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Medical devices

The current landscape in the UK


Berwin Leighton Paisner LLP

Foreword

In this report you will find The medical devices market is one of the most attractive
sub-sectors in the wider life sciences sector for the majority of
market sentiment on: healthcare investors. The costs and risks involved are perceived
• The medical devices sector as low when compared with pharma, and the potential for global
export is a key draw for attracting funds.
as an investment target
Despite the industry’s comparative attractions, funding is tight
• Key potential sources of investment
for the small and medium-sized companies which comprise
• A checklist of things to consider the majority of the UK medical devices market. Though the
when seeking investment Government has made some small efforts to foster innovation
and growth in the sector, issues raised by both companies and
• Where the UK Government is funders demonstrate an urgent need for more radical central
getting it right, or getting it wrong Government support.
The outlook for the UK
• How the UK compares with other Extending tax reliefs, reducing the burden of business
medical devices sector
international markets regulation, and encouraging seed capital would all fit the
should be positive – with bill. In this way it can support the UK market as a centre of
funders having material excellence for innovation and growth companies, and facilitate
resources to deploy and a competitive edge against other countries.

Government showing
a renewed interest in
value-added, skills-
based and export led
sectors of the market.
Michael Anderson Michael Anderson Philip Mickelborough
Partner, Corporate Finance
Partner, Corporate Finance Associate, Laing & Buisson
michael.anderson@blplaw.com pjm@mickelborough.com

Companies interviewed as part our research deliver


a wide range of medical devices, including:

Stents and vascular Scopes, for use Trauma Sterilisation


flow devices in proctology equipment equipment

Anaesthesia and Joint Cytogenetic Clinical and


airway products replacement micro-arrays surgical products

Medical devices /01


At a glance Medical devices: a hotspot for healthcare investment

Medical devices Medical devices: a hotspot


for healthcare investment
At a glance
Key statistics to set the scene

Medical devices is one of the most Within diagnostics, remote (robotic)


attractive healthcare sub-sectors and self-diagnostics are becoming
to all but the lending banks. Often big in UK community care and Diagnostics continue to be
compared to pharmaceuticals, abroad. This makes the field an attractive area, with the
it is generally the more favoured as: attractive, however many people market growing anything
the UK medical devices industry employs over 50,000 people • Medical technology is a fast recognise this and so prices are high.
Areas with particular opportunities
between 5-10% pa; the
growing sector
for growth include genomics, sector is still experiencing
• Development costs are
especially DNA diagnostics that a huge amount of attention

$1bn 2,000
much less
lead to personal medicine, and from corporates. Medical
• There is less likelihood of technologies that involve or facilitate
a product failing at the last less invasive procedures. devices have hot areas and
stage of testing cold areas; if disposables are
involved it tends to become
87.5%
• Approvals are faster,
less risky and less expensive
than pharmaceuticals
much more attractive.
David Holbrook,
of all medical technology • Markets are global Partner and Head of LifeScience Investing,
companies have a • There are long-term MTI Ventures
turnover in the range of revenue streams
£100,000 – £5,000,000
• Medical device sales are
seen as more reliable

the UK market grew by $1bn


88%
of UK medical devices
companies make up the
UK market with more than
80% of which are small and
in 2011 and is now worth £16bn are imported medium-sized enterprises
It is not easy for medical
device companies to

59%
raise funds (not easy for any
early-stage company!), but not
as hard as pharma and biotech.
Lack of funding is holding back
development in Europe.

>500,000
Alan Barrell,
Entrepreneur in Residence, Judge Business School,
of the medical devices University of Cambridge
sector is occupied by
medical technologies established companies
currently available operating for 10 years or more

02/ Medical devices *Please see page 20 for statistic sources Medical devices /03
Medical device company funding: a quick introduction Medical device company funding: a quick introduction

IPO

Medical device company


funding: a quick introduction
Different levels of investment kick in at
certain stages of the life cycle for medical
device companies. The level of investment is SHARES
directly related to the perceived level of risk.

PE HOUSE
House
P.E.

PE
Perceived investment risk Scale of Investment

Seed stage Start-up stage Second stage To commercialisation

Friends and family Business angels Grants Venture capital and private equity Trade investment Bank lending
Best sources for start-ups are This source is vital for small Government grants can be vital for PE houses will invest for equity Companies may invest in a Only becomes appropriate
friends, families and the founder’s and early-stage companies that early-stage companies. They have though are increasingly making share of the equity, or take an when the company has brought
business network. do not have access to venture a mixed reputation but they can convertible loans or providing option, while letting the investee its products to the market and is
capital and have no revenues make a company more attractive other mezzanine finance. remain independent. earning revenues.
to pay bank interest. for investment. Further information Convertible loans are usually made
Intermediate exits
on available grants can be found at in the expectation that they will
Crowd funding Where angels sell their holding
the back of this report. convert rather than be repaid.
A rapidly emerging source of funds to a PE firm once sufficient
for small companies, although not Private equity (at Proof of Concept Trade sale value has been added.
yet significant in medical devices. stage (PoC)) Usually the only expected final
The later the stage of a company’s IPO
exit for UK investors, traditionally
development the less risky it ought Once a desirable exit but at
to the US, but also Europe, China
to be and more attractive to private the moment an IPO is seen
and the rest of Asia.
equity. Some PE firms will invest as difficult to achieve for
at PoC stage seeing it as a way to medical device companies
de-risk a future investment. which are pre-profitable.

04/ Medical devices Medical devices /05


The funding landscape The funding landscape

The funding landscape

The availability of funding Innovation is key A choir of angels Angels usually invest for equity for Grants are vital for Grants from the Technology Strategy
There is unanimous agreement that Innovation is what drives new Business angels are vital investors for the tax benefits it incurs. In the UK, Board and the EU’s Framework
business angels rarely have deep
early-stage companies scheme are the best known, but the
raising funds for medical device companies in the medical field, and small and early-stage companies that Government money includes regional
companies is difficult at the moment. the UK is not short of this. Funders do not have access to venture capital enough pockets to see companies Business Angel Co-investment Fund
funds that take equity or make loans
Whether it has improved since the strongly favour innovative projects. and have no revenues to pay bank through to commercialisation, and (which can double the funds put up
and a range of grants. These grants
Lehman collapse in 2008 depends on ‘Me-too’ products are unlikely to be interest. The majority of typical angels generally will exit to allow PE firms by an angel syndicate using £100m of
have a mixed reputation: however, they
the development stage of the company. able to raise funds unless they involve can be found through the various angel to take over. public money) and the Small Business
can make a company more attractive
The industry’s demand for funds some innovative way to produce the networks (often via the Internet), many Research Initiative are highly regarded
Although these investors are a life for investment.
definitely exceeds supply; yet there is product more cheaply. Innovation also of which organise events at which by those who know about them.
source for the small company, not all
a closer match between the available implies protected IP, which is attractive companies can pitch for funds. Atypical All of the companies and funding
angels are angelic. Companies must be Further information on a variety of
funds and low-risk, well-managed and to funders. angels, such as individual hedge fund sources we spoke to recognise how
wary of those who waste prospective grants available can be found at the
innovative companies. managers investing their bonuses, vital grants could be for early-stage
investment seekers’ time or do not back of this report.
Start-ups: use your network are found through personal contacts.
contribute to the company’s wellbeing.
companies; but many commented on
There is less agreement on the quantity The best sources for start-ups are the complexity of applying for them,
of funding available. Most see the friends, families and the founder’s the process which is time-consuming,
market as being seriously short of business network. Crowd funding the fact that many come with
money, whereas others believe there (where companies can solicit funding Beware of tyre-kickers geographical or other strings attached Grants are one of our
is sufficient funding available if only from a large group of people) is a I love grants. We seed- and an apparently low success rate. biggest frustrations;
companies knew where to find it, are at rapidly emerging source of funds for and small investors who funders adore non-dilutive
the right stage of development and can small companies. Networks for medical demand a board seat; they Others, however, argue that a grant although they should
make a good enough case to receive devices are being set up such as funding, so we encourage application can be straightforward be a valuable resource,
it. Presentation is important, and many have little in the company all our investee companies if approached professionally rather
companies seeking funds often do not
Medstartr.com, and should be watched
but make a lot of noise and than casually. accessing them is incredibly
as a potential future fund source for
really know how much they need or to apply for them. difficult, entailing going
for how long. Currently, investors and
UK companies. can be disruptive. David Holbrook,
lenders tend to work out for themselves Andrew Taylor, Partner and Head of LifeScience Investing, through a complex process.
Finance Director of Bactest Ltd MTI Ventures Simon Talbot,
what is needed and provide that.
Managing Director of P3 Medical Ltd

There is much innovation in Grant applications tend to fail because: they


the UK; innovation comes are not within the scope of the competition;
from interdisciplinary the applicant has not understood the process
research, and the UK with and has not filled in the form with a clear
the US leads the world in explanation; it ‘cannot tell its story’; and the
interdisciplinary research. application is treated lightly and completed
David Holbrook, hastily without recognising the safeguards
Partner and Head of LifeScience Investing,
MTI Ventures required when public money is involved.
Nigel Walker,
Access to Finance at
Technology Strategy Board

06/ Medical devices Medical devices /07


The funding landscape

Private equity Tranches replace lump sums Banking on the banks


Venture capitalists and private equity It was once the case that US early- Bank lending only becomes
(PE) firms have become increasingly stage firms would receive all of their There are regional appropriate when the company has
risk averse. They are less willing to anticipated funding in one initial organisations that will lend brought its products to market, and
assume the levels of risk in their lump sum, and UK ones had to take is earning revenues. Banks do not
investments that they might have done it in tranches, or undertake a series
at a much earlier stage than like to lend to a company that is not
five years ago, and generally invest at of funding rounds. The US is moving banks but they charge like generating sufficient revenue to pay
a later stage. The later the stage of a towards the UK model, as it is less a wounded rhino. interest, and banks are even more
company’s development the less risky risky for the investor. This has the risk-adverse than PE.
Andrew Taylor,
it ought to be and therefore the more disadvantage that a large amount of Finance Director of Bactest Ltd
attractive it is to private equity. the CEO’s time is spent fundraising, Lending banks lend money, and rarely
but carries the advantage for existing invest in equity. If they do acquire
PE firms still invest for equity though they shareholders that the price of the shares - due to a convertible loan that
are increasingly making convertible loans company’s equity may rise as the is not repaid or in another distressed
or providing other mezzanine finance. company develops. We raise our revolving situation - they will generally dispose of

Convertible loans are usually made in credit facility from UK the shares as soon as possible.

the expectation that they will convert and international banks in Banks recognise the broad perception
rather than be repaid. that they will not lend, and dispute
US$ because we are an it. They are looking for opportunities
Although later-stage investment is the international company with to build their loan books, despite the
norm for PE firms, some will invest
at Proof of Concept stage, seeing it
a significant proportion of pressures to repair their balance sheets,
though they are not finding it easy.
as a way to de-risk a potential future our cash flow in dollars;
investment by providing the capital banks are keen to lend to us. Many large corporate healthcare
and management expertise to shape companies are cash-rich and do not
Tim Allison,
the growth of the company. Group Treasurer of Smith & Nephew need to borrow. Banks comment that a
lack of confidence is inhibiting smaller
revenue generating companies from
borrowing to make acquisitions or to
invest otherwise.

Contrary to what we have


been told elsewhere, the
UK’s core banks are lending
to their corporate clients,
Typical funds in the although the largest of
medical device market these corporates have been
tend to invest for a ten-year eyeing the bond markets
lifespan; five years putting in preference to borrowing.
money in and five years Total demand for loans
getting money back. exceeds supply, but
Alex Buchan,
Investment Manager, Northstar Ventures demand from good
quality borrowers roughly
matches the supply of cash.
Healthcare Relationship Director,
UK bank

08/ Medical devices


Company management: a pivotal role Regulatory approval: a key milestone

Company management: Regulatory approval:


a pivotal role a key milestone

One of the main reasons why early- It is difficult to recruit a good Regulatory approval for medical Some funders are only interested
stage deals do not go through is a management team as the risks of devices is expensive, takes a long in companies that have achieved
mismatch between the skill-sets of working in an early-stage company There is also a shortage of time and demands the company’s approval. The risk of regulatory We now make later-
the project’s founders and those are much higher than in an good commercially-aware resources. FDA approval is the failure is removed and many stage investments in
required in the management of established company and the pay is people in the UK medical most demanding of these hurdles, funders prefer to pay more for the medical device area
start-up and early-stage companies. usually relatively poor. Despite this, and although the US market is a lower risk company than an
there are signs that pay is catching
device industry, which is relatively vast, some companies earlier-stage one. Approval, FDA
due to regulatory risk and
Early-stage companies are up with the US, particularly with very different from the have decided that the market or otherwise, is usually required timelines with the FDA in
frequently managed by scientists large UK companies, and if a good pharma industry where simply does not justify the various before a trade sale can take place. the important US market.
or academics, but their expertise CEO is recruited other managers approval costs involved.
and skills frequently, and not the UK has several leading Timothy J. Haines,
will be attracted to the company. Partner with Abingworth LLP
unexpectedly, do not always Advisors and investors can also international corporations. Achieving approval can be a major
include the commercial business play a pivotal role in shaping the Brian Howlett, investment opportunity as it may
skills that are necessary to develop Non-Executive Chairman, trigger further tranches of funding,
company’s strategy and growth. Vascular Flow Technologies
a business. The innovative and or be the point at which one funder
academic talents that stimulated exits and another comes in to take
them to develop the project or the company forward.
start-up in the first place may
on occasion make it difficult for
them to settle into the demands
of running a business. They may
also find their natural curiosity and
enthusiasm leading their focus
away from the company’s goals.

Profile of the UK medical technology 1%


An investor looks for a strong sector by company age
6%
team with good focus and
who know their market.
Alan Barrell,
Entrepreneur in Residence,
Judge Business School, University of Cambridge
Key 59% 34%
<2 years
2-3 years
4-9 years
>10 years

10/ Medical devices Medical devices /11


Exit route

Exit route

A trade sale is the only expected Corporate purchasers do not always There may also be the option of
final exit for investors in the UK. A wait for early- or intermediate-stage an intermediate exit, where angels
Corporate venture groups corporate buyer has the market companies to come to market with sell their holding to a PE firm when
do sometimes proactively knowledge to value the company revenues, and some do become sufficient value has been added,
go out looking for and the resources and synergies involved with potential investments or one PE firm may sell on to a
to develop and grow it. Such a at an earlier stage. The increasing development capital provider.
investment opportunities buyer will recognise the potential of quantity of large corporate funds is
in companies that they combining the two companies and an important source of funding for An IPO was once a desirable exit
but at the moment it is seen as
might otherwise buy at a will be willing to pay a good price smaller companies, and does not
once the start-up risks are over necessarily mean an outright sale. difficult to achieve an IPO for any
later stage. However, their medical device company which
and the company is making profit. The large company may invest in a
normal preference is for the Corporate purchasers used to be share of the equity and perhaps take is pre-profitability. Although
company to be de-risked, largely from the USA; however, an option for the rest while letting medical devices are exciting and
the founders can tell a good story,
by having at least entered there is growing interest from the investee remain independent.
that story has to be very well
European companies and from
a major market (usually their explained to institutional investors.
China and the rest of Asia.
own home market) and Small companies that do make
having achieved some The likely acquirer in a trade sale Companies need to seek it to market can find dealing in
is frequently known before the their shares results in downward
sales traction. investment is made, and early- funding from investors pressure on the share price and a
Alistair Taylor,
stage companies would be wise to who understand the company can be a little vulnerable
Non-Executive Chairman of Phytopharm
consider this when selecting a funder company’s specific whenever its shares are traded.
and when planning the timescale
sector and know the
before they exit. Trade purchasers
would generally prefer to pay potential acquirers for
Trade sales can be attractive
more cash for a business that has a the business.
exits, as synergies and the commercial product in the market Christopher Ball,
purchaser’s knowledge of than to pay less for a development Healthcare Director, Imprimatur Capital

the market mean that the stage company with its risks.
price can be higher. Trade
sales are made more difficult
by the need to find a willing
purchaser at the same time as
the vendor wishes to sell; it is AIM is tough and mainly for
therefore easier if there is no companies that break-even or are
fixed timescale for the exit. profitable. An AIM company can
Tim Hall, suffer ‘death by a thousand cuts’
Finance Director of Oxford Gene Technology
when shareholders sell shares and
there is no news from the company
and there are no ready buyers out
there; the price drops each time.
Alistair Taylor,
Non-Executive Chairman of Phytopharm

Medical devices /13


The role of the state The role of the state

The role of the state

Government – include R&D tax credits and the Companies and investors have NHS challenges Selling to the NHS can be difficult. There is some hope that the change
more can be done recently introduced Patent Box. commented that the Government The industry and its funders The procurement processes are to GP Commissioning in April 2013
The Government did not come out For investors such as business could improve the investment expressed strong views on the NHS. often thought to be archaic and may improve the situation, with
well as a facilitator of investment, angels the Enterprise Investment environment by: The main criticism relates to the sclerotic, with what one respondent the implication that more sales
from either the investor or Scheme (EIS) and Seed Enterprise • Extending the reliefs available budgetary arrangements within NHS described as ‘Byzantine decision- opportunities can be created by
company perspective. According Investment Scheme (SEIS) are under EIS and SEIS to directors Trusts. It is felt that because each making’. On occasion, tenders make dealing with GPs directly.
to interviewees, the Government particularly important. Banks and employees department’s budget is independent, generic demands; for example,
can do less than it thinks in a global believe that the recent Funding and because expenditure incurred requiring ethical policies that would
• Encouraging banks to develop
market, and what it does do tends for Lending Scheme has helped by one department cannot be be appropriate when buying NHS
softer relationships with their
to be bureaucratic and increase the return lending interest rates to
customers, being more involved credited for savings in another, uniforms from the third world but are The NHS does not
regulatory burden. earlier lower levels; however, the
and supportive in its borrowers’ it is difficult for the NHS to identify not necessary for UK-made medical favour UK suppliers
industry is sceptical of this. For savings to the Trust as a whole devices; or requiring professional
One exception is the availability further explanation of the schemes
good times and bad (the
indemnity insurance as well as
who provide UK jobs
German model) when buying medical devices. This
of tax breaks, which are widely discussed, see the appendix at the structure also means that more product liability insurance. As a way whereas many other
valued by medical device back of this report. • Freeing up capital from new round this, at least one company European countries
expensive devices which provide an
companies and investors alike. sources, especially to act as sells by persuading a charity to buy
seed capital, and
enhanced quality of life to the patient do favour their own.
Tax breaks can offer meaningful are not taken up. the device and then donate it to Finance Director of
support in the critical stages • Reducing the burden the NHS. It also sometimes lends medical company
prior to commercialisation, and of business regulation. equipment for three months so that
encourages inward investment to the NHS buys the equipment at the
the industry. For companies, these expiry of the loan period.

Ireland has developed The NHS has no understanding


as a centre of medical of small businesses; it may ask for
device manufacturing, and three years’ of trading accounts
Switzerland has developed before it will purchase, but for a
an attractive tax regime for new company where the NHS is its
medical device companies. only customer this is impossible.
The UK has no such features. Nigel Clarke,
Senior partner, Learned Lion Partners
Head of Healthcare,
private equity firm

14/ Medical devices Medical devices /15


The role of the rest of the world

The role of the rest Centres of excellence


of the world

The rest of the world is important It is not only early-stage innovation The growing Asian market is The USA has centres of excellence The UK is in the early stages of
in four ways; as funding sources, that goes abroad - most exits are attracting R&D to Asia from Europe, in medical devices and some of developing similar centres. For
as exit routes, as customers and trade sales to overseas buyers. and hubs of excellence in health the Asian markets are currently example the ‘Centre for Innovative There are small clusters
as competitors. care are developing in the Far developing these. Manufacturing in Medical Devices’, outside the Oxford-
When it comes to sales, the
There is an increasing amount of relatively vast US market has
East. As a whole the BRICS could
These ‘hubs’ facilitate the
will bring five universities together Cambridge-London triangle
become serious competitors to the in a £5.7m, Government backed
money from China, Malaysia and been critical for any UK medical European medical device industry. congregation of key players - initiative to transform the way
but these lack capital and
Singapore looking to invest in device company. That market academics, innovative doctors, that replacement joints and other experienced management
Europe, but that investment may has opportunities because it has business angels, PE and medical implants are made. Other and have support networks
not be in the UK medical device rational behaviour by HMOs, and VC (Venture Capital) firms, hubs are also springing up around
market. Already much innovation the market, particularly for IT, is entrepreneurs and businessmen which are often targeted
In an ideal world for an academic centres.
goes to the USA or Europe as booming due to Obamacare. More experienced in start-ups. By at academics rather than
early-stage enterprise,
more money is available there. recently, an increasing number of pooling these experts and growing companies.
As a result, the UK probably companies are avoiding the US development would be resources these centres can Christopher Ball,
does not have a critical mass in market because of the problems easier if carried out in provide medical device companies Healthcare Director, Imprimatur Capital
engineering, or entrepreneurial and costs associated with FDA Germany and, subsequently, with the business skills, research
skills in medical devices. approvals and are instead resources, training and funding to
concentrating on Europe. sales would be easier if develop and grow.
focussed on the USA.
Brian Howlett,
Non-Executive Chairman,
Vascular Flow Technologies

The UK is not a good place for


medical device companies;
Germany and France are better.
The UK market is small with
relatively low usage per
head; Germany, by contrast,
accounts for a large proportion
of the European device market.
Director, private equity firm

16/ Medical devices


Conclusions Our conclusion
Appendix

Conclusions Appendix

In the current macro-economic Methodology Main UK grant- Observations • Local Enterprise Partnerships
context funding for medical devices Laing & Buisson and Berwin awarding bodies • The Technology Strategy Board have discretion in granting
companies remains difficult. Those BLP has built a good Leighton Paisner LLP identified a Medical device companies can has three initiatives that are funding and award grants that
small and medium-sized businesses rapport with our representative sample of medical access grants from a variety of relevant to medical devices. will boost the local economy.
which make up the majority of the business and we have device companies, banks, private bodies, most of which offer grants These include: the £180m • The Angel CoFund is able to
market’s 2,000 companies, can be equity firms and grant providers under headings such as healthcare, Biomedical Catalyst Fund; the make initial equity investments
perceived as too risky to invest in. a lot of confidence for interview; these were contacted Small Business Research Initiative
biomedical research, biomedical of between £100k and £1m
that it will help to in advance and telephone catalyst engineering or technology. (SBRI) and SMART which into SMEs in conjunction with
There are signs, however, that
medical device companies can
promote our business. conversations were arranged. The The Government has also provides funding to SMEs syndicates of business angels,
Chambers UK, 2012 conversations were semi-structured, introduced legislation and schemes for R&D projects. subject to certain restrictions.
with structured effort access
using a checklist to ensure that to facilitate investment. • The Medical Research Council • GrowthAccelerator is a £200m
investment opportunities.
all key points were covered, and • Technology Strategy Board (TBS) has two funding categories that programme in which experts
By tapping into networking
usually lasted between 30 minutes are relevant to medical devices, help leaders of fast-growth
forums, and presenting the best • Medical Research Council (MRC)
and one hour. The understanding which are the Biomedical businesses to commercialise
possible case for investment, • Engineering and Physical
was that anything said could be Catalyst Fund (in conjunction their ideas profitably.
well-managed and innovative Sciences Research Council
reported but nothing would be with TSB as above), and The
companies can stand out as an (EPSRC) • NESTA aims to help early-stage
attributed without the speaker’s Confidence in Concept scheme.
attractive investment proposition, ventures grow. Its venture
specific consent. • Wellcome Trust
despite the Government’s lack • The Engineering and Physical investment has four portfolios
of meaningful and large scale • Other organisations Sciences Research Council including a healthcare one
support for the sector. include: Research Councils, (EPSRC) invests over £800m a containing details of seven
Manufacturing Advisory Service, year in a broad range of subjects. companies and their innovations.
Local Enterprise Partnerships, In 2012, it awarded 195 grants • EU Framework 7 (FP7) includes a
Business Angel Co-Investment totalling £250m to categories “Cooperation Programme” which
Fund, GrowthAccelerator, of medical projects that would features health as a key theme.
NESTA, EU Framework 7 include medical devices. Health was allocated a budget of
and Horizon 2020. • The Wellcome Trust has three €6.1bn for the seven-year period
• The UK Government has types of funding relevant to 2007-13.
introduced Patent Box legislation medical devices. Translation • Horizon 2020, running from 2014
and a new Funding for Lending awards, the Innovative until 2020 will replace FP7.
scheme to replace the National Engineering for Health £30m
Loan Guarantee Scheme. partnership with the EPSRC and • Patent Box legislation will tax the
the Health Innovation Challenge worldwide profits attributable to
The BLP perspective HIC fund, run jointly with the patents at 10%, rather than the
Department of Health. 23% corporate tax rate that will
The medical device industry remains unpredictability of the journey the trend and successfully securing be in force by April 2013.
an attractive proposition for investors. towards securing regulatory approval, funding from a selection of available • The Manufacturing Advisory
Service is funded by the • Under the Funding for Lending
For those companies seeking particularly in the US, has no doubt sources. In contrast mid- and later-
Department for Business, Scheme (FLS), banks and building
investors, money is available, albeit made it difficult for companies and stage companies that are close to
Innovation and Skills. It provides societies that increase lending to
it is arguably more difficult to secure funders to accurately predict funding or have reached commercialisation
manufacturing business support UK households and businesses will
than has perhaps been the case in requirements. However, whilst are perceived as interesting and less
for companies based in England. be able to borrow more in the FLS,
recent years. The overall sentiment investment in start-ups and early- risky opportunities for those investors
expressed by companies and funders stage medical device companies that are still looking to invest funds
and do so at lower cost than those
alike is one of cautious optimism. may require resuscitation, it is far and prepared not to shy away from
that scale back lending.
The longer maturation period from dead. Those companies led a longer term investment. In our
required to bring medical device by CEOs with proven track records experience attitudes are turning a
companies to commercialisation and and that have innovative and proven corner and this may just be what
then profitability and the inherent technology appear to be bucking the doctor ordered.

18/ Medical devices Medical devices /19


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• Regulatory and Compliance
• Restructuring and Insolvency
• Tax

Sources
Technology Strategy Board; Medical
Research Council; Engineering and
Physical Sciences Research Council;
Wellcome Trust; Manufacturing Advisory
Service; Local Enterprise Partnerships
(LEPs); The Angel CoFund; Intellectual
Property Office; GrowthAccelerator;
NESTA; Europa.eu.

Statistic page sources:


• Episcom
• Global Medical Devices
Nomenclature (GMDN) Agency, 2010
• ABHI
• Department of Business,
Innovation and Skills
• UKTI, 2011
Getting in touch
When you need a practical legal solution for
your next business opportunity or challenge,
please get in touch.

Berwin Leighton Paisner LLP


Adelaide House, London Bridge
London EC4R 9HA England

Michael Anderson
Tel: +44 (0)20 3400 4152
michael.anderson@blplaw.com

Laing & Buisson


29 Angel Gate, City Road
London EC1V 2PT England

Philip Mickelborough
Tel: +44 (0)20 7833 9123
pjm@mickelborough.com

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