Marketing and Competition
Market and Competition
Market Size: Stabilizers and Heart Positioners
CardioGenerics will enter the market with two competitors; Medtronic and Getinge. Both companies sell only single use disposable stabilizers and heart positioners. As we can re-use the expensive flexible arm, we will have a significant cost advantage.
The cost advantage is protected by a provisional patent already in the USPTO. A utility patent should file soon which should provide protection for reusable/disposable heart stabilizers and positioners.
The market size is large; over $600MM in cardiac surgery supplies and $500MM in Endoscopic Vein Harvest.
Value Chain and Sales Strategy
Business model: How do we get paid?
Two key partners
We plan to leverage two key partners;
- Distribution Partner
- Contract Manufacturer
The sales cycle starts by CardioGeneric dedicated sales reps gathering leads at 8-10 cardiac surgery meetings held annually. Our primary customer is the Purchasing agent who is motivated to save the hospital money. The purchase agent will work with a hospital value committee comprised of clinicians and hospital administrators. To simplify supply chain logistics at the hospitals, Cardiogenerics will use a distribution partner. The hospital will issue a purchase order to the distribution partner and Cardiogenerics or the distribution partner will ship product to the hospital.
To conserve capital, Cardiogenerics will contract finished device manufacturing and sterilization.
Go to Market Strategy
CardioGenerics will develop key physician partners in the midwest; Michigan, Minnesota and Illinois. These hospitals will evaluate the product prior to launch to validate that the product meets the customer needs. (Note: safety and efficacy testing will be done prior to customer validation)
CardioGenerics will exhibit at 8-10 major cardiac surgery meetings in the U.S., Europe and Asia Pacific. During the second year, we will hire three direct sales representatives and at least one European distributor.
Full product launch should happen 12 months after receiving seed funding.
CardioGenerics will focus on off-pump surgery. Patients typically need fewer blood products, recover faster, have less cognitive problems than on pump surgery. The heart is manipulated by placing a suction based heart positioner on the bottom (apex) of the heart. A cardiac stabilizer immobilizes the beating heart in the area of the bypass.
On-Pump Cardiac Surgery
On pump cardiopulmonary bypass surgery puts the patient on the heart lung machine and stopping the heart. Surgeons can work on a still, non-beating heart. This has been practiced since the 1970’s. The surgeon routes either an artery or a vein around the blocked artery.
Saphenous Vein Harvest
The saphenous vein is harvested from the leg and used as a conduit to bypass around a blocked artery. Vein harvesting uses a minimally invasive method with an endoscope to require only small wounds in the leg rather than a large scar. The technique requires sealing the saphenous vein and side branches. CardioGenerics will develop a reusable/disposable system to cut costs in half.