Medquip, Inc. is a medical device development company that intends to design, patent, and market medical devices related to endoscopic surgical niche markets. Three devices have already been designed with the participation of leading physicians and surgeons in gastroenterology. Seven patents are initially incorporated. The company projects $16 million in sales in year three. The company expects to have $50 million in revenue by year five. Patent applications on its first three market entries have already been accomplished using a top patent law firm.
The market segments are clearly defined and all are subject to a high growth trend. One market is projected to exceed $160 million in the next three years. That is the endoscopic variceal ligation market. One of the founders of Medquip participated in the design of the current market leader in that field and has improved upon the product significantly. Another market addresses a well-defined and unanswered need in endoscopic surgery: the clearing of fundal pools of blood and tissue during surgical procedures. A new and innovative design has been created to answer the needs of surgeons.
This market should begin at $20 million but could expand to several hundred million as soon as approvals are obtained for many varied surgical procedures. Medquip intends to license this technology to a larger company. The company becomes mature in year three. The company is potentially profitable in year one only if a proposed licensing agreement can be closed.
The mission of Medquip, Inc. is to design, develop, and market new patented technologies in the medical device field. The technologies will fill market niches that each account for a minimum of $20 million dollars in potential sales. Each technology will fill a current need in medical procedure by improving upon an existing technology or device, or by designing a device to serve a need that is clearly defined and acknowledged by medical professionals. Each product shall be priced to appeal to a managed-care market that stresses lowest cost of total treatment parameters.
Keys to Success
The keys to success for Medquip, Inc. are as follows:
- Initial capitalization obtained.
- All patent applications filed.
- The ability to generate early revenue from non-regulated markets in Europe.
- Licensing at least one technology and application to a major medical device corporation.
- Getting low interest loans and/or grants to fully fund product development and prototype manufacture.
- Recruiting top-notch CEO prior to second round financing and market roll-out.
- Successful 510k approval from FDA to market Visi-Band in the U.S.
- Successful implementation of sales and marketing plan to U.S. managed care market to obtain a minimum 10% market share in the second full year to generate $16 million in revenue.
- Increased product development and continued market share gains to produce a $50 million revenue company by year five.
The principal objectives of Medquip, Inc. are as follows:
- To achieve a 10% market penetration in the endoscopic variceal ligation market by year three.
- To achieve $16 million in revenue by year three.
- To raise $1 million in private seed capital in the first six months.
- To win low interest loans and grants from the government of Puerto Rico totaling $1.2 million in year one.
- To license its technology for the obliteration/suction/irrigation market for $1 million dollars in year one.