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December 2011




      From Idea t Market
      F     Id to M k t
      Use: P
      U    Practical Notes
               ti l N t
From Idea to BedSide:
  A Practical Guide


        Orna O PhD
        O     Oz,
 BioMedical Strategy (2004) Ltd
                  gy (    )
 Clinical & Regulatory Affairs Group

                               December 2011
Medical Product



A Multidisciplinary Project




                       December 2011
Medical Product

                Technological
                  Solution
                                    Market
Medical Need                       Analysis



                                 Regulatory
                                 R   l t
Patentability     Scientific
                  Evidence           &

                                Reimbursement

                  Funding




                                          December 2011
Main Target Markets
             g

EU                   USA




                      December 2011
Main Target Markets
        g



Combined Planning and
      Workflow




                   December 2011
Medical Device
                  Definition
• an instrument apparatus … implant in
     instrument, apparatus,      implant,
  vitro reagent, or other similar or related
  article,
  article including a component part or
                                  part,
  accessory
• Used for the diagnosis treatment or prevention of
                diagnosis,
  disease or condition
   and that
• Affects the structure or function of the body
• Does not achieve its function through chemical
  action
• Is not metabolized to achieve effect

                                          December 2011
Premarket Phase




Regulatory Strategy



        Pre Submission (NB, FDA)




                                   Quality Assurance




                                                       December 2011
Project Steps (
       j       p (Life Cycle)
                        y )
• Research & Proof of Concept

• Regulatory Strategy (for regulated products)

• Project initiation – System/Market Requirements

• Specifications and Risk Analysis / Traceability Matrix

• R&D framework
   • Verification and Validation: bench, ex-vivo, in vivo
   • Clinical

• Submission/s       market approvals

• Market penetration
                                                      December 2011
Regulatory Path
          g      y
                           •Proof of Concept
                            •Requirements
                                q
                           •Risk Assessment
       US                                EU
            Regulatory Pathway            Finalize discussion with Notified
                               gy
            and Clinical Strategy                body for Strategy
Pre-
IDE

                                          Development +




                                                                          Quality System
                                                                          Q
                                     Verification & Validation



                   Poolability
                                            Clinical Study
                                                (OUS)

               IDE Clinical Study
                 (US and OUS)
IDE
                                               CE Mark
              510(k) Clearance/PMA
                     Approval

                                                                   December 2011
Regulatory Strategy
    •   Intended use & Indications for use (Claim)
    •   Regulatory Cl
        R    l      Classification
                         ifi   i
    •   Applicable standards and guidelines
    •   Proposed pre clinical Testing
                  pre-clinical
    •   Clinical Strategy (pre and post market)


• Re-assess intended use and/or indications for use
• Re assess technological (engineering) approach and R&D plan
  Re-assess
• Re-assess business plan – designated product, timelines and
 budget



                  Alternative approaches
Claim / Intended Use

Intended U
I t d d Use:
  What is being done
              g
  Sometimes where it is being done
  Sometimes why it is being done

Indications:
  Diseases
  Patients
  Subsets


                                     December 2011
Implications of Claim
                     SPECIFICITY LEVEL

1. Identification of function            Tool Claim
2. Identification of tissue type
   an organ system or
                                         (higher clinical
   Identification of a specific             evidence))
   organ
3. Identification of a particular
   disease or target population
4. Identification of an effect on
   clinical outcome
                                         Clinical Claim

                                            December 2011
CDRH’s Risk Based Paradigm
                        g

Class I



                      Class
                       II




          Class III
                              December 2011
Classification
Determination of Risk




    Risk / Benefit
        where
Benefit Outweighs Risk




                         December 2011
Classification
              Determination of Risk
              User/Pt            g
                             Mitigation




Environment                               Generic
                                           type




         Circumstances       Claim



                                          December 2011
Risk-Benefit
                      (Safety / Efficacy)
•A great deal of emphasis is placed on the importance of
clinical data in demonstrating the safety and effectiveness
of a medical device.
Still….Non-clinical data also can be critical to
understanding device safety and effectiveness.
Medical devices often h
M di l d i          ft   have attributes th t cannot b t t d using
                               tt ib t   that      t be tested i
clinical methods alone and that play a major role in the safety or
effectiveness of the device.
FDA Guidance (Aug 2011): “Factors to Consider when Making Benefit-Risk
Determinations in Medical Device Premarket Review”


   Clinical and non-clinical data play a
  role in the benefit-risk determination
                                                                 December 2011
Classification




                 December 2011
R           D
            Animal




            Design
Ex i
E vivo                   Bench
                         B   h
         & Development




            Clinical




                           December 2011
System Requirements
•   Intended use
•   Target population (indications)
•   Product description
•   Applicable Standards And Guidelines
•   Requirements (safety, performance, usability,
    marketing):
    – Output / Outcome (measures or outcome of treatment),
      accuracy / efficacy
    – Biocompatibility, cleanness (
             p         y,         (sterility)
                                           y)
    – Mechanical and electrical properties
    – Compatibility with target anatomy
    – C
      Compatibility with other products (
             tibilit    ith th     d t (accessories, additional
                                                i     dditi   l
      under the same procedure….)
    – End user

                                                    December 2011
December 2011
Standards and Guidelines



 To be routinely surveyed




                     December 2011
Standards and Guidelines
• General:
  –   Regulatory decisions and Classification
  –   Design Control
  –   Clinical
      Cli ical
  –   Biocompatibility
  –   Electrical
      El t i l
  –   Software
•S
 Specific / Special
     ifi S      i l
  – Specific to that family of devices or specific
    properties of device (material, energy type and
             i   fd i (         i l                d
    level, etc.)

                                                December 2011
Traceability Matrix



A Matrix Based Approach




                   December 2011
Traceability Matrix
Functional           Clinical       Clinical Risk                  Verification & Validation
Requirements         Risk           Mitigation by    Type of Evaluation            Specific Procedures
Biocompatible        Systemic       Materials and   Biocompatibility         Compliance with ISO 10993-
                                                                                   p
                     adverse        design          testing; animal          1:2009 Biological evaluation
                     reaction,                      testing, clinical data   of medical devices - Part 1
                     death                                                   (e.g., Cyotoxicity,
                                                                             Sensitization, Etc.))
Electrical and EM    Serious        Design and      Electrical and EM        Test Report demonstrating
safe                 burns,         IFU             Testing                  compliance with EN 60601-1
                     death                                                   (2006) + A1 & A2 - Medical
                                                                             Electrical Equipment - Part
                                                                             1: General Requirements for
                                                                             Basic Safety And Essential
                                                                             Performance
Compatible with
C      tibl   ith    Injury,
                     I j            Design d
                                    D i and         Specific b
                                                    S    ifi bench tests,
                                                                  ht t
other equipment In   death (e.g.,   IFU             animal testing,
the clinical arena   pacemaker                      clinical data
                     will not
                     function)
                     f    ti )
Functional           Injury,        Design and      Specific functionality
(mechanical/tissue   death          IFU             tests, animal testing,
interaction/target                                  clinical data
organ))

                                                                                December 2011
Risk Analysis
                • Patient Injury
    Effect of     (expected
    Failure       complications)
     Harm       • Device
                  Deterioration



                         • Design
            Cause of
            Failure      • Manufacturing
                         • User Error



                         • Design
                         • Protective measures
            Mitigation
                g          in manufacturing
                           process
                         • Labeling (IFU)



                                   December 2011
Risk Assessment Table
    (1st approach)


A Matrix Based Approach




                   December 2011
Risk Assessment Table
                      (1st approach)
  Mode of            Effect of              Cause of            Risk Control                     Verification
  Failure /       Failure / Harm            Failure             (Mitigation)
  Hazard
Hazards Related
to BIOLOGICAL
Hazards Related
to
MECHANICAL
Hazards Related   •   Loss or            1. Inadequate      1. Design (e.g., Device     Functionality Testing
to                    Deterioration of
                      D t i     ti   f      specification
                                                ifi ti         designed with
                                                               d i     d ith
PERFORMANCE           Device.            2. Insufficient       integrated radiopaque
                  •   Patient Injury        control of         markers)
                                            manufacturin    2. Protective measures in
                                            g processes        manufacturing process:
                                                               QC inspections during
                                                               production
Hazards Related   Patient Injury         re-use of single   Labeling                    IFU includes the following warning:
to DEVICE USE                            use device                                     “The System is a single-use device
                                                                                        and is intended for single patient
                                                                                        use only. Re – using the device is a
                                                                                        potential for cross-infection. Do not
                                                                                        attempt to clean or re-sterilize the
                                                                                        System. Reprocessing the device
                                                                                        may damage the device making it
                                                                                        unsafe for use. ”


                                                                                              December 2011
Project / Product Milestones



         Always use
          Science
             &
  Regulatory Based Tools!!


                      December 2011
Project / Product Milestones

•   Ongoing Development
                                            •Quality System
                                             Q     y y
•   Design Freeze
•   Pre clinical V&V                        •Manufacturing
•   Premarket Clinical Investigation
    P       k Cli i l I        i i
•   Submission for market clearance/approval
•   Postmarket activities (clinical study/ies)




                                            December 2011
The V&V Loop
                 p

             Animal
             A i  l




             Design
Ex vivo                   Bench
          & Development




             Clinical



                            December 2011
Bench Testing




                December 2011
Safety / Performance / Usability
          Evaluations
• Correlate with Risk Assessment / Traceability
  Matrix
• Plan a matrix of tests where more than one safety
  and/or efficacy aspect can be evaluated at once,
  using the same group of devices
• Design
  • Objectives (safety and/or performance and/or usability) and
    EndPoints (mechanical usability ….)
               (mechanical, usability,   )
  • Measures: quantitative, qualitative (scores)
  • Success criteria
  • Number of repetitions (confidence/reliability)
• Conduct
  • E
    Experimental set-up
          i    t l t
  • Validated set-up (the model, calibrated tools)
In Vivo Animal Testing




                   December 2011
Safety / Performance / Usability
          Evaluations
• C
  Correlate with Risk Assessment / Traceability
       l t   ith Ri k A        t T       bilit
  Matrix
• Design
  •   Objectives (safety and/or performance and/or usability) and
      EndPoints (biological, mechanical, usability, ..)
  •   Success criteria
  •   Measures: quantitative, qualitative (scores)
  •   Animal model and target anatomy in the animal
  •   Study group/s (& sample size)
  •   Follow up periods (acute, xx–day)
  •   Experimental Procedure
      •   Simulated clinical procedure / relevant aspects and arena
      •   Histology – analysis approach and parameters with a
                 gy       y     pp           p
          recognized pathologist
The Animal Lab
            Conduct (from day 1)
• Selection of appropriate animal laboratory
  (GLP, other accepted certification? No
  certification)
     tifi ti )
• Pre-visit to selected laboratory (facility, staff)
• Di
  Discuss with the investigator and staff your
             ith th i     ti t      d t ff
  planned study
• Conduct of a controlled and monitored study
  (Case Report Forms, accountability and
  traceability of: investigated devices, animals,
              y           g            ,          ,
  explanted parts)
Clinical Evidence




                    December 2011
Clinical Strategy
                gy
                   Post-market
                   Post market



.
    .
        .
Study # 3


Study #2



    FIM


            Investigational/pre-market


                        December 2011
Clinical Strategy
                 gy



 Correlated with Risk
Assessment / Traceability
        Matrix




                      December 2011
The Key to Market Penetration
      y
A breakthrough technology is great but does not
ensure
ens re market s ccess
              success

Regulatory approvals are meaningful milestones

     •In creating value for strategic agreements
      and funding
     •In entrance to the market

Clinical evidence (data) is the leading force
to successful market penetration and
positioning

                                       December 2011
Clinical Strategy
                               MEDDEV 2 7 1
                                      2.7.1
           Stage 1*                                        Stage 2

Identify clinical data from                    Appraisal of individual data sets
                                              • Suitability
• Literature searching &/or
• Clinical experience &/or                    • Contribution of performance
• Clinical investigation                        and safety



Generate new or additional
      clinical data

              N
              O

     Is clinical evidence
                                                            Stage 3
       sufficient to be
       able to declare                        Analysis of relevant data
      conformity with                         • Strength of overall evidence
       relevant ERs ?                         • Conclusions about performance
                                                and safety
             Y
             E
             S
 Produce clinical evaluation
           report


                                                            December 2011
Safety / Performance / Usability
          Evaluations
          E l ti
 •       Design
     •   Define type of study (example: single arm,
         prospective, open label)
     •   Define Objectives (safety and/or performance and/or
         usability) and EndPoints (safety/complications,
         mechanical, usability, efficacy/clinical outcome….)
     •   Determine indicated population (eligibility criteria)
     •   Determine success criteria
     •   Define measures: qualitative (scores), quantitative
     •   Define study group/s ( & sample size)
     •   Define the appropriate follow up periods (acute, xx–
                                 follo    p         (ac te
         day)
     •   Experimental Procedure = Clinical procedure

                                                 December 2011
Safety / Performance / Usability
          Evaluations
          E l ti


    Clinical Demonstration of Risk /
                Benefit
   Design is based on scientific claims,
  relevant peer li
    l           literature & regulatory
                                   l
               submissions



                                 December 2011
Conduct of Trial




                   December 2011
Some Common Pitfalls
• Bad study design

• Inappropriate selection of sites and/or investigators

• Incomplete and/or inappropriate study management
  tools (procedures, logs CRFs…)

• Using under-qualified clinical research personnel
  ( p
  (sponsor and/or site)
                      )

• Poor compliance with GCP– not only necessary for
  regulatory reasons b also to reduce the company’s
       l              but l       d      h           ’
  risk from potential adverse publicity and lawsuits

                                           December 2011
IP
                 Site Selection
                                          Laws of
                                          Country
Costs
                                               Scientific
                                               Publications
Location /
Market
                                              Availability


Personnel &
Facilities                                    Regulatory


              Expected subjects eligibility
                       subjects-
                                              December 2011
Investigator Selection
       g




  Opinion L d
  O i i   Leader A il bilit
                 Availability



                            December 2011
Study
            y
Management & Monitoring




                  December 2011
FDA Warning Letters
          g
  Some Examples




                December 2011
FDA Warning Letter (1)
Between July 26 and August 24, 2010, Thomas R. Beilke, representing the
U.S. Food and Drug Administration (FDA), conducted an investigation of your
former practice
        practice.
During the course of the inspection, Mr. Beilke met with you to
review your conduct of a clinical investigation (Protocol (b)(4), titled
"(b)(4)") performed for (b)(4). You were the investigator for this clinical
investigation between March 2008 and March 2009……..

From our review of the establishment inspection report and
the documents submitted with th t report, we conclude th t
th d         t  b itt d ith that         t         l d that
you did not adhere to the applicable statutory requirements
and FDA regulations governing the conduct of clinical
investigations.

1. You failed to ensure that the investigation was conducted
according to the signed investigator statement, in that you failed to
         g          g           g                ,       y
personally conduct or supervise the clinical investigation [21 CFR
312.60].
2. You failed to ensure that the investigation was conducted
acco di g to the investigational plan [21 CFR 312 60]
according         i estigatio al la             312.60].

                                                            December 2011
FDA Warning Letter (2)
This Warning Letter is to inform you of objectionable conditions observed
during the Food and Drug Administration (FDA) inspection conducted at
Orthocon, Inc.
Orthocon Inc ...

The purpose of this inspection was to determine whether activities as
sponsor of the clinical studies (b)(4) and (b)(4) complied with
applicable federal regulations.

This letter also requests prompt corrective action to address the violation
cited and discusses your written response dated September 23 2010 to the
                                                            23,
noted violation. Failure to secure the investigator’s compliance. [21
CFR 812.46(a)]: Sponsors are responsible for monitoring and
ensuring compliance of clinical investigators participating in the
investigation.

A sponsor who discovers that an investigator is not complying with the
signed agreement the investigational plan applicable FDA regulations or
       agreement,                    plan,                 regulations,
any conditions of approval imposed by the reviewing IRB or FDA shall
promptly either secure compliance or discontinue shipments of the device
to the investigator and terminate the investigator’s participation in the
investigation.

                                                               December 2011
FDA Warning Letter (3)
During an inspection of your firm located in Or-Akivaon June 20, 2011, through
June 23, 2011, an i   investigator f
                              i      from the United S
                                            h       i d States Food and Drug
                                                                     d     d
Administration (FDA) determined that your firm manufactures the XX and the
YY. Under section 201(h) of the Federal Food, Drug, and Cosmetic Act (the
Act), 21 U.S.C. § 321(h), these products are devices because they are intended
for use in the diagnosis of disease or other conditions or in the cure, mitigation,
treatment, or prevention of disease, or are intended to affect the structure or
function of the body……

Specifically, the XX and the YY were cleared under Kxxxxxx and Kxxxxxx,
respectively. Our inspection revealed that your firm modified the
devices by (b)(4) to the XX and the YY (b)(4). A new 510(k) is required
for this modification as it represents a significant change to the design
of the devices……

As
A a result, FDA may t k steps t refuse th
          lt         take t     to   f    these products, k
                                                    d t known as
"detention without physical examination," until these violations are
corrected.



                                                                 December 2011
In Summary
  Clinical & Regulatory Affairs is about
implementing cost effective strategies and
i  l      ti g    t ff ti    t t gi      d
       tools for a valuable project

It is the umbrella, from early development through
market approval and up to p
          pp           p post-marketing activities
                                        g
(market penetration), to support the Company in the
bringing to the markets a reasonably safe and effective
product

  It is the right means to create value and
   minimize (mitigate) liability in a least
               burdensome way
                                            December 2011
Standards G id li
St d d & Guidelines
  Some Useful Links




                December 2011
Global and EU
• Link for European directive and Guidance documents (MEDDEV)
  http://www.meddev.info/
  http://www meddev info/

• Link for standards of all directives (medical and non medical) in Europe
  http://ec.europa.eu/enterprise/policies/european-
  h    //            /        i / li i /
  standards/documents/harmonised-standards-legislation/list-references/




                                                           December 2011
Global and EU (Cont.)
                        (     )
• Link for standards non active implantable medical devices in Europe
  http://ec.europa.eu/enterprise/policies/european
  http://ec europa eu/enterprise/policies/european-
  standards/documents/harmonised-standards-legislation/list-
  references/medical-devices/index_en.htm

• Link for standards active implantable medical devices in Europe
  http://ec.europa.eu/enterprise/policies/european-
  standards/documents/harmonised-standards-legislation/list-
   t d d /d           t /h       i d t d d l i l ti /li t
  references/implantable-medical-devices/index_en.htm

• GHTF
  http://www.ghtf.org




                                                         December 2011
FDA
• FDA basics for Industry
  http://www.fda.gov/ForIndustry/FDABasicsforIndustry/default.htm
  http://www fda gov/ForIndustry/FDABasicsforIndustry/default htm

• FDA general:
  http://www.fda.gov/default.htm
  h    //    fd     /d f l h

• Medical Devices:
  http://www.fda.gov/MedicalDevices/default.htm

• Combination products:
  http://www.fda.gov/CombinationProducts/default.htm

• Device Advise
  http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/defa
  ult.htm

                                                       December 2011
FDA (Cont.)
• Search for FDA Guidance Documents (by office/ year/keyword):
  http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/Guid
  http://www fda gov/MedicalDevices/DeviceRegulationandGuidance/Guid
  anceDocuments/default.htm

• Link to FDA databases (510(k) PMA Adverse Events Classifications
                         (510(k), PMA,           Events, Classifications,
  Registration and Listing, Standards, TPLC, 21CFR, etc)
  http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfPMN/pmn.cfm

• CDRH Organization structure and directors (personnel)
     p           g
  http://www.fda.gov/AboutFDA/CentersOffices/CDRH/CDRHOffices/ucm
  127854.htm

• CDRH post approval studies database:
  http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfPMA/pma_pas.cfm



                                                          December 2011
2010 - 2011 Interesting FDA
             Guidance
• D f Guidance f I d
  Draft G id      for Industry and F d and D
                                  d Food d Drug Administration S ff -
                                                    Ad i i    i Staff
  Investigational Device Exemptions (IDE) for Early Feasibility Medical
  Device Clinical Studies, Including Certain First in Human (FIH) Studies

• Draft Guidance for Industry and Food and Drug Administration Staff -
  Applying Human Factors and Usability Engineering to Optimize Medical
  Device Design

• Draft Guidance for Industry and FDA Staff: FDA a d Industry Procedures
     a t Gu da ce o     dust y a d      Sta :      and dust y ocedu es
  for Section 513(g) Requests for Information under the Federal Food, Drug,
  and Cosmetic Act34

• Guidance for Industry and FDA Staff: General Considerations for Animal
  Studies for Cardiovascular Devices3


                                                          December 2011
2010 - 2011 Interesting FDA
         Guidance (Cont.)
• Draft Guidance for Industry, Clinical Investigators, Institutional Review
  Boards, and Food and Drug Administration Staff - FDA Decisions for
  Investigational Device Exemption (IDE) Clinical Investigations

• Draft Guidance for Industry and Food and Drug Administration Staff - De
  Novo Classification Process (Evaluation of Automatic Class III
   ovo C ass cat o      ocess ( va uat o o uto at c C ass
  Designation)2

• Oversight of Clinical Investigations — A Risk Based Approach to
                                           Risk-Based
  Monitoring

• D f Guidance f I d
  Draft G id      for Industry and F d and D
                                 d Food d Drug Administration S ff -
                                                Ad i i     i Staff
  Factors to Consider when Making Benefit-Risk Determinations in Medical
  Device Premarket Review


                                                            December 2011
Useful Links
   2010 - 2011 Interesting FDA
            Guidance
• Draft Guidance for Industry, Clinical Investigators, and Food and Drug
                             y,                g     ,                 g
  Administration Staff - Design Considerations for Pivotal Clinical
  Investigations for Medical Devices

• Guidance for Industry and FDA Staff - 510(k) Device Modifications:
  Deciding When to Submit a 510(k) for a Change to an Existing Device

• Draft Guidance for Industry and FDA Staff - Commercially Distributed
  In Vitro Diagnostic Products Labeled for Research Use Only or
  Investigational Use Only: Frequently Asked Questions




                                                         December 2011
Useful Links
   2010 - 2011 Interesting FDA
        Guidance (Cont )
                   (Cont.)
• Guidance for Industry and FDA Staff: In Vitro Diagnostic (IVD) Device
  Studies - Frequently Asked Questions

• Draft Guidance for Industry, Third Parties and FDA Staff: Medical
  Device ISO 13485:2003 Voluntary Audit Report Submission Program




                                                        December 2011
The Innovation Paradigm:
             Good or Bad?

                             Maier Fenster
                         Copyright 2011 All rights reserved

No Portion may be Copied or Otherwise Reproduced without Express Written Permission
Disclaimer
• The purpose of this presentation is to
  communicate concepts. There is no
  guarantee that the information presented
  is complete or up-to-date.
• Also, information is not legal advice. Legal
  advice is when you apply information to a
  situation.
• Go to a lawyer for legal advice.
• Go to a patent attorney for patent-related
  advice.
• Go to a regulatory expert for regulatory
  advice.
Why are we having this talk
• We all live innovation, but sometimes it
  seems like too much of a good thing
• Try to illustrate the tensions between
  innovation and success, with special
  emphasis on regulatory affairs and
  clinical trials
• Will attempt to give tools to model, not
  always solve, the problems
• An experimental talk
Outline
•   What is the innovation paradigm
•   What is the ideal regulatory process
•   What is the ideal development process
•   What is the reality & why
•   A suggested attitude
•   Some practical examples
•   Q&A and discussion
The Innovation Paradigm
• Premise: We will succeed because our
  product is better
• Assumption: Our product is better
  because we have secret discovery/better
  engineers/better understanding/blind luck
• Conclusion: we need to show that our
  product is better
• Corollary: we hire people and work hard
  to make our product better
• Emphasis: not “better”; “MUCH better”
Ideal regulatory process #1
• Plan new product based on existing
  market/product
• Develop new product
• Show equivalence of new product & old
  product
• Ta-da
• Insight: more innovation requires more
  proof
• And: small improvement requires more
  proof
Ideal regulatory process #2
•   Have great new idea
•   Develop great new device
•   Run clinical trials
•   Succeed
•   Ta-da
•   Insight: all’s well that ends well
Ideal development process
             #1
• Have idea
• Create design, taking into account ideal
  manufacturing method and usage
  method
• Build device
• Have it work first time
• Ta-da
• Insight: we all like risk-free R&D
Ideal development process
            #2
• Have idea
• Build prototype
• Test prototype - fast
• Redesign device based on test
  results & user input
• Repeat until great product is created
• Ta-da
• Insight: moving fast with lots of
  money is good
Reality knocks - basics
• Only the lucky ones have innovation
  which does not affect functioning
• New product can be better in:
  –   Manufacturability
  –   Shelf life
  –   Ease of use
  –   Reliability in body
  –   Function
  –   Side effects/Safety
  –   Other
Reality knocks - basics,
              cont.
• New device might (only) be different,
  not better
• When will we find out that device is
  better?
• Will the market change?
• Will competition change the game?
• Experimental failure is bad
Reality knocks - process
• What are chances experiments will work
  as advised?
• How long must we wait for that (e.g.,
  avoid adverse results)?
• Will there be NO inputs from users? data
  analysis?
• What if a problem is discovered?
• What if device is not good enough?
• What if a better device is possible?
Reality knocks - people
•   People involved believe in innovation
•   People involved want to cure patients
•   Researchers are NOT mere technicians
•   Hype, advisors & investors
•   Engineers do not just change gears
•   Building the company brand
•   Pressure from agile development
    processes
Reality knocks - IP
• There is a war going on – enemy is watching
• One must think several steps ahead
• What you tell one government agency, others will
  know about
• Several court cases on point
• Device development cycle is slower than IP cycle
• IP can drive development by publishing ideas
• IP & device specs do not fully overlap
• When is innovation understood? And if it changes?
• Make IP match the selection for regulatory approval
• Problems and opportunities
What is your reality?
• Be aware of conflicting forces that encourage,
  discourage and/or channel innovation and
  discussion of innovation. Who is involved for
  each “party”?
• How do you balance need for showing
  innovation with need for showing lack of
  innovation.
• How is innovation channeled?
• Money. Business. Working product. How are
  they linked to innovation and its consequences?
• Are all “risks” from experiments taken into
  account?
Some suggested activities
• Micro-level
   – Collaboration between IP and regulatory advisors,
     and also with publishing bodies, such as researchers
   – re-consider (everything) based on changes in target,
     on a regular basis
• Divert innovation activities to:
   – clear “stage II” products/features
   – less regulated issues
• Play the country game
• Prepare alternative pathways
   – File IP based on prediction of results
   – Develop and advance designs based on IP problems
• Experiment also for IP - Early
Case study – unneeded battle
• Story of a client who was not careful
• They wanted to get a patent – so they explained
  innovation
• They wanted 510(k) so they explained how
  innovation was same as prior art
• Then they got threatened, with other side basing
  its belief on the 510(k)
• Good news: they came to us
• We did lots of stuff, including a new 510(k) filing
• We won. But (Sun Tzu):
   – The greatest victory, is the battle not fought.
Case study - hindsight
• What FDA wants to get comfort on is not exact
  opposite of what patent office wants to see for
  inventive step
   – USPTO does not care much about safety. FDA does
   – FDA is happy if device works same as old device
     due to lack of insight in the past into operation
     mechanism and its consequences; USPTO would
     be happy too
• Somebody could have made an educated
  decision
• Somebody could have coordinated between the
  “professionals”
• One should be aware of case law
More hindsight
• Talking about your own previous and
  current devices is bad enough
• Talking about the competition is worse
• Any statements can be used against you
  in a court of law
• Courts (& management) tend to confuse
  patent and product. Don’t help them get
  confused
• Risk: (partial) admission of infringement
• Risk: admission of fraud
• Risk: attracting litigation
Case study – loose lips sink ships

• Client wanted 510(k). Presented device as
  substantially equivalent.
• Client wanted investor hype. Published
  paper showing innovation
• FDA was not happy.
• Hindsight – if you generate hype, make
  sure it does not reflect on your regulatory
  processes.
• Nice if hype does reflect on your IP
  processes.
Principles of Law-I
• In determining infringement it is settled law
  that the accused device should be
  compared to the patent claims and not to a
  particular product manufactured by the
  patent holder.
• Nevertheless, this idea is sometimes
  confusing to patent holders and also to
  courts, which find it easier to compare the
  accused device to a concrete device than
  to compare it to abstract claims.
• Furthermore, such admissions can be
  used an opening to claim willfulness or
  fraud on the patent office.
Principles of Law-II
• Even if the admission is not
  considered a complete admission of
  infringement, the wording of the
  510(k) could still help the patentee by
  positively mentioning some of the
  features of the claims as being the
  same in both devices.
Principles of Law-III
• In Pall Corp. v. Hemasure Inc., the
  Federal Circuit used the disclosure in
  the 510(k) as a guide to determine
  whether there was infringement.
  However, there apparently was no
  utilization of the patentee’s device as a
  predicate.
Principles of Law-IV
• In Electro Scientific Industries Inc. v.
  Dynamic Details Inc., the Federal
  Circuit discussed whether the
  information in the FDA 510(k), which
  was not supplied to the USPTO,
  could be considered fraud on the
  patent office, in that the submission
  contained drawings made by a sub-
  contractor. Based on the facts of the
  case it decided that this did not raise
  an inventorship issue.
Principles of Law-V
• In United States Surgical Corp. v. Hospital
  Products International PTY Ltd., the US District
  Court for Connecticut made the following
  statement:
• “The defendants have gone so far as to cause
  statements to be made that may be construed as
  admissions of infringement. For example, on
  October 28, 1980, HPI submitted to the United
  States Food and Drug Administration a §510(k)
  pre-market notification, signed by Blackman, of
  its intention to sell its 30, 55, and 90 medium and
  large series of DLUs, as well as its GA/ANAST
  (an earlier name for the defendants’ ILA DLU). It
  was stated in the notification that these devices
  were equivalent to their USSC counterparts.”
• However, the court did not utilize this admission
  in finding infringement.
Principles of Law-VI
• In a footnote in Clintec Nutrition Co. v. Baxa
  Corp., the US District Court for the Northern
  District of Illinois states:
• “Clintec also relies on Baxa's Section
  510(k) submission to the Food and Drug
  Administration (“FDA”), representing that
  Baxa's and Clintec's compounders are
  “substantially equivalent.” Clintec does not,
  however, point me to an affirmative
  representation in the submission that
  Baxa's compounders “sort.” … Baxa
  gained the Agency's approval to market its
  compounders without undergoing a more
  extensive approval process, because Baxa
  was able to demonstrate that its
  compounders were “substantially
  equivalent” to Clintec's. “
Principles of Law-VII
• “A device is ‘substantially equivalent’ if it has
  the same intended use and the same
  technological characteristics as those of the
  existing device.
• “Thus, the 510(k) submission compares the
  accused product, Baxa's compounders, with
  the commercial embodiment of the ‘010
  patent, Clintec's compounders. “ [I]t is error for
  a court to compare in its infringement analysis
  the accused product . . . with the patentee's
  commercial embodiment.” …Although in the
  recitation of facts, the court in United States
  Surgical Corp. v. Hospital Prods. Int'l Pty. Ltd.,
  remarked that statements in the Section
  510(k) submission “may be construed as
  admission of infringement,” the court did not
  rely on the submission in the infringement
  analysis.”
Principles of Law-VIII
• It seems clear that a court will consider
  statements made in a 510(k) as being
  statements against interest. The extent of
  the damage will depend of course on the
  statements made and how they impact on
  the issues before the court.
• Thus, it is important to weigh carefully all
  statements made in a 501(k). This is not
  limited to comparisons with predicate
  devices but also includes statements
  regarding the operation of the device, etc.
Summary
• Innovation is good, but at some point it
  needs to be controlled and/or
  channeled
• IP and regulatory processes interact.
  Strongly. And both are affected by
  experiments.
• Use a good regulatory advisor
• Like lots of life – timing, expectation
  matching and risk management
• Not all bad – one can get synergy by
  matching business, IP and regulatory
A Harmonized and Synchronized
                                                 Pathway for
               Reimbursement and Regulation

December 1st, 2011
Amir Inbar, CEO
Mediclever Ltd.
© Copyright 2012 Mediclever Ltd. All rights reserved. Proprietary and
confidential. Neither this presentation nor any information it contains
may be viewed, disclosed, published, reproduced or used for any
 1 / 51
purpose without prior written approval from Mediclever.
One Slide Resume
         1. Established Mediclever in 2006




2 / 51
Agenda
1. What

2. When    1. What (is ‘Reimbursement’)
3. How

4. Where
           2. When (Should We Start Dealing With It)

           3. How (Do We Take Care of It)

           4. Where (In Which Countries First)




 3 / 51
What is ‘Reimbursement’?

1. What

2. When    1. What (is ‘Reimbursement’)
3. How

4. Where
           2. When (Should We Start Dealing With It)

           3. How (Do We Take Care of It)

           4. Where (In Which Countries First)




 4 / 51
What is ‘Reimbursement’?
     Relax…

1. What

2. When

3. How

4. Where




 5 / 51
What is ‘Reimbursement’?
     Stakeholders

1. What

2. When

3. How

4. Where
               Stakeholders



 6 / 51
What is ‘Reimbursement’?
     Stakeholders

1. What

2. When
           Healthcare Providers:                      Patients:
3. How      Hospital
4. Where
            ASC / Imaging Center

            Physician

           Payers:
            Government

            Insurance Companies / Sickness Funds / Primary
            Care Trusts

 7 / 51
What is ‘Reimbursement’?
     Financing a Healthcare System

1. What

2. When

3. How

4. Where
                 Financing a
                 Healthcare
                   System

 8 / 51
What is ‘Reimbursement’?
     Financing a Healthcare System

1. What

2. When
           Public / Statutory:
3. How
           Sources (Citizens):        Collection (Payers):
4. Where

            Taxes from the general
            population

            Social health insurance
            from:
            • Employers:


            • Employees
 9 / 51
What is ‘Reimbursement’?
     Financing a Healthcare System
           Sources          Collection             Paid To                 For
1. What
           (Citizens):      (Payers):              (Providers):            (Patients):
2. When

3. How

4. Where




                         Public / Statutory                       Out of Pocket
                                   Reimbursement
                         Private / Complementary
 10 / 51
What is ‘Reimbursement’?
     Reimbursement Workflow

1. What

2. When

3. How

4. Where
           Reimbursement
              Workflow


 11 / 51
What is ‘Reimbursement’?
     Reimbursement Workflow

1. What    1. The healthcare provider uses CODES
2. When       to tell the Payer:
3. How
              a. The problem     Diagnostic Code/s
4. Where
              b. The service     Procedure Code/s
              c. Add. details    Age, Sex, etc.

           2. The Payer checks if the above
              combination has COVERAGE

           3. If positive, the Payer reimburses the
              healthcare provider according to the
              applicable PAYMENT schedule
 12 / 51
What is ‘Reimbursement’?
     Reimbursement Workflow

1. What    For each setting:    There are different:
2. When

3. How      Inpatient             CODES,
4. Where    Procedures
                                  COVERAGE
            Outpatient            guidelines, and
            Procedures
                                  PAYMENT levels
            Office based
            Procedures



 13 / 51
What is ‘Reimbursement’?

1. What

2. When
           Meaning of Life
3. How                          “While I can explain the
4. Where                        meaning of life, I don’t
                                dare try to explain how
                                the reimbursement
                                system works”




 14 / 51
Agenda
1. What

2. When    1. What (is ‘Reimbursement’)
3. How

4. Where
           2. When (Should We Start Dealing With It)

           3. How (Do We Take Care of It)

           4. Where (In Which Countries First)




 15 / 51
When Should We Start Dealing With It?
     Past

1. What                             Past
2. When
            Healthcare costs        Containable
3. How

4. Where    Following FDA/CE          Reimbursement is
                                      ‘given’


            Decision Makers for a     Healthcare Providers
            market launch

            Reimbursement             Not important
            strategy


            Planning for              Just prior to launch
            reimbursement

 16 / 51
When Should We Start Dealing With It?
     Past

1. What

2. When

3. How

4. Where




 17 / 51
When Should We Start Dealing With It?
     Present

1. What

2. When

3. How         So, what has changed?
4. Where




 18 / 51
When Should We Start Dealing With It?
     Present

1. What                            Past                     Present
2. When
           Healthcare costs        Containable              Soaring
3. How

4. Where   Following FDA/CE          Reimbursement is         Reimbursement only if
                                     ‘given’                  there’s clinical +
                                                              economic value

           Decision Makers for a     Healthcare Providers     Healthcare Providers +
           market launch                                      Payers

           Reimbursement             Not important            Required by Investors,
           strategy                                           inc. resources and
                                                              timelines

           Planning for              Just prior to launch     At an early stage
           reimbursement

 19 / 51
When Should We Start Dealing With It?
     Past

1. What     Errors                                      Solutions
2. When
            • Product features prevent utilization of   • Consider reimbursement implications
3. How        existing reimbursement mechanisms           during product design
4. Where
            • Targeted applications / indications /     • Consider reimbursement implications
              settings / populations - delay              when defining your market /
              reimbursement                               marketing strategy

            • FDA/CE application prevents               • Consider reimbursement
              reimbursement                               implications before applying for FDA
                                                          clearance or CE mark
            • Clinical trials not leveraged to also     • Add reimbursement parameters to
              generate reimbursement evidence             your planned clinical trials

            • Price not optimized when launching        • You know what to do…
              product or negotiating with a potential
 20 / 51      investor/buyer
Agenda
1. What

2. When    1. What (is ‘Reimbursement’)
3. How

4. Where
           2. When (Should We Start Dealing With It)

           3. How (Do We Take Care of It)

           4. Where (In Which Countries First)




 21 / 51
How Do We Take Care of It?

1. What    1. Reimbursement                Main Decision            4. Evidence Planning                      9.   Implementation
              Landscape Report               Makers
                                                                        • Value story                              • User base, stakeholders’ support
2. When      • Codes, coverage                                          • Economic model
               & payment                   Healthcare                                                              • Issue a Billing Guide, utilize existing
                                           Providers                    • Points for clinical
             • Reimbursement                                                                                         reimbursement mechanisms
3. How                                                                    study protocol
               strategy
                                                                        • Stakeholders’
4. Where                                   Payers
                                                                          feedback
                                                                                                                   • Apply for new reimbursement
                                                                                                                     mechanisms




           2. Regulatory            Class I (NS/M)                                                                                            •Technical file
              Landscape




                                                                                                                                                                8. Preparation / Application
              Report                Class I (S/M)          3. Quality
                               EU                             Manag.
             •Regulatory            Class IIa                 System
              status
                                    Class IIb                •Design
             •Device                                          Control              5. Clinical    6.Perform           7.Quality
              classification        Class III                 procedures              Study         Clinical            Manag.                •Design dossier
             •Intended use                                                            Protocol      Study               System
                                                             •Other QS
              & indications                                                           •Review /     •Clin. Eval.        •FDA QSR /
                                    Class III                 aspects for                                                                     •PMA
              for use                                                                  write         report              ISO 13845
                                                              US/EU pre-
             •Regulatory            Class II                  study                                                                           •510(k)
              route                                           compliance
                                    Class I
                               US

 22 / 51
How Do We Take Care of It?

1. What    1. Reimbursement      Gather data
              Landscape Report
                                 – Determine relevant         For each setting:                   There are different:
2. When      • Codes, coverage
               & payment           settings.                      Inpatient                           CODES
3. How       • Reimbursement                                      Procedures
               strategy
                                                                  Outpatient                         COVERAGE
4. Where                                                                                             guidelines
                                                                  Procedures
                                                                                                      PAYMENT levels
                                                                  Office based
                                                                  Procedures


                                 – Check for relevant         1. The healthcare provider uses CODES
                                   codes, coverage policies      to tell the Payer:
                                   and payment rates.           a. Problem       Diagnostic Code/s
                                                                b. Service       Procedure Code/s

                                                                c. Details       Age, Sex, etc.

                                                              2. The Payer checks if the above combination
                                                                 has COVERAGE

                                                              3. If positive, the Payer reimburses
                                                                 the healthcare provider according
                                                                 to the applicable PAYMENT
 23 / 51                                                         schedule
How Do We Take Care of It?

1. What

2. When

3. How

4. Where




 24 / 51
How Do We Take Care of It?

1. What    1. Reimbursement      Gather data
              Landscape Report
                                 – Determine relevant         For each setting:                   There are different:
2. When      • Codes, coverage
               & payment           settings.                      Inpatient                           CODES
3. How       • Reimbursement                                      Procedures
               strategy
                                                                  Outpatient                         COVERAGE
4. Where                                                                                             guidelines
                                                                  Procedures
                                                                                                      PAYMENT levels
                                                                  Office based
                                                                  Procedures


                                 – Check for relevant         1. The healthcare provider uses CODES
                                   codes, coverage policies      to tell the Payer:
                                   and payment rates.           a. Problem       Diagnostic Code/s
                                                                b. Service       Procedure Code/s

                                                                c. Details       Age, Sex, etc.

                                                              2. The Payer checks if the above combination
                                 – Statistics                    has COVERAGE

                                                              3. If positive, the Payer reimburses
                                                                 the healthcare provider according
                                                                 to the applicable PAYMENT
 25 / 51                                                         schedule
How Do We Take Care of It?

1. What    1. Reimbursement      Main Decision   This enables us to:
              Landscape Report     Makers
2. When      • Codes, coverage                   •Define the most relevant Decision Makers for the
               & payment         Healthcare
                                 Providers        reimbursement of you’re the product.
3. How       • Reimbursement
               strategy
                                                 •Formulate an initial reimbursement strategy for the
4. Where                         Payers           new product in the selected markets (Europe, US).




 26 / 51
How Do We Take Care of It?

1. What    1. Reimbursement                Main Decision   In parallel, a Regulatory Landscape Report determines the
              Landscape Report               Makers
                                                           product’s classification, intended use, indications for use
2. When      • Codes, coverage
               & payment                   Healthcare      and the anticipated regulatory route.
                                           Providers
3. How       • Reimbursement
               strategy
4. Where                                   Payers



                                                                                            Regulatory
           2. Regulatory            Class I (NS/M)
              Landscape
              Report                Class I (S/M)                 Reimbursement
                               EU
             •Regulatory            Class IIa
              status
                                    Class IIb
             •Device
              classification        Class III
             •Intended use
              & indications                                 Intended use     Affects possible reimbursement
              for use               Class III
             •Regulatory            Class II
              route                                         Substantially equivalent = substantially equivalent
                                    Class I
                               US                           payment

 27 / 51
How Do We Take Care of It?

1. What    1. Reimbursement                Main Decision                At the next stage, when the company prepares for its
              Landscape Report               Makers
                                                                        clinical study (if needed), it typically:
2. When      • Codes, coverage
               & payment                   Healthcare
                                           Providers                    •Implements the relevant parts of its Quality Management
3. How       • Reimbursement
               strategy                                                  System (e.g., Design Controls and other QS aspects
4. Where                                   Payers
                                                                         essential for US and EU pre-study compliance).
                                                                        •Starts writing its clinical study protocol.

           2. Regulatory            Class I (NS/M)
              Landscape
              Report                Class I (S/M)          3. Quality
                               EU                             Manag.
             •Regulatory            Class IIa                 System
              status
                                    Class IIb                •Design
             •Device                                          Control           5. Clinical
              classification        Class III                 procedures           Study
             •Intended use                                                         Protocol
                                                             •Other QS
              & indications                                                       •Review /
                                    Class III                 aspects for
              for use                                                              write
                                                              US/EU pre-
             •Regulatory            Class II                  study
              route                                           compliance
                                    Class I
                               US

 28 / 51
How Do We Take Care of It?

                                                                                                  Long before the clinical study begins, we
1. What    1. Reimbursement                Main Decision            4. Evidence Planning
              Landscape Report               Makers                                               plan the required ‘evidence’ for the
                                                                        • Value story
2. When      • Codes, coverage                                          • Economic model
                                                                                                  product’s reimbursement :
               & payment                   Healthcare
                                           Providers                    • Points for clinical
3. How       • Reimbursement                                              study protocol
                                                                                                  • Value Story: Claim for clinical AND
               strategy
                                                                        • Stakeholders’             economic benefits compared to current
4. Where                                   Payers
                                                                          feedback                  alternatives.
                                                                                                  • Economic Model: Quantify the economic
                                                                                                    benefit, allow for sensitivity analysis and
                                                                                                    use as a sales tool.
           2. Regulatory            Class I (NS/M)
              Landscape                                                                           • Reimbursement Related Parameters:
              Report                Class I (S/M)          3. Quality
                                                              Manag.
                                                                                                    Integrate in the study protocol.
                               EU
             •Regulatory            Class IIa                 System
              status                                                                              • Stakeholders’ Feedback: Verify support
                                    Class IIb                •Design
             •Device                                          Control              5. Clinical
                                                                                                    of the relevant Decision Makers, if the
              classification        Class III                 procedures              Study         claims in the Value Story are proven
             •Intended use                                                            Protocol      according to the presented clinical study
                                                             •Other QS
              & indications                                                           •Review /
                                    Class III                 aspects for                           protocol.
              for use                                                                  write
                                                              US/EU pre-
             •Regulatory            Class II                  study
              route                                           compliance
                                    Class I
                               US

 29 / 51
How Do We Take Care of It?

1. What

2. When
           Regulatory Approval ≠ Reimbursement
3. How

4. Where                         Regulatory entities   Reimbursement entities
                                 (FDA, NBs, …)         (CMS, Sickness Funds, …)

             Does the product:   do what it claims?    improve outcomes?

             Is the product:     safe & effective?     reasonable & necessary?

             Data from:          controlled settings   real world

             Support of:         KOLs                  medical society/ies

             Cost:               not relevant          may be key



 30 / 51
How Do We Take Care of It?

1. What    1. Reimbursement                Main Decision            4. Evidence Planning                  Now, the clinical trial may be
              Landscape Report               Makers                                                       conducted and the resulting
                                                                        • Value story
2. When      • Codes, coverage                                          • Economic model                  ‘evidence’, substantiating the claims
               & payment                   Healthcare
             • Reimbursement
                                           Providers                    • Points for clinical             in the Value Story, should be
3. How                                                                    study protocol
               strategy                                                                                   published.
                                                                        • Stakeholders’
4. Where                                   Payers
                                                                          feedback




           2. Regulatory            Class I (NS/M)
              Landscape
              Report                Class I (S/M)          3. Quality
                               EU                             Manag.
             •Regulatory            Class IIa                 System
              status
                                    Class IIb                •Design
             •Device                                          Control              5. Clinical    6.Perform
              classification        Class III                 procedures              Study         Clinical
             •Intended use                                                            Protocol      Study
                                                             •Other QS
              & indications                                                           •Review /     •Clin. Eval.
                                    Class III                 aspects for
              for use                                                                  write         report
                                                              US/EU pre-
             •Regulatory            Class II                  study
              route                                           compliance
                                    Class I
                               US

 31 / 51
How Do We Take Care of It?

                                         Seed Funding                                                                 Round A
1. What    1. Reimbursement                Main Decision            4. Evidence Planning
              Landscape Report               Makers                                                       Raise funding:
                                                                        • Value story
2. When      • Codes, coverage                                          • Economic model                  • At this stage, in order to finance
               & payment                   Healthcare
             • Reimbursement
                                           Providers                    • Points for clinical               their clinical trial, many companies
3. How                                                                    study protocol
               strategy                                                                                     raise their growth funding round
                                                                        • Stakeholders’
4. Where                                                                  feedback                          (also referred as Series A round).
                                           Payers




           2. Regulatory            Class I (NS/M)
              Landscape
              Report                Class I (S/M)          3. Quality
                               EU                             Manag.
             •Regulatory            Class IIa                 System
              status
                                    Class IIb                •Design
             •Device                                          Control              5. Clinical    6.Perform
              classification        Class III                 procedures              Study         Clinical
             •Intended use                                                            Protocol      Study
                                                             •Other QS
              & indications                                                           •Review /     •Clin. Eval.
                                    Class III                 aspects for
              for use                                                                  write         report
                                                              US/EU pre-
             •Regulatory            Class II                  study
              route                                           compliance
                                    Class I
                               US

 32 / 51
How Do We Take Care of It?

1. What    1. Reimbursement                Main Decision            4. Evidence Planning                  Completion of QMS
              Landscape Report               Makers
                                                                        • Value story
2. When      • Codes, coverage                                          • Economic model                  If the company has not already done
               & payment                   Healthcare
                                           Providers                    • Points for clinical             so, the quality management system
3. How       • Reimbursement                                              study protocol
               strategy                                                                                   can be completed to ensure it
                                                                        • Stakeholders’
4. Where                                                                  feedback                        complies with US and/or European
                                           Payers
                                                                                                          requirements.



           2. Regulatory            Class I (NS/M)
              Landscape
              Report                Class I (S/M)          3. Quality
                               EU                             Manag.
             •Regulatory            Class IIa                 System
              status
                                    Class IIb                •Design
             •Device                                          Control              5. Clinical    6.Perform        7.Quality
              classification        Class III                 procedures              Study         Clinical         Manag.
             •Intended use                                                            Protocol      Study            System
                                                             •Other QS
              & indications                                                           •Review /     •Clin. Eval.     •FDA QSR /
                                    Class III                 aspects for
              for use                                                                  write         report           ISO 13845
                                                              US/EU pre-
             •Regulatory            Class II                  study
              route                                           compliance
                                    Class I
                               US

 33 / 51
How Do We Take Care of It?

1. What    1. Reimbursement                Main Decision            4. Evidence Planning                  • Europe: Submit the Technical File
              Landscape Report               Makers                                                         or the Design Dossier
                                                                        • Value story
2. When      • Codes, coverage                                          • Economic model
               & payment                   Healthcare                                                     • USA: apply for FDA Clearance (510
                                           Providers                    • Points for clinical
3. How       • Reimbursement                                              study protocol                    (k)) or Approval (PMA).
               strategy
                                                                        • Stakeholders’
4. Where                                   Payers
                                                                          feedback




           2. Regulatory            Class I (NS/M)                                                                                •Technical file
              Landscape




                                                                                                                                                    8. Preparation / Application
              Report                Class I (S/M)          3. Quality
                               EU                             Manag.
             •Regulatory            Class IIa                 System
              status
                                    Class IIb                •Design
             •Device                                          Control              5. Clinical    6.Perform        7.Quality
              classification        Class III                 procedures              Study         Clinical         Manag.       •Design dossier
             •Intended use                                                            Protocol      Study            System
                                                             •Other QS
              & indications                                                           •Review /     •Clin. Eval.     •FDA QSR /
                                    Class III                 aspects for                                                         •PMA
              for use                                                                  write         report           ISO 13845
                                                              US/EU pre-
             •Regulatory            Class II                  study                                                               •510(k)
              route                                           compliance
                                    Class I
                               US

 34 / 51
How Do We Take Care of It?

1. What    1. Reimbursement      Main Decision     4. Evidence Planning                    9.   Implementation
              Landscape Report     Makers
                                                     • Value story                              • User base, stakeholders’ support
2. When      • Codes, coverage                       • Economic model
               & payment         Healthcare                                                     • Issue a Billing Guide, utilize existing
                                 Providers           • Points for clinical
             • Reimbursement                                                                      reimbursement mechanisms
3. How                                                 study protocol
               strategy
                                                     • Stakeholders’
4. Where                         Payers
                                                       feedback
                                                                                                • Apply for new reimbursement
                                                                                                  mechanisms



           In case existing reimbursement mechanisms                                                                       •Technical file
           (Codes, Coverage, Payment) exist, we will




                                                                                                                                             8. Preparation / Application
           • Develop a dossier to convince Healthcare
             Providers to purchase your new product.            5. Clinical    6.Perform           7.Quality
                                                                   Study         Clinical            Manag.                •Design dossier
                                                                   Protocol      Study               System
           Otherwise:                                              •Review /     •Clin. Eval.        •FDA QSR /
                                                                                                                           •PMA
                                                                    write         report              ISO 13845
           • After verifying a sufficient user-base and                                                                    •510(k)
             support from the medical community, we
             will apply for new codes, coverage policies
             and favorable payment rates.
 35 / 51
How Do We Take Care of It?

1. What

2. When

3. How

4. Where




 36 / 51
Agenda
1. What

2. When    1. What (is ‘Reimbursement’)
3. How

4. Where
           2. When (Should We Start Dealing With It)

           3. How (Do We Take Care of It)

           4. Where (In Which Countries First)




 37 / 51
Where (In Which Countries First)?

1. What

2. When    1. Potential market
3. How
           2. Supportive environment:
4. Where
                  IP protection
                  Regulatory process
                  Reimbursement




 38 / 51
Where (In Which Countries First)?
     Potential Market

1. What

2. When    1. Potential market
3. How
           2. Supportive environment:
4. Where
                  IP protection
                  Regulatory process
                  Reimbursement




 39 / 51
Where (In Which Countries First)?
     Potential Market

1. What
           3 Types of Healthcare Systems
2. When

3. How
           Private           Payer and Provider are separated entities
           Payers
4. Where                       Clearer definition of covered procedures.
                               Detailed reimbursement lists.
           Statutory
           Sickness
           Funds
                             There must be an accurate procedure code (with its
                             coverage and payment rate).

                             Payer and Provider are not so separated
                               No need for a clear definition of coverage.
           NHS
                             Reimbursement also relies on ‘block contracts’,
                             ‘balance Grants’, etc.
 40 / 51
Where (In Which Countries First)?
     Potential Market

1. What
           Healthcare Expenditure per Capita ($US PPP)
2. When

3. How
           Private                                                                 7,538
4. Where   Payers



           Statutory                                                       3,737
           Sickness
           Funds                                                           3,696



                                                                   3,129

           NHS                                                    2,870

                                                                  2,902


 41 / 51                                                                            $US
           Source: OECD Indicators 2008 (http://stats.oecd.org)
Where (In Which Countries First)?
     Potential Market

1. What
           Healthcare Expenditure per Capita (% of GDP)
2. When

3. How
           Private                                                                  16.0%
4. Where   Payers



           Statutory                                                      10.5%
           Sickness
           Funds                                                            11.2%



                                                                  8.7%

           NHS                                                     9.1%

                                                                  9.0%


 42 / 51                                                                             $US
           Source: OECD Indicators 2008 (http://stats.oecd.org)
Where (In Which Countries First)?
     Potential Market

1. What
           Healthcare Expenditure Sources
2. When

3. How
           Private                                        (47)                                     (12)
                                                                                (41)
4. Where   Payers



           Statutory                                      (77)      (10) (13)
           Sickness
           Funds                                          (78)           (15) (7)


                                                                                       % Public / Statutory
                                                          (83)    (11)
                                                                                       % Private / Complementary
           NHS                                            (77)    (20)
                                                                                       % Out of Pocket
                                                          (73)    (21)


 43 / 51                                                                                                      $US
           Source: OECD Indicators 2008 (http://stats.oecd.org)
Where (In Which Countries First)?
     Potential Market

1. What
           Spending on medical technology: €187B
2. When

3. How         •    US:                                42%           Medical technology is defined as
                                                                     wheelchairs, pacemakers, orthopedic
4. Where       •    Germany (DM):                      11%
                                                                     shoes, spectacles and contact lenses,
               •    Japan (JP):                        10%           insulin pens, hip prostheses, condoms,
               •    France: (FR):                      05%           oxygen masks, dental floss, MRI
                                                                     scanners, pregnancy tests, surgical
               •    UK:                                04%
                                                                     instruments, bandages, syringes, life-
               •    China (CH):                        02%           support machines, etc.

                   CH    UK        FR     JP     DM                                                      US




                   0          10          20          30        40    50     60     70      80     90     100




 44 / 51   Source: Eucomed Medical Technology Brief, May 2007
Where (In Which Countries First)?
     Potential Market

1. What
           Medical Technologies Funding (% of GDP)
2. When

3. How
           Private                                                                                     0.71%
4. Where   Payers



           Statutory                                                                                           0.92%
           Sickness
           Funds                                                                               0.62%



                                                                             0.36%

           NHS                                                                          0.5%

                                                                                      0.46%


 45 / 51                                                                                                        $US
           Source: AdvaMed, UK Medical Technology Issues, CEO Toolkit, January 2005
Where (In Which Countries First)?
     Supportive Environment

1. What

2. When    1. Potential market
3. How
           2. Supportive environment:
4. Where
                  IP protection
                  Regulatory process
                  Reimbursement




 46 / 51
Where (In Which Countries First)?
     Supportive Environment – IP Protection
           IP protection :
1. What
           9 – Best          7
2. When    0 – Worst

                             6                                               Germany
3. How                                                        France
                                                                                            USA
4. Where                                                                 Japan
                             5                                                         UK

                                         China                           Israel
                             4
                                                                                                             IP
                                                 India

                                                         Brazil
                             3


                             2


                             1


                                                                                                       Software piracy rate
                                          80%        60%               40%             20%        0%



 47 / 51      PWC Innovation Scorecard
Where (In Which Countries First)?
     Supportive Environment – Regulatory
           Ease of regulatory
1. What
           approval:            9
           9 – Easiest                                                             Israel
2. When
           0 – Most difficult   8
3. How
                                7                                       India France
4. Where
                                6                                          UK
                                                                                  Germany
                                5                                                                Regulatory
                                                                        USA

                                4
                                                                         Brazil
                                3                            China
                                         Japan
                                2

                                1

                                                                                            Regulatory approval
                                                                                            time, months
                                 30         24       18         12          6
                                months     months   months     months     months

 48 / 51    PWC Innovation Scorecard
Where (In Which Countries First)?
     Supportive Environment - Reimbursement

1. What

2. When

3. How

4. Where




                                      Reimbursement




 49 / 51   PWC Innovation Scorecard
Where (In Which Countries First)?
     Supportive Environment

1. What

2. When

3. How

4. Where
                                                      IP




                                                           Regulatory


                                      Reimbursement




 50 / 51   PWC Innovation Scorecard
The End

1. What

2. When                    Thank You For Listening
3. How

4. Where

                               Amir Inbar, CEO                  http://www.mediclever.com

                               amir@mediclever.com              http://twitter.com/mediclever

                               050.837.1711                     http://mediclever.com/blog




           UK Office:                     Israel Office:
           • 27 Old Gloucester St.,       • 6 Te’ena St.,
           • London WC1N 3AX              • Modiin 71799
           • uk@mediclever.com            • il@mediclever.com
 51 / 51   • +44.208.099.7435             • +972.50.837.1711
A Notified Body perspective when
revising and judging the conformity of a
device for granting CE marking             Hester Hasper
Contents

  Introduction to DEKRA: bigger picture & business line medical
  DEKRA’s expertise & market access
  Conformity assessment by the notified body & the D&D process
  New applications (dossier): what are we looking at?
  Review of the approach to obtain CE
  Changes / revisions / extension: what is the approach followed?
Bigger picture: Business Line Medical within DEKRA

  DEKRA GROUP
  (HQ Stuttgart, Germany)
                                                 DEKRA
  Operating in 29 European countries
  as well as in North America, Brazil,           21 000
  South Africa and China.
  Organized in 4 Business Units
  comprising a total of 180
  consolidated companies.                 DEKRA Industrial
                                              5 000
  Generating 1.7 billion euros in sales
  and employs 21000 staff.
                                                    Testing &
  DEKRA Testing and Certification is               Certification
                                                      1000
  part of the Business Unit DEKRA
  Industrial with 5000 business and                  Medical

  technical professionals.
Business Line Medical
Characteristics                                         Competence areas

●   Involves testing and certification of medical       ●   Audits

    devices, and auditing of medical device companies   ●   Product assessments
                                                        ●   Certification
●   A leading top 5 global Notified Body in Medical
    device certification                                ●   Product testing (IEC 60601)
                                                        ●   Training
●   Recognized market leader in high risk devices
●   Strong positions in Netherlands, Germany & USA          CE0124 & CE0344
●   Recognized body by EU, the FDA, Health Canada
●   Test labs in Arnhem, Stuttgart & Dresden.
Business Line Medical Global Network

One global team of experts,                  Arnhem                CE0124
                                             Paris
no country organizations,                    Stuttgart
                                                                   CE0344
no barriers


      San Francisco

                              Philadelphia                             Tokyo


                                                         ‫תל אביב‬
Expertise and Knowledge at DEKRA
  Cardiovascular                                             Products with
  surgery                                                    animal tissue

  Minimal invasive                                           High-tech start-up
  surgery                                                    companies

                                                             Ophthalmic
  Intravascular
                                                             surgery
  catheters

                                                             Wound care
  Intra ocular lenses                                        products

  Soft tissue implants                                       Body contouring
                                                             implants
  Active Implantable
  devices                                                    Active Medical devices



 High tech start-up companies   Emerging technologies   High risk products
BioMedical Strategy Medical Devices Workshop Presentations
BioMedical Strategy Medical Devices Workshop Presentations
BioMedical Strategy Medical Devices Workshop Presentations
BioMedical Strategy Medical Devices Workshop Presentations
BioMedical Strategy Medical Devices Workshop Presentations
BioMedical Strategy Medical Devices Workshop Presentations
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BioMedical Strategy Medical Devices Workshop Presentations

  • 1. December 2011 From Idea t Market F Id to M k t Use: P U Practical Notes ti l N t
  • 2. From Idea to BedSide: A Practical Guide Orna O PhD O Oz, BioMedical Strategy (2004) Ltd gy ( ) Clinical & Regulatory Affairs Group December 2011
  • 3. Medical Product A Multidisciplinary Project December 2011
  • 4. Medical Product Technological Solution Market Medical Need Analysis Regulatory R l t Patentability Scientific Evidence & Reimbursement Funding December 2011
  • 5. Main Target Markets g EU USA December 2011
  • 6. Main Target Markets g Combined Planning and Workflow December 2011
  • 7. Medical Device Definition • an instrument apparatus … implant in instrument, apparatus, implant, vitro reagent, or other similar or related article, article including a component part or part, accessory • Used for the diagnosis treatment or prevention of diagnosis, disease or condition and that • Affects the structure or function of the body • Does not achieve its function through chemical action • Is not metabolized to achieve effect December 2011
  • 8. Premarket Phase Regulatory Strategy Pre Submission (NB, FDA) Quality Assurance December 2011
  • 9. Project Steps ( j p (Life Cycle) y ) • Research & Proof of Concept • Regulatory Strategy (for regulated products) • Project initiation – System/Market Requirements • Specifications and Risk Analysis / Traceability Matrix • R&D framework • Verification and Validation: bench, ex-vivo, in vivo • Clinical • Submission/s market approvals • Market penetration December 2011
  • 10. Regulatory Path g y •Proof of Concept •Requirements q •Risk Assessment US EU Regulatory Pathway Finalize discussion with Notified gy and Clinical Strategy body for Strategy Pre- IDE Development + Quality System Q Verification & Validation Poolability Clinical Study (OUS) IDE Clinical Study (US and OUS) IDE CE Mark 510(k) Clearance/PMA Approval December 2011
  • 11. Regulatory Strategy • Intended use & Indications for use (Claim) • Regulatory Cl R l Classification ifi i • Applicable standards and guidelines • Proposed pre clinical Testing pre-clinical • Clinical Strategy (pre and post market) • Re-assess intended use and/or indications for use • Re assess technological (engineering) approach and R&D plan Re-assess • Re-assess business plan – designated product, timelines and budget Alternative approaches
  • 12. Claim / Intended Use Intended U I t d d Use: What is being done g Sometimes where it is being done Sometimes why it is being done Indications: Diseases Patients Subsets December 2011
  • 13. Implications of Claim SPECIFICITY LEVEL 1. Identification of function Tool Claim 2. Identification of tissue type an organ system or (higher clinical Identification of a specific evidence)) organ 3. Identification of a particular disease or target population 4. Identification of an effect on clinical outcome Clinical Claim December 2011
  • 14. CDRH’s Risk Based Paradigm g Class I Class II Class III December 2011
  • 15. Classification Determination of Risk Risk / Benefit where Benefit Outweighs Risk December 2011
  • 16. Classification Determination of Risk User/Pt g Mitigation Environment Generic type Circumstances Claim December 2011
  • 17. Risk-Benefit (Safety / Efficacy) •A great deal of emphasis is placed on the importance of clinical data in demonstrating the safety and effectiveness of a medical device. Still….Non-clinical data also can be critical to understanding device safety and effectiveness. Medical devices often h M di l d i ft have attributes th t cannot b t t d using tt ib t that t be tested i clinical methods alone and that play a major role in the safety or effectiveness of the device. FDA Guidance (Aug 2011): “Factors to Consider when Making Benefit-Risk Determinations in Medical Device Premarket Review” Clinical and non-clinical data play a role in the benefit-risk determination December 2011
  • 18. Classification December 2011
  • 19. R D Animal Design Ex i E vivo Bench B h & Development Clinical December 2011
  • 20. System Requirements • Intended use • Target population (indications) • Product description • Applicable Standards And Guidelines • Requirements (safety, performance, usability, marketing): – Output / Outcome (measures or outcome of treatment), accuracy / efficacy – Biocompatibility, cleanness ( p y, (sterility) y) – Mechanical and electrical properties – Compatibility with target anatomy – C Compatibility with other products ( tibilit ith th d t (accessories, additional i dditi l under the same procedure….) – End user December 2011
  • 22. Standards and Guidelines To be routinely surveyed December 2011
  • 23. Standards and Guidelines • General: – Regulatory decisions and Classification – Design Control – Clinical Cli ical – Biocompatibility – Electrical El t i l – Software •S Specific / Special ifi S i l – Specific to that family of devices or specific properties of device (material, energy type and i fd i ( i l d level, etc.) December 2011
  • 24. Traceability Matrix A Matrix Based Approach December 2011
  • 25. Traceability Matrix Functional Clinical Clinical Risk Verification & Validation Requirements Risk Mitigation by Type of Evaluation Specific Procedures Biocompatible Systemic Materials and Biocompatibility Compliance with ISO 10993- p adverse design testing; animal 1:2009 Biological evaluation reaction, testing, clinical data of medical devices - Part 1 death (e.g., Cyotoxicity, Sensitization, Etc.)) Electrical and EM Serious Design and Electrical and EM Test Report demonstrating safe burns, IFU Testing compliance with EN 60601-1 death (2006) + A1 & A2 - Medical Electrical Equipment - Part 1: General Requirements for Basic Safety And Essential Performance Compatible with C tibl ith Injury, I j Design d D i and Specific b S ifi bench tests, ht t other equipment In death (e.g., IFU animal testing, the clinical arena pacemaker clinical data will not function) f ti ) Functional Injury, Design and Specific functionality (mechanical/tissue death IFU tests, animal testing, interaction/target clinical data organ)) December 2011
  • 26. Risk Analysis • Patient Injury Effect of (expected Failure complications) Harm • Device Deterioration • Design Cause of Failure • Manufacturing • User Error • Design • Protective measures Mitigation g in manufacturing process • Labeling (IFU) December 2011
  • 27. Risk Assessment Table (1st approach) A Matrix Based Approach December 2011
  • 28. Risk Assessment Table (1st approach) Mode of Effect of Cause of Risk Control Verification Failure / Failure / Harm Failure (Mitigation) Hazard Hazards Related to BIOLOGICAL Hazards Related to MECHANICAL Hazards Related • Loss or 1. Inadequate 1. Design (e.g., Device Functionality Testing to Deterioration of D t i ti f specification ifi ti designed with d i d ith PERFORMANCE Device. 2. Insufficient integrated radiopaque • Patient Injury control of markers) manufacturin 2. Protective measures in g processes manufacturing process: QC inspections during production Hazards Related Patient Injury re-use of single Labeling IFU includes the following warning: to DEVICE USE use device “The System is a single-use device and is intended for single patient use only. Re – using the device is a potential for cross-infection. Do not attempt to clean or re-sterilize the System. Reprocessing the device may damage the device making it unsafe for use. ” December 2011
  • 29. Project / Product Milestones Always use Science & Regulatory Based Tools!! December 2011
  • 30. Project / Product Milestones • Ongoing Development •Quality System Q y y • Design Freeze • Pre clinical V&V •Manufacturing • Premarket Clinical Investigation P k Cli i l I i i • Submission for market clearance/approval • Postmarket activities (clinical study/ies) December 2011
  • 31. The V&V Loop p Animal A i l Design Ex vivo Bench & Development Clinical December 2011
  • 32. Bench Testing December 2011
  • 33. Safety / Performance / Usability Evaluations • Correlate with Risk Assessment / Traceability Matrix • Plan a matrix of tests where more than one safety and/or efficacy aspect can be evaluated at once, using the same group of devices • Design • Objectives (safety and/or performance and/or usability) and EndPoints (mechanical usability ….) (mechanical, usability, ) • Measures: quantitative, qualitative (scores) • Success criteria • Number of repetitions (confidence/reliability) • Conduct • E Experimental set-up i t l t • Validated set-up (the model, calibrated tools)
  • 34. In Vivo Animal Testing December 2011
  • 35. Safety / Performance / Usability Evaluations • C Correlate with Risk Assessment / Traceability l t ith Ri k A t T bilit Matrix • Design • Objectives (safety and/or performance and/or usability) and EndPoints (biological, mechanical, usability, ..) • Success criteria • Measures: quantitative, qualitative (scores) • Animal model and target anatomy in the animal • Study group/s (& sample size) • Follow up periods (acute, xx–day) • Experimental Procedure • Simulated clinical procedure / relevant aspects and arena • Histology – analysis approach and parameters with a gy y pp p recognized pathologist
  • 36. The Animal Lab Conduct (from day 1) • Selection of appropriate animal laboratory (GLP, other accepted certification? No certification) tifi ti ) • Pre-visit to selected laboratory (facility, staff) • Di Discuss with the investigator and staff your ith th i ti t d t ff planned study • Conduct of a controlled and monitored study (Case Report Forms, accountability and traceability of: investigated devices, animals, y g , , explanted parts)
  • 37. Clinical Evidence December 2011
  • 38. Clinical Strategy gy Post-market Post market . . . Study # 3 Study #2 FIM Investigational/pre-market December 2011
  • 39. Clinical Strategy gy Correlated with Risk Assessment / Traceability Matrix December 2011
  • 40. The Key to Market Penetration y A breakthrough technology is great but does not ensure ens re market s ccess success Regulatory approvals are meaningful milestones •In creating value for strategic agreements and funding •In entrance to the market Clinical evidence (data) is the leading force to successful market penetration and positioning December 2011
  • 41. Clinical Strategy MEDDEV 2 7 1 2.7.1 Stage 1* Stage 2 Identify clinical data from Appraisal of individual data sets • Suitability • Literature searching &/or • Clinical experience &/or • Contribution of performance • Clinical investigation and safety Generate new or additional clinical data N O Is clinical evidence Stage 3 sufficient to be able to declare Analysis of relevant data conformity with • Strength of overall evidence relevant ERs ? • Conclusions about performance and safety Y E S Produce clinical evaluation report December 2011
  • 42. Safety / Performance / Usability Evaluations E l ti • Design • Define type of study (example: single arm, prospective, open label) • Define Objectives (safety and/or performance and/or usability) and EndPoints (safety/complications, mechanical, usability, efficacy/clinical outcome….) • Determine indicated population (eligibility criteria) • Determine success criteria • Define measures: qualitative (scores), quantitative • Define study group/s ( & sample size) • Define the appropriate follow up periods (acute, xx– follo p (ac te day) • Experimental Procedure = Clinical procedure December 2011
  • 43. Safety / Performance / Usability Evaluations E l ti Clinical Demonstration of Risk / Benefit Design is based on scientific claims, relevant peer li l literature & regulatory l submissions December 2011
  • 44. Conduct of Trial December 2011
  • 45. Some Common Pitfalls • Bad study design • Inappropriate selection of sites and/or investigators • Incomplete and/or inappropriate study management tools (procedures, logs CRFs…) • Using under-qualified clinical research personnel ( p (sponsor and/or site) ) • Poor compliance with GCP– not only necessary for regulatory reasons b also to reduce the company’s l but l d h ’ risk from potential adverse publicity and lawsuits December 2011
  • 46. IP Site Selection Laws of Country Costs Scientific Publications Location / Market Availability Personnel & Facilities Regulatory Expected subjects eligibility subjects- December 2011
  • 47. Investigator Selection g Opinion L d O i i Leader A il bilit Availability December 2011
  • 48. Study y Management & Monitoring December 2011
  • 49. FDA Warning Letters g Some Examples December 2011
  • 50. FDA Warning Letter (1) Between July 26 and August 24, 2010, Thomas R. Beilke, representing the U.S. Food and Drug Administration (FDA), conducted an investigation of your former practice practice. During the course of the inspection, Mr. Beilke met with you to review your conduct of a clinical investigation (Protocol (b)(4), titled "(b)(4)") performed for (b)(4). You were the investigator for this clinical investigation between March 2008 and March 2009…….. From our review of the establishment inspection report and the documents submitted with th t report, we conclude th t th d t b itt d ith that t l d that you did not adhere to the applicable statutory requirements and FDA regulations governing the conduct of clinical investigations. 1. You failed to ensure that the investigation was conducted according to the signed investigator statement, in that you failed to g g g , y personally conduct or supervise the clinical investigation [21 CFR 312.60]. 2. You failed to ensure that the investigation was conducted acco di g to the investigational plan [21 CFR 312 60] according i estigatio al la 312.60]. December 2011
  • 51. FDA Warning Letter (2) This Warning Letter is to inform you of objectionable conditions observed during the Food and Drug Administration (FDA) inspection conducted at Orthocon, Inc. Orthocon Inc ... The purpose of this inspection was to determine whether activities as sponsor of the clinical studies (b)(4) and (b)(4) complied with applicable federal regulations. This letter also requests prompt corrective action to address the violation cited and discusses your written response dated September 23 2010 to the 23, noted violation. Failure to secure the investigator’s compliance. [21 CFR 812.46(a)]: Sponsors are responsible for monitoring and ensuring compliance of clinical investigators participating in the investigation. A sponsor who discovers that an investigator is not complying with the signed agreement the investigational plan applicable FDA regulations or agreement, plan, regulations, any conditions of approval imposed by the reviewing IRB or FDA shall promptly either secure compliance or discontinue shipments of the device to the investigator and terminate the investigator’s participation in the investigation. December 2011
  • 52. FDA Warning Letter (3) During an inspection of your firm located in Or-Akivaon June 20, 2011, through June 23, 2011, an i investigator f i from the United S h i d States Food and Drug d d Administration (FDA) determined that your firm manufactures the XX and the YY. Under section 201(h) of the Federal Food, Drug, and Cosmetic Act (the Act), 21 U.S.C. § 321(h), these products are devices because they are intended for use in the diagnosis of disease or other conditions or in the cure, mitigation, treatment, or prevention of disease, or are intended to affect the structure or function of the body…… Specifically, the XX and the YY were cleared under Kxxxxxx and Kxxxxxx, respectively. Our inspection revealed that your firm modified the devices by (b)(4) to the XX and the YY (b)(4). A new 510(k) is required for this modification as it represents a significant change to the design of the devices…… As A a result, FDA may t k steps t refuse th lt take t to f these products, k d t known as "detention without physical examination," until these violations are corrected. December 2011
  • 53. In Summary Clinical & Regulatory Affairs is about implementing cost effective strategies and i l ti g t ff ti t t gi d tools for a valuable project It is the umbrella, from early development through market approval and up to p pp p post-marketing activities g (market penetration), to support the Company in the bringing to the markets a reasonably safe and effective product It is the right means to create value and minimize (mitigate) liability in a least burdensome way December 2011
  • 54. Standards G id li St d d & Guidelines Some Useful Links December 2011
  • 55. Global and EU • Link for European directive and Guidance documents (MEDDEV) http://www.meddev.info/ http://www meddev info/ • Link for standards of all directives (medical and non medical) in Europe http://ec.europa.eu/enterprise/policies/european- h // / i / li i / standards/documents/harmonised-standards-legislation/list-references/ December 2011
  • 56. Global and EU (Cont.) ( ) • Link for standards non active implantable medical devices in Europe http://ec.europa.eu/enterprise/policies/european http://ec europa eu/enterprise/policies/european- standards/documents/harmonised-standards-legislation/list- references/medical-devices/index_en.htm • Link for standards active implantable medical devices in Europe http://ec.europa.eu/enterprise/policies/european- standards/documents/harmonised-standards-legislation/list- t d d /d t /h i d t d d l i l ti /li t references/implantable-medical-devices/index_en.htm • GHTF http://www.ghtf.org December 2011
  • 57. FDA • FDA basics for Industry http://www.fda.gov/ForIndustry/FDABasicsforIndustry/default.htm http://www fda gov/ForIndustry/FDABasicsforIndustry/default htm • FDA general: http://www.fda.gov/default.htm h // fd /d f l h • Medical Devices: http://www.fda.gov/MedicalDevices/default.htm • Combination products: http://www.fda.gov/CombinationProducts/default.htm • Device Advise http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/defa ult.htm December 2011
  • 58. FDA (Cont.) • Search for FDA Guidance Documents (by office/ year/keyword): http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/Guid http://www fda gov/MedicalDevices/DeviceRegulationandGuidance/Guid anceDocuments/default.htm • Link to FDA databases (510(k) PMA Adverse Events Classifications (510(k), PMA, Events, Classifications, Registration and Listing, Standards, TPLC, 21CFR, etc) http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfPMN/pmn.cfm • CDRH Organization structure and directors (personnel) p g http://www.fda.gov/AboutFDA/CentersOffices/CDRH/CDRHOffices/ucm 127854.htm • CDRH post approval studies database: http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfPMA/pma_pas.cfm December 2011
  • 59. 2010 - 2011 Interesting FDA Guidance • D f Guidance f I d Draft G id for Industry and F d and D d Food d Drug Administration S ff - Ad i i i Staff Investigational Device Exemptions (IDE) for Early Feasibility Medical Device Clinical Studies, Including Certain First in Human (FIH) Studies • Draft Guidance for Industry and Food and Drug Administration Staff - Applying Human Factors and Usability Engineering to Optimize Medical Device Design • Draft Guidance for Industry and FDA Staff: FDA a d Industry Procedures a t Gu da ce o dust y a d Sta : and dust y ocedu es for Section 513(g) Requests for Information under the Federal Food, Drug, and Cosmetic Act34 • Guidance for Industry and FDA Staff: General Considerations for Animal Studies for Cardiovascular Devices3 December 2011
  • 60. 2010 - 2011 Interesting FDA Guidance (Cont.) • Draft Guidance for Industry, Clinical Investigators, Institutional Review Boards, and Food and Drug Administration Staff - FDA Decisions for Investigational Device Exemption (IDE) Clinical Investigations • Draft Guidance for Industry and Food and Drug Administration Staff - De Novo Classification Process (Evaluation of Automatic Class III ovo C ass cat o ocess ( va uat o o uto at c C ass Designation)2 • Oversight of Clinical Investigations — A Risk Based Approach to Risk-Based Monitoring • D f Guidance f I d Draft G id for Industry and F d and D d Food d Drug Administration S ff - Ad i i i Staff Factors to Consider when Making Benefit-Risk Determinations in Medical Device Premarket Review December 2011
  • 61. Useful Links 2010 - 2011 Interesting FDA Guidance • Draft Guidance for Industry, Clinical Investigators, and Food and Drug y, g , g Administration Staff - Design Considerations for Pivotal Clinical Investigations for Medical Devices • Guidance for Industry and FDA Staff - 510(k) Device Modifications: Deciding When to Submit a 510(k) for a Change to an Existing Device • Draft Guidance for Industry and FDA Staff - Commercially Distributed In Vitro Diagnostic Products Labeled for Research Use Only or Investigational Use Only: Frequently Asked Questions December 2011
  • 62. Useful Links 2010 - 2011 Interesting FDA Guidance (Cont ) (Cont.) • Guidance for Industry and FDA Staff: In Vitro Diagnostic (IVD) Device Studies - Frequently Asked Questions • Draft Guidance for Industry, Third Parties and FDA Staff: Medical Device ISO 13485:2003 Voluntary Audit Report Submission Program December 2011
  • 63. The Innovation Paradigm: Good or Bad? Maier Fenster Copyright 2011 All rights reserved No Portion may be Copied or Otherwise Reproduced without Express Written Permission
  • 64. Disclaimer • The purpose of this presentation is to communicate concepts. There is no guarantee that the information presented is complete or up-to-date. • Also, information is not legal advice. Legal advice is when you apply information to a situation. • Go to a lawyer for legal advice. • Go to a patent attorney for patent-related advice. • Go to a regulatory expert for regulatory advice.
  • 65. Why are we having this talk • We all live innovation, but sometimes it seems like too much of a good thing • Try to illustrate the tensions between innovation and success, with special emphasis on regulatory affairs and clinical trials • Will attempt to give tools to model, not always solve, the problems • An experimental talk
  • 66. Outline • What is the innovation paradigm • What is the ideal regulatory process • What is the ideal development process • What is the reality & why • A suggested attitude • Some practical examples • Q&A and discussion
  • 67. The Innovation Paradigm • Premise: We will succeed because our product is better • Assumption: Our product is better because we have secret discovery/better engineers/better understanding/blind luck • Conclusion: we need to show that our product is better • Corollary: we hire people and work hard to make our product better • Emphasis: not “better”; “MUCH better”
  • 68. Ideal regulatory process #1 • Plan new product based on existing market/product • Develop new product • Show equivalence of new product & old product • Ta-da • Insight: more innovation requires more proof • And: small improvement requires more proof
  • 69. Ideal regulatory process #2 • Have great new idea • Develop great new device • Run clinical trials • Succeed • Ta-da • Insight: all’s well that ends well
  • 70. Ideal development process #1 • Have idea • Create design, taking into account ideal manufacturing method and usage method • Build device • Have it work first time • Ta-da • Insight: we all like risk-free R&D
  • 71. Ideal development process #2 • Have idea • Build prototype • Test prototype - fast • Redesign device based on test results & user input • Repeat until great product is created • Ta-da • Insight: moving fast with lots of money is good
  • 72. Reality knocks - basics • Only the lucky ones have innovation which does not affect functioning • New product can be better in: – Manufacturability – Shelf life – Ease of use – Reliability in body – Function – Side effects/Safety – Other
  • 73. Reality knocks - basics, cont. • New device might (only) be different, not better • When will we find out that device is better? • Will the market change? • Will competition change the game? • Experimental failure is bad
  • 74. Reality knocks - process • What are chances experiments will work as advised? • How long must we wait for that (e.g., avoid adverse results)? • Will there be NO inputs from users? data analysis? • What if a problem is discovered? • What if device is not good enough? • What if a better device is possible?
  • 75. Reality knocks - people • People involved believe in innovation • People involved want to cure patients • Researchers are NOT mere technicians • Hype, advisors & investors • Engineers do not just change gears • Building the company brand • Pressure from agile development processes
  • 76. Reality knocks - IP • There is a war going on – enemy is watching • One must think several steps ahead • What you tell one government agency, others will know about • Several court cases on point • Device development cycle is slower than IP cycle • IP can drive development by publishing ideas • IP & device specs do not fully overlap • When is innovation understood? And if it changes? • Make IP match the selection for regulatory approval • Problems and opportunities
  • 77. What is your reality? • Be aware of conflicting forces that encourage, discourage and/or channel innovation and discussion of innovation. Who is involved for each “party”? • How do you balance need for showing innovation with need for showing lack of innovation. • How is innovation channeled? • Money. Business. Working product. How are they linked to innovation and its consequences? • Are all “risks” from experiments taken into account?
  • 78. Some suggested activities • Micro-level – Collaboration between IP and regulatory advisors, and also with publishing bodies, such as researchers – re-consider (everything) based on changes in target, on a regular basis • Divert innovation activities to: – clear “stage II” products/features – less regulated issues • Play the country game • Prepare alternative pathways – File IP based on prediction of results – Develop and advance designs based on IP problems • Experiment also for IP - Early
  • 79. Case study – unneeded battle • Story of a client who was not careful • They wanted to get a patent – so they explained innovation • They wanted 510(k) so they explained how innovation was same as prior art • Then they got threatened, with other side basing its belief on the 510(k) • Good news: they came to us • We did lots of stuff, including a new 510(k) filing • We won. But (Sun Tzu): – The greatest victory, is the battle not fought.
  • 80. Case study - hindsight • What FDA wants to get comfort on is not exact opposite of what patent office wants to see for inventive step – USPTO does not care much about safety. FDA does – FDA is happy if device works same as old device due to lack of insight in the past into operation mechanism and its consequences; USPTO would be happy too • Somebody could have made an educated decision • Somebody could have coordinated between the “professionals” • One should be aware of case law
  • 81. More hindsight • Talking about your own previous and current devices is bad enough • Talking about the competition is worse • Any statements can be used against you in a court of law • Courts (& management) tend to confuse patent and product. Don’t help them get confused • Risk: (partial) admission of infringement • Risk: admission of fraud • Risk: attracting litigation
  • 82. Case study – loose lips sink ships • Client wanted 510(k). Presented device as substantially equivalent. • Client wanted investor hype. Published paper showing innovation • FDA was not happy. • Hindsight – if you generate hype, make sure it does not reflect on your regulatory processes. • Nice if hype does reflect on your IP processes.
  • 83. Principles of Law-I • In determining infringement it is settled law that the accused device should be compared to the patent claims and not to a particular product manufactured by the patent holder. • Nevertheless, this idea is sometimes confusing to patent holders and also to courts, which find it easier to compare the accused device to a concrete device than to compare it to abstract claims. • Furthermore, such admissions can be used an opening to claim willfulness or fraud on the patent office.
  • 84. Principles of Law-II • Even if the admission is not considered a complete admission of infringement, the wording of the 510(k) could still help the patentee by positively mentioning some of the features of the claims as being the same in both devices.
  • 85. Principles of Law-III • In Pall Corp. v. Hemasure Inc., the Federal Circuit used the disclosure in the 510(k) as a guide to determine whether there was infringement. However, there apparently was no utilization of the patentee’s device as a predicate.
  • 86. Principles of Law-IV • In Electro Scientific Industries Inc. v. Dynamic Details Inc., the Federal Circuit discussed whether the information in the FDA 510(k), which was not supplied to the USPTO, could be considered fraud on the patent office, in that the submission contained drawings made by a sub- contractor. Based on the facts of the case it decided that this did not raise an inventorship issue.
  • 87. Principles of Law-V • In United States Surgical Corp. v. Hospital Products International PTY Ltd., the US District Court for Connecticut made the following statement: • “The defendants have gone so far as to cause statements to be made that may be construed as admissions of infringement. For example, on October 28, 1980, HPI submitted to the United States Food and Drug Administration a §510(k) pre-market notification, signed by Blackman, of its intention to sell its 30, 55, and 90 medium and large series of DLUs, as well as its GA/ANAST (an earlier name for the defendants’ ILA DLU). It was stated in the notification that these devices were equivalent to their USSC counterparts.” • However, the court did not utilize this admission in finding infringement.
  • 88. Principles of Law-VI • In a footnote in Clintec Nutrition Co. v. Baxa Corp., the US District Court for the Northern District of Illinois states: • “Clintec also relies on Baxa's Section 510(k) submission to the Food and Drug Administration (“FDA”), representing that Baxa's and Clintec's compounders are “substantially equivalent.” Clintec does not, however, point me to an affirmative representation in the submission that Baxa's compounders “sort.” … Baxa gained the Agency's approval to market its compounders without undergoing a more extensive approval process, because Baxa was able to demonstrate that its compounders were “substantially equivalent” to Clintec's. “
  • 89. Principles of Law-VII • “A device is ‘substantially equivalent’ if it has the same intended use and the same technological characteristics as those of the existing device. • “Thus, the 510(k) submission compares the accused product, Baxa's compounders, with the commercial embodiment of the ‘010 patent, Clintec's compounders. “ [I]t is error for a court to compare in its infringement analysis the accused product . . . with the patentee's commercial embodiment.” …Although in the recitation of facts, the court in United States Surgical Corp. v. Hospital Prods. Int'l Pty. Ltd., remarked that statements in the Section 510(k) submission “may be construed as admission of infringement,” the court did not rely on the submission in the infringement analysis.”
  • 90. Principles of Law-VIII • It seems clear that a court will consider statements made in a 510(k) as being statements against interest. The extent of the damage will depend of course on the statements made and how they impact on the issues before the court. • Thus, it is important to weigh carefully all statements made in a 501(k). This is not limited to comparisons with predicate devices but also includes statements regarding the operation of the device, etc.
  • 91. Summary • Innovation is good, but at some point it needs to be controlled and/or channeled • IP and regulatory processes interact. Strongly. And both are affected by experiments. • Use a good regulatory advisor • Like lots of life – timing, expectation matching and risk management • Not all bad – one can get synergy by matching business, IP and regulatory
  • 92. A Harmonized and Synchronized Pathway for Reimbursement and Regulation December 1st, 2011 Amir Inbar, CEO Mediclever Ltd. © Copyright 2012 Mediclever Ltd. All rights reserved. Proprietary and confidential. Neither this presentation nor any information it contains may be viewed, disclosed, published, reproduced or used for any 1 / 51 purpose without prior written approval from Mediclever.
  • 93. One Slide Resume 1. Established Mediclever in 2006 2 / 51
  • 94. Agenda 1. What 2. When 1. What (is ‘Reimbursement’) 3. How 4. Where 2. When (Should We Start Dealing With It) 3. How (Do We Take Care of It) 4. Where (In Which Countries First) 3 / 51
  • 95. What is ‘Reimbursement’? 1. What 2. When 1. What (is ‘Reimbursement’) 3. How 4. Where 2. When (Should We Start Dealing With It) 3. How (Do We Take Care of It) 4. Where (In Which Countries First) 4 / 51
  • 96. What is ‘Reimbursement’? Relax… 1. What 2. When 3. How 4. Where 5 / 51
  • 97. What is ‘Reimbursement’? Stakeholders 1. What 2. When 3. How 4. Where Stakeholders 6 / 51
  • 98. What is ‘Reimbursement’? Stakeholders 1. What 2. When Healthcare Providers: Patients: 3. How Hospital 4. Where ASC / Imaging Center Physician Payers: Government Insurance Companies / Sickness Funds / Primary Care Trusts 7 / 51
  • 99. What is ‘Reimbursement’? Financing a Healthcare System 1. What 2. When 3. How 4. Where Financing a Healthcare System 8 / 51
  • 100. What is ‘Reimbursement’? Financing a Healthcare System 1. What 2. When Public / Statutory: 3. How Sources (Citizens): Collection (Payers): 4. Where Taxes from the general population Social health insurance from: • Employers: • Employees 9 / 51
  • 101. What is ‘Reimbursement’? Financing a Healthcare System Sources Collection Paid To For 1. What (Citizens): (Payers): (Providers): (Patients): 2. When 3. How 4. Where Public / Statutory Out of Pocket Reimbursement Private / Complementary 10 / 51
  • 102. What is ‘Reimbursement’? Reimbursement Workflow 1. What 2. When 3. How 4. Where Reimbursement Workflow 11 / 51
  • 103. What is ‘Reimbursement’? Reimbursement Workflow 1. What 1. The healthcare provider uses CODES 2. When to tell the Payer: 3. How a. The problem Diagnostic Code/s 4. Where b. The service Procedure Code/s c. Add. details Age, Sex, etc. 2. The Payer checks if the above combination has COVERAGE 3. If positive, the Payer reimburses the healthcare provider according to the applicable PAYMENT schedule 12 / 51
  • 104. What is ‘Reimbursement’? Reimbursement Workflow 1. What For each setting: There are different: 2. When 3. How Inpatient CODES, 4. Where Procedures COVERAGE Outpatient guidelines, and Procedures PAYMENT levels Office based Procedures 13 / 51
  • 105. What is ‘Reimbursement’? 1. What 2. When Meaning of Life 3. How “While I can explain the 4. Where meaning of life, I don’t dare try to explain how the reimbursement system works” 14 / 51
  • 106. Agenda 1. What 2. When 1. What (is ‘Reimbursement’) 3. How 4. Where 2. When (Should We Start Dealing With It) 3. How (Do We Take Care of It) 4. Where (In Which Countries First) 15 / 51
  • 107. When Should We Start Dealing With It? Past 1. What Past 2. When Healthcare costs Containable 3. How 4. Where Following FDA/CE Reimbursement is ‘given’ Decision Makers for a Healthcare Providers market launch Reimbursement Not important strategy Planning for Just prior to launch reimbursement 16 / 51
  • 108. When Should We Start Dealing With It? Past 1. What 2. When 3. How 4. Where 17 / 51
  • 109. When Should We Start Dealing With It? Present 1. What 2. When 3. How So, what has changed? 4. Where 18 / 51
  • 110. When Should We Start Dealing With It? Present 1. What Past Present 2. When Healthcare costs Containable Soaring 3. How 4. Where Following FDA/CE Reimbursement is Reimbursement only if ‘given’ there’s clinical + economic value Decision Makers for a Healthcare Providers Healthcare Providers + market launch Payers Reimbursement Not important Required by Investors, strategy inc. resources and timelines Planning for Just prior to launch At an early stage reimbursement 19 / 51
  • 111. When Should We Start Dealing With It? Past 1. What Errors Solutions 2. When • Product features prevent utilization of • Consider reimbursement implications 3. How existing reimbursement mechanisms during product design 4. Where • Targeted applications / indications / • Consider reimbursement implications settings / populations - delay when defining your market / reimbursement marketing strategy • FDA/CE application prevents • Consider reimbursement reimbursement implications before applying for FDA clearance or CE mark • Clinical trials not leveraged to also • Add reimbursement parameters to generate reimbursement evidence your planned clinical trials • Price not optimized when launching • You know what to do… product or negotiating with a potential 20 / 51 investor/buyer
  • 112. Agenda 1. What 2. When 1. What (is ‘Reimbursement’) 3. How 4. Where 2. When (Should We Start Dealing With It) 3. How (Do We Take Care of It) 4. Where (In Which Countries First) 21 / 51
  • 113. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision 4. Evidence Planning 9. Implementation Landscape Report Makers • Value story • User base, stakeholders’ support 2. When • Codes, coverage • Economic model & payment Healthcare • Issue a Billing Guide, utilize existing Providers • Points for clinical • Reimbursement reimbursement mechanisms 3. How study protocol strategy • Stakeholders’ 4. Where Payers feedback • Apply for new reimbursement mechanisms 2. Regulatory Class I (NS/M) •Technical file Landscape 8. Preparation / Application Report Class I (S/M) 3. Quality EU Manag. •Regulatory Class IIa System status Class IIb •Design •Device Control 5. Clinical 6.Perform 7.Quality classification Class III procedures Study Clinical Manag. •Design dossier •Intended use Protocol Study System •Other QS & indications •Review / •Clin. Eval. •FDA QSR / Class III aspects for •PMA for use write report ISO 13845 US/EU pre- •Regulatory Class II study •510(k) route compliance Class I US 22 / 51
  • 114. How Do We Take Care of It? 1. What 1. Reimbursement Gather data Landscape Report – Determine relevant For each setting: There are different: 2. When • Codes, coverage & payment settings. Inpatient CODES 3. How • Reimbursement Procedures strategy Outpatient COVERAGE 4. Where guidelines Procedures PAYMENT levels Office based Procedures – Check for relevant 1. The healthcare provider uses CODES codes, coverage policies to tell the Payer: and payment rates. a. Problem Diagnostic Code/s b. Service Procedure Code/s c. Details Age, Sex, etc. 2. The Payer checks if the above combination has COVERAGE 3. If positive, the Payer reimburses the healthcare provider according to the applicable PAYMENT 23 / 51 schedule
  • 115. How Do We Take Care of It? 1. What 2. When 3. How 4. Where 24 / 51
  • 116. How Do We Take Care of It? 1. What 1. Reimbursement Gather data Landscape Report – Determine relevant For each setting: There are different: 2. When • Codes, coverage & payment settings. Inpatient CODES 3. How • Reimbursement Procedures strategy Outpatient COVERAGE 4. Where guidelines Procedures PAYMENT levels Office based Procedures – Check for relevant 1. The healthcare provider uses CODES codes, coverage policies to tell the Payer: and payment rates. a. Problem Diagnostic Code/s b. Service Procedure Code/s c. Details Age, Sex, etc. 2. The Payer checks if the above combination – Statistics has COVERAGE 3. If positive, the Payer reimburses the healthcare provider according to the applicable PAYMENT 25 / 51 schedule
  • 117. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision This enables us to: Landscape Report Makers 2. When • Codes, coverage •Define the most relevant Decision Makers for the & payment Healthcare Providers reimbursement of you’re the product. 3. How • Reimbursement strategy •Formulate an initial reimbursement strategy for the 4. Where Payers new product in the selected markets (Europe, US). 26 / 51
  • 118. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision In parallel, a Regulatory Landscape Report determines the Landscape Report Makers product’s classification, intended use, indications for use 2. When • Codes, coverage & payment Healthcare and the anticipated regulatory route. Providers 3. How • Reimbursement strategy 4. Where Payers Regulatory 2. Regulatory Class I (NS/M) Landscape Report Class I (S/M) Reimbursement EU •Regulatory Class IIa status Class IIb •Device classification Class III •Intended use & indications Intended use Affects possible reimbursement for use Class III •Regulatory Class II route Substantially equivalent = substantially equivalent Class I US payment 27 / 51
  • 119. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision At the next stage, when the company prepares for its Landscape Report Makers clinical study (if needed), it typically: 2. When • Codes, coverage & payment Healthcare Providers •Implements the relevant parts of its Quality Management 3. How • Reimbursement strategy System (e.g., Design Controls and other QS aspects 4. Where Payers essential for US and EU pre-study compliance). •Starts writing its clinical study protocol. 2. Regulatory Class I (NS/M) Landscape Report Class I (S/M) 3. Quality EU Manag. •Regulatory Class IIa System status Class IIb •Design •Device Control 5. Clinical classification Class III procedures Study •Intended use Protocol •Other QS & indications •Review / Class III aspects for for use write US/EU pre- •Regulatory Class II study route compliance Class I US 28 / 51
  • 120. How Do We Take Care of It? Long before the clinical study begins, we 1. What 1. Reimbursement Main Decision 4. Evidence Planning Landscape Report Makers plan the required ‘evidence’ for the • Value story 2. When • Codes, coverage • Economic model product’s reimbursement : & payment Healthcare Providers • Points for clinical 3. How • Reimbursement study protocol • Value Story: Claim for clinical AND strategy • Stakeholders’ economic benefits compared to current 4. Where Payers feedback alternatives. • Economic Model: Quantify the economic benefit, allow for sensitivity analysis and use as a sales tool. 2. Regulatory Class I (NS/M) Landscape • Reimbursement Related Parameters: Report Class I (S/M) 3. Quality Manag. Integrate in the study protocol. EU •Regulatory Class IIa System status • Stakeholders’ Feedback: Verify support Class IIb •Design •Device Control 5. Clinical of the relevant Decision Makers, if the classification Class III procedures Study claims in the Value Story are proven •Intended use Protocol according to the presented clinical study •Other QS & indications •Review / Class III aspects for protocol. for use write US/EU pre- •Regulatory Class II study route compliance Class I US 29 / 51
  • 121. How Do We Take Care of It? 1. What 2. When Regulatory Approval ≠ Reimbursement 3. How 4. Where Regulatory entities Reimbursement entities (FDA, NBs, …) (CMS, Sickness Funds, …) Does the product: do what it claims? improve outcomes? Is the product: safe & effective? reasonable & necessary? Data from: controlled settings real world Support of: KOLs medical society/ies Cost: not relevant may be key 30 / 51
  • 122. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision 4. Evidence Planning Now, the clinical trial may be Landscape Report Makers conducted and the resulting • Value story 2. When • Codes, coverage • Economic model ‘evidence’, substantiating the claims & payment Healthcare • Reimbursement Providers • Points for clinical in the Value Story, should be 3. How study protocol strategy published. • Stakeholders’ 4. Where Payers feedback 2. Regulatory Class I (NS/M) Landscape Report Class I (S/M) 3. Quality EU Manag. •Regulatory Class IIa System status Class IIb •Design •Device Control 5. Clinical 6.Perform classification Class III procedures Study Clinical •Intended use Protocol Study •Other QS & indications •Review / •Clin. Eval. Class III aspects for for use write report US/EU pre- •Regulatory Class II study route compliance Class I US 31 / 51
  • 123. How Do We Take Care of It? Seed Funding Round A 1. What 1. Reimbursement Main Decision 4. Evidence Planning Landscape Report Makers Raise funding: • Value story 2. When • Codes, coverage • Economic model • At this stage, in order to finance & payment Healthcare • Reimbursement Providers • Points for clinical their clinical trial, many companies 3. How study protocol strategy raise their growth funding round • Stakeholders’ 4. Where feedback (also referred as Series A round). Payers 2. Regulatory Class I (NS/M) Landscape Report Class I (S/M) 3. Quality EU Manag. •Regulatory Class IIa System status Class IIb •Design •Device Control 5. Clinical 6.Perform classification Class III procedures Study Clinical •Intended use Protocol Study •Other QS & indications •Review / •Clin. Eval. Class III aspects for for use write report US/EU pre- •Regulatory Class II study route compliance Class I US 32 / 51
  • 124. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision 4. Evidence Planning Completion of QMS Landscape Report Makers • Value story 2. When • Codes, coverage • Economic model If the company has not already done & payment Healthcare Providers • Points for clinical so, the quality management system 3. How • Reimbursement study protocol strategy can be completed to ensure it • Stakeholders’ 4. Where feedback complies with US and/or European Payers requirements. 2. Regulatory Class I (NS/M) Landscape Report Class I (S/M) 3. Quality EU Manag. •Regulatory Class IIa System status Class IIb •Design •Device Control 5. Clinical 6.Perform 7.Quality classification Class III procedures Study Clinical Manag. •Intended use Protocol Study System •Other QS & indications •Review / •Clin. Eval. •FDA QSR / Class III aspects for for use write report ISO 13845 US/EU pre- •Regulatory Class II study route compliance Class I US 33 / 51
  • 125. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision 4. Evidence Planning • Europe: Submit the Technical File Landscape Report Makers or the Design Dossier • Value story 2. When • Codes, coverage • Economic model & payment Healthcare • USA: apply for FDA Clearance (510 Providers • Points for clinical 3. How • Reimbursement study protocol (k)) or Approval (PMA). strategy • Stakeholders’ 4. Where Payers feedback 2. Regulatory Class I (NS/M) •Technical file Landscape 8. Preparation / Application Report Class I (S/M) 3. Quality EU Manag. •Regulatory Class IIa System status Class IIb •Design •Device Control 5. Clinical 6.Perform 7.Quality classification Class III procedures Study Clinical Manag. •Design dossier •Intended use Protocol Study System •Other QS & indications •Review / •Clin. Eval. •FDA QSR / Class III aspects for •PMA for use write report ISO 13845 US/EU pre- •Regulatory Class II study •510(k) route compliance Class I US 34 / 51
  • 126. How Do We Take Care of It? 1. What 1. Reimbursement Main Decision 4. Evidence Planning 9. Implementation Landscape Report Makers • Value story • User base, stakeholders’ support 2. When • Codes, coverage • Economic model & payment Healthcare • Issue a Billing Guide, utilize existing Providers • Points for clinical • Reimbursement reimbursement mechanisms 3. How study protocol strategy • Stakeholders’ 4. Where Payers feedback • Apply for new reimbursement mechanisms In case existing reimbursement mechanisms •Technical file (Codes, Coverage, Payment) exist, we will 8. Preparation / Application • Develop a dossier to convince Healthcare Providers to purchase your new product. 5. Clinical 6.Perform 7.Quality Study Clinical Manag. •Design dossier Protocol Study System Otherwise: •Review / •Clin. Eval. •FDA QSR / •PMA write report ISO 13845 • After verifying a sufficient user-base and •510(k) support from the medical community, we will apply for new codes, coverage policies and favorable payment rates. 35 / 51
  • 127. How Do We Take Care of It? 1. What 2. When 3. How 4. Where 36 / 51
  • 128. Agenda 1. What 2. When 1. What (is ‘Reimbursement’) 3. How 4. Where 2. When (Should We Start Dealing With It) 3. How (Do We Take Care of It) 4. Where (In Which Countries First) 37 / 51
  • 129. Where (In Which Countries First)? 1. What 2. When 1. Potential market 3. How 2. Supportive environment: 4. Where IP protection Regulatory process Reimbursement 38 / 51
  • 130. Where (In Which Countries First)? Potential Market 1. What 2. When 1. Potential market 3. How 2. Supportive environment: 4. Where IP protection Regulatory process Reimbursement 39 / 51
  • 131. Where (In Which Countries First)? Potential Market 1. What 3 Types of Healthcare Systems 2. When 3. How Private Payer and Provider are separated entities Payers 4. Where Clearer definition of covered procedures. Detailed reimbursement lists. Statutory Sickness Funds There must be an accurate procedure code (with its coverage and payment rate). Payer and Provider are not so separated No need for a clear definition of coverage. NHS Reimbursement also relies on ‘block contracts’, ‘balance Grants’, etc. 40 / 51
  • 132. Where (In Which Countries First)? Potential Market 1. What Healthcare Expenditure per Capita ($US PPP) 2. When 3. How Private 7,538 4. Where Payers Statutory 3,737 Sickness Funds 3,696 3,129 NHS 2,870 2,902 41 / 51 $US Source: OECD Indicators 2008 (http://stats.oecd.org)
  • 133. Where (In Which Countries First)? Potential Market 1. What Healthcare Expenditure per Capita (% of GDP) 2. When 3. How Private 16.0% 4. Where Payers Statutory 10.5% Sickness Funds 11.2% 8.7% NHS 9.1% 9.0% 42 / 51 $US Source: OECD Indicators 2008 (http://stats.oecd.org)
  • 134. Where (In Which Countries First)? Potential Market 1. What Healthcare Expenditure Sources 2. When 3. How Private (47) (12) (41) 4. Where Payers Statutory (77) (10) (13) Sickness Funds (78) (15) (7) % Public / Statutory (83) (11) % Private / Complementary NHS (77) (20) % Out of Pocket (73) (21) 43 / 51 $US Source: OECD Indicators 2008 (http://stats.oecd.org)
  • 135. Where (In Which Countries First)? Potential Market 1. What Spending on medical technology: €187B 2. When 3. How • US: 42% Medical technology is defined as wheelchairs, pacemakers, orthopedic 4. Where • Germany (DM): 11% shoes, spectacles and contact lenses, • Japan (JP): 10% insulin pens, hip prostheses, condoms, • France: (FR): 05% oxygen masks, dental floss, MRI scanners, pregnancy tests, surgical • UK: 04% instruments, bandages, syringes, life- • China (CH): 02% support machines, etc. CH UK FR JP DM US 0 10 20 30 40 50 60 70 80 90 100 44 / 51 Source: Eucomed Medical Technology Brief, May 2007
  • 136. Where (In Which Countries First)? Potential Market 1. What Medical Technologies Funding (% of GDP) 2. When 3. How Private 0.71% 4. Where Payers Statutory 0.92% Sickness Funds 0.62% 0.36% NHS 0.5% 0.46% 45 / 51 $US Source: AdvaMed, UK Medical Technology Issues, CEO Toolkit, January 2005
  • 137. Where (In Which Countries First)? Supportive Environment 1. What 2. When 1. Potential market 3. How 2. Supportive environment: 4. Where IP protection Regulatory process Reimbursement 46 / 51
  • 138. Where (In Which Countries First)? Supportive Environment – IP Protection IP protection : 1. What 9 – Best 7 2. When 0 – Worst 6 Germany 3. How France USA 4. Where Japan 5 UK China Israel 4 IP India Brazil 3 2 1 Software piracy rate 80% 60% 40% 20% 0% 47 / 51 PWC Innovation Scorecard
  • 139. Where (In Which Countries First)? Supportive Environment – Regulatory Ease of regulatory 1. What approval: 9 9 – Easiest Israel 2. When 0 – Most difficult 8 3. How 7 India France 4. Where 6 UK Germany 5 Regulatory USA 4 Brazil 3 China Japan 2 1 Regulatory approval time, months 30 24 18 12 6 months months months months months 48 / 51 PWC Innovation Scorecard
  • 140. Where (In Which Countries First)? Supportive Environment - Reimbursement 1. What 2. When 3. How 4. Where Reimbursement 49 / 51 PWC Innovation Scorecard
  • 141. Where (In Which Countries First)? Supportive Environment 1. What 2. When 3. How 4. Where IP Regulatory Reimbursement 50 / 51 PWC Innovation Scorecard
  • 142. The End 1. What 2. When Thank You For Listening 3. How 4. Where Amir Inbar, CEO http://www.mediclever.com amir@mediclever.com http://twitter.com/mediclever 050.837.1711 http://mediclever.com/blog UK Office: Israel Office: • 27 Old Gloucester St., • 6 Te’ena St., • London WC1N 3AX • Modiin 71799 • uk@mediclever.com • il@mediclever.com 51 / 51 • +44.208.099.7435 • +972.50.837.1711
  • 143. A Notified Body perspective when revising and judging the conformity of a device for granting CE marking Hester Hasper
  • 144. Contents Introduction to DEKRA: bigger picture & business line medical DEKRA’s expertise & market access Conformity assessment by the notified body & the D&D process New applications (dossier): what are we looking at? Review of the approach to obtain CE Changes / revisions / extension: what is the approach followed?
  • 145. Bigger picture: Business Line Medical within DEKRA DEKRA GROUP (HQ Stuttgart, Germany) DEKRA Operating in 29 European countries as well as in North America, Brazil, 21 000 South Africa and China. Organized in 4 Business Units comprising a total of 180 consolidated companies. DEKRA Industrial 5 000 Generating 1.7 billion euros in sales and employs 21000 staff. Testing & DEKRA Testing and Certification is Certification 1000 part of the Business Unit DEKRA Industrial with 5000 business and Medical technical professionals.
  • 146. Business Line Medical Characteristics Competence areas ● Involves testing and certification of medical ● Audits devices, and auditing of medical device companies ● Product assessments ● Certification ● A leading top 5 global Notified Body in Medical device certification ● Product testing (IEC 60601) ● Training ● Recognized market leader in high risk devices ● Strong positions in Netherlands, Germany & USA CE0124 & CE0344 ● Recognized body by EU, the FDA, Health Canada ● Test labs in Arnhem, Stuttgart & Dresden.
  • 147. Business Line Medical Global Network One global team of experts, Arnhem CE0124 Paris no country organizations, Stuttgart CE0344 no barriers San Francisco Philadelphia Tokyo ‫תל אביב‬
  • 148. Expertise and Knowledge at DEKRA Cardiovascular Products with surgery animal tissue Minimal invasive High-tech start-up surgery companies Ophthalmic Intravascular surgery catheters Wound care Intra ocular lenses products Soft tissue implants Body contouring implants Active Implantable devices Active Medical devices High tech start-up companies Emerging technologies High risk products