mike hess vice president, innovation medtronic inc
TRANSCRIPT
Mike Hess
Vice President, Innovation
Medtronic Inc
Medtronic Today
40,000 Medtronic Employees
120 countries
• World headquarters Minneapolis
• European headquarters Lausanne
• Asia/Pacific headquarters Singapore
• $40-60 Billion market capitalization
• Revenue ~$15 Billion in 2009
• R&D $1.5 billion in 2009
A History of Innovations
•1930s •1940s •1950s •1960s •1970s •1980s •1990s •2000
Foley
Catheter
Starr-
Edwards
Valve
Palmaz
Stent
Deep Brain
Stimulation
External
Pacemaker
Implantable
Pacemaker
Intraocular
Lens Percutaneous
Valves
Dental
Implants
Total Hip
PTCA
Total
Disc
Aortic
Endograft
ICD
Heart-
Lung
Bypass
“Iron
Lung”
Artificial
Kidney
FDA
created
FDA
oversight
over
devices
DRGs
created
Medicare
established
External Innovation - VC Investing
Selected Investments
• Ardian– Series B investment
– Catheter-based hypertension treatment
• Weigao– Largest China-based medical device company
– $200M+ investment & joint venture in spine/ortho
• Inspire– MDT spin-out; Kleiner Perkins / USVP led Series A
– Provide IP license in exchange for equity interest
• $300M / 50+ companies
– Typically pfd. stock investment with Board seat
– Investment size varies; on average ~ $5M investment
Innovation Through Internal Ventures
Alzheimer’s
Parkinson’s
Movement Disorders
Pain Management
Hypertension
Periodontal/OMF
Infectious Diseases
DISEASE STATES
Heart Failure HypertensionMetabolic Diseases
DISEASE STATES
Metabolic Disease
DISEASE STATESDrug Delivery
FY10: ~$80M
MonitoringHepatitis-C Drug
Delivery
Biologics for Periodontal
Disease
Hospital Glucose
Monitoring
Quality Engineer
IP Portfolio
Systems
Engineer
Scientist
Mfg. Engineer
Information
Research
Scientist
Program
Mgr.
Technician
Challenge
Owner
R&D
Engineer
Internal Collaboration
Across Geography, Businesses and Functions
Process
Eng.
Global Idea Sourcing Through InnoCentive
• Open Innovation - Accessing Expert Networks around the world
• Actual Map of activity – recent Medtronic Challenges
Leverage Existing Technology to
Enter New Markets
New Technology for
New Markets
Grow Market Share in
Existing Markets
Expand Currently Served Markets with New
Technology
Existing NewTechnologies
Ex
isti
ng
Ne
w
Mark
ets
/ P
atients
10-15% 10-15%
40-45% 30-35%
DBS - Depression
Allocate Resources Toward New Growth
Hospital CGM Active Leadless Pressure Sensor Dental Biologics
Protecta Next Gen ICD Resolute DES Transcatheter Valves Patch Pump
Thank You
INNOVATION U: a new approach on campus
Mark Crowell
Vice President, Business Development
The Scripps Research Institute
La Jolla, CA, and Jupiter, FL
“Innovation Ecosystems for the Creative Economy”
April 25-27, 2010
Personal background
• 23 years tech transfer director – 22 in Research
Triangle Park
• Portfolio has evolved to include new ventures,
corporate research, seed capital, research parks,
entrepreneurship, economic development,
innovation management
• Key national/international roles and partnerships
(AUTM, BIO, National Academies, AAAS, others)
Innovation U: just what does it mean?
• Moving from culture of invention to culture of
innovation (from tech push to market pull)
• Addressing risk, adding value, creating impact –
translating good ideas into enterprise
• Connecting across silos, disciplines, campuses,
regions – and worldwide
• Incessantly revolutionizing from within
(Schumpeter)
• Solving the problems of the world!
Innovation U in action (case studies)
• Proof of Concept Fund (Scripps) – partner with corporate VC groups to create fund for spanning “gap”
• UNC Center for Integrative Chemical Biology and Drug Discovery – de-risking leads, advancing to clinic, positioning for market
• Partnering with venture philanthropy groups and non-profits to advance promising technology opportunities
• Reaching across campus to leverage resources available to support innovation – supporting creation of network of innovation intermediaries
• Seed capital fund - $$ from endowment
• Reaching across campus, including arts/humanities, social causes, to “make innovation / entrepreneurship part of weave and fabric of university” (James Moeser)
Innovation U: critical issues
• Develop stable sources of funding for innovation and translational initiatives – Proof of Concept Centers, seed funds, entrepreneurship education, and related programs essential
• Develop more scholarship around innovation and entre-preneurship to identify/disseminate best practices and useful metrics
• Align campus policies and state/federal laws/regs with innovation agenda
• “Instead of following the money, we need to lead the money to find more effective ways to invest in innovation” (Greg Simon, former President, Faster Cures)
Josh Makower, MDFounder & CEO, ExploraMed, Inc.Consulting Associate Professor of Medicine, Stanford University – BiodesignVenture Partner, NEA
My background:
1.1 Strategic Focus
1.2 Observation &
Problem Identification
1.3 Need Statement
Development
2.1 Disease State Fundamentals
2.2 Treatment
Options
2.3 Stakeholder Analysis
2.4 Market
Analysis
2.5 Needs Filtering
4.6 Concept Selection
1. NEEDS FINDING
5. DEVELOPMENT STRATEGY
5.1IP Strategy
5.3 Regulatory
Strategy
5.5 Clinical & Marketing Strategy
5.4Stakeholder /
Political Strategy
5.2Reimbursement
Strategy
6. DEVELOPMENT PLAN
6.2 Clinical Trial
Design
6.1 R&D /Engineering
Plan
6.4Operating Plan
& Milestones
6.6Funding Sources
6.7 Business Plan Development
6.3 Sales &
Marketing Plan
6.5 Financial Modeling &
Proxy Validation
2. NEEDS SCREENING AND SPECIFICATIONID
EN
TIF
YIN
VE
NT
IMP
LE
ME
NT
3.1Brainstorming
4.1 Intellectual
Property
4.5 Early Stage Design &
Prototyping
4.2 Reimbursement
4.3 Regulatory
4.4 Business Models
3.2 Concept
Screening
4. CONCEPT SELECTION
5.6 Competitive Advantage &
Value Proposition
Need Statement
Need Specification
MultipleConcepts
FinalConcept
& Prototype
Competitive AdvantageStatement
BusinessPlan
3. CONCEPT GENERATION
Full year fellowships in biodesign innovation
Stanford based (8 Fellows)
India (8 Fellows)
Singapore (4 Fellows)
2 quarter master class biodesign innovation
Approx. 80 graduate students (med/bus/eng)
d-school partnerships: extreme affordability Innovators Workbench Series Faculty, Industry & Community Ed Programs
Biodesign Year
OUS, US
Clinical Status Business Status
Acquired1
2
1
1
4
6
4
7
7
7
OUS, US
OUS, US
OUS, US
OUS
OUS, US
OUS
Pre-Trial
OUS
OUS
Acquired
Acquired
Acquired
Series B
Series B
Series B
SBIR Ph. 1
Series A
Series A
Fellow and student companies….
4/29/2010 21
ExploraMed is a medical device incubator dedicated to significantly improving patients quality of life through paradigm shifting cost effective device solutions.
4/29/2010 22
1995 ExploraMed I ($850K) 1996 EndoMatrix
1996 TransVascular, Inc.
2004 ExploraMed II ($4M) 2004 Acclarent, Inc.
2005 NeoTract, Inc.
2006 ExploraMed III ($7M) 2006 Vibrynt, Inc.
2007 Moximed Inc.
4/29/2010 23
1995 ExploraMed I ($850K) 1996 EndoMatrix ACQ. C.R. BARD $14MM 1997
1996 TransVascular, Inc. ACQ. MDT $90MM 2003
2004 ExploraMed II ($4M) 2004 Acclarent, Inc. ACQ. JNJ $785MM 2010
2005 NeoTract, Inc.
2006 ExploraMed III ($7M) 2006 Vibrynt, Inc.
2007 Moximed Inc.