Medtech

Medtech Market Dynamics and Challenges

From medical devices, diagnostics and tools companies to digital health and convergence opportunities with biopharma, the medtech space is experiencing a major growth movement in terms of innovation, globalization and access to capital. There have been an increasing number of FDA approvals and medtech companies have experienced a strong private fundraising market, which has been further strengthened by global investors. IPO activities are trending toward revenue-generating companies and M&A activity continues to support industry consolidation for both emerging product-based companies as well as large strategic medtechs.

Enter Locust Walk

For a medical device, diagnostic, instrument, or medical technology, understanding the utility and need for a particular product as well as analyzing and validating the commercial market is often key to landing a financing or high-value exit. Locust Walk is uniquely positioned to assist in all these areas.

There is great excitement for medtech companies approaching their first-in-man or initial regulatory clearance. These companies benefit from Locust Walk’s business acumen, added bandwidth, and ability to run a strategic or financing process. We’re able to recommend potential investors and alternative funding sources, such as family offices, to execute on the transactions needed to get these companies to the next step in their evolution.

As companies advance toward market, we typically continue an engagement to create a market demand and find the best price and identify potential alternative buyers and investors to fully realize the potential of their products.

On the buy side, many private equity-backed or small cap public companies with one or more marketed products are hungry for commercial stage deals to more quickly accelerate their growth trajectory. We collaborate with these companies to identify and transact target assets and companies to build out their commercial portfolios with complimentary products acquired at the right price.

Locust Walk provides the guidance and resources required for medtech companies to advance to the next level in their growth trajectory – from assessing their first product to building a portfolio to gaining access to the public markets.

Our team’s deep industry experience enables us to help medtech firms scale up through rigorous assessment and analysis, connectivity with funding sources and strategic partners, and hands-on operational support.

Business & Corporate Development

Financing & IPO Advisory

OVERVIEW

  • Business case development
  • Targeted partner outreach
  • Due diligence staging
  • Deal structuring and evaluation
  • Contract negotiations

RESULTS

  • Data-driven approach
  • Structured process
  • Competitive tension and bidding
  • Real-time negotiations
  • Maximum deal value

OVERVIEW

  • Commercial assessment
  • Investor materials preparation
  • Targeted investor outreach
  • Due diligence staging
  • Introductions to bankers and research analysis
  • S1 drafting (business section)

RESULTS

  • Robust understanding of opportunity
  • Succinct presentations
  • Relevant Investors
  • Competitive process
  • Realistic valuation and optimal outcome

Buy-side Process

Sell-side Process

OVERVIEW

  • Asset criteria development
  • Opportunity screening
  • Profile development
  • Target outreach
  • Due diligence
  • Deal structuring and evaluation
  • Contract negotiations

RESULTS

  • Strategic fit
  • Non-obvious opportunities
  • Timely decision-making
  • Transactability
  • Immediate increase in shareholder value

OVERVIEW

  • Business case development
  • Targeted partner outreach
  • Due diligence staging
  • Deal structuring and evaluation
  • Contract negotiations

RESULTS

  • Data-driven approach
  • Structured process
  • Competitive tension and bidding
  • Real-time negotiations
  • Maximum deal value

Analyzing and validating the commercial market for a device, is often key to land a financing or a great exit. Locust Walk is uniquely positioned to assist in all these areas.

All our companies can benefit from our extensive operational and fundraising experience to have everything ready for a financing all the way through an M&A transaction. Our team is there every step of the way from evaluating the potential market and reimbursement, to finding that ideal partner to take the company to the next level.

Business & Corporate Development

OVERVIEW

  • Business case development
  • Targeted partner outreach
  • Due diligence staging
  • Deal structuring and evaluation
  • Contract negotiations

Business & Corporate Development

RESULTS

  • Data-driven approach
  • Structured process
  • Competitive tension and bidding
  • Real-time negotiations
  • Maximum deal value

Financing & IPO Advisory

OVERVIEW

  • Commercial assessment
  • Investor materials preparation
  • Targeted investor outreach
  • Due diligence staging
  • Introductions to bankers and research analysts
  • S1 drafting (business section)

Financing & IPO Advisory

RESULTS

  • Robust understanding of opportunity
  • Succinct presentations
  • Relevant Investors
  • Competitive process
  • Realistic valuation and optimal outcome

Analyzing and validating the commercial market for a device, is often key to land a financing or a great exit. Locust Walk is uniquely positioned to assist in all these areas.

All our companies can benefit from our extensive operational and fundraising experience to have everything ready for a financing all the way through an M&A transaction. Our team is there every step of the way from evaluating the potential market and reimbursement, to finding that ideal partner to take the company to the next level.

Business & Corporate Development

OVERVIEW

  • Business case development
  • Targeted partner outreach
  • Due diligence staging
  • Deal structuring and evaluation
  • Contract negotiations

RESULTS

  • Data-driven approach
  • Structured process
  • Competitive tension and bidding
  • Real-time negotiations
  • Maximum deal value

Financing & IPO Advisory

OVERVIEW

  • Commercial assessment
  • Investor materials preparation
  • Targeted investor outreach
  • Due diligence staging
  • Introductions to bankers and research analysts
  • S1 drafting (business section)

RESULTS

  • Robust understanding of opportunity
  • Succinct presentations
  • Relevant Investors
  • Competitive process
  • Realistic valuation and optimal outcome

Medtech Transaction Highlights

CLIENT: Rapid Micro Biosystems

TRANSACTION:

Growth capital for automated, rapid microbial detection system for the healthcare product manufacturing sector

$60M Private Placement

VIEW CASE STUDY>>

Bioceptive

COMPANY: Bioceptive

PARTNER: Investors

TRANSACTION:
Raised $3.5M from angels, VC and family offices

View details »

SafeStitchTransEnterix

COMPANY: SafeStitch

PARTNER: TransEnterix

TRANSACTION:
Company merged with TransEnterix

View press release »

CLIENT: Flora Bioscience

PARTNER: Olm Diagnostics

TRANSACTION:

Led sell-side partnering process for a women’s health infectious disease POC diagnostic

VIEW CASE STUDY>>


COMPANY
DermaSensor

PARTNER: Investors

TRANSACTION:
Raised $2.5M from angels and family offices

COMPANYGiteliScope

PARTNER: Investors

TRANSACTION:
Raised $5M from angel investors

View press release »

Locust_Otsuka_Proteus

CLIENT: Otsuka

PARTNER: Proteus

TRANSACTION:
Worldwide License and Collaboration Agreement

View case study »

SafeStitch


COMPANY: SafeStitch

PARTNER: Investors

TRANSACTION:
Raised ~$25M in private financings

Locust_Otsuka_Proteus

CLIENT: Otsuka

PARTNER: Proteus

TRANSACTION:
$62.5 Million Follow on Financing

View case study »

SafeStitch

COMPANY: SafeStitch

TRANSACTION:
Took company public in a reverse merger and raised $12M in the three years company was public