Medtech fundings, July 2013

Medtech fundings for July 2013, with a big $93 funding of Hansen Medical, have risen to over $600 million. Below are the top fundings for the month thus far:

  • Hansen Medical has secured $93 million in a private funding (intravascular robotics)
  • JenaValve Technology, Inc., has raised $62.5 million (transcatheter aortic valve)
  • uniQure Biopharma has raised $58 million in debt and equity (gene therapy)
  • GI Dynamics has raised $57.6 million (obesity treatment device)
  • ReVision Optics has raised $55 million (corneal inlays)
  • ReNeuron has raised £33.2 million or $50.99 million (stem cell therapies)
  • Tengion has raised $33.6 million (organ regenerative medicine)
  • CVRx, Inc., has raised $29.6 million (device for hypertension, heart failure)
  • BioDelivery Sciences International has raised $20 million in debt funding (drug delivery technologies)
  • Neuropace, Inc., has raised $18 million (implantable devices for epilepsy, other neuro)

For the complete list of fundings, see link.

Technologies at Medtech Startups Identified in June 2013

Below is the list of technologies at medtech startups identified in June 2013 and added to the Medtech Startups Database:

  • Implantable electrospun neurosurgical meshes and tools.
  • Undisclosed technology for the treatment of aneurysm.
  • Catheter-based, self-expandable device to restore vessel/duct patency in peripheral vascular, neurology, cardiology and women’s health applications.
  • Ultrasound guidance for interventional procedures.
  • Undisclosed medical technology development.
  • Technologies for hip replacement.
  • Angiography catheters, others.
  • Neural interface research products and technologies.
  • Hip and knee implants.
  • Surgically implanted, invisible hearing aid device.
  • Undisclosed medical technology relating to allografts.
  • Developing “generic” versions of medical technology.

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

Medtech Fundings, June 2013

Medtech financing for the month of June is coming in at a good clip, with the total for the month at $558 million. Below is illustrated the ranking of fundings by company for the month through June 25.

June 2013 Medtech Fundings To Date

Fundings-June-25-2013

Source: Compiled by MedMarket Diligence, LLC

The complete list of fundings in June 2013 is detailed at link.

For a historical list of fundings, see link.

Leading companies in the global wound management market

Wound management accompanies a broad range of products and technologies, encompassing (especially in our report #S249) dressings (traditional adhesive, traditional gauze, non-adherents, films, foams, hydrogels, hydrocolloids, alginates, antimicrobials), negative pressure wound therapy, bioengineered skin & skin substitutes, and wound care growth factors.

While there are a great number of companies active in these wound management areas, a handful of companies stand out as leaders in the market. These companies have multiple product offerings, have the deep pockets needed to spend on research and development (as well as new product launch and marketing), have the in-house knowledge to develop novel treatments and devices and have the marketing know-how, distribution and other market strengths needed to succeed.

There are a great many companies active in wound care area because the barriers to entry for relatively low-tech products such as gauze and adhesive bandages are low, and the reward can be high. This is also a highly competitive market, much of which takes place in product pricing as the large, diversified companies are often able to cut price because of the volume that they have already captured. Especially for low-tech products, some key companies hold significant shares of each market, but below this, a large number of companies are able to eke out modest shares. In advanced wound care, however, there are considerably fewer companies, since these products require a high level of scientific expertise, research and development in order to create and manufacture products such as negative pressure wound therapy, bioengineered skin & skin substitutes and growth factors.

Global-market-shares

 

Source: MedMarket Diligence, LLC; Report #S249.

 

Type 1 diabetes addressed by “silencing immune attacks” (Children’s Hospital, Boston)

Researchers at Children’s Hospital in Boston have reported in the online edition of Diabetes that they have identified the specific molecular pathway involved in triggering the autoimmune response at the root of type 1 diabetes. The research team studied “hundreds” of pathways in animals with diabetes and ultimately identified one, known as ATP/P2X7R, which triggers the immune system’s T-cell attacks on the pancreas that subsequently prevent the pancreas from producing insulin.

While this research is akin in some ways to many disease research discoveries that are dramatic but that have not led to cures or significant advances in treatment, the discovery of the root pathway in type 1 diabetes is significant for the fact that it opens up the possibility of, on the one hand, interrupting this pathway in order to the autoimmune destruction of patients’ insulin-producing islet cells and, on the other hand, interrupting this pathway to similarly prevent destruction of islet transplant cells. It may well be years before this leads to treatment options, which may include “drug therapies to transplants that require less immunosuppression” for patients with existing type 1 diabetes and options to even prevent type 1 from developing in children.

Wound management: An $18.5 billion+ worldwide market in 2021

The content of this post is drawn from the complete Report #S249, “Wound Management, Worldwide Market and Forecast to 2021: Established and Emerging Products, Technologies and Markets in the Americas, Europe, Asia/Pacific and Rest of World”. For separate coverage of wound closure-related products, see Report #S192, “Worldwide Surgical Sealants, Glues, and Wound Closure Markets, 2013-2018.”

The World Market for Wound Management Report encompasses twelve product segments:

  • Traditional Adhesive Dressings
  • Traditional Gauze Dressings
  • Non-Adherent Dressings
  • Film Dressings
  • Foam Dressings
  • Hydrogel Dressings
  • Hydrocolloid Dressings
  • Alginate Dressings
  • Antimicrobial Dressings
  • Negative Pressure Wound Therapy Devices
  • Bioengineered Skin and Skin Substitutes
  • Wound Care Growth Factors

The report examines North and South America, the European Union, Asia/Pacific and Rest of World, and looks at markets and growth rates by product and country for the years 2012-2021. The world market in 2021 for the total wound management market represented by the segments listed above is projected to be worth over $18.5 billion, with segments growing at widely variable rates, with lowest sales growth in traditional gauze bandages and the highest sales growth in biological growth factors.wound-pie-2013

Source: Report #S249.

There are some market restraints at work, primarily the high cost of the new technologies. Not all country healthcare budgets can afford advanced wound care products, even if they are proven to decrease healing times and hospital costs over the longer run. The development of substitute products threatens existing product categories, while a lack of sufficient clinical and economic evidence backing new technology hinders growth and acceptance of some of the more advanced wound management technologies.

In addition, improved wound prevention and a lack of regulation on tissue engineering in the EU are also expected to hold back the development of new technologies. In addition to market restraints, there are a number of drivers that are expected to shape this market in the years to come. One of the primary drivers is the aging of the global population. Chronic diseases, such as circulatory conditions, anemias and autoimmune diseases influence the healing process as a result of their influence on a number of bodily functions. Illnesses that cause the most significant problems include diabetes, chronic obstructive pulmonary disease (COPD), arteriosclerosis, peripheral vascular disease (PVD), heart disease, and any conditions leading to hypotension, hypovolemia, edema, and anemia. While chronic diseases are more frequent in the elderly, wound healing will be delayed in any patient with underlying illness. Happily, most wounds heal without any problems. However, chronic wounds may take months or years to fully close, or may never close. Chronic wounds adversely affect the individual’s quality of life, and are a leading cause of burgeoning healthcare costs. Type 2 diabetes represents 85-95% of all diabetes in developed countries, and accounts for an even higher percentage in developing countries. There were 26 million diabetic patients in the US in 2012 and 285 million patients globally.   Of these patients, approximately 15% will develop a diabetic foot ulcer and 50% of these will become infected, representing an estimated 2 million patients. Diabetic foot infections are currently treated with systemic antibiotics, but the estimated failure rate of antibiotics for diabetic foot ulcers is in excess of 22%. A patient with diabetes is at significant risk of damage to tissues caused by impaired homeostasis due to the disease process. For example there is a tendency for such tissues to develop blockages in smaller blood vessels, which reduces the ability of these vessels to provide sufficient oxygen to tissues already under stress due to compromised nutrient supply and the diabetic condition. These patients then develop arterial ulcers. They may also have a tendency to suffer from venous ulcers, due to the underlying poor condition of cells as a result of the diabetes. The diabetic foot is the most common cause of non-traumatic lower extremity amputations in the US and Europe: there is an average of 82,000 amputations per year in the U.S., costing an estimated $1.6 billion annually. The estimated cost of foot ulcer care in the U.S. ranges from $4,595 per ulcer episode to more than $28,000 and the total annual cost of foot ulcer care in the US has been estimated to be as high as $5 billion.

Pressure, or decubitus, ulcers are another of the most common types of chronic wounds. The treatment of pressure ulcers places a major burden on healthcare systems worldwide, with an emerging additional cost of litigation increasing in importance over recent years. Healthcare practitioners need to be aware of both the direct and indirect costs and consider how the implementation of prevention protocols may offer cost savings in the longer term. The cost of a dressing for example as a prevention tool is minimal in comparison to the costs of treating an established pressure ulcer. Following are a few hard numbers on the true financial cost of pressure ulceration:

  • The estimated cost to the US hospital sector is $11 billion per annum
  • The estimated cost to the UK national health service is estimated at £1.4-£2.1 billion annually (4% of total NHS expenditure)
  • Lawsuits remain common in both acute and long term care — with high payments in certain cases
  • The average cost to treat an individual with an unstageable ulcer or a deep tissue injury is estimated to be $43,180
  • The average length of stay in hospital is almost three times longer for chronic wounds
  • The mean hospital cost for management of pressure ulcers in the U.S. is $14,426. In comparison, the same cost in Korea is identified as $3,000-$7,000.

The cost of treating chronic wounds is one element driving the development and utilization of advanced wound care technologies. Other drivers are the aging of the population, and the obesity epidemic, which is expected to produce a wave of diabetics in the years to come.

Worldwide Wound Management Market, Segment Size & Growth, 2013-2021

wound-bubbles-2013-2021

Source: Report #S249.

In 2009, four companies (Johnson and Johnson, Kinetic Concepts Inc., Hill-Rom and Smith & Nephew) were responsible for about 60 percent of total market revenue. However, mergers, acquisitions and sales of intellectual property have rapidly changed the market share picture. By the end of 2012, more than half of the global wound care market was held by Johnson and Johnson, 3M, Smith & Nephew, and Systagenix. In addition, competition on price has driven down prices in the well established (i.e., traditional wound care) markets, while novel technologies are taking hold with introductory revenues and generating high, early stage growth rates.


[Publisher’s note: Subsequent to this post, MedMarket Diligence added to the analysis a range of additional, advanced products in wound management, leading to a larger aggregate market throughout the forecast period.] For the complete analysis of the worldwide wound management market, see “Wound Management, Worldwide Market and Forecast to 2021: Established and Emerging Products, Technologies and Markets in the Americas, Europe, Asia/Pacific and Rest of World” (Report #S249).

Medtech fundings for June 2013

Medical technology fundings for June 2013 reached a total of $558 million.

Below are the top fundings for the month.

  • Valeritas, Inc. has raised $100 million (insulin delivery device)
  • Mevion Medical Systems, Inc., has raised $55 million (proton therapy for cancer)
  • Spinal Modulation, Inc., has raised $45 million from St. Jude Medical (intraspinal neuromodulation for the management of pain)
  • Baxano Surgical, Inc., has raised $37.29 million (minimally invasive treatments of the lumbar spine)
  • Lombard Medical, Inc., has raised $32 million (aortic stent graft)
  • Vertos Medical, Inc., has raised $23 million (treatment for lumbar spinal stenosis)
  • Vital Therapies, inc., has raised $22.5 million (bioartificial liver)
  • Acutus Medical, Inc., has raised $20.6 million (cardiac arrhythmia mapping)

For the complete list of fundings, see link.