Spotlight sheds light on a topic of interest or current relevance.
“Disruptive Medtech”. Invest in Medtech companies offering well-founded and implementable disruptive solutions – now possible.
Investing in Medical Technology
Last week, under the leadership of EDURAN AG, the “Evolutionary Medtech Index” basket was launched in collaboration with Leonteq. The actively managed certificate (AMC) aims to select companies in the Medtech sector with so-called disruptive characteristics (approach: problem-picking) and to participate in their success. With Prof. Klaus Neftel as an advisor, investors can benefit from the extensive experience and broad network of the renowned scientist.
We believe this is ample reason to conduct a short interview with Prof. Neftel.
Prof. Neftel, as a former chief physician with scientific work in the fields of infectiology and extensive experience in medical education, you possess a broad network and have a good overview of clinical applications of new medical technologies. Where do you see the greatest potential for the coming years?
If I knew precisely enough, I would probably have good reasons to keep it to myself. The earlier one tries to assess the feasibility of a recognizable potential, the greater the pitfalls. Moreover, potential is often only recognized in isolated instances. Therefore, we seek new developments that address common and important health problems, but which are already scientifically and practically validated. Our primary focus is on the problem. Almost all important problems have solution potential, and the best solutions with potential are often surprises.
Disruptive Medical Technology – what can one expect, from both a health and economic perspective?
It is considered a truism that technological development – alongside demographic changes – is the main cost driver. However, the crucial factor is actually the cost-benefit ratio.
Since the discovery of X-rays, the importance of imaging with ultrasound, CT, MRI, and applications based thereon has become enormous for all of medicine. A significant portion of technical developments has long taken place within a “triangle” that, in addition to imaging (often real-time), includes an invasive procedure and its digitized control as two further cornerstones. An increasingly important example is the broad field of HIFU (High Intensity Focused Ultrasound). Here, high-intensity ultrasound is focused similar to a magnifying glass. This allows for precise elimination of tissue, such as a carcinoma, without opening the overlying tissue. Such methods can even be cost-reducing under certain circumstances. An excellent overview of the now over 100 HIFU indications currently being researched is provided by the Focused Ultrasound Foundation (https://www.fusfoundation.org/)
Not every promising product in the medical field ultimately makes it across the finish line. What do you pay particular attention to, Professor Neftel, when selecting/evaluating “interesting and promising” products/innovations? In your opinion, are there common reasons why innovations have to endure a long dry spell or never achieve a breakthrough?
It usually takes some time until the benefits of innovations are properly recognized (or ruled out), and sometimes even longer until the risks are precisely known. Additionally, there is the time it takes for new knowledge and skills to spread. Certain dry spells are normal. However, there are always hindering influences that have nothing to do with the scientific, technical, or clinical value of an innovation and are therefore even perceived as “unjust”. (For example, if the impression arises that it is because an innovation impairs an existing lucrative market.)
In most cases, one does not possess sufficient in-house expertise. Therefore, in the majority of cases, exchange with users and, ideally, seeing the practical application is important.
Two examples:
HIFU for Varicose Veins: An ultrasound-guided device can treat even difficult varicose vein problems through intact skin, even without disinfection. CE marked for over a year, FDA approval applied for.
mRNA Technology: is currently prominent in vaccine development against COVID-19. However, the technology is also disruptive for developments in oncology and other areas. The enormous efforts during the current pandemic are likely to boost the entire field.
Prof. Neftel, thank you for the interview.