Originally Published MX May/June 2004
BUSINESS NEWS
Device Association Launched in Southeast |
| Haury |
The launch of a new trade association in the U.S. Southeast reflects the increasing presence of medical technology companies in the region.
The Southeastern Medical Device Association (SEMDA; Atlanta) will serve as a networking and educational community for the region, including North Carolina, South Carolina, Tennessee, Georgia, Alabama, and Florida.
The organization will expand its geographical presence as it evolves, says SEMDA president and cofounder Rick Haury, a partner in the healthcare and medical device group of Morris, Manning & Martin LLP (Atlanta).
"The goal is to help promote a forum for the free flow of ideas and information among the varying constituencies," says Haury. He cites physicians, inventors, entrepreneurs, venture capitalists, and scientists as the association's targets for membership.
The association's inaugural meeting took place March 31 in Atlanta with more than 100 attendees. Keynote speaker Cary Linsky, PhD, director of clinical research for Johnson & Johnson (New Brunswick, NJ), discussed the importance of patenting new technologies and inventions. He also outlined key issues surrounding clinical trials and funding.
Companies can in-crease their valuations by conducting diligent clinical trials, Linsky said, because the more work that's done up front, the more appealing companies may be to investors.
The presence of investors is what separates SEMDA from other medical device organizations, adds Haury. "In addition to educating physicians and inventors about pertinent issues, SEMDA also expects to help members network with investors who may provide sources of funding."
The organization will focus on the development of early-stage device companies. Initial areas of interest include fund raising, domestic and international regulatory issues, commercial and university licensing, commercialization of technology, intellectual property, and negotiating strategies.
Considering the significant amount of medical technology investment activity in Georgia during recent years, the Southeastern region is ripe for a medical device association, says Haury. At least 20 venture capital firms responded to the association's inaugural meeting announcement.
Georgia currently ranks ninth in the country in number of biotech companies, according to a 2003 report by Ernst & Young. The Metro Atlanta Bioscience Council reports that the biotechnology sector in the metropolitan Atlanta region has grown by 200% over the past 10 years. According to the council, there are more than 200 bioscience companies in the area.
Haury says that SEMDA is unique because it will provide a forum specifically for medical device companies amidst the region's biotechnology associations.
"Many people have been frustrated because their companies were often part of larger biotech initiatives, and they would get lost in that process," he says. "It seems that people have been looking for this type of organization and are happy to see that one is finally being formed."
Haury says that several entrepreneurial physicians have expressed interest in the association because of the networking opportunities it would provide. "For physicians, the learning curve to lead an idea for a device through all of the regulatory issues and into the marketplace is huge," says Haury. "They often have trouble finding the right partners to join forces with, or securing the necessary financing to see if their ideas are really worth pursuing."
A number of established device companies that may be looking for new products to develop or for possible acquisition targets have also expressed interest in the organization, says Haury.
"Our goal is to keep the association focused on industry representatives," says Haury. "If we can create a forum that links good ideas, financing, and people with experience, we will be successful."
The association's board of advisors currently includes Reg Haid, MD, an Atlanta-based surgeon, and Muta M. Issa, MD, chief of urology at Emory University School of Medicine (Atlanta). The board will increase in size following the inaugural meeting, says Haury.
The next meeting will take place in Atlanta on May 20.
For more information regarding SEMDA , contact Haury at 404/504-7713 or via e-mail at rhaury@mmmlaw.com.
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