Finding and maintaining an edge in medical device innovation is the holy grail of companies like Medtronic (NYSE:MDT).
In late November, Medtronic CEO Omar Ishrak had this tantalizing tweet about that topic:
Returned from exciting trip to
#Israel. Amazing entrepreneurial spirit and energy. Could be next innovation incubator for#Medtronic.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Wait, is Medtronic building an incubator in that tiny Middle Eastern nation?
Turns out, Medtronic is not. But Steve Cragle, the medical device company’s spokesman clarified that what Ishrak was tipping his hat to is that Israel is “is one of the most innovative device clusters in the world.” And that innovation is most apparent in the areas of “imaging, software, guidance and electronics,” Cragle said.
How important is Israel to Medtronic’s future? Very.
In 2010, the Minnesota maker of new innovative medical devices pumped $70 million into BioControl Medical, an Israeli medical devices startup that treats heart failure by stimulating the vagus nerve. It also obtained an option to acquire it outright for $550 million.
In 2009, Medtronic acquired Ventor Technologies, a maker of transcatheter valves for $325 million
In 2006, Medtronic bought Odin Medical Technologies, which develops MRI systems for brain surgery for $9 million.
Further, Medtronic has invested in some Israeli funds, including TriVentures, part incubator, part VC firm. TriVentures II raised $25 million, with Medtronic as the main investor (Cragle declined to say how much), according to VC Cafe. Medtronic also appears to have an investment in Rainbow Medical, a private investment firm.
Currently, there are a total of 200 employees stationed in Israel who work at Ventor, at a sales and marketing office near Tel Aviv and at a R&D and manufacturing office in Yokneam.
So, will Medtronic’s presence in the country grow in years to come? Absolutely.
Ishrak has already highlighted how Medtronic will cast a global eye when it comes to R&D work. And Cragle confirmed Israel’s place in that overall strategy.
“We have not committed to building an incubator there, but we see Israel as a logical place for us to think about developing larger R&D activities,” he said.
Photo Credit: Vectorblog.org
