June 20, 2024

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Strategies for Successful MedTech Startups: Insights from an Experienced Innovator

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Dr. Maria Putilina, a seasoned medical advisor and innovator, offers valuable insights into the transition from innovation consulting to startup entrepreneurship, shedding light on common pitfalls MedTech startups encounter and strategies to avoid them.

The MedTech industry, boasting a market size of approximately $600 billion annually, attracts significant investments. Deeply immersed in this sector, Maria plays a pivotal role in an American heart tech startup dedicated to enhancing the safety of complex cardiac procedures.

With degrees in Business, Science, and Medicine from renowned institutions such as New York University and St. George’s University, Dr. Putilina’s professional journey includes conducting research at Columbia University Medical Center and serving as a Resident Physician at Lenox Hill Hospital. Transitioning from medical practice to innovation consulting, she assisted leading healthcare market players in Europe and America in developing product strategies, launching innovative products, and shaping new business models.

Dr. Putilina shares her perspective on how her diverse background contributes to her role in an innovative startup. Additionally, she sheds light on the critical success factors of MedTech projects, common mistakes made by startups, and the differences between healthcare systems in Europe and the United States.

Transitioning to Startup Entrepreneurship: Dr. Maria Putilina’s Journey

Maria embarked on her journey into startup entrepreneurship, driven by a passion for medical technologies cultivated during her residency. She witnessed firsthand how innovative solutions could significantly improve patient care, sparking a deep interest in the field. This fascination only grew during her tenure in innovation consulting. However, despite her contributions, she found herself disconnected from the tangible results of her efforts. Proposals made to healthcare companies could languish for years without implementation, leaving her with a sense of incompleteness akin to stabilizing patients in an emergency room without follow-up. This ultimately led her to transition into the medical technology industry, where she could directly witness the impact of her work and contribute to advancing patient care through innovative solutions.

Roles and Responsibilities: Dr. Maria Putilina’s Contributions

Describing herself as a team player, Dr. Putilina is involved in various aspects of the startup, including branding and establishing the company’s corporate identity to ensure a strong market presence and brand recognition. She spearheads the organization of clinical trials, ensuring they are conducted efficiently and ethically, and liaises with regulatory bodies such as the FDA to ensure compliance with relevant regulations and standards.

In addition, Dr. Putilina plays a crucial role in investor presentations, crafting compelling narratives and pitch decks to secure funding and support for the startup’s growth and development. Her expertise in product strategy formulation ensures that the company’s offerings align with market needs and regulatory requirements, driving the successful development and commercialization of innovative medical technologies.

With her interdisciplinary background in medicine and business, Dr. Putilina effectively communicates with stakeholders across diverse domains, including healthcare professionals, business partners, investors, and regulatory agencies. This ability to bridge the gap between innovation and commercialization is instrumental in advancing the startup’s objectives and achieving success in the competitive MedTech industry.

Gaining Diverse Business Experience:

During her tenure at Board of Innovation, a boutique agency that rapidly expanded into a global company, Dr. Putilina acquired a broad spectrum of business acumen. Initially part of a small team, she witnessed the agency’s remarkable growth into a worldwide player within two years, serving major international clients.

Maria was entrusted with various responsibilities in her multifaceted role, including evaluating market opportunities, introducing innovative business frameworks, and formulating product strategies. She developed methodologies to explore and optimize disruptive technologies and played a pivotal role in analyzing market tests and datasets to provide strategic insights for data-driven decision-making.

Maria’s proactive involvement in the pitching process and internal training significantly sharpened her skills in effective communication and business development. The agency’s startup-like atmosphere fostered an environment of continuous evolution, allowing Maria to closely collaborate with the team and gain invaluable insights across various domains. This has empowered her to apply similar strategies in the startup she is currently building.

Addressing the Failure of Medical Innovations: Key Insights

Dr. Putilina offers valuable insights into the multiple factors contributing to the failure of medical innovations. She underscores a prevalent issue where companies prioritize solutions based on strategic significance or technological appeal, often at the expense of understanding the genuine needs of patients and healthcare institutions. This oversight becomes evident when startups overlook the crucial integration of their innovations into existing healthcare systems. For instance, developing a Generative Artificial Intelligence (GenAI) digital app for physicians may falter if it fails to integrate seamlessly into hospital record systems. Dr. Putilina, drawing from her experience as a physician, stresses the importance of such integration, as physicians have limited time to navigate separate applications.

Additionally, she highlights challenges such as prolonged research and development phases, rigorous testing and validation procedures, and the arduous journey of achieving market acceptance and adoption. Furthermore, the dominance of established enterprises in the MedTech sector, such as Siemens Healthineers, GE Healthcare, and others, poses significant hurdles for startups, given their superior brand recognition, sales and distribution networks, and established relationships with healthcare providers.

Critical Success Factors for MedTech Startups

In the dynamic landscape of MedTech startups, success hinges on a multitude of factors beyond exhaustive consumer research. Among these critical elements, user-friendliness emerges as paramount. Given physicians’ time constraints, they will make time to master cutting-edge technologies like the Da Vinci Surgical Robot. However, for less groundbreaking solutions, being user-friendly becomes indispensable for rapid adoption.

For digital solutions, robust data security plays a significant role. It is imperative to ensure compliance with ethical standards and privacy laws, safeguarding sensitive medical information. Furthermore, the uninterrupted availability of IT services enhances reliability and functionality while prioritizing user experience cultivates efficiency through an intuitive interface.

Moreover, seamless integration with existing information systems, including electronic medical records (EMR) or hospital information systems (HIS), is essential. This interoperability streamlines data exchange, optimizes workflows, and ultimately elevates patient care standards.

A standout example of a startup that has effectively addressed critical factors and achieved notable success is Tempus. Specializing in AI-enabled care pathway intelligence, the company has successfully linked over 50% of oncologists in the US via sequencing, clinical trial matching, and research-driven collaborations. Tempus provides a secure solution for clinical test ordering and result delivery to electronic health record (EHR) or EMR systems, boasting over 500 direct data connections across 2000 healthcare institutions that utilize their offerings.

Another instance is HeartFlow, renowned for its personalized cardiac testing, which offers visualization of each patient’s coronary arteries and enables physicians to craft more tailored treatment strategies. HeartFlow has developed HeartFlow ONE, a non-invasive and fully integrated solution spanning the entire coronary computed tomography angiography (CCTA) pathway. It seamlessly integrates with existing EHR, EMR, and other IT solutions, featuring ongoing security and software updates. HeartFlow recently reached a significant milestone, assessing 250,000 patients for coronary artery disease.

Navigating Market Differences

Understanding the differences between the American and European markets is crucial for global expansion strategies. The dominance of private insurance in the U.S. contrasts sharply with Europe’s state and universal healthcare models, significantly shaping financing systems. Consequently, while insurance coverage dictates access to medical innovation in the U.S., Europe offers a more equitable distribution, albeit subject to national budget constraints. Additionally, navigating the divergent certification and approval processes is vital, with the FDA holding sway in the U.S. and the European Commission overseeing similar functions in Europe. Mastery of these regulatory intricacies enables MedTech startups to tailor their approaches for success across varied healthcare landscapes.

Navigating Regulatory Challenges in Medical Technology

In terms of medical technology regulation, both the United States and Europe face significant challenges, particularly with the rise of Digital Health. With the rapid advancement of digital technologies and the emergence of new medical applications and wearable devices, questions arise about how to regulate them effectively. In Germany, unique legislative acts such as the Digital Healthcare Act (Digitale Versorgung Gesetz, DVG) and the Digital Health Applications Ordinance (Digitale-Gesundheitsanwendungen-Verordnung, DiGAV) have been adopted. These acts provide procedures for assessing the effectiveness and safety of digital medical applications, facilitating their inclusion in the list of products that doctors can prescribe and insurers can reimburse. However, in the U.S., regulation remains more fragmented, with federal acts like the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH) operating alongside state-level and individual agency approaches. Startups navigating this complex regulatory landscape must pay special attention to local legislation, ensuring compliance while addressing challenges such as protecting personal medical data and ethical issues surrounding the use of technologies like AI in diagnosis and treatment. As healthcare continues to globalize, cooperation between countries and the development of international standards become increasingly important.

Emerging Trends in Medical Technologies: Dr. Maria Putilina’s Outlook

Dr. Maria Putilina sheds light on the transformative trends emerging in medical technologies, highlighting GenAI, Virtual and Augmented Reality (VR/AR), and bioprinting as pivotal forces shaping the healthcare landscape.

GenAI enables the analysis of vast volumes of medical data to assess patient conditions and forecast disease risks with heightened accuracy. Furthermore, it facilitates the crafting of personalized treatment programs, optimization of clinical processes, and automation of administrative tasks within medical institutions. An illustration of a company harnessing GenAI power in healthcare is HiLabs, which recently unveiled a $39 million Series B financing round. HiLabs’ MCheck AI platform processes, cleanses, and enhances vital healthcare data, leading to decreased operational expenses for healthcare organizations and improved patient outcomes.

VR and AR technologies exhibit immense potential in medical education, data visualization, and surgical planning. Leveraging their understanding of complex anatomical structures and pathologies, VR and AR can deliver more precise diagnoses and treatment plans. In this realm, we have notable examples such as NeuroNav, which provides accurate real-time surgical tracking through AR, and Wide Awake VR, which utilizes virtual reality technology for anesthesia purposes.

Another captivating avenue is bioprinting, enabling the creation of three-dimensional tissue constructs from cells and biocompatible materials. While the ultimate goal of bioprinting is organ transplantation, current applications include drug reaction testing, thereby introducing an additional link in the chain of clinical research process to potentially mitigate serious side effects for patients in the future. Progress has already been made in this field, evidenced, for example, by the University of Wisconsin Madison team’s development of a pioneering method for printing functional human brain tissue and by researchers at Vienna University of Technology who are advancing the generation of replacement tissue for potential treatment of injured cartilage.

Dr. Maria Putilina, a seasoned medical advisor and innovator, offers valuable insights into the transition from innovation consulting to startup entrepreneurship, shedding light on common pitfalls MedTech startups encounter and strategies to avoid them.

The MedTech industry, boasting a market size of approximately $600 billion annually, attracts significant investments. Deeply immersed in this sector, Maria plays a pivotal role in an American heart tech startup dedicated to enhancing the safety of complex cardiac procedures.

With degrees in Business, Science, and Medicine from renowned institutions such as New York University and St. George’s University, Dr. Putilina’s professional journey includes conducting research at Columbia University Medical Center and serving as a Resident Physician at Lenox Hill Hospital. Transitioning from medical practice to innovation consulting, she assisted leading healthcare market players in Europe and America in developing product strategies, launching innovative products, and shaping new business models.

Dr. Putilina shares her perspective on how her diverse background contributes to her role in an innovative startup. Additionally, she sheds light on the critical success factors of MedTech projects, common mistakes made by startups, and the differences between healthcare systems in Europe and the United States.

Transitioning to Startup Entrepreneurship: Dr. Maria Putilina’s Journey

Maria embarked on her journey into startup entrepreneurship, driven by a passion for medical technologies cultivated during her residency. She witnessed firsthand how innovative solutions could significantly improve patient care, sparking a deep interest in the field. This fascination only grew during her tenure in innovation consulting. However, despite her contributions, she found herself disconnected from the tangible results of her efforts. Proposals made to healthcare companies could languish for years without implementation, leaving her with a sense of incompleteness akin to stabilizing patients in an emergency room without follow-up. This ultimately led her to transition into the medical technology industry, where she could directly witness the impact of her work and contribute to advancing patient care through innovative solutions.

Roles and Responsibilities: Dr. Maria Putilina’s Contributions

Describing herself as a team player, Dr. Putilina is involved in various aspects of the startup, including branding and establishing the company’s corporate identity to ensure a strong market presence and brand recognition. She spearheads the organization of clinical trials, ensuring they are conducted efficiently and ethically, and liaises with regulatory bodies such as the FDA to ensure compliance with relevant regulations and standards.

In addition, Dr. Putilina plays a crucial role in investor presentations, crafting compelling narratives and pitch decks to secure funding and support for the startup’s growth and development. Her expertise in product strategy formulation ensures that the company’s offerings align with market needs and regulatory requirements, driving the successful development and commercialization of innovative medical technologies.

With her interdisciplinary background in medicine and business, Dr. Putilina effectively communicates with stakeholders across diverse domains, including healthcare professionals, business partners, investors, and regulatory agencies. This ability to bridge the gap between innovation and commercialization is instrumental in advancing the startup’s objectives and achieving success in the competitive MedTech industry.

Gaining Diverse Business Experience:

During her tenure at Board of Innovation, a boutique agency that rapidly expanded into a global company, Dr. Putilina acquired a broad spectrum of business acumen. Initially part of a small team, she witnessed the agency’s remarkable growth into a worldwide player within two years, serving major international clients.

Maria was entrusted with various responsibilities in her multifaceted role, including evaluating market opportunities, introducing innovative business frameworks, and formulating product strategies. She developed methodologies to explore and optimize disruptive technologies and played a pivotal role in analyzing market tests and datasets to provide strategic insights for data-driven decision-making.

Maria’s proactive involvement in the pitching process and internal training significantly sharpened her skills in effective communication and business development. The agency’s startup-like atmosphere fostered an environment of continuous evolution, allowing Maria to closely collaborate with the team and gain invaluable insights across various domains. This has empowered her to apply similar strategies in the startup she is currently building.

Addressing the Failure of Medical Innovations: Key Insights

Dr. Putilina offers valuable insights into the multiple factors contributing to the failure of medical innovations. She underscores a prevalent issue where companies prioritize solutions based on strategic significance or technological appeal, often at the expense of understanding the genuine needs of patients and healthcare institutions. This oversight becomes evident when startups overlook the crucial integration of their innovations into existing healthcare systems. For instance, developing a Generative Artificial Intelligence (GenAI) digital app for physicians may falter if it fails to integrate seamlessly into hospital record systems. Dr. Putilina, drawing from her experience as a physician, stresses the importance of such integration, as physicians have limited time to navigate separate applications.

Additionally, she highlights challenges such as prolonged research and development phases, rigorous testing and validation procedures, and the arduous journey of achieving market acceptance and adoption. Furthermore, the dominance of established enterprises in the MedTech sector, such as Siemens Healthineers, GE Healthcare, and others, poses significant hurdles for startups, given their superior brand recognition, sales and distribution networks, and established relationships with healthcare providers.

Critical Success Factors for MedTech Startups

In the dynamic landscape of MedTech startups, success hinges on a multitude of factors beyond exhaustive consumer research. Among these critical elements, user-friendliness emerges as paramount. Given physicians’ time constraints, they will make time to master cutting-edge technologies like the Da Vinci Surgical Robot. However, for less groundbreaking solutions, being user-friendly becomes indispensable for rapid adoption.

For digital solutions, robust data security plays a significant role. It is imperative to ensure compliance with ethical standards and privacy laws, safeguarding sensitive medical information. Furthermore, the uninterrupted availability of IT services enhances reliability and functionality while prioritizing user experience cultivates efficiency through an intuitive interface.

Moreover, seamless integration with existing information systems, including electronic medical records (EMR) or hospital information systems (HIS), is essential. This interoperability streamlines data exchange, optimizes workflows, and ultimately elevates patient care standards.

A standout example of a startup that has effectively addressed critical factors and achieved notable success is Tempus. Specializing in AI-enabled care pathway intelligence, the company has successfully linked over 50% of oncologists in the US via sequencing, clinical trial matching, and research-driven collaborations. Tempus provides a secure solution for clinical test ordering and result delivery to electronic health record (EHR) or EMR systems, boasting over 500 direct data connections across 2000 healthcare institutions that utilize their offerings.

Another instance is HeartFlow, renowned for its personalized cardiac testing, which offers visualization of each patient’s coronary arteries and enables physicians to craft more tailored treatment strategies. HeartFlow has developed HeartFlow ONE, a non-invasive and fully integrated solution spanning the entire coronary computed tomography angiography (CCTA) pathway. It seamlessly integrates with existing EHR, EMR, and other IT solutions, featuring ongoing security and software updates. HeartFlow recently reached a significant milestone, assessing 250,000 patients for coronary artery disease.

Navigating Market Differences

Understanding the differences between the American and European markets is crucial for global expansion strategies. The dominance of private insurance in the U.S. contrasts sharply with Europe’s state and universal healthcare models, significantly shaping financing systems. Consequently, while insurance coverage dictates access to medical innovation in the U.S., Europe offers a more equitable distribution, albeit subject to national budget constraints. Additionally, navigating the divergent certification and approval processes is vital, with the FDA holding sway in the U.S. and the European Commission overseeing similar functions in Europe. Mastery of these regulatory intricacies enables MedTech startups to tailor their approaches for success across varied healthcare landscapes.

Navigating Regulatory Challenges in Medical Technology

In terms of medical technology regulation, both the United States and Europe face significant challenges, particularly with the rise of Digital Health. With the rapid advancement of digital technologies and the emergence of new medical applications and wearable devices, questions arise about how to regulate them effectively. In Germany, unique legislative acts such as the Digital Healthcare Act (Digitale Versorgung Gesetz, DVG) and the Digital Health Applications Ordinance (Digitale-Gesundheitsanwendungen-Verordnung, DiGAV) have been adopted. These acts provide procedures for assessing the effectiveness and safety of digital medical applications, facilitating their inclusion in the list of products that doctors can prescribe and insurers can reimburse. However, in the U.S., regulation remains more fragmented, with federal acts like the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH) operating alongside state-level and individual agency approaches. Startups navigating this complex regulatory landscape must pay special attention to local legislation, ensuring compliance while addressing challenges such as protecting personal medical data and ethical issues surrounding the use of technologies like AI in diagnosis and treatment. As healthcare continues to globalize, cooperation between countries and the development of international standards become increasingly important.

Emerging Trends in Medical Technologies: Dr. Maria Putilina’s Outlook

Dr. Maria Putilina sheds light on the transformative trends emerging in medical technologies, highlighting GenAI, Virtual and Augmented Reality (VR/AR), and bioprinting as pivotal forces shaping the healthcare landscape.

GenAI enables the analysis of vast volumes of medical data to assess patient conditions and forecast disease risks with heightened accuracy. Furthermore, it facilitates the crafting of personalized treatment programs, optimization of clinical processes, and automation of administrative tasks within medical institutions. An illustration of a company harnessing GenAI power in healthcare is HiLabs, which recently unveiled a $39 million Series B financing round. HiLabs’ MCheck AI platform processes, cleanses, and enhances vital healthcare data, leading to decreased operational expenses for healthcare organizations and improved patient outcomes.

VR and AR technologies exhibit immense potential in medical education, data visualization, and surgical planning. Leveraging their understanding of complex anatomical structures and pathologies, VR and AR can deliver more precise diagnoses and treatment plans. In this realm, we have notable examples such as NeuroNav, which provides accurate real-time surgical tracking through AR, and Wide Awake VR, which utilizes virtual reality technology for anesthesia purposes.

Another captivating avenue is bioprinting, enabling the creation of three-dimensional tissue constructs from cells and biocompatible materials. While the ultimate goal of bioprinting is organ transplantation, current applications include drug reaction testing, thereby introducing an additional link in the chain of clinical research process to potentially mitigate serious side effects for patients in the future. Progress has already been made in this field, evidenced, for example, by the University of Wisconsin Madison team’s development of a pioneering method for printing functional human brain tissue and by researchers at Vienna University of Technology who are advancing the generation of replacement tissue for potential treatment of injured cartilage.

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