Medical Device Link.

Welch Allyn Executive VP Meyer Sees an Upside for the Device Sector from Healthcare Reform

Getting Bang for Your IP Buck

Karen Gibbs

Especially given the economic downturn, medical device, diagnostic, and other biomedical companies cannot afford to ignore alternatives for extracting value from intellectual property (IP) assets. These alternatives go beyond the traditional invent-develop-manufacture-sell business model, and beyond traditional monetization models such as licensing and patent litigation. Furthermore, biomedical companies must optimize opportunities to profit from their IP holdings by developing and supporting progressive and effective IP portfolio management strategies. Companies should pursue these opportunities through traditional or nontraditional monetization models. Attorney Karen Gibbs explains how exploring new models can help medical device companies increase the value of their intellectual property. [MORE]

Gaining Competitive Advantage in a Downsized Economy

Walt Cecka

Innovative medical device companies will diligently search for advances to maintain the competitive and technological edge of their products and to enhance the benefits realized by doctors and patients. Under current market conditions, the challenge in maintaining this operational method has never been greater. With slow sales, investors are insisting on cash preservation, investment markets are at a crawl, debt financing is difficult to obtain, and terms of financial deals reflect significantly lowered corporate valuations. Between 2009 and z2012, corporate operating budgets are expected to grow only 7% per year, down from the double-digit annual growth seen over the past decade. A 30% decline is leading to downsizing, manufacturing cuts, deferred product-line extensions, or cancellation of new programs altogether. Outsourcing expert Walt Cecka examines how technology outsourcing can help cash-strapped companies keep their innovative edge and position them for the upturn. [MORE]

Medtech Sales Staffs Feel Economic Pressure

MD&M Midwest · September 22–24, 2009 · Donald E. Stephens Convention Center, Rosemont, IL

Attend the Midwest’s new event for medical design and manufacturing – MD&M Midwest. See, compare, and evaluate the complete range of product and service resources for designing and manufacturing your current and next-generation medical devices and equipment. For complete event details including expo hall highlights, a current list of exhibitors, information on the co-located MD&M Midwest conference program, and easy online registration for free expo hall admission, visit www.MDMmidwest.com.

Coherex Medical (Salt Lake City) has closed $16.5 million Series B preferred stock financing. After the close of this investment, Coherex has raised nearly $28 million in equity financing from outside funding sources since inception. vSpring Capital and Oxford Bioscience Partners were co-lead investors on this financing, and both venture capital firms participated in Coherex's prior Series A Preferred Stock financing. Also joining vSpring and Oxford in Coherex's Series B financing were Tullis Health Investors, a leading venture capital firm focused on the healthcare industry, and a strategic investor.

On July 1, Vermont enacted the country’s the strictest gift ban, banning most meals, fellowship support, and even donations to free clinics. The law also expands the existing pharmaceutical marketing disclosure law, adding medical device and biologics manufacturers (and wholesale distributors of medical devices) to the types of companies required to track and report certain payments and expenditures to the state on an annual basis. Compliance requirements are numerous and violations of the laws can carry significant financial penalties.

U.S. demand for disposable medical supplies will increase 4.6% annually to $59 billion in 2013. Hospitals will remain the largest market for disposable medical supplies based on the complexity of procedures performed and stringent infection prevention requirements. However, the home healthcare market will grow faster as consumers broaden preventive medicine and self-treatment activities to save out-of-pocket healthcare costs. Data come from the study “Disposable Medical Supplies” from The Freedonia Group Inc., a Cleveland-based industry research firm.

Bausch & Lomb Inc. (Rochester, NY) has won its case against Aspheric Lens Co. involving multifocal contact lenses. The U.S. District Court for the Northern District of Illinois, Eastern Division, entered an order dismissing with prejudice the patent infringement lawsuit brought by Aspheric. Aspheric had alleged that Bausch & Lomb’s SofLens Multi-Focal and PureVision Multi-Focal contact lenses infringe Aspheric’s U.S. Patent No. 4,909,621. The patent pertains to contact lenses with aspheric-shaped front surfaces, which allow for correction of the wearer’s vision at both near and far distances. The parties filed a stipulated notice of dismissal in July. The dismissal follows a January 2009 claim construction ruling that was favorable to Bausch & Lomb. After the January ruling, Aspheric moved for reconsideration, but its motion was denied.