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TWST: What do you see going on in the medical device space? Where are
the breakthroughs or new directions being set?
Dr. Bassett: I think the medical device space will be impacted by a
number of key trends. Overall, there is a major convergence going on
between pharma and devices, both in terms of franchise mix and specific
products. Johnson & Johnson (JNJ) exemplifies this trend with the
acquisition of Scios and the launch of the first drug-eluting stent,
Cypher, in April 2003. Adding an innovative drug, Natrecor ' a novel
agent for treating congestive heart failure ' to its cardiovascular
franchise, along with its leadership in combination cardiovascular drug
devices, created a new benchmark for other companies competing in the
interventional cardiology segment. The use of drug coatings on devices
is a general trend that I expect to translate across segments, and it
may involve the use of antimicrobial coatings, like Edwards
Lifesciences' (EW) PreSep Oligon Oximetry Catheter. Site-specific
delivery of multiple drugs, like Conor Medsystems' (CONR) stent drug
delivery technology platform, is another combination approach that will
expand as well as drug-coated or impregnated bioabsorbable devices.
Another path of entry into pharma for device companies is via new pharma
technology investment. Pharma companies have tended to avoid investing
in new biological technologies, particularly those involving cell-based
products and genome targeted therapeutics. Recognizing that biologicals
can present drug delivery challenges due to potential immunogenicity
and/or short circulating half-lives, many device companies see
opportunities to apply their core expertise in polymers, catheter
delivery systems, implants and pumps to create new products for large
markets with unmet clinical needs. For example, over the past decade,
Medtronic (MDT) has participated in collaborations involving antisense
and cell therapy, and in my view, is building a new core expertise in
combination biological devices.
Tickers included in this excerpt: ABT, BSX, CONR, EW, GERN, JNJ, MDT, SGMO
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