Editor’s note: This is another in a series of profiles features companies presented at the annual CED Venture conference.
MORRISVILLE,Matters of the heart are taken quite seriously at startup company Mardil.
The firm, led by chief executive officer Gopal Muppirala and built around patented technology developed by Dr. Jai Raman, its chief medical officer, has developed alternative treatments for invasive open heart surgery that treats congestive heart failure.
More than 550,000 Americans develop congestive heart failure each year. Mardil technology has been used on 12 patients in a trial. Each received the treatment in conjunction with coronary artery surgery and all “demonstrated a dramatic improvement in functional status, quality of life, mitrial (valve) regurgitation and cardiac function,” according to the company.
The target market for Mardil is global in scope, the firm saying some 2 million open-heart procedures are conducted globally at a cost of $1 billion. The firm says its procedure is not only less invasive but also much lest expensive.
Mardil is among the firms emerging in North Carolina’s fledgling medical device sector. The company was among the 33 selected to present at the annual venture capital conference being put on by the Council for Entrepreneurial Development on April 26-27 in Pinehurst.
Questions were answered by Gopal Muppirala, chief executive officer and a veteran with more than 30 years of sales and management experience.
The momentum has picked up over the past year in many segments of venture capital. Are you finding more interest among potential investors? Please explain why or why not.
I do find the interest is picking up after the lull we have seen since 2001. The upswing in the economy is boosting the confidence of the VC community to make deals.
Even in a better investment climate, VCs are more demanding than ever in terms of due diligence. Why should investors be interested in your firm?
Mardil, Inc., which is developing a minimally invasive procedure focusing on mitral regurgitation for its device, is changing the treatment paradigm in this area by creating a safe and effective, yet simple solution that also reduces treatment costs by about half. In addition, Mardil’s product is patented and has been clinically validated with 42 months of follow-up data.
What’s your “elevator pitch” in a paragraph or a few sentences?
Mardil, Inc is offering a minimally invasive procedure to treat mitral regurgitation without the need for an open heart/open chest procedure. We have a clinically validated device with over three years of clinical data and strong IP.
What is the “pain point” (or points) you address for your customers?
We offer a simple surgical procedure that is an innovative new option relative to the current standard of treatment, mitral valve repair/replacement using open heart/open chest procedures. Mardil’s minimally invasive procedure offers medical benefits such as shorter procedure and recovery time, and also economic benefits including the reduction in cost of care both for the patient as well as the hospital.
What makes your company unique? Do you have a proprietary and/or a patented technology? Please explain why it is unique and what the status is of any patent filings.
Mardil’s first product BACE (Basal Annuloplasty of the Cardia Externally) is a next generation product that will revolutionize the treatment of mitral regurgitation, with strong IP (patent issued in 2004).
What makes your product(s) and/or services unique vs. your competition? (Who is your competition, and what do they offer?) If you have no competition, why not?
Current treatment for mitral regurgitation involves open-heart surgery where the mitral valve is either replaced with a mechanical or biological valve or repaired by reshaping the valve with an annuloplasty ring. Mardil with its minimally invasive procedure eliminates the need for open heart surgery and the complications and costs associated with the open heart surgery. There are currently no such FDA approved options available.
Does your company already generate revenue? If so, how much? Are you cash flow positive?
No. We are hoping to launch our first product in late 2006/early 2007.
What is your target market? What is the size of that market in terms of dollars? What share of that market do you believe you can win?
Our target market includes patients who have been diagnosed with mitral valve problems and show symptoms of mitral valve insufficiency. It is estimated that in the US alone, there are about 2 million patients with mitral valve insufficiency. Even though open heart surgery is a limited use option with less than 100,000 procedures per year in the US, the current market value for open heart surgery alone is about $1 billon globally. Capturing just a small share (about 4-5%) of these of these 2 million patients will generate strong revenues of over $250 million.
What will you do with the invested funds? What is the timeline for product delivery? If you have existing products and services, how will additional funding help you expand your company, if that is the intention, or will you develop new products?
The invested funds will be used to develop and seek FDA approval of BACE with the minimally invasive procedure, thereby transforming the current treatment landscape.
What do you want from an investor other than money?
Financial advice on the pit falls associated with a start-up company
Why will investors be impressed with your management team?
Each of our key executives has more than 20 years of experience in their related field of expertise. The inventor (Dr. Jai Raman) of the product is a practicing cardiac surgeon since 1985 with over 70 publications, three patents and two theses in his name. The CEO has over 30 years of commercial experience in the healthcare industry including sales, market research, global marketing and administration.
What is the exit strategy for the investor from your company? Are there potential strategic alliances with larger companies? Do you wish to take the company public? Or do you wish to grow the company and either sell it or acquire other companies?
Our business model is to develop products and partner with a well established medical device company to market the products.
Fact Box About Mardil: http://www.localtechwire.com/article.cfm?u=11029
