Medquip, Inc., a medical device company, is working to develop, patent, market and sell medical devices for niche markets. The participation of prominent gastroenterologists, surgeons, and physicians has already resulted in three devices. Seven patents have already been filed. In year three, the company expects to make $16 million in sales. The company expects to have $50 million in revenue by year five. One of the top patent law firms has already handled patent applications for three market entries.

The market segments are well defined and are all subject to high growth trends. One market is projected exceed $160 Million in the next three to five years. This is the market for endoscopic variceal-ligation. Medquip was founded by one of its founders. This market leader is still in use today and the product has been improved significantly. Another market addresses a well-defined and unanswered need in endoscopic surgery: the clearing of fundal pools of blood and tissue during surgical procedures. To meet the needs of surgeons, a new and innovative design is available.

This market should start at $20million, but could grow to several hundredmillion once there are approvals for numerous surgical procedures. Medquip intends licensing this technology to a bigger company. The company matures by year three. Only if the proposed licensing agreement can close, is the company potentially profitable in year one.

Mission

Medquip, Inc. was established to develop, market, patent and promote new technologies in the medical device sector. These technologies will be able to fill market niches with potential sales of at least $20 million. Each technology will fulfill a medical procedure need. It can either improve upon existing technology or create a device to address a medical professional-identified need. Each product must be priced in a way that appeals to a managed-care market, which stresses the lowest cost total treatment parameters.

Keys to Success

The keys to success for Medquip, Inc. are as follows:

1. Initial capitalization obtained.
2. All patent applications were filed.
3. The ability to generate early income from non-regulated European markets.
4. Licensing at minimum one technology and an application to a major medical devices corporation
5. To fully finance product development and prototyping, you can get low-interest loans and/or grants.
6. Recruiting top-notch CEO prior to second round financing and market roll-out.
7. Successful 510k approval from FDA to market Visi-Band in the U.S.
8. To achieve a minimum 10% market share in the U.S. managed healthcare market, and generate $16 million in revenue in the second year, successful implementation of a sales and marketing plan.
9. In five years, the company will have a $50 million turnover. This is due to increased product development and market share gains.

Objectives

Medquip, Inc. has the following principal goals:

1. To have a 10% market share in the endoscopic variceal market by year three.
2. To make $16million in revenue by year 3.
3. To raise $1 million in private seed capital in the first six months.
4. To obtain low interest loans from Puerto Rico and grants of $1.2 million each year.
5. To license its technology for the obliteration/suction/irrigation market for $1 million dollars in year one.