucleus in spine surgery.
  • Device and non-device technologies based on dynamics of blood flow.
  • Magnetic and fluorescent technology point-of-care device to detect heart attack.
  • Technologies for tissue reconstruction.
  • Adult stem cell therapy in orthopedics, aesthetics, and chronic diseases (diabetes, COPD, heart disease, multiple sclerosis, stroke/cerebrovascular disease).
  • Vagus nerve stimulation for neuromodulation treatment of various inflammatory autoimmune diseases.
  • Surgical devices including for endoscopic access closure.
  • Device to measure sympathetic nerve activity and produce ECG.
  • Simultaneously track electrical measures that indicate brain, heart, optical and musculoskeletal activity.
  • Needle-free pediatric withdrawal of blood.
  • Ventilation systems for improved delivery of gas, moisture and nebulized medication.
  • Broadly focused medical technology company active in osteoarthritis, cardiovascular, stroke, diabetes, infection control and spine surgery.

For a historical listing of technologies at medtech startups, see link.

Country and regional forecasts for surgical sealants and glues, 2013-2018

The largest current and future market for surgical sealants and glues (at least through 2018) remains the U.S. by a fairly wide margin. Second to the U.S. is the aggregate of all Asia/Pacific countries (excluding Japan and Korea), followed by Japan (the second largest single country market for sealants & glues) and then Germany. Below is the 2013 to 2018 forecast of surgical sealants and glues, by country/region, sorted by current market size.
Screen Shot 2014-10-29 at 11.35.10 AM

Source: MedMarket Diligence, LLC; Report #S192

The U.S., Japan and Germany are well developed markets for medtech products like surgical sealants and glues; hence, their large current total sales. However, faster rates of adoption are taking place in markets that have accordingly not been penetrated to the same degree, and this becomes particularly significant for the very large current markets of the Asia/Pacific region (India and China in particular). Below is illustrated the compound annual growth rate (2013-2018) for sales of surgical sealants and glues by country/region, sorted in order of growth.

Screen Shot 2014-10-29 at 11.52.53 AM

Source: MedMarket Diligence, LLC; Report #S192