Characterising Early-Stage Medical Device Commercialisation in New Zealand: Insights for Investors, Industry and Government

Abstract

The use of medical devices to prevent and mitigate disease is a rapidly growing industry supported by longevity and rapid evolvements in technology. However, the current commercial environment for earlystage NZ medical device companies is less well understood. To build a prosperous healthcare economy the roles of NZ investors, government and industry partners are important. Although this is an emerging industry where NZ companies and industry organisations are exploring change in healthcare systems worldwide. The country as a whole is motivated to see how the industry in NZ can be developed. Early-stage medical device have variable time frames and costs associated to the degree of product sophistication (i.e. Class I, Class II and Class III). Such processes include prototyping, patenting, preclinical trials, clinical trials and reimbursement. This study seeks to understand the commercial strategies of current early-stage NZ medical device companies whether there are ways of increasing growth through relationships with investors, the government and industry partners. To conduct this research, a qualitative approach was adopted. This involved interviews of 23 founders and CEOs of early-stage medical device companies across NZ. The main findings of this research indicate that companies show a tenacity to survive and an urgency to secure funding. The interviews of company experiences and comparisons to relevant situations around the global device industry suggests possible recommendations to overcome gaps regarding industry connections to expertise, commercial learning environments, funding stability, understanding overseas exits and overcoming reimbursement hurdles. Furthermore the understanding of the variability across the vast medical device industry is crucial to gaining realistic expectations of technical development needs and returns. The findings of this paper aim to strengthen the working relationships between the technical and commercial sides of an early-stage medical device business. Overall, NZ continues to be an innovative country. In the future the points that matter the most to people should succeed.