Medquip, Inc., a medical device company, is working to develop, patent, market and sell medical devices for niche markets. Three devices have been created with the collaboration of gastroenterologists and top physicians. Seven patents are initially incorporated. The company plans to achieve $16million in sales by the end of year 3. The company is expecting to earn $50 million by year five. Patent applications for its first three market entries were already made using a leading patent law firm.
The market segments are clearly defined and all are subject to a high growth trend. In the next three-years, one market will surpass $160 million. That market is the endoscopic ligation market. Medquip’s founder was involved in the creation of the market leader in this area and has greatly improved 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. A new and innovative design has been created to answer the needs of surgeons.
This market could start at $20m, but could increase to several hundred millions once all the necessary approvals have been obtained for different surgical procedures. Medquip intends to license this technology to a larger company. The company matures by year three. The company may be profitable in year three if a license agreement can be signed.
Mission
Medquip, Inc. was established to develop, market, patent and promote new technologies in the medical device sector. The technologies will fill market niches that each account for a minimum of $20 million dollars 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. Each product must be priced in a way that appeals to a managed-care market, which stresses the lowest cost total treatment parameters.
Keys for Success
These are the keys to Medquip, Inc.’s success:
- Initial capitalization obtained.
- All patent applications were filed.
- The ability to generate early revenue from non-regulated markets in Europe.
- Licensing of at least one technology.
- Getting low interest loans and/or grants to fully fund product development and prototype manufacture.
- Recruiting top-notch CEO prior to second round financing and market roll-out.
- Successful 510k approval from FDA to market Visi-Band in the U.S.
- Effective implementation of a marketing and sales plan for U.S. managed health care market to attain a minimum 10% marketshare in the second year to generate $16million in revenue
- Increased product development and continued market share gains to produce a $50 million revenue company by year five.
Objectives
Medquip, Inc.’s principal objectives are:
- To have a 10% market share in the endoscopic variceal market by year three.
- To make $16million in revenue by year 3.
- To raise $1,000,000 in private capital within six months.
- To be eligible for low interest loans and grants totaling $1.2 million from the government in Puerto Rico during year 1.
- To license its technology for the obliteration/suction/irrigation market for $1 million dollars in year one.