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CASE STUDIES

Medical Device Target Market Identification and Organizational Restructure

Curon Medical, a Silicon Valley medical device start-up, had developed and introduced a new device, Stretta, for a new medical procedure treating gastroesophageal reflux disease (GERD). Stretta used radiofrequency (RF) to deliver small wounds in the muscle of the lower esophagus just above the juncture to the stomach. As these small wounds heal, they create a thickening of the juncture and functional improvement.

Problem

The company had determined that the best initial targets were gastroenterologists (GIs), as the primary physicians treating patients with GERD. However, GIs primarily seek to “treat” patients, not permanently cure patients. A continuing range of newly introduced drugs to treat GERD, and periodic endoscopic procedures to visualize and confirm drug treatment’s efficacy, keeps GIs patient loads full.

Stretta, the new, invasive procedure, was intended as a cure, but there were no long-term studies on its efficacy. Also, many GIs work out of private endoscopy centers that they own and were not conducive to the new procedure. Sales were stagnant. Reimbursement from insurance companies for the procedure was also a challenge.

Solution

We contracted with Curon to provide a fractional Director of Sales. We suggested the Stretta procedure would be better promoted to general surgeons who were already seeking to cure patients, rather than simply treat them. Stretta provided a new minimally invasive option, and an alternative to a more complicated existing procedure. Hospitals and surgery centers were also a much better location for the procedure, considering the continued momentum towards more minimally invasive procedures that supports day surgery within hospitals.

We developed mechanisms and pathways to redirect sales and marketing efforts to general surgeons. Training centers were established, and physician trainers were engaged to educate their colleagues and the communities on the procedure. Marketing materials were prepared for training seminars for referring physicians and communities. We trained the clinical applications staff to work with general surgeons. We profiled and began hiring for the best sales individuals comfortable dealing with surgeons and operating rooms.

To improve insurance reimbursement, we built a community of individuals within surgeon practices and hospitals to share information on successful reimbursement strategies, keeping the company out of those conversations. The company began working on a long-term project for reimbursement coding and reimbursement.

Results

  • Within six months, sales were growing again
  • General surgeons became the primary drivers of the procedure
  • Within 12 months, all projections were exceeded
  • Within 18 months, GIs began adopting the procedure, at risk of losing patients

Market Expertise

Have your sales stagnated because your assumed, initial target market was wrong? A medical device marketing consultant can help you rethink your target market, leading to more sales and improved adoption and use of your device. Contact us today: 505.805.5002.

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