Senator Kirk and Governor Romney Visit MATTER, Support Innovation in Healthcare

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CHICAGO, Oct. 19, 2016 – U.S. Senator Mark Kirk and former governor and presidential candidate Mitt Romney today toured healthcare technology incubator MATTER to discuss the future of healthcare with entrepreneurs and innovators.

Located in Chicago’s Merchandise Mart, MATTER is a community of healthcare startups and industry leaders working together to fuel innovation in health IT, medical devices, diagnostics, and biopharmaceuticals.

Senator Kirk and Governor Romney met with several of the entrepreneurs working at MATTER to develop innovative healthcare solutions, including the founders of SurvivorPlan, an integrated care planning, care coordination, and patient engagement platform; HabitNu, a diabetes prevention and management tool; 300 Medical, a technology company that improves how patients receive care; and Resonance Medical, a software company that aims to upgrade existing cochlear implant processors.

“It was a pleasure to be back at MATTER,” said Senator Kirk, who visited the incubator for the first time in August of 2015. “The technology, devices, and products being developed by the entrepreneurs at MATTER will improve patients’ lives and positively impact the region’s economy,” Kirk continued.

“Today I had the opportunity to tour MATTER with U.S. Senator Mark Kirk,” added Governor Romney. “I enjoyed hearing from entrepreneurs and innovators on the cutting edge of healthcare technology who are working together to improve the healthcare industry, create jobs, and bolster the local economy,” Romney said.

“MATTER is honored to host Senator Kirk and Governor Romney for a discussion about how technology innovation is improving healthcare and changing lives,” said Steven Collens, MATTER CEO.

About MATTER
MATTER is a community of entrepreneurs, innovators, and industry leaders working together to harness technology to improve health and healthcare. MATTER connects and promotes collaboration between entrepreneurs, scientists, physicians, investors, and industry partners in order to bring next-generation products and services to market that improve quality of care and save lives. For more information, visit www.matterchicago.com and follow @matterchicago.

Fresenius Kabi Joins Chicago Health Innovation Incubator MATTER as Newest Strategic Partner

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(LAKE ZURICH & CHICAGO) – October 11, 2016 – Fresenius Kabi has joined Chicago’s healthcare innovation incubator, MATTER, as a new strategic “gold” partner, both organizations announced today.

MATTER is a community of healthcare innovators based in Chicago.  Fresenius Kabi is a global healthcare company that specializes in medicines and technologies for infusion, transfusion and clinical nutrition.  The company is based in Germany with its U.S. headquarters in Lake Zurich, Illinois and advanced manufacturing, R&D and logistics operations throughout the Chicagoland area.

MATTER and Fresenius Kabi will work together to accelerate the development of technologies that improve health and patient care, with a focus on products used in the treatment of people with critical and chronic conditions, which is where Fresenius Kabi has special expertise.

In the U.S. Fresenius Kabi products include specialty and generic injectable medicines, infusion pumps, clinical nutrition products and transfusion and cell-processing technologies used to collect, store, process and transfuse blood, blood components and specific therapeutic cell types and lines.

“This partnership is about physical and digital innovation, which as we know is transforming patient care, making high-quality care more effective, more affordable and more in reach for more people worldwide,” said Dean Gregory, president, medical devices, Fresenius Kabi USA.  “We look forward to engaging with the MATTER community and collaborating with its innovators, entrepreneurs and other partners as a means to fulfill our purpose, which is to put lifesaving medicines and technologies in the hands of people who care for patients.”

Through MATTER, innovators from across the healthcare industry connect and collaborate to accelerate the development and growth of solutions that address industry challenges and improve care.

“Fresenius Kabi is a leader in healthcare with a focus on therapeutics and devices, and we are thrilled to welcome their innovators and experts into the MATTER community as we collaborate to improve care,” said Steven Collens, chief executive officer, MATTER.

About Fresenius Kabi

Fresenius Kabi (www.fresenius-kabi.us) is a global healthcare company that specializes in medicines and technologies for infusion, transfusion, and clinical nutrition. The company’s products and services are used to help care for critically and chronically ill patients. The company’s U.S. headquarters is in Lake Zurich, IL. The company’s global headquarters is in Bad Homburg, Germany. For more information about Fresenius Kabi worldwide, please visit www.fresenius-kabi.com.

About MATTER

MATTER is a community of entrepreneurs, innovators and industry leaders working together to harness technology to improve health and healthcare. MATTER connects and promotes collaboration between entrepreneurs, scientists, physicians, investors and industry partners in order to bring next-generation products and services to market that improve quality of care and save lives. For more information, visit www.matterchicago.com and follow @matterchicago.

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Fresenius Kabi Media Contact
Matt Kuhn
Fresenius Kabi
(847) 550-5751
matt.kuhn@fresenius-kabi.com

MATTER Media Contact
Melissa Lederer
MATTER
(312) 543-9537
melissa@matterchicago.com

Salon Recap: Shift to Fee-for-Value and Impact on Medical Devices

In April, MATTER assembled a diverse group of stakeholders for a salon on how healthcare payment and delivery reforms are impacting the way health systems evaluate medical devices. The group included executives from device manufacturers including Abbott VenturesHill-Rom, Briteseed, and Diagnostic Photonics; providers, payers, technology and telehealth experts, and contract and procurement specialists. We  had a spirited conversation about how health systems and manufacturers are interacting in this brave, new, fee-for-value world. Following are a few high-level takeaways from the morning.

MATTER Salon

New Customers are Influencing Purchasing Decisions

Providers continue to consolidate both horizontally and vertically as health systems combine and purchase physician groups. This consolidation allows providers to enter into at-risk financial arrangements to manage the costs of caring for a population of patients. However, under these new care models, an individual physician’s influence over the medical device purchasing process is decreasing, causing health systems to involve multiple stakeholders – often called “value committees” – in the evaluation and purchase of new technologies. These new customers have unique incentives and priorities that medical device manufacturers need to be aware of.

Long-term Value is Increasingly Important to Payers and Providers

Both payers and providers want to understand the long-term value of a medical device, including its impact on cost, quality, and outcomes. Providers in at-risk financial arrangements are particularly focused on its impact on downstream medical costs (e.g., post-acute care use and setting). Some of the earliest examples of this trend can be found in orthopedics, where commercial and government programs such as Medicare’s Bundled Payment for Care Improvement initiative consolidate payments for acute and post-acute care services for joint replacement procedures.

Data and Analytics are Becoming Critical to Proving Value

Many manufacturers are already moving in the direction of collecting and analyzing medical device data and providing more connected and interoperable devices. To be more competitive in the future, however, manufacturers will need to understand what specific kinds of evidence payers and providers need to prove a device’s value under these new payment models – such as case studies and real-world examples – instead of just randomized clinical trials.

For those interested in more details about what was discussed at the salon, meeting notes prepared by Navigant Consulting can be found here. And if you a hospital administrator or medical device innovator interested in being part of this important dialogue in the future, please contact Shareef Ghanem (shareef@matterchicago.com), senior program manager, for information on upcoming events.

Is the Startup Funding Bubble Deflating? Not for Healthtech Innovators

Posted May 2 by Ornella Hernandez
MATTER Journalism Resident
Medill School of Journalism, Class of 2016

The Wall Street Journal published an article recently that put a point on what many investors have been saying for some time: we are seeing a contraction in the amount of venture capital funding available to entrepreneurs. The article specifically noted that Q1 represented the largest quarterly decline in VC funding since the dot-com bust – a 25% fall in cash deployment across all venture markets from Q4 2015 to Q1 2016 and a four-year low in the number of transactions completed. One prominent VC, Bill Gurley, also recently posted on the dangers of the “unicorn financing market” and the potential challenges facing the industry due to inflated valuations of many high-flying startup companies.

MATTER member Danny Bernstein of Metame, a platform for tracking and analyzing food consumption in patients with IBS, demos his product to investors at MATTER.
MATTER member Danny Bernstein of Metame, a platform for tracking and analyzing food consumption in patients with IBS, demos his product to investors at MATTER.

For the 125 startups at MATTER, many of whom are currently – or will be shortly – raising capital, this all could be very bad news … so we asked a few VCs who look at lots of healthtech deals for their perspective. “There’s no doubt we’re seeing some market-wide concerns, but it’s dangerous to read too much into one data point,” said Pritzker Group Venture Capital Partner Adam Koopersmith. “It’s not necessarily indicative of a massive swing of investment activity.” Indeed, Mattermark’s Q1 financing analysis concluded that the percentage changes in the number of deals and cash deployment from Q4 to Q1 were statistically insignificant. And Startup Health’s report on digital health investing found that Q1 was, in fact, the strongest funding quarter on record.

“The capital pull back is real, but no need to panic. Key is managing your cash burn to value creation milestones,” says Noah Lewis, managing director at GE Ventures. “Downturns are a routine part of any financial market’s fluctuations, venture capital included. We remain bullish on software- and tech-enabled services that enable healthcare stakeholders to transform their fee-for-service business models to value based care. This mega trend and related opportunities will continue unabated.”

“There is no doubt healthcare investing has some serious momentum that will only continue with the announcement of funds from strategics such as Illumina and OSF HealthCare,” says Koopersmith.

Dan Watkins, co-founder of Mercury Fund, meets with healthtech entrepreneurs at MATTER’s 2016 Midwestern University Healthtech Showcase

Indeed, at MATTER we see continued strong interest from investors in meeting new healthcare technology companies, and a continually expanding and vibrant community. With 125 healthcare startups and deep connections to Midwest universities, MATTER has become a magnet for investors looking for healthcare technology companies to invest in. “Because of the market shift from fee-for-service to value-based care, healthcare feels greater pressure than other industries to develop and adopt new innovations and technology solutions,” says MATTER CEO Steven Collens. “This level of demand should help cushion healthcare entrepreneurs against potential softening of the broader venture capital markets.”

“While it’s a good idea in markets like this to conserve cash and look to extend runway, the fundamentals behind the growth in healthcare startup activity point to continued strong demand for new technologies and services, and therefore to continued strong opportunities for investors,” added Collens.

Over 40 Ventures from 10 Midwest Universities to Participate in MATTER’s Second Annual Midwest University Healthtech Showcase

CHICAGOApril 8, 2016 – MATTER, the healthcare community hub and entrepreneurial incubator, announced today that the second annual Midwest University HealthTech Showcase will take place on Monday, April 11, 2016. The showcase will bring together early stage healthcare innovators from 10 midwestern universities to present their technologies to hundreds of healthcare investors and industry leaders at MATTER. The Midwest University Showcase is the kick-off event to the two-day MedCity INVEST Conference on April 12-13 that attracts both regional and national venture capitalists and angel investors.

“We’re looking forward to welcoming some of the brightest healthcare innovators from across the Midwest,” said Steven Collens, MATTER CEO. “Investors and industry leaders will see promising new technologies that represent real business opportunities and that will have a huge impact on health and healthcare.”

The event will showcase over 40 biopharmaceutical, medical device, and health IT innovations that are available for licensing or in the commercialization process. Participating technologies include BOLD Diagnostics, which developed a device to remotely capture blood pressure in patients with hypertension; NovaScan that commercializes a low-cost instantaneous cancer detection system; and Output Medical that automates urine output measurements to improve acute kidney injury diagnosis.

“We are extremely excited about attending the Midwest University Showcase because we see this as an ideal opportunity to validate our venture, and build the necessary connections to generate traction and move the company forward,” said Output Medical founder Dr. Jay Joshi.

Participating universities include Indiana, Illinois, Northwestern, Ohio State, Notre Dame, University of Chicago, University of Kansas, Medical College of Wisconsin, Rush University, and the Wisconsin Alumni Research Foundation. BioSTL will also participate. Several MATTER member companies, whose technologies were initiated out of participating universities, will be involved in the program.

In addition, MATTER will bring together healthcare technology investors from across the country, as well as industry professionals responsible for in-licensing and investment opportunities from companies such as Horizon Pharma, Abbott, AbbVie, Astellas, Baxalta, and Takeda.

“It’s always compelling to learn about new technologies that are being developed right in our backyard that we don’t have visibility into through our traditional channels,” said Nancy Sullivan, CEO of IllinoisVENTURES. “MATTER’s ability to convene this many healthcare innovators, industry insiders, and investors makes for a stimulating evening of discovery, networking, and opportunity,” Sullivan added.

The Midwest University Showcase is a private, invite-only event underwritten by Horizon Pharma. To see the full list of participating technologies, visit http://matterchicago.com/programs/midwest-university-healthtech-showcase/

About MATTER

MATTER is a community of entrepreneurs, innovators and industry leaders working together to harness technology to improve health and healthcare. MATTER connects and promotes collaboration between entrepreneurs, scientists, physicians, investors and industry partners in order to bring next-generation products and services to market that improve quality of care and save lives. For more information, visit www.matterchicago.com and follow @matterchicago.

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MATTER to collaborate with Abbott to bolster healthcare innovation

 Sam Dewey, Built In ChicagoJan 28th, 2016
This week, Merchandise Mart-based Matter, unveiled a collaboration with global healthcare company Abbott to spur innovation in healthcare. Together, the companies will work to fuel the development of tech that improves from health and healthcare. Abbott is one of MATTER’s eight platinum-level partners from various corners of the healthcare industry.

Chicago HealthTech Summit Draws 200 Industry Leaders

October 29, 2014

By Noelle Kull, Insight Director of Communications

On October 23rd Insight Product Development broke past event attendance records by hosting nearly 200 key health tech industry leaders at its annual Chicago HealthTECH Summit. Engineered to provide early visibility to health-tech innovation and IP and grow the medical innovation ecosystem in the Midwest, the 2014 Summit brought together key industry and community stakeholders including corporations, venture capitalists, academia, incubators, hubs and mentor groups.

Insight unveiled three tiers of Midwest innovation at the Summit spanning early stage medical device and digital health startups, recently funded startups, and IP concepts from Chicago’s leading academic institutions. As part of the Summit, six local startup finalists also competed in the first-ever Midwest MedStartr competition for cash and professional services valued at more than $20K to further advance their innovations toward commercialization.

Narrowed from a field of nearly 20 applicants, six start-up finalists were selected for the first-ever Midwest MedStartr crowd funding competition at Insight by a judging panel of physicians, local community hubs, the Illinois Department of Public Health, Northwestern University and leading corporations – including Google and Baxter. Among these six finalists, three were awarded cash and professional services to continue advancing their technologies on the merit of their live pitch to the judging panel at the Summit.

The MedStartr competition winners were:

  • First place – Thermatome of Chicago was awarded $14,500 for the company’s thermal therapy technology used following lumpectomy to destroy surgical site remnant cancer cells, eliminating the need to weeks-long radiation treatment with toxic side effects.
  • Second place – Insight member Innoblative Designs was awarded $5,000 for the company’s novel ablation probe used during a lumpectomy after tumor removal to destroy residual cancer, and reduce unnecessary reoperations and radiation in early-stage breast cancer.
  • Third place – Sintact Medical Systems was awarded $1,000 for the company’s thin biocompatible film that helps separate organs after surgery to prevent painful surgical adhesions common in patients having undergone abdominal and gynecological procedures.

Learn more about the annual Chicago HealthTECH Summit at http://www.insightpd.com/healthtech-2014/ or contact Steve McPhilliamy at smcphilliamy@insightpd.com.