Medquip, Inc., a medical device company, is working to develop, patent, market and sell medical devices for niche markets. The participation of prominent gastroenterologists, surgeons, and physicians has already resulted in three devices. Seven patents have been incorporated. The company estimates $16million in annual sales for year three. The company is expecting to earn $50 million by year five. A top patent law firm has already filed patent applications for the company’s first three market entries.
The market segments are well defined and are all subject to high growth trends. One market is projected exceed $160 Million in the next three to five years. This market is endoscopic variceal (ligation) Medquip’s founder participated in the development of the market leader in this field. He has made significant improvements to the product. Another market addresses a well-defined and unanswered need in endoscopic surgery: the clearing of fundal pools of blood and tissue during surgical procedures. To fulfill the surgeons’ requirements, a novel and innovative design was developed.
The market is expected to start at $20 million, but it could grow to hundreds of millions once approvals for various surgical procedures are granted. Medquip plans to license the technology to a larger firm. The company matures by year three. If a licensing agreement is reached, the company can become profitable in year 1.
Mission
Medquip, Inc.’s mission is to develop, market, and patent new technologies in the field of medical devices. These technologies will each fill a market segment that is worth at least $20 million in potential sales. Each technology will address a specific medical need by either improving on an existing device or technology, or creating a device that meets a clear need. The product should be priced so that it appeals to managed-care markets, which emphasize the lowest total treatment costs.
Keys to Success
Medquip, Inc. is a company that has succeeded because of the following:
- Initial capitalization obtained.
- All filed patent applications
- The ability generate early revenue from markets outside of Europe.
- Licensing at the least one technology, and application to a major corporation in the field of medical devices.
- Get low interest loans or grants to fully finance product development, prototype manufacturing.
- Recruiting top-notch leaders before second round financing.
- FDA approves Visi-Band for marketing in the U.S. with a successful 510k approval
- To achieve a minimum 10% market share in the U.S. managed healthcare market, and generate $16 million in revenue in the second year, successful implementation of a sales and marketing plan.
- Product development has been increased and market share has continued to grow, resulting in a company with a $50m revenue by five years.
Objectives
The principal objectives of Medquip, Inc. are as follows:
- To reach a 10% market penetration in endoscopic variceal (ligation) by the third year.
- To earn $16million in revenues by year three.
- To raise $1 million in private seed capital in the first six months.
- To receive grants and loans at low interest rates from the government of Puerto Rico in an amount totaling $1.2million for one year.
- To license its technology for the obliteration/suction/irrigation market for $1 million dollars in year one.
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