TJ Hughes, HPSU Industrial & Life Sciences Enterprise Ireland IDEAGEN Presentation

1. Ideagen
TJ Hughes
HPSU
18th September 2012
Medical Technologies Sector

2. Enterprise Ireland works with…
….Internationally Trading
A
Large
nd
ID
Companies Businesses throughout
a
(Exporting)
the economy
el
Ir
e Exporting SME’s
is
(HPSU’s)
prr
te
En
s
B
CE
Micro Enterprises
Domestic Market Businesses
Large SME’s Micro
Companies Businesses

3. Who we work with…
High Potential Established Multinationals
Start-up’s SME’s
Entrepreneurs Manufacturing &
starting companies Internationally Irish-based
with an ability to Traded services food and natural
compete in world resource companies that are
companies
markets employing overseas owned or
ten or more controlled
Potential Research
Scaling
Exporters Community
Ambitious co’s Established SME’s Developing links with Irish
with the ability to currently focussed on enterprise, MNCs to support
scale & achieve the domestic market research collaboration,
significant who have the ambition commercialisation of publicly
success to export funded research, and access
to FP7, ESA

4. Highlights 2011…

5. It’s about Jobs and Economic Impact
IRISH OWNED COMPANIES FOREIGN OWNED COMPANIES
EMPLOYMENT = 145,983 EMPLOYMENT = 138,488
SPEND IN ECONOMY = €17.0bn SPEND IN ECONOMY = €17.9bn
IRISH
GOODS
€2.2bn
PAYROLL
PAYROLL
€5.4bn IRISH
€7.6bn
GOODS
€7.7bn
IRISH
SERVICES
IRISH €8.2bn
SERVICES
€3.9bn
Source: 2010 ABSEI, 2011 Forfás Employment Survey
100,000 Jobs by 2016

6. Indigenous Life Sciences
• 250 Clients – 50% Medical
Technologies
• 20 new start-ups per year / MBO’s
• Medical sub-supply, finished devices
(e.g., cardio-, peripheral, orthopaedics,
NOTES), diagnostics, specialist
services, connected health
• €1bn+ Sales, Exports €760m,
Employment of 6,000 people
• 9% export growth in 2011 & 8%
employment growth

7. Top 15 EU employment centres for
Region
medical devices
Medical Devices European Share
Employment
Veneto, IT 21,269 4.32%
Ireland, IE 20,360 4.13%
Freiburg, DE 15,526 3.15%
Lombardia, IT 15,005 3.05%
Île de France, FR 11,158 2.27%
Niedersachsen, DE 10,289 2.09%
Emilia-Romagna, IT 9,860 2.00%
Rhône-Alpes, FR 9,252 1.88% Figures for
Karlsruhe, DE 8,565 1.74% 2007
Oberbayern, DE 8,061 1.64%
Danmark, DK 7,948 1.61%
Tübingen, DE 7,740 1.57%
Stuttgart, DE 7,614 1.55%
Espace Mittelland, CH 7,155 1.45%
Berlin, DE 7,133 1.45%

8. Evolution of Medical Technologies
1980’s 1990’s 2020
• Silk & catgut suture • Dynamic monitoring 2
• E-Everything
• Latex gloves • Titanium prosthetics •
0
Integrated Connected Health
• Heavy Medical Equipment (beds) • Pulse oximetry Networks
• Mechanical Respirators • Dissolving sutures 0
• Hospital to Home
• Anaesthetic machines • Non latex gloves •
0 Regenerative Scaffolds & Stem
• Cells
Molecular diagnostics
s
• New Materials
• D
• BioDevices
ru
• Next generation
g
• Bespoke Biomedical Solutions
el
•
ut Virtual Robotic Surgery
in
g
st
e
nt
s
Design, Development, Prototyping, Commercialisation, Manufacturing,
• Supply
H Chain, Services
y
br
id
pr
Servicisation of Drug & Device Industry!!! o
st
Prevention/Wellness/Compliance h
Healthcare Intelligence – Data Management / Data Analytics et
ic
s
• M
in
i
m
al
ly

9. Medical technologies where to start
Aesthetics/Dermatology (108 emerging companies)
• Biomaterials (298 emerging companies)
• Biotechnology/Cell Therapy (304 emerging companies)
• Cardiovascular (416 emerging companies)
• Dental (52 emerging companies)
• Diagnostics (367 emerging companies)
• Drug Delivery (179 emerging companies)
• Endocrine (160 emerging companies)
• Gastroenterology (139 emerging companies)
• Gynecology/Women's Health (142 emerging companies)
• Imaging (203 emerging companies)
• Neurology (254 emerging companies)
• Oncology (283 emerging companies)
• Ophthalmology (117 emerging companies)
• Orthopedics (302 emerging companies)
• Pain Management (83 emerging companies)
• Patient Management/Monitoring (278 emerging companies)
• Respiratory (139 emerging companies)
• Spine (234 emerging companies)
• Surgery (241 emerging companies)
• Urology (158 emerging companies)
• Vascular (240 emerging companies)
• Wound Management (111 emerging companies)
Source Life Science Intelligence

10. Global market dominated by USA, Western Europe and Japan
but Emerging markets growing fast china, India, Brazil, Mexico
•Drivers • Restraints
•Patient Demographics •Regulatory
•Care models focussed on •Complex Purchasing systems
wellness and prevention •Reimbursement cuts and cost
•Tele-health or connected containment
health
• Challenges • Opportunity
•Escalating costs •New innovations that give better
clinical outcomes and improved
•End to end disease quality of life
management is inefficient
•Regulatory •Efficiency improvements
•Investment

11. Pharma & Medtech models globally are
under strain, therefore Ireland INC also has
a problem
11

12. Some hot areas
• Transcather valves
• Interventional treatment of Hypertension
• Pulmonary Interventional tools
• Regenerative medicine/organ replacement
• Neuromodulation
• Home dialysis
• Robotics
• Bioabsorable stents
• Bionics
• Non invasive body sculpting
Source Frost and Sullivan

13. EI has significant funds
Client company approvals 2011 =
€110m+
Similar level of support in 2012
Approx 1/3 of funding towards Start-ups = €35m
Support for Third Level is Separate
13

14. Projects we invest in
Eligible
Manufacture or internationally tradable service
Management control in Ireland
High Potential
Usually based on technological innovation
Export oriented
10 employees within 3/4 yrs, Sales > €1m [but life-
science is different!]

15. HPSU Investment
Due Diligence - the Business Plan
• Market Risks
• Execution Risks
• Financial Risks
Level of EI funding depends on exports, jobs &
cash need
EI Investment is in equity [CCRPs]
Minimum of matching external funding
Average initial investment €250k

16. Funding
Pre-Seed
Seed Funds
€124 million
VC Funds
€520 million

17. Development Process
BC
A
B
A
C
A
BC
B
A
C
Stakeholder Engagement Vital
ABC & patients, regulatory bodies, Ethics Committees

18. Thank you