October 12, 2005

For Immediate Release

Growth in Formation of Medtech Startup Companies, Identified by MedMarket Diligence

FOOTHILL RANCH, CA — A burst of activity by entrepreneurs over the past year in founding new medical technology companies points to the areas of growth in healthcare spanning therapies in cardiology, gastroenterology, thoracic/abdominal surgery, gynecology, cancer, obesity treatment and others.  The scope of technologies encompasses minimally invasive therapies, advanced imaging and imaging-associated technologies, novel biomaterials, drug/device hybrids, nanotechnologies, drug delivery and a variety of others.

"We have seen a marked increase in the number of medtech companies founded during the past 12 months, particularly since the second quarter of 2005," notes Patrick Driscoll, President of MedMarket Diligence, a company that analyzes emerging medical technology markets. "Interestingly, we are also seeing as many companies striving to stay 'under the radar' as those who are anxious to get publicized long before their products are close to clinical trials.  Since many of these startups offer the kind of innovation sought by the broad portfolio medtech companies -- making them future acquisitions by Medtronic, Boston Scientific, J&J and others -- there is great interest in these companies.  This has driven equity investment or outright acquisition of these companies at earlier and earlier stages in their development, as the acquirers seek innovation before the market inflates the pricing."

Below is a selection of the technologies of newly founded medtech companies identified since mid 2005 and presented in the monthly MedMarkets publication from MedMarket Diligence:

• 3D display for telepresence
• 3D holographic visualization system
• Active mixing catheter for selective organ cooling
• Bioresorbable sheets, antiadhesion products
• BPH treatment technology
• Catheter-based devices for the treatment of vascular and neurovascular diseases such as stroke
• Contract manufacturer in medical devices
• CT scanner for medical/dental applications
• Device for increasing tumor sensitivity to radiation
• Device for treatment of disorders of skin and nail
• Device technologies for spine and chronic back pain.
• Diagnostic device to detect arteriosclerosis
• Dialysis on a microchip
• Early stage surgical device
• Electrosurgical technologies for hemorrhoid management
• Endoscopic devices
• Fluorescence spectroscopy for diabetes screening
• Image guidance for open liver surgery
• Incontinence control device for males
• Instruments and implants to help surgeons repair foot, ankle and hand bones
• IV fluid delivery system
• Medical device based treatment for obesity
• Medical devices development
• Minimally invasive ablation treatment for uterine fibroid tumors
• Minimally invasive approach to long bone fractures
• Multifunction suction instrument, others
• Nanocomposite silica-calcium phosphate bone substitute
• Radiation protective tray shield, others
• Shape memory technology for bone fracture fixation/fusion and bone remodeling
• Spinal orthopedic devices
• Spine device technologies
• Surgical and percutaneous treatment of cardiac valve and CHF
• Surgical device
• Surgical product development of implants, instrumentation and surgical devices
• System to ensure safety of cardiac ablation
• Titanium osteosynthesis systems and titanium trauma splint
• Treatment of intervertebral disc via conduits to restore nutrient/waste exchange

MedMarket Diligence provides tactical decision-making solutions on medical technology to the medical products and investment industries. The company publishes the MedMarkets newsletter, a monthly analysis of the market implications of new medical technologies, and dedicated Market and Technology Reports on technology markets.  For additional details, contact Patrick Driscoll at email or call 949-859-3401 or toll-free (in the U.S.). 1-866-820-1357.