Medical Equipment Developer Business Plan

Medquip, Inc., an American medical device company, plans to patent, design, and market medical devices that are related to niche markets for endoscopic surgery. With the involvement of top gastroenterologists and surgeons, three devices have been developed. Seven patents are initially incorporated. The company estimates $16million in annual sales for year three. The company plans to generate $50 million in revenue for the fifth year. Patent applications for its first three market entries were already made using a leading patent law firm.

Each market segment is clearly defined and subject to high growth trends. One market is projected exceed $160 Million in the next three to five years. This is the market for endoscopic variceal-ligation. Medquip was one of the original founders and helped to design the market leader. The product has since been greatly improved by Medquip. Another market addresses a well-defined and unanswered need in endoscopic surgery: the clearing of fundal pools of blood and tissue during surgical procedures. To fulfill the surgeons’ requirements, a novel and innovative design was developed.

This market could start at $20m, but could increase to several hundred millions once all the necessary approvals have been obtained for different surgical procedures. Medquip plans on licensing the technology to a greater company. The company matures in year 3. The company could be profitable in the first year if it can close a proposed licensing arrangement.

Mission

Medquip, Inc. has the mission to create, develop, and commercialize new patent technologies in medical device industry. Each technology will fill a market niche that could generate at least $20,000,000 in sales. Each technology will either be an improvement on an existing technology, device, or design a new device to meet a clearly defined medical need. The product should be priced so that it appeals to managed-care markets, which emphasize the lowest total treatment costs.

Keys to Success

Medquip, Inc. has the following keys to its success:

1. Initial capitalization obtained.
2. All Patent Applications filed.
3. The ability to generate revenue quickly from non-regulated markets in Europe.
4. Licensing of at least one technology.
5. Getting low interest loans and/or grants to fully fund product development and prototype manufacture.
6. Recruiting top-notch leaders before second round financing.
7. FDA approval for Visi-Band marketing in the U.S.
8. To achieve a minimum 10% market share in the U.S. managed healthcare market, and generate $16 million in revenue in the second year, successful implementation of a sales and marketing plan.
9. To achieve a $50 Million revenue company in five years, we need to increase product development and continue market share growth.

Objectives

Medquip, Inc. is focused on the following objectives:

1. To reach a 10% market penetration in endoscopic variceal (ligation) by the third year.
2. To achieve $16 million in revenue by year three.
3. To raise $1,000,000 in private capital within six months.
4. To win low interest loans and grants from the government of Puerto Rico totaling $1.2 million in year one.
5. To license its technology for the obliteration/suction/irrigation market for $1 million dollars in year one.