Leaders in the medical technology industry gathered at the LSI Medtech Summit to discuss how innovation in cardiovascular medicine is changing amid shifts in investment behavior, the need for a new type of clinical innovation, and growing alignment between startup companies and established firms. Investors are now evaluating investment opportunities from a more holistic, systems-based approach, rather than just evaluating standalone devices.
A Move Toward Connected Technology
More cardiovascular product solutions are being developed as connected systems, rather than as individual products. These products will consist of hardware, software, and data management services combined to create a new successful model of innovation in the U.S. medical device market.
The major factors contributing to this trend include:
- A growing need for personalized and ongoing care.
- Expansion of the site of care delivery from the traditional hospital to other settings.
- Increased use of data to help with making clinical decisions.
An expectation that companies will demonstrate value in providing clinical care that can not only be measured by the performance of an individual device or product.
Because of this convergence, companies have shifted their thinking away from just producing devices and have begun developing complete systems that enable patients to receive comprehensive care and treatment through one or multiple devices.
A central theme of the summit was the growing importance of early and ongoing cooperation throughout the innovation process. Numerous firms are now cooperating much earlier in the development process rather than awaiting late-stage acquisitions.
- More strategic partners are becoming involved early in product validation and co-development.
- Healthcare systems have begun to utilize venture groups to link research and commercialization.
- Start-ups are highly encouraged to align with ecosystem needs during the ideation phase.
- Investors in medtech view this cooperative method as a means of minimizing risk and increasing the chances of scalable, clinically relevant results.
Foundationally Creating Commercial Readiness
An additional key takeaway was the necessity of incorporating a commercialization strategy into the development phase, rather than treating it as a milestone achieved later in the process.
Existing cardiovascular technologies now require more than just clinical caliber; they must meet the system’s readiness level.
Pressing factors for manufacturers are;
- Definition of reimbursement pathway
- Ability to scale manufacturing and supply chains
- Ability to secure regulatory compliance across numerous markets
- Integration with current healthcare infrastructure
These characteristics are becoming increasingly important as there will be greater reliance on them in US medtech investment decisions, especially in highly competitive markets such as cardiovascular care.
Data, Integration, and Real-World Effects
The Medtech Summit held by LSI experienced the same problem with the fragmented healthcare system, in which many innovative devices are still deployed without the ability to integrate into the clinician’s workflow.
To rectify this issue, the industry is making strides towards establishing fully interoperable systems that enable complete integration with the electronic health record system and the broader clinician network.
Examples of how to achieve this objective include:
- Integration of real-time data into clinician decision support systems
- Establishment of common standards for data across multiple platforms/ vendors
- Improved visibility into the outcome of a patient across multiple locations of care
- Improved alignment of digital tools with clinical pathways
As a result, interoperability will increasingly be viewed by medtech investors as a fundamental requirement versus a secondary feature.
The Changing Role of Medtech Investors
The cardiovascular innovation market is continuing to become more selective about investment strategies and requires longer time frames to demonstrate a return on investment. Rather than investing based on the strength of a single innovation, medtech investors are looking for technologies that fit into healthcare’s broader care model and ecosystem strategy.
Examples of key criteria that now exist when evaluating investments include:
- Evidence of actual adoption in clinical practice
- Amount of ability to integrate with other care settings
- Scalability of technology across patient populations
- Economic return to the healthcare system over an extended period.
These changes will predominantly be observed across the US medtech industry as competition and governmental regulations continue to increase.
Final Perspective
The cardiology innovations landscape is advancing towards a more connected, united, and sustainable commercial future. Success in the cardiovascular innovations space will no longer be measured solely by technological improvements but also by the ability to implement innovations that integrate into complex healthcare systems and deliver measurable benefit.
As discussed during the LSI Medtech Summit, the future leaders of the cardiovascular care space will be the individuals/companies that harmonize innovation with execution and bridge the divide among clinical need, investment objectives, and the real-world application of their innovations.
