Asia and Israel in the Hunt for Cardiovascular Innovation

13 Nov

By Michael Quigley, Director of Research, LSN

mike-2

Cardiovascular disease, the leading cause of death in the U.S., represents a massive market for life science products. LSN’s tracks both companies working on new technologies in the cardio space as well as investors looking to fund those technologies through our two data platforms. Looking at both companies and investors can provide a dynamic picture of the space as a whole.

Of the cardio technologies currently in development or in clinical trials worldwide, LSN has identified 561 that are therapeutic and diagnostic products and 238 that are medical devices. We then looked at cardio sub-indications to determine which ones have the most new-product development. (See Figure 1.)

1

Figure 1

For entrepreneurs working in these sub-indications, this figure should provide some insight into the competitive landscape. Products targeting hypertensive diseases, for example, have significantly more competition than products targeting chronic rheumatic heart disease. When seeking capital, it is crucial to understand the products you are competing with and what differentiates yours so that you can convince investors that your opportunity deserves their capital more than others.

The vast majority of therapeutics and diagnostics products and medical devices that are targeting cardio are from companies based in the U.S. However, several other countries are a source of innovation as well. (See Figures 2 and 3.)

2

Figure 2

3

Figure 3

It is interesting to note that while Israel isn’t among the top 11 countries for emerging cardio therapeutics and diagnostics, it is in second place in the medical device space. Asian countries make up three of the top five countries developing cardio therapeutics and diagnostics, while only Japan is in the top 11 for emerging cardio devices. Also worth noting is the significant innovation in both areas from Germany, the United Kingdom, Canada, and Switzerland.

Now let’s take a look at which countries and regions cardio investors are interested in based on their current exposure. (See Figure 4.)

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Figure 4

Most investors are looking to invest in the U.S, which is in line with where the majority of innovation is taking place for this indication. Investors are also directing their attention globally and to Western Europe, Canada, and Eastern Europe respectively—areas where we also found innovation taking place. An area that appears to have a significant imbalance between innovation and investment interest is Asia, particularly in the therapeutics space. We have recently increased our efforts in this region; however, it still could remain true that the emerging Asian cardiovascular market is currently underserved when it comes to capital.

The types of investors interested life science products targeting cardio are fairly consistent with what we have seen in the life science space as a whole. (See Figure 5.)

5

Figure 5

All ten categories of investors have at least some level of interest in cardio, and as we have noticed for other indications, venture capital, private equity, and family office investors have the most. The interest across all ten categories highlights the importance of looking at all classes of investors when fundraising to help increase your odds for success. We look forward to providing this level of analysis in other indications areas in future issues, so be sure to keep an eye out for the indication relevant to you.

One Response to “Asia and Israel in the Hunt for Cardiovascular Innovation”

  1. Albert Kretz November 13, 2014 at 5:15 pm #

    Michael,

    What are your mandates for Diabetes?

    Specifically: Artificial Pancreas &/or Continuous Glucose monitor

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