Med tech company gain arguments for higher valuation through control measures
Overview
We live in a world where cancer is responsible for early causes of death, in one of our key Consultancy regions, Sweden, it is said many of us will suffer from a cancerous disease at some point in their lifetime. The survival prognosis for cancer varies greatly but increases nevertheless, often due to early discovery and improved treatment methods. Rouse Consultancy delivered a project for a Swedish MedTech developer in which enabled them to be in a better position to gain financial support from investors. The client manufactures electronic and medical systems and was looking to invests in building its R&D function. The client sells a revolutionary tool which consists of a heated biopsy needle which applies calculated pressure into tumours, which will help improve and streamline the treatment of cancer.
The client faced challenges in describing and communicating the value of their innovation. They expressed a need to make the intangible assets visible and defined, similar to those of the actual tools they produced. Rouse proposed a project to identify assets suitable for continued analysis and possible patenting as well as identifying, evaluating and valuating those intangible assets. A long term goal was that of establishing itself as a competitive force in the market.
Our approach
Over a number of weeks, the Rouse team worked closely together with the client analysing the market and the business, resulting in assets not previously known or obvious to the client, were visualised and given a value. For example it was concluded that the technology and medical method as such, along with certain aspects and subareas of the technology, were patentable. Based on Rouse’s methodology of identifying-, evaluating- and valuing the assets, Rouse could frame the value of the innovation and commercial potential and therefore provide a figure for what the technology was worth.
Value created
Rouse's methodology and process in identifying the client’s complete innovation helped the client realise the scope of the innovation and how it could be controlled and protected, presently and in the future as well as articulating how they could use that new knowledge to raise capital. This was crucial for the client to move forward with its business and to enhance its communication with investors and customers. Rouse also contributed with added value in describing the client’s assets more thoroughly. This has empowered the client with the knowledge and understanding of how to build its company around innovation, both now and for the future.
