When evaluating an opportunity in the medical devices sector, it is always iteresting to focus on how the product fits with the fundamental economic drivers of the health care system. Investors usually assume anything you are telling them about the product is fine (subject obviously to a later thorough due dilligence), but they want to see the medical device from the business side of health care and work their way back to its science and technology.

The important questions here are:

(1) Does the product improve clinical quality—or at least deliver equivalent outcomes in a less costly and better way?

(2) Does the product more than offset its cost through reduced overall health care expense to the system, such as reducing costly side effects or replacing or eliminating other expensive procedures?

(3) Does the product offer clinical and/or financial advantages for patients, payers, and providers alike? (see my previous post on healthcare value chain)

If an investor can answer yes to these questions, they will want to learn more. But if they cannot understand how the technology will improve quality, reduce costs, and align the incentives of key players in the health care system, you are probably "dead".