THE MEDICAL DEVICE INDUSTRY IN MASSACHUSETTS ACCIÓ Delegation Briefing

March 21, 2012 – Ames Hotel – Boston, Mass.

In the beginning….

1995 – State Task Force on Competiveness

Study on the economic impact of the medtech industry in Mass.

Industry Executives Form MassMEDIC

Prof. Porter’s Cluster Theory

“Building on Strength”

“Creating a Meeting Place”

Common Issues & Challenges FDA – CMS Financing Commitment to Innovation Product Development Manufacturing Questions Workers Partners

MassMEDIC Launched – May, 1996

“To create a positive environment and united voice for the Massachusetts medical device industry.

To implement collaborative initiatives which make Massachusetts the medical device research, development and manufacturing capital of the world.”

Massachusetts & Medical Devices – We’re Number 2!

> 250 OEMs > 1,000 FDA-registered facilities 80,000 jobs – direct & indirect >$13 B in annual sales # 2 in VC investment Top Tier in Value-Added Production #1 medical device patents (per capita) Exports - #1 commodity exported from

Mass. -- 10% of all US medtech exports

Why Massachusetts?

Wide Range of Medical Products

Massachusetts’ MedTech Leaders

A Vibrant Start-up Community Spin-outs from

Companies/Universities/Teaching Hospitals Support System Technology Licensing Offices Entrepreneurial Culture

Range of specialties Weak early-stage financing environment Acquisition Target – Company Develops

MassMEDIC Today

> 350 Members 1-2 Meetings per

Month Largest state medical

technology association in the U.S.

Buy-in of all major players in the medtech cluster – OEMs – Suppliers – Teaching Hospitals – Universities – Investors

MassMEDIC’s Three Objectives Access

Advocacy

Emerging Company Support

Access to….

Information Meetings/Seminars/Reports

Suppliers On-line Suppliers Director

Industry Leaders MedTech Leaders Forum

Policy Makers Capitol Hill Fly-In/FDA Update/State House Visits

Each Other Networking!

International Partnerships

Global Industry – MassMEDIC Priority

MEDICA Trade Shows –

Europe – Asia MOUs Conferences NIMAC

Advocacy

FDA Reform CMS –

Reimbursement Issues

Capitol Hill Fly-In Congressional

Delegation Briefing

Federal Affairs Working Group

Top Priorities

Advocacy

Business Climate Issues

Tax Credit for Medical Device Companies

Gift Ban Law Payment Reform

State Affairs Working Group

Top Priorities

Worker Training

Needs Assessment Regulatory Knowledge FDA 101 WPI Northeastern University/Regis College EN 14285 Training

Emerging Company Support

Continue Cluster Growth Financing – Corporate

Governance – Regulatory – Compensation – Hiring – Real Estate – Partnerships

Investors Conference Recognition of Innovation MedTech IGNITE

Emerging Company Support

Early Stage Community

Large & Growing No support system for Medtech Start-ups Financing Venture Capital Fund? “Harness the expertise of the

established medical device community to support early stage companies”

How to Support Early-Stage Companies ?

Executive-in-Residence

Help all medtech start-up companies

No Filter Unsustainable –

Failed

Connect – Springboard Initiative UCSD @ San Diego

Select Companies Coaching Prepared for

Investors

EDRC MedTech IGNITE

MedTech IGNITE Today

Exposure to Potential Investors

Information on regulatory & reimbursement challenges

Referrals to Experts

Investor Ready Companies

Support Services

Results

“Touched” over 65 companies in three years

Provided coaching for 12 companies Facilitated investor interaction Web Resources Supported team-building Brought IGNITE to the four corners of the

state Initiating Physician/Entrepreneur

Partnerships

Investors Conference

25 early stage companies

10-minute presentations

VC/Angel Investors

Introduction to the Community

Financings!

Challenges Ahead

MedTech Industry Under Assault

Provide the best information to our members

Financing for Early Stage Companies

Public Policies that Encourage Growth

Moltes Gràcies

Thomas J. SommerPresident Massachusetts Medical Device Industry

Council (MassMEDIC)715 Albany Street, TW1Boston, MA 02118 USA +1 617 414 1340 sommer@massmedic.comwww.massmedic.com