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As 2006 draws to a close, medical device manufacturers and other industry stakeholders are preparing themselves to harness the opportunities and tackle the challenges of a new year. In this issue, MX takes a first look at some of the key topics confronting medtech companies next year and beyond. In "Medtech Market Challenges", five panelists explore a variety of concerns facing individual medical device sectors and the industry as a whole. In "Medtech's Reimbursement Outlook for 2007", industry experts give their take on key reimbursement issues and their likely developments over the coming year. MX will continue its planning preview for 2007 in its January/February issue, in which industry veterans will weigh in on hot-button regulatory affairs and corporate governance issues.



In "Funding Medtech Ventures", Guy Paul Nohra analyzes the state of venture capital investment in the medical device industry. Using data from PricewaterhouseCoopers–National Venture Capital Association MoneyTree Report, Nohra identifies the strongest U.S. regions in medical technology venture investment and provides insights into the key elements that position areas for success. His article represents one piece of a new MX series, "Regional Development Opportunities," which begins in this issue and will continue in future installments. Nohra is cofounder and managing director of life sciences venture capital firm Alta Partners (San Francisco). He can be reached at 415/362-4022 or via e-mail at [email protected].

Business Planning & Technology Development


In the nation's largest centers of medical device innovation, medtech companies generate significant value for employees and shareholders alike. To understand where corporate value is being created, Andrew Kinross analyzed the market capitalization and employment of dozens of publicly traded medical device companies. In "Top Medical Device Clusters", another component of MX's "Regional Development Opportunities" series, Kinross highlights the U.S. regions where the most medtech market value is being generated. Kinross is a managing consultant with Navigant Consulting (Burlington, MA). He can be reached at 781/270-8486 or via e-mail at [email protected].

Governmental & Legal Affairs


Although the site selection process has evolved to include factors such as traffic density, tax rates, and projected population growth, many of the forces that drive innovation--intellectual property (IP), patents, and research--have historically not been a significant part of the site selection algorithm. In order for a medical device company to best align its need for continued market-leading innovation with its need for an appropriate location, fact-based analytics regarding high-quality patenting within geographies is a key component. Continuing MX's "Regional Development Opportunities" series, Scott Kratzer and Jorge Diaz examine how IP analytics can enhance site selection for medtech companies in "Location, Location, Innovation". Kratzer is vice president of advisory services for intellectual property research and advisory services firm ipIQ (Chicago), and Diaz is an analyst in the firm's advisory services division. Kratzer can be reached at 949/369-0214 or via e-mail at [email protected]. Diaz can be reached at 856/671-6846 or via e-mail at [email protected].

Advertising, Distribution, & Sales


Medtech manufacturers walk a fine line between the aggressive marketing necessary to successfully launch a product in today's competitive environment and avoiding violations of the federal antikickback statute. In "Marketing within Boundaries", Katherine M. Layman provides guidance on how manufacturers can steer clear of suspect marketing practices and their potentially expensive consequences. Layman is a member of Cozen O'Connor (Philadelphia). She practices in the health law department, where she handles a variety of litigation, regulatory, and transactional matters. Layman can be reached at 215/665-2746 or via e-mail at [email protected].

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