DTC for Medical Devices

1
DTC for Medical Devices
Prepared for

• Introduction and Overview

CONFIDENTIAL Health Advances, LLC 9 Riverside
Road Weston, MA 02493 Tele 781 647
3435 www.healthadvances.com
May 26, 2005
2
Health Advances is a Specialized Strategy
Consulting Firm

• Focused exclusively on healthcare industry since
  founding in 1992
• Clients are primarily product companies including
  medical devices, diagnostics and therapeutics
• Work with VC-backed start-ups and investor groups
  to the largest public companies
• Guide management thinking on market positioning,
  pricing and reimbursement, business
  development/MA, and product development
• Rigorous quantitative analysis and in-depth
  qualitative research
• Complete 80 client projects each year across
  clinical areas and industry segments
• Maintain a full-time staff of approximately 35
  professionals
• Mix of life science, clinical and business
  backgrounds

3
Project Diversity Selected Examples of Device
Projects

• Reusable endoscopic instruments
• RF ablation
• Rotational Atherectomy Device
• Safety syringe
• Spinal Devices
• Structural biochemistry tools
• Surgical kits trays
• Surgical wound adhesion prevention
• Syringe pump
• Telemetry system
• Therapeutic Apheresis column
• Uterine artery embolization
• Urinary catheter
• Vein harvesting devices (for CABG)
• Viral inactivation of blood components
• Volumetric pump/medication error
• Wound closure devices

• Hematology analyzer
• Home hemodialysis
• Hemostasis device
• Implantable heart failure monitor
• Implantable neuro device
• Implantable pain pump
• Implantable port
• Implantable pump
• Incontintence resculpting
• Information software
• Intra-discal catheter
• Isolation room equipment
• Laboratory quality control system
• Lung sealant
• Microdebriders for endoscopic sinus surgery
• Needle protection catheters
• Non-ablative laser technology
• Novel medical adhesive
• Novel nebulizer

• Antimicrobial coating
• Aortic punch
• Bioartificial Kidney
• Bioresorbable orthopedic fixtures
• Blood donation equipment
• Blood salvage equipment
• Bone cement
• BPH hyperthermia
• Bulking agent
• Burn dressing
• Cardiac sutures
• Central catheter
• CHF acute therapy
• Computer based amblyopia treatment
• Consumer wound care
• Cosmetic surgery implant system
• CPR device
• Delipidation treatment
• Depth of anesthesia monitoring device

4
Pharma DTC Advertising is Earning High Returns

• DTC is now a given in the marketing mix for every
  new drug launch within its first 6 months.

• High doctor contact rates
• 23 of consumers call or visit their physicians
  as a result of seeing a DTC ad
• High specific request rates
• 47 specifically request the advertised brand
• Generate Scripts
• 58 of these discussions lead physicians to write
  a prescription or provide a sample

Source DTC in Perspective, August 20,
2004 Market Measures/Cozint 2003 DTC Monitor
5
DTC Spending on Many Drugs Generates High Payoffs

• Many drugs are ripe for DTC because of the
  following three characteristics.

Targetable Relevant Population
High Incremental Profitability
Each New Patient Generates Long Annuity
X
X

• High prevalence diseases

• Chronic indications

• Gross margins 90

6
Sophistication of DTC

• As the medical device industry experiments with
  DTC, its applications are becoming increasingly
  sophisticated.