Growing a Medical Startup requires deep understanding of your customers - not only the users, but also the payers, and how purchasing decisions are made.

In August 2023, we were pleased to welcome our guest speaker, Phillip Nowell to our Medical Innovators community.

Meet Phillip Nowell from Ontogo

Phillip Nowell is the Founding Director and CEO of Ontogo. He leads the Ontogo team with a focus on driving business evaluation, go-to-market strategy, market launch and expansion of medical innovation startups in key investment categories.

" Ontogo is an independent supporter of Australian innovation. We focus on building successful businesses around Australian innovation. At Ontogo we work collaboratively with our clients in a candid co-creative environment. Our common goal is to see our clients achieve success in the market."

Key Insights: Growth requires deep understanding of your customer and how decisions are made.

Some of the insights that Phillip shared with the group included:

Early in your Innovation Journey, you must understand the problem that your technology solves - and who will pay for it.

Many medical innovation founders have on the ground clinical experience, and have created a technology that addresses a clinical problem that they know well.

However, detailed understanding of the business model that will support this innovation is critical as early as possible. Regardless of the clinical value of the technology, it is critical to understand the commercial reality in which it will be launched - who will pay for it, and what value it creates or what problem it solves for the payer, not just the end user or patient. Without a great value proposition for the payer, it is difficult for the innovation company to survive, regardless of the clinical value it brings.

Common routes to market

Phil discussed two main busines model decisions and routes to market from his experience and also research that has been undertaken. These are:

• Procurement/Payer focussed - this business model is targetted at the payer, offering a better option for the (often large and financially-driven) procurement departments in hospital. It often means competing on price - offering better value or lower cost - and will depend on successfully building enough volume in the market to succeed.

• "Clinician Preferred" - this business model is strategically targetted at senior, influential clinicians in the market with a high quality product. It requires being able to connect and build relationships with influential clinicians (eg through conferences, direct outreach/workforce of sales people) who understand the need, the value and who will strongly advocate or insist that their institution purchases the innovation.

How to get in touch with Phil Nowell

Ontogo: https://planetstartup.com.au/

LinkedIn: https://www.linkedin.com/in/philip-nowell-49624542/