Guidehouse Helps Medtech Startup Navigate a Complex Market, Leading to Substantial Acquisition

Challenge

Armed with five years of safety and efficacy data, a startup with an innovative minimally invasive treatment option for a chronic lower back pain was in the early stages of preparing for commercialization.

However, the startup’s main competition had just discontinued its rival product due to worse-than-expected clinical outcomes and low market adoption.

Before investing significant resources, the startup leadership team knew it needed to better understand the market dynamics in order to drive sustainable market penetration and growth. The team enlisted Guidehouse, to perform a strategic market assessment to:

  • Understand the true market opportunity.
  • Effectively identify patients most likely to benefit from the therapy.
  • Evolve treatment pathways, so patients would be reached at the right time with the new therapy option.

Solution

Guidehouse used its proprietary methodology and tools to define the long-term commercial opportunity. The strategic assessment also characterized the market development plan, investments, and timeline necessary to achieve rapid, broad adoption, as well as a pathway to standard of care. In the process, Guidehouse: 1) analyzed more than 100 pieces of clinical literature, industry data, and healthcare claims to create a uniform view of the market opportunity; 2) defined the type and magnitude of key market barriers, including the potential value proposition against standard of care; and 3) created scenario-based forecasts to define the impact and ROI of targeted market development investments over a five- to 10-year timeline.

Results

The strategic market assessment and patient-journey analysis demonstrated several powerful drivers for the startup’s technology. These included a large and accessible prevalence, a compelling value proposition in 75% of indicated patients, and a well-defined flow of patients to potential technology users and decision-makers.

In the end, the startup’s leadership team could clearly see several strategic options and approaches they or a strategic acquirer could take to achieve broad adoption — along with the investments, strategies, and timelines required to do so.

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