Keeping In Touch - April 2019

KEEPING IN TOUCH VENTURE CENTER'S QUARTERLY NEWSLETTER

Seeding Tomorrow's Enterprises Today

CONTENTS Dear Friends and Well-Wishers

02

The great opportunity for medical products in India Expert Article by Dr. Premnath

04

Venture Center News

05

New Startups and Innovators

06

Startup Spotlight

07

Event Highlights

Awards and Recognition

www.newsletter.venturecenter.co.in THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

The recent introduction of the new medical devices rules has played a crucial role in providing a distinct identity to the medtech sector, and there is a renewed effervescence in the sector. Dr. Premnath shares his insights on why India is at inflection point in the medical products space!

In this issue, you can also read about the exciting new technologies and ideas being pursued by the new innovators who have joined us. We also share some highlights from the immensely successful international workshop on Medtech products.

We hope you enjoy this issue!

PAGE 1

Opportunity is knocking the doors of the Indian medtech industry!

EXPERT ARTICLE - Dr. Premnath Venugopalan

On 25-26 March 2019, Venture Center collaborated with BIRAC and PATH to organise a workshop on Medical Products in New Delhi. Dr. Premnath shares his insights and lessons that can be learnt and reflects on why India is at an inflection point in the medical products space: Snapshot of the market The global market for medtech products is roughly 400-500 billion USD and showing a CAGR of 2-5% per year. Major geographical markets are -- Americas – 40-46%; Western Europe – 30%; Asia – 18%; Eastern Europe – 4-5%; Middle east/ Africa -2-3%. Within Asia, Japan – 10%; China -2.7% and India – <1 %. Even in Middle-income countries, India is 4th after China, Brazil, Mexico.

Lessons: The Indian market in value terms is relatively miniscule! The bad news (for consumers) here is that the Indian consumer is not very high up in priority and so will not see the latest products early in the product life cycle. The good news (for entrepreneurs) is that the global players are not really interested as much in the Indian market. The small innovators in the developed world definitely cannot afford to focus on the Indian market.

The Indian healthcare sector is roughly 40 billion USD and growing at CAGR of 10-12 %. Of this, the medical devices segment has a market size of approximately 2-5 billion USD (6% of Healthcare sector) and growing at CAGR of 15%. Thus, India is amongst the top 20 in global medical devices market and 4th largest in Asia after Japan, China and South Korea.

Lessons: The Indian medical devices segment is a fairly large market in absolute numbers (in terms of value) and growing rapidly. Given India's large population, there is a large unmet and unserved need. But it is quite possible that the unmet and unserved need will not provide a healthy margin to entrepreneurs.

The good news here is that Indian entrepreneurs have a large domestic market that they can cater to and a >100 times larger global market to grow into. There is also the opportunity to serve an met need with significant scale.

THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

PAGE 2

Opportunity is knocking the doors of the Indian medtech industry!

EXPERT ARTICLE - Dr. Premnath Venugopalan

Industry Snapshot The global medtech industry is heavily dominated by a relatively small number of companies and countries. Top 30 companies of the world control of 80% of sales. These companies are from USA, Germany, Ireland, Netherland, UK, Japan and Switzerland. Average total returns to shareholders (TRS) of 18 percent a year from 2011 to 2016, compared with 15 percent for the S&P 500. More than 60 percent of the growth of the largest medtech players is due to M&A, net of divestitures.

In India, Indian players are relatively small. 80% of sales in India is credited to imports. Worldwide there is a concern for increasing healthcare costs and need for more cost effective solutions.

Lessons: The industry is dominated by few players (monopolistic or oligopolistic). The margins are attractive. This is the perfect recipe to attract new incumbents. An industry with a track record of M&A is also perfect for startups with niche offerings to be created, funded by investors and for investors to find exits. This industry has space for both products with new performance and benefits and also for products that change the cost structure. Again perfect conditions for Indian medtech entrepreneurs!

Another interesting aspect is the nature of the industry in the US. The US is the world leader. 19 of top 30 companies are from USA. 25% of revenue of the industry in US is due to exports (rest is domestic!). The industry creates 2 million jobs in the US (of which 500,000 are direct jobs). More than 80% of companies have fewer than 50 employees. R&D spending is 7% of revenue.

Lessons: The medtech industry is a perfect example of a knowledge-intensive/ technology innovation driven industry; an industry where knowledge workers and technology innovators can play, perform, maintain an edge and prosper. The medtech industry creates high quality STEM jobs. The industry has considerable potential for contributing to socio-economic development and impact.

Summary The circumstances are very favorable for Indian medtech startups and companies at this time: (1) Large under-served domestic need; (2) Sizable existing domestic market; (3) Overprized products; (4) 80% imported; (5) Attractive global opportunity and space to grow; (6) Going by US story, perfect industry for small companies; (7) M&A opportunities; (8) Knowledge intensive industry; (9) Opportunity to create large number of jobs via relatively smaller companies.

While we prepare for this opportunity, we should keep in mind the key drivers in this industry. The Frost and Sullivan CEO Survey listed amongst other top concerns the following -- Technology disruptions, Global turmoil and uncertainties and Regulations.

THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

PAGE 3

WHAT'S NEW? VENTURE CENTER NEWS

Smart Incubator of the Year - Certificate of Merit Venture Center received the certificate of merit in the Smart Incubator of the Year category at India Smart Utility Week (ISUW2019) organized by the India Smart Grid Forum. The certificate was in recognition of our incubation efforts as India's largest inventive enterprises Incubator for Science and Technology based Startup Businesses.

New Team Members Other News and Updates: Ashutosh Prachand from the IP Facilitation Center at Venture Center has cleared the Indian Patent Agent Examination.

Ijaz Inamdar Manasi Hirekodi Mona Patil Asst. Manager Administration Associate ManagerCAMS Executive Operations

Madhurima Hunuswadkar Senior Executive- HR

THE DAILY PEEP

Tejasvi Tajane Lab Associate

ISSUE 10- JAN'19 TO MAR'19

The Scientific Lab team at Venture Center partnered with BMek to win honors at the Zeiss Image Processing Contest for the best coding project using image processing and machine learning. Their workflow solution was shortlisted among the top 5!

Smita Kale from the incubation team was invited to speak on Opportunities in biotechnology, biomedical engineering, renewable fuels and biomedical services at the AIC ALEAP WE-HUB One Day Awareness Program.

PAGE 4

WHAT'S NEW? NEW STARTUPS AND TEAM MEMBERS(SEP'18 - MAR '19)

Connexions Biosolutions Connexions Biosolutions is working towards demonstrating proof of concept for a novel, sophorolipid based bacteriophage resistant dairy starter culture to be used in industrial fermentation of dairy products.

Tenon Meditech LLP The company is working towards developing specialised applicators with smart electrodes to extend the reach of electro-chemotherapy (ECT) to cervical and colorectal cancer tumours.

IntEssence Solutions Intessence is working towards developing novel â&#x20AC;&#x153;endosseous dental implant systemâ&#x20AC;? (to replace lost tooth) that is easier to place and costs 40% less than equivalent products.

CyCa Oncosolutions CyCa Oncosolutions is working towards developing novel drug delivery platform (engineered biomolecule) that has versatile applications as a specialty pharma product to improve the efficacy of generic/patented drugs, a research reagent for cell biology and live cell imaging and gene therapy.

BMek Tech LLP Bmek provides IoT, Machine Learning & Big Data Analytics based solution to support various phases of product development.

Innoscent The company is developing AI driven dictionary of scents and nanotech based scent delivery system that can create any combination of scents digitally for various applications like home, malls, theatre, gaming industry .

NIDHI EIR Fellows - Round 2

Aneesh Sane

Sujay Phadke

Akondi Saisri

Shubham Singh

Shashank Gupta

Jenil Dedhia

NIDHI PRAYAS - Round 2

Mehul Baldwa

Sunu Engineer

THE DAILY PEEP

Varun Seth

Pramod Bhurji

ISSUE 10- JAN'19 TO MAR'19

Ashwin Shankar

Sudhir Muthyala

Neelam Dwivedi

Aditya Kabra

PAGE 5

SPOTLIGHT AWARDS AND RECOGNITION

Aarna Biomedical featured in Forbes India magazine. Read more.

MediAsha Splint Technology was displayed at the Technology Mela event at Pragati Maidan, Delhi.

Periwinkle, Jeevtronics, Sensivision, and Module Innovations won the Social Alpha Quest for Health care innovations.

Ather Energy won the platinum award in the category of Innovative Electric Vehicle of the Year at the India Smart Utility Week (ISUW2019).

Geethanjali Radhakrishnan of Adiuvo Diagnostics makes it to the 2019 Forbes India W-power list. Read more BioPrime Agrisolutions was the only startup invited to present their SNIPR technology at the BioAg World Congress held in India for the first time.

Actorius Innovations and Research has received permission for manufactoing for sale of their OncoViu CTC kit (Brand Name: OncoDiscover) to detect early metasis in cancer as a liquid biopsy.

Anuya of Biolmed, Renuka of BioPrime, and Vanita of REVY won the TiE-BIRAC WiNER Award for Women in Entrepreneurship.

Ajinkya Dhariya of Padcare Labs received the BIRAC SoCH award.

PadCare Labs also received the Government of Maharashtra (GoM) and NASSCOM's innovative startup award 2019 during NASSCOM Technology and Leadership Forum (NTLF).

Aarna Biomedical and Periwinkle Technologies launched their products â&#x20AC;&#x201C; Poorti and Smart Scope during BIRACâ&#x20AC;&#x2122;s foundation day.

Blackfrog Technologies won first place at the Falling Walls event conducted by the German Center for Research and Innovation (DWIH) and DAAD.They will now be pitching at the international event in Berlin in November 2019.

Nilay Lakhkar from SynThera Biomedical received the Tarun Tejankit award for young achievers 2018 from Loksatta.

Heelium has been awarded the National Entrepreneurship Award 2018 in Textile by the Ministry of Skill Development and Entrepreneurship THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

PAGE 6

EVENT HIGHLIGHTS SNEAK PEEK INTO THE BUZZ THAT'S KEPT US BUSY

International Workshop on MedTech Products - Navigating Global markets & regulations Organized by BIRAC Regional Bioinnovation Centre at Venture Center and Tata Trusts PATH Impact Lab

Medical devices including diagnostics comprise one of the fastest growing industries globally. The focus of the workshop was not just an in-depth understanding of regulations and compliance in India but also varied international geographies for potential growth and expansion.

Highlights from the event Dr. Renu Swarup and Dr. Shekhar Mande delivered the inaugural address. Dr. Renu Swarup emphasized the need to identify different models to help healthcare startups navigate innovation in both the domestic & global market.Dr. Shekhar Mande reflected on how the pace of technological development in the past 20 years has superseded development over the past 100 years.

Krishna Kumar of Aurolabs talked about getting regulatory approvals for Ocular Lenses in different international markets, and touched upon the importance of product liability insurance in global market.

Nandakumar Subburaman of Perfint Healthcare shared insights and recommendations on startup do's and don'ts, while sharing the challenges of MAXIO deployment in the global market.

Sureshkumar of GE Healthcare, talked about the benefits of regulations in healthcare, and shared lessons learnt in the initial phases of GE Healthcare devices in India and worldwide.

Suman Rijal of DNDi talked about their experience in innovation, research & development for medical treatments in areas such as AMR, neglected diseases, HIV, & drugresistant malaria.

Chandrasekhar Nair of Bigtec Labs spoke about the global journey of TrueNat MTB: a diagnostic device for TB. Dr. Milind Antani introduced upcoming rules and regulations relevant to medical products on pricing, packaging and Data Privacy. He also spoke about the paradigm shift in this sector, with an increasing number of Indian medical products going glocal (global + local).

Krishnakumar Sankaranarayanan of PwC India, highlighted the different modes available for startups entering global markets with respect to costs, timelines, and risks -- distributor, licensing, partnerships etc.

THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

PAGE 7

EVENT HIGHLIGHTS SNEAK PEEK INTO THE BUZZ THAT'S KEPT US BUSY

Mentor Mixer on Fundraising & business development for Medtech startups Organized by BIRAC Regional Bioinnovation Centre at Venture Center and IKP EDEN

Venture Base Camp on Regulatory Processes and Certifications

Hardware Skills for the Hobbyist

Commercialising disruptive and market creating innovations in deep-tech

Weaving Social Objectives into Engineering Education

For the full list of past and upcoming events, please visit: www.venturecenter.co.in THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

PAGE 8

OUR PARTNERS AWARDS AND RECOGNITION

Supported by

Corporate Sponsors

FOLLOW US ON YOUR FAVORITE SOCIAL MEDIA SITES Twitter: venture_center https://twitter.com/venture_center Facebook: venturecenterpune https://www.facebook.com/venturecenterpune/ LinkedIn: venture-center-pune https://www.linkedin.com/company/venture-center-pune/

GET IN TOUCH WITH US TODAY: Venture Center, 100, NCL Innovation Park, Dr. Homi Bhabha Road, Pashan, Pune, 411008 Website: www.venturecenter.co.in Contact: +91 - 20 - 25865877

THE DAILY PEEP

ISSUE 10- JAN'19 TO MAR'19

PAGE 9