4 minute read
Meeting the unmet need
The key to success in US market entry is picking the right commercial partners, says Ernesto Chanona, Director of Business Development at CSSi Life Sciences
The first half of 2021 has seen more investment into the biotechnology sector than in the entire year of 2019, as reported by the Silicon Valley Bank. It is an excellent time to be in the life sciences sector, and as such, many would like to take the necessary steps to enter the US market by obtaining regulatory approval for medical devices, diagnostics, biologics, vaccines or drugs.
As it stands, currently 35 per cent of approved medical devices in the United States, 40 per cent of finished pharmaceutical drugs for the United States, and 80 per cent of APIs (active pharmaceutical ingredients) are manufactured or compounded from foreign entities.
While entering the US market can be a tedious and costly task, the great news is success and commercialisation are an attainable goal for those who seek to understand the process. Many companies that are not properly prepared can find themselves having difficulty crossing the all too well-known “valley of death”. Seeing the success of other companies proves, though, that there is a pathway to the other side of the valley.
Taking the first step
First, companies need to ensure that they are prepared. When entering the US market, foreign companies should spend time on market and revenue research, creating a comprehensive project timeline, and estimating costs. As this process unfolds, there are a few questions to consider:
• What unmet public need are we solving with this product? • Are we planning to launch our product in multiple markets? • How much should our product cost in each market? • Are we seeking dilutive capital from US investors to support regulatory approval and commercialisation? • Do I meet all regulations and requirements required by the FDA? • How do I establish a business in the US? • Who are the stakeholders (economic development, academic, government, services) in our US biotech hub that could support my company and my technology?
These questions are best answered by a consulting team that have made this journey already, and have in-depth knowledge of the path ahead. Picking the right partners is the key to commercial success, whether it be to out-license or sell a technology, or find the right distribution partners for entering the hospital supply chains in the US.
As a foreign company looking to enter the US market, designating a United States agent is required by the FDA. They must reside at a US address and will act as a liaison between the FDA and the life sciences company. Selecting the right US Agent liaison can best position a company for a swift and cost-effective regulatory approval, connectivity to supportive partners and investors, and the successful accomplishment of commercialisation goals within the allotted timeframe and budget.
In the case of medical device companies, for instance, the regulatory requirements that need to be met include a Quality Management System that meets US standards, approval through the appropriate filing process with the FDA, and annual reporting and registration. There are four common types of premarket submissions: 510(k) (Premarket Notification), PMA (Premarket Approval), De Novo Classification Request, and HDE (Humanitarian Device Exemption).
The regulatory path that a device depends on the case that is made to the FDA. Your regulatory consultant will write and deliver the case to the FDA and obtain the agency’s buy-in to secure the swiftest, most affordable path forward. Some of the questions they will answer include:
• What submission is best for my device? • What is the most suitable indication? • Is a clinical trial required? How extensive? • Are we eligible for any special designations from the FDA?
Ernesto Chanona Director of Business Development CSSI Life Sciences
Getting the numbers right
Investor relations is another important aspect to successfully commercialising technology in the United States. Finding the group with an investment thesis that aligns with your technology and goals can be challenging. Moreover, understanding the needs of the American investor community is not always straightforward. In short, investors want to see clearly defined milestones and the costs associated with them.
The team should be able to elaborate on the rationale behind the costs assigned to aspects such as manufacturing, FDA submissions, and testing. The timeline for the return on investment should also be clearly defined. By understanding your technology and the FDA requirements, your regulatory team will be able to generate this information, further de-risking your technology to investor groups.
There are many moving pieces to the US market entry process and having a strong team to support each piece is the key to commercialisation success. While the entirety of this process can be overwhelming for companies who are not specialised in it, collaboration and partnerships with experienced consultants and organisations can give foreign life sciences companies the counsel and expertise needed to make the journey more navigable. Proper guidance makes any FDA entry journey, no matter how challenging, achievable.
Contact Information
echanona@cssilifesciences.com
