At LSI USA ‘24, a panel of industry leaders gathered to discuss how major medical device companies can collaborate with startups to accelerate innovation, particularly in cardiac care. Featuring prominent figures like Chris Eso, Nathan Harrington, and Lisa Suennen, the discussion covered critical aspects of the cardiac care startup ecosystem, from forming strategic medtech partnerships to harnessing the power of data and AI. Here are six key takeaways that highlight the dynamic, collaborative nature of the medtech market.

Forming Strategic Medtech Partnerships

David Hochman, Chairman and CEO of Orchestra BioMed, emphasized the importance of forming long-term partnerships to accelerate innovations and efficiently bring them to market. He explained, “Our whole business is around forming long-term partnerships that can help accelerate innovations to patients by aligning us with strategics.” This approach helps integrate diverse expertise and ensures that once a product is ready, it has the backing of a strong commercial partner, such as Medtronic, which is better positioned to handle large-scale market penetration.

Addressing R&D Constraints Through Collaboration

Lisa Suennen, a Managing Partner at American Heart Association Ventures, highlighted how collaborations can help overcome R&D constraints, allowing companies to bring more technology to the market. “What we obviously would love to do is bring more technology into our P&L and into our organic or inorganic investment—but we have constraints that we have to live within. These types of partnerships enable us to bring more technology to the market than we would typically do,” she noted. By collaborating with other entities, such as incubators or larger corporations, medtech companies can share resources and expertise, which is crucial for developing and launching new innovations without overextending their R&D budgets.

Early Engagement with Strategics

Nathan Harrington from Philips Ventures stressed the importance of early engagement with strategic partners—even if immediate funding is not sought. “Introduce yourself to strategics early. Even if you're not looking for money from a strategic at a given point, it's important to have a conversation,” he advised. This early interaction helps startups align their development goals with potential future partners' or acquirers' expectations, smoothing the path to eventual collaboration or acquisition.

Understanding the Healthcare System

One critical point made by Lisa Suennen was the often-overlooked necessity for medtech innovators to understand the healthcare system thoroughly. She explained, “The folks who are innovators are often not very savvy about the healthcare system itself. They don't learn about how Medicaid works; they don't want to know how Medicare works or how payors work.” This lack of knowledge can significantly hinder a startup’s ability to navigate the complex regulatory and reimbursement landscapes essential for successful market entry and sustained growth.

Collaborative Innovation Models

Ken Nelson highlighted the increasing importance of industry societies and collaborative innovation models in fostering new ideas. He mentioned the success of Shark Tank-style competitions at conferences, which provide a platform for startups to pitch their innovations to a panel of experts and receive valuable feedback. “You're starting to see the big industry societies like the American Heart Association and the Heart Rhythm Society doing more pitch competitions,” he said. These events encourage innovation and help medtech companies connect with potential investors and form strategic medtech partnerships.

Importance of Data and AI in Medtech

Looking ahead, Lisa Suennen predicted that data and AI would play a vital role in the future of medtech, necessitating collaboration between traditional medtech companies and technology experts. “If you think about what the medtech world will look like 10, 15, or 20 years from now, it's all going to be connected; it will be about generating data and figuring out how to use that data to get better outcomes longer term,” she said. Integrating advanced data analytics and AI into medical devices will be essential for improving patient outcomes and creating more efficient healthcare solutions.

Conclusion

The full recording of the panel can be found in LSI’s resource hub at the link below:

• Accelerating Cardiac Care Innovation: How Can Major Device Companies Collaborate with the Startup Ecosystem?

The panel discussions highlighted the collaborative nature of the market, emphasizing the importance of strategic medtech partnerships, early engagement with strategics, and a deep understanding of the healthcare system. As the industry moves forward, leveraging data and AI will become increasingly important. The insights shared by the panelists provide a roadmap for medtech startups and medical device investors looking to navigate this complex and rapidly evolving landscape.