Mike Hess
Vice President, Innovation
Medtronic Inc
Medtronic Today
•
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
40,000 Medtronic Employees
120 countries
A History of Innovations
Foley
Catheter
•1930s
Total Hip
FDA
created
Dental
Artificial Implants
Kidney
•1940s
“Iron
Lung”
HeartLung
Bypass
•1950s
Intraocular
Lens
StarrEdwards
Valve
•1960s
Aortic
Endograft
PTCA
•1970s
External
Pacemaker
•1980s
ICD
Implantable
Pacemaker
Medicare
established
FDA
oversight
over
devices
•1990s
Total
Disc
DRGs
created
Palmaz
Stent
Deep Brain
Stimulation
•2000
Percutaneous
Valves
External Innovation - VC Investing
•
$300M / 50+ companies
–
Typically pfd. stock investment with Board seat
–
Investment size varies; on average ~ $5M investment
Selected Investments
•
Ardian
–
–
•
Weigao
–
–
•
Series B investment
Catheter-based hypertension treatment
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
Innovation Through Internal Ventures
FY10: ~$80M
DISEASE STATES
 Alzheimer’s
 Parkinson’s
 Movement Disorders
 Pain Management
 Hypertension
 Periodontal/OMF
 Infectious Diseases
Hepatitis-C Drug
Delivery
DISEASE STATES
 Heart Failure
 Hypertension
 Metabolic Diseases
Drug Delivery
DISEASE STATES
 Metabolic Disease
Hospital Glucose
Monitoring
Monitoring
Biologics for Periodontal
Disease
Internal Collaboration
Across Geography, Businesses and Functions
Scientist
Technician
Information
Research
Systems
Mfg.
Engineer
Engineer
Scientist
Program
Mgr.
IP Portfolio
Challenge
Owner
R&D
Engineer
Quality
Process
Eng.
Engineer
Global Idea Sourcing Through InnoCentive
•
•
Open Innovation - Accessing Expert Networks around the world
Actual Map of activity – recent Medtronic Challenges
Allocate Resources Toward New Growth
Leverage Existing Technology to
Enter New Markets
10-15%
New
10-15%
DBS - Depression
Hospital CGM
Grow Market Share in
Existing Markets
Existing
Markets / Patients
New Technology for
New Markets
Active Leadless Pressure Sensor
Expand Currently Served Markets with New
Technology
30-35%
40-45%
Protecta Next Gen ICD
Existing
Dental Biologics
Resolute DES
Transcatheter Valves
Technologies
Patch Pump
New
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 nonprofits 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 entrepreneurship 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, MD
Founder & CEO, ExploraMed, Inc.
Consulting Associate Professor of Medicine, Stanford University – Biodesign
Venture Partner, NEA
My background:
IDENTIFY
1. NEEDS FINDING
2. NEEDS SCREENING AND SPECIFICATION
1.2
Observation &
Problem
Identification
1.1 Strategic
Focus
INVENT
3. CONCEPT GENERATION
3.1
Brainstorming
1.3 Need
Statement
Development
2.1
Disease State
Fundamentals
2.3 Stakeholder
Analysis
2.5 Needs
Filtering
Need
Statement
2.2
Treatment
Options
2.4
Market
Analysis
Need
Specification
4. CONCEPT SELECTION
3.2
Concept
Screening
4.1
Intellectual
Property
4.3
Regulatory
Multiple
Concepts
4.2
Reimbursement
4.4
Business
Models
IMPLEMENT
5.3
Regulatory
Strategy
5.2
Reimbursement
Strategy
5.4
Stakeholder /
Political Strategy
5.5 Clinical &
Marketing
Strategy
4.6 Concept
Selection
Final
Concept
& Prototype
6. DEVELOPMENT PLAN
5. DEVELOPMENT STRATEGY
5.1
IP Strategy
4.5 Early Stage
Design &
Prototyping
5.6 Competitive
Advantage &
Value
Proposition
Competitive
Advantage
Statement
6.1 R&D /
Engineering
Plan
6.4
Operating Plan
& Milestones
6.7
Business Plan
Development
6.2
Clinical Trial
Design
6.5 Financial
Modeling &
Proxy Validation
Business
Plan
6.3
Sales &
Marketing Plan
6.6
Funding Sources

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
Fellow and student companies….
Biodesign Year
Clinical Status
Business Status
1
OUS, US
Acquired
2
OUS, US
Acquired
1
OUS, US
Acquired
1
OUS, US
Acquired
4
OUS
Series B
6
OUS, US
Series B
4
OUS
Series B
7
Pre-Trial
SBIR Ph. 1
7
OUS
Series A
7
OUS
Series A
ExploraMed is a medical device incubator
dedicated to significantly improving
patients quality of life through paradigm
shifting cost effective device solutions.
4/29/2010
21

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
22

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.
4/29/2010
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