This is module 4.1.2, focused on the Medical Device Industry Innovation Pipeline and Valuation. My name is Steve Parente, Professor of Finance at the Carlson School of Management. So I just happened to be hanging out in the great state of Minnesota, and you might see these images here. This person here is actually fishing for a great big fish on a very frozen lake. But you could also be in a very crowded space, so the point of all this is, many are looking for a prize in a very crowded new medical device market. And what you want is like, this huge find that she just scored. What you'd want to avoid is huge active competition, where everybody is barely make it up on their own little ice fishing hole trying to get their big fish there. So, part of this is to figure out a mechanism to get that really great reward here. So, one thing that we're really kind of proud about at the Carlson School is in the medical is our medical innovation evaluation laboratory. And so, why would we even set that up? And the answer is we want to hedge a gamble. So, a quick way to validate early medical technologies is to get the university resources behind you, particularly at a public university to see what's going on. And this might be meaning basically that revisits the original concepts of a public research university that has economic opportunity. With the combined talents of several super colleges of the university can provide the human intellectual talent to really develop. Not just leaders but also to develop the technologies and invent them at the same really get all the different parts of the university working together pretty seamlessly. And universities are very unique role to develop device innovators. They can independently examine new innovations whether they be service or technology, these can save and extend quality of life. Take a look at sustainability of technologies and services. They can cut avoidance of services and technologies. What's exciting also is that universities have access to unique human capital, open to scientific policy and management basis, legal expertise as well as how to really key actually. Universities have credible perspectives on meaningful trends in science. And there's an inventor as well as an investor perspective. So these folks from the Med school and engineering, investor perspective from the business school does give a verdict on both these types of clients. So what do we do in Ellie's valuation laboratory? Student approaches, we ask three simple questions. Number one, can you make it? Is it something that actually adheres to the laws of physics. This is one of those fun questions we could ask people. Is someone actually going to buy it? Can we find something that works with, reimbursement policies, things that we talked about, in module one or three in terms of the reimbursement strategies for farmer device. And then can you make money at this as well? Meaning if you get reimbursed, is there actually going to be return on investment? So, the pieces that have to go into this, and this will be something that you will be using as a template as well. If you go on, we hope you go on, for your capstone experience. So you have to come up with a product description of what it is exactly your innovation does. You have to figure out who's going to want this. What's the demand of it? How many people actually are intrigued or need the technology? What your intellectual property says, but this is really a core area, probably distinguishes a lot of what we do compared to most of the folks cause we utilize resources in law school. You even really have your patent space and your intellectual property space locked down. You're probably not going to go anywhere. That is a return on investment analysis. More of a financial services now, so that's something that we'll get some tools for when we get to the capstone. And I'm figuring out the next stage for funding and development. So, when we've done these technologies, we actually, have a whole range of folks there. I mean it could just be that scientists are there, but also physicians, engineers, if you have a new idea. You'll see folks coming to Mayo Clinic for different telehealth programs. We've had insurers come to us for their household for telehealth programs to avoid disease management class. We've had at least 35 different iPhone apps, applications that have come away. We've had folks in Jacksonville, Florida that have come in with new ideas and actually folks from all over the country. And since 2008 when the lab started, we've done over 265 projects. So we think about who actually does this. What's really novel about this is that we actually have students coming from an expert memorandum agreement coming from eight colleges across the University. So the Carlson School are our friends here, look at that, I can circle that, we could have provided lead space for it. But we also take advantage of working with great relationships with the College of Liberal Arts, partly, because they have a really good program in health journalism doubles as a marketing component. Institute of Technology, which is really our engineering school. A good school particularly for mechanical engineering and actually home for our medical devices program. The Law School [INAUDIBLE] intellectual property, they're on the academic health front whether it's been medicine, nursing, pharmacy or public health. Public health will figure out how do people have disease, Pharmacy, for the obvious reasons of [INAUDIBLE] pharmaceuticals [INAUDIBLE]. Medicine, because of the key role physicians play. And then nursing, because they're really seen on the front lines so much for the pain and suffering and opportunity that goes on in the field. We have managers that run it, faculty co-directors, and then university faculty engaged along the way. We're going to talk a little bit more about how the lab has gone global in our next module. But in preparation for thinking about the capstone, these are really the disciplines that kind of come into play as kind of exciting. This concludes our module on Medical Technology Innovation and the use of different disciplines.
