Finding Your First (or Next) Medical Device Position

It’s March, so if you’re graduating soon you should be well into your job search. When asked for advice, I always give the same response to job seekers. Few of them take my advice, but it hasn’t stopped me from trying. This post isn’t intended to be a comprehensive guide to finding a job, and it really isn’t that specific to medical devices. It’s just one person’s view.

I am surprised that so many candidates expect to get in the door of a company by flinging a resume at an HR department. As a hiring manager I dread poring through piles of resumes, the vast majority of which aren’t even close.

Getting someone to hire you is like getting someone to buy a product. An employee is a big investment, and employment decisions are not taken lightly. As a job seeker, you are the both the product and the sales rep. The hiring company is the prospective buyer. In sales, you identify suspects, qualify them into prospects, then sell the prospects on the unique value of your product. Imagine a sales rep trying to close a sale by flinging a brochure at the purchasing department. How is that different from flinging a resume at HR?

I advise job seekers to think like a sales rep. Here are some specifics.

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Customer-Facing Metrics for Customer Service Operations

3010 Canton, Dallas TX, Ace Equipment Repair sign
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I can’t say enough good things about Candela‘s service team. To a person they are skilled, dedicated, hard-working, customer-focused, and great to work with. The customers love them, so the team plays a key role in Candela’s continued market leadership.

When I rejoined Candela in 2007, Candela’s service team was understaffed and overworked, the result of a corporate hiring freeze, higher-than-expected service demand, and some turnover. While we were working extremely hard to support Candela’s customers, we were behind in preventative maintenance visits and sometimes late finishing product repairs. To me, it was obvious we needed two changes: more service staff and product reliability improvements. How could the rest of the company have missed this? How could we set up a system to make sure we meet our customer commitments in the future?

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Medical Device VC Funding: Slide Deck – Part 2 – Platforms

VisiCalc, the earliest generally agreed exampl...
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Platform technologies have a certain allure. Look at MicroCHIPS, poised to revolutionize glucose monitoring and drug delivery (starting with osteoporosis, diabetes and cardiology drugs). Look at Seventh Sense Biosystems, hard at work developing rapid, simple-to-use diagnostics that measure “several classes of analytes including small molecules, peptides, proteins, and nucleic acids.” Medical device geeks like me can’t help being impressed.

Broadly defined, platform technologies are families of IP that enable multiple distinct clinical applications for distinct patient populations. MicroCHIPS and Seventh Sense are great examples.

Because platforms address multiple market opportunities, the revenue potential of a company with a platform technology can be several times that of a single application company. Does that mean platform technologies are easier to fund?

Pitching platform technologies to VC’s can be challenging. First, cool new technologies need lots of explanation. Second, presenting multiple market opportunities takes lots of time. One of my most popular posts has been “Medical Device VC Funding: Slide Deck – Part 1,” which covers a company developing a single medical device product to address a single unmet need. How should companies with platform technologies present to VC’s?

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The Patient Graph

Social Graph
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We all know social networking as a major time-suck, real-time news source, and practical job-hunting tool. We also know that patients can often get better health information from the web than they can from their health care provider (e.g. WebMD.com). When ‘social networking’ meets ‘the search for health information’ we get online patient communities. Facebook, Twitter and GetSatisfaction are just the tip of the social iceberg. PatientsLikeMe and CureTogether are just two of the best known of dozens of web-based social networks for patients. The NY Times calls patient-centered social networks a “Lifeline for the Chronically Ill.” For medical device companies, patient-centered social networks bring new challenges and new opportunities.

As online communities have evolved from BBS’s and usenet groups, to forums and yahoo groups, to social networks and blogs, the quantity and quality of direct patient-to-patient interaction has dramatically increased. In March 2009, an article in Forbes called these new patient-centric social networks a disruptive innovation in patient care (Disruptor of the Month: Creating A New Kind Of Health Care Community by Renee Hopkins Callahan). If you’re developing a novel device or a novel procedure, there’s a chance you are already the subject of an online patient conversation. The more patient-facing your product (either used-by or implanted-in a patient), the more likely patients will share their experiences with each other online.

Any day now, the FDA is expected to issue some of its long-awaited guidance on its approach to the regulation of social media and the internet. Social media, though, does not move on the FDA timeline. While this blog post may need an update when that guidance comes out, medical device companies are already way behind the social media curve.

What does online patient interaction mean for medical device companies? How can medical device companies interact successfully with patients online?

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Competition On Multiple Fronts

Juarez, fortification of adobes during battle ...
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Most trade disputes between medical device companies involve intellectual property (IP). While the conflict between LightLab and Volcano is relatively small compared to others in the medical device industry (e.g. check out last year’s $1.7B battle between Boston Scientific and J&J), the lessons to be learned are large.

Briefly, Volcano is developing a competing product to LightLab’s OCT system, and accelerated their program by purchasing LightLab’s laser supplier Axsun. The dispute involves allegations of patent infringement, unauthorized disclosure of confidential information, and contract performance issues.

At the end of January, both LightLab and Volcano issued press releases claiming victory in the most recent rulings. Eric Swanson, LightLab co-founder and editor of Optical Coherence Tomography News, just posted an entertaining summary of the recent court documents. Despite these rulings, the legal skirmishes will continue, and the only safe prediction is that the lawyers will be the winners.

What are the lessons learned?

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510(k) Action Items: FDA 25, Industry 0

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On 19 January 2011, the FDA unveiled its much-awaited proposal for changes to the 510(k) process.  Medical device industry representatives were generally pleased with the modest scope of the proposal. In a press release, AdvaMed president Stephen J. Ubl called the plan “clearly a good first step that will address some of the major problems with the program.” Mark Leahey, President and CEO of the Medical Device Manufacturers Association (MDMA) commended “FDA leadership and staff for working with various stakeholders in an open and constructive process to develop consensus proposals that improve patient access to safe and effective therapies.”  The NY Times quoted Medtronic CEO William A. Hawkins as stating “This is a more balanced approach that sends a positive signal to industry that the F.D.A. is engaged, listening and concerned.”

Patient safety advocates were underwhelmed. Public Citizen’s Sidney Wolfe stated “the FDA is not being forceful enough about improving the safety and effectiveness of new devices.” Dr. Rita Redberg (UCSF, Editor of Archives of Internal Medicine) told theHeart.org that she is “worried about the implanted high-risk devices that are getting cleared without any data. There are lots of examples of stents, inferior vena cava filters, heart valves, that are [cleared through 510(k) but] not low risk.”

But is the FDA’s modest proposal really a good outcome for the device industry?

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Venture Capitalist Bloggers

Sand Hill Road Sign
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You can’t be a credible social media venture capitalist if you’re not an active social media user.  Blogs and twitter are the social media of choice, and VC’s have created a lot of content worth reading.  On my blogroll I’ve included some of my favorites, but now you can find the comprehensive list of all VC blogs at the Venture Capital (VC) Blog Directory – 2011 Edition, put together by Larry Cheng of Volition Capital.  Thanks to Ty Danco for pointing it out.

Note that only a handful of life science VC’s have blogs.  Savvy tech VC’s have figured out that blogging and tweeting can help build their VC (and personal) brand, creating dealflow and entrepreneur interest.  Life science VC’s are once again behind the curve.  Let’s hope for a change in 2011.

Medical Device Entrepreneur Readings

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Over the weekend, a friend asked what one book I would recommend to guide a first-time entrepreneur. I replied that just one book was not sufficient. My friend suggested Michael Porter‘s Competitive Strategy, which I agreed was an excellent choice. I also told him I’d address the question more fully on my blog, so that’s today’s post.

The Launching Tech Ventures Reading List

Fortunately, local entrepreneur and investor Ty Danco recently pointed out an amazing reading list for first time entrepreneurs. Harvard B-School Professor Tom Eisenmann is developing an MBA class called Launching Tech Ventures, and he posted his well-curated course reading list on his blog Platforms and Networks. As Ty says, the list makes me wish I was back in school.   While you’re working through the list, don’t skip Eisenmann’s earlier compendium of the web’s best advice for entrepreneurs.  For tech start-ups, Eisenmann’s recommendations are unsurpassed.

For medical device entrepreneurs, Eisenmann’s list isn’t quite enough, so I’ve put together a few suggestions from my own experience. Leave me a comment telling me what I missed or if you disagree with my choices.

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Fresh Money: 2010 Q4

Gold Bars
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On his blog, Michael Greeley recently wrote “My guess is the VC industry will have raised between $10 to $12 billion in 2010 ($28 billion was raised in 2008). From 2008 through 2011 we will have witnessed the VC industry being cut in half.”  Ouch.

Less money raised means fewer deals will be done. In addition, longer times-to-exit force VC’s to reserve larger portions of their funds for each portfolio company.   For medical device startups, the fundraising environment is as rough as it has ever been.

All the more reason to raise money from VC’s that have relatively new funds. These new funds have longer time horizons, and don’t have to support past (aging) VC firm investments. How do you find these funds?

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