Division of Cardinal Health Inc.
Latest From Pyxis Products
The conventional wisdom in the medtech industry is to pursue the “razor-razor blade” business model, as each placement of capital equipment generates a lucrative annuity of recurring revenues from disposables. The corollary to this conventional wisdom is that so-called “big iron” is to be avoided as, in sharp contrast, it suffers from greater early cash requirements and longer sales cycles that create difficulties forecasting quarterly revenues, and provides no annuities. But that view is no longer the only one that counts, Health Advances CEO Mark Speers argues.
In 2006, the number of late-stage private equity deals in the medical device sector is up significantly from 2005. At the IN3 East medtech conference in October, a lively panel of venture capital investors from Galen Partners, 3i, Matignon Technologies and OrbiMed Advisors discussed why this is so, and the risks, benefits and models for late-stage investing.
Some VCs insist that only 25%-30% of device investments find a successful exit -- significantly better than the 10% of biotech deals, but still far from a sure thing. As a result, over the past year or so, there has been a marked increase in interest in late-stage dealmaking -- investments made at Series C or later or via alternative vehicles such as PIPE deals and SPACs.
Despite significant growth over the past several years, Encore Medical found it difficult to win over investors. So it has turned to private equity firm Blackstone Group to take it private, hoping that greater financial freedom will enable it to continue its aggressive growth.
- Therapeutic Areas
- Pyxis Corp.
- North America
- Parent & Subsidiaries
- Cardinal Health Inc.
- Senior Management
Bill R Williams, Pres. & CEO
Douglas Jeffries, VP, Fin. & CFO
Robert Feeney, VP, Sales & Mktg.
- Contact Info
Phone: (619) 625-6450
9380 Carol Park Dr.
San Diego, CA 92121