product strategies

Health Industry Today, August, 1998

n Demand for TAMS' PowerVision 6000 squeezes the ultrasound manufacturer Toshiba America Medical Systems says keeping up with pent-up demand for its newly released PowerVision 6000 Ultrasound System may be a problem, albeit a good problem that most manufacturers envy. "It's been difficult responding to all of the requests that we've received," Mike McLean, vice president of TAMS ultrasound business unit, explains.

"There's going to be a bottleneck." After gaining FDA clearance for PowerVision 6000 in mid-March, the Tustin, Calif.-based subsidiary of Toshiba America Inc., rolled out the new product in May at the Leading Edge Conference in Atlantic City, N.J., and has already inked more than 20 group contracts, including a corporate account in Florida with Tenet Healthcare Corp., Santa Barbara, Calif. Available to buy or lease under various Toshiba American Medical Credit programs, PowerVision 6000 carries a list price of $150,000. The system is a mobile, all-digital ultrasound system that combines Toshiba's architecture technologies such as Quad Signal Processing and Digital Continuous Beam Former, to support its 256-channel digital platform and achieve high-frame-rate imaging with the portability of a compact unit. Customers receive installation training for about a day, which requires that a specialist spend some time scanning patients alongside the end-user to foster system orientation, McLean says. The new system is an ideal unit for community hospitals and integrated delivery networks that require sophisticated technology, but are faced with decreased capital equipment budgets, says McLean. "It has a lot of capacity in a small package," he explains. Included in the product launch was a May meeting TAMS hosted in New Port Beach, Calif., that featured keynote speaker Dr. Flemming Forsberg, assistant radiologist and research head from Philadelphia-based Thomas Jefferson University Hospital. Flemming gave a talk to about 100 leading ultrasound users from across the country on harmonic imaging, a patented technology developed by Toshiba that can be used in concert with ultrasound contrast agents. Following the introductory kickoff, the company displayed its new product at several national association meetings, including The American College of Obstetrics and Gynecology (last May in New Orleans), The American Urological Association (last June in San Diego), The Society of Vascular Surgeons (also in San Diego last June) and the American Society of Echocardiography (last June in San Francisco). A series of print ads have appeared in six journals: Diagnostic Imaging, Cardiology, Radiology, Applied Radiology, and The Journal of the American Society of Echocardiography. The TAMS ultrasound management team, which only recently finished training its clinical applications people on how to use the system, began full-blown marketing efforts in July with the aid of its direct sales force of between 100 and 200 people at the company's sales application and service groups in New York, Atlanta, Dallas, Chicago and at the company's headquarters in Tustin. The target market consists of cardiologists, radiologists, obstetricians and gynecologists. Direct mailings are not planned at this time. "The products that the company is positioning the product against are 128- channel systems with not as many capabilities as PowerVision 6000 provides," McLean says. "Our system is so flexible. It can meet the demands of a radiology department that has multiple scanning needs quite well because of its mobility and its application capabilities." TAMS trails four competitors in the ultrasound marketNMilwaukee-based General Electric Medical Systems, with its Logic 500 product, a 94-channel system that sells in the same range, but is a little larger in size; Mountain View, Calif.- based Acuson Inc., with its Aspen product, a 128-channel system; Bothell, Wash.- based ATL Ultrasound, with its High Definition Imaging 3000 product, a 128- channel system; and Andover, Mass.-based Hewlett-Packard Medical Products Group, with its Sonos 2500 product, a 128-channel system. Toshiba management predicts the company will sell more than 100 units in the first year. McLean says that though the $300 million ultrasound market has not grown at its base in terms of units, it has seen double-digit growth in the past couple of years thanks to a number of system upgrades. www.acuson.com www.atl.com www.ge.com/medical/ultrasound/msusales.htm www.hp.com/go/medical www.medical.toshiba.com n MicroPulse takes on pressure ulcer prevention market MicroPulse Inc. hopes to tap into the $1 billion U.S. medical device market for the treatment and prevention of pressure ulcers with its recently introduced MicroPulse[umlaut] operating room-table system. Portage, Mich.-based MicroPulse gained FDA clearance in 1996 for the system named for the company, then launched the product at the Association of Operating Room Nurses Congress last March in Orlando. "At AORN we got more than 600 leads," says MicroPulse CEO Ken Beckrich. "It was just unbelievable. Things are looking really good." In addition to O.R. nurses, the company is also targeting the product at O.R. managers, risk managers and wound care therapists at places like the Advanced Wound Care Symposium and The Society of Cardiovascular Anesthesiologists annual meeting (last March in San Francisco). "We will go to the Clinical Symposium on Wound Care, maybe a couple of meetings for O.R. managers and some local shows. But for now we're mostly sticking to the larger, national shows," Beckrich says. "One reason we haven't done direct marketing and telemarketing is because of all of the leads from shows and the success we've had there." Journal ads have run in Wound Ostomy and Continence Nurses as well as Advances in Wound Care. MicroPulse has established a 55-person manufacturers rep team headed by vice presidents in three regions. "Basically, these are guys carrying five to six other lines, independents. They are guys who work for themselves, but represent five or six other products. They aren't guys with a catalog of a 1,000 products, but they don't work directly for us and us alone," Beckrich explains. On May 4, MicroPulse announced it had inked a three-year contract with the Chatsworth, Calif.-based group purchasing organization Purchase Connection. Beckrich says MicroPulse will target Purchase Connection's acute care facilities to assist in the reduction of the incidence and cost of pressure ulcers in surgical patients. The company is telling potential users that the MicroPulse system will not only help prevent the serious problem of pressure ulcers, but will also save hospitals many of the costs associated with the condition. Usually, surgical patients are rendered immobile during an operation, and may not be moved for days after a procedure. The prolonged pressure on the body can block blood flow and cause irreversible tissue damage, especially to bony prominences such as heels, hips, and shoulders. Pressure ulcers are created by blood pooling in the body during periods of immobility and are usually associated with the elderly in nursing homes. But Beckrich says studies indicate that nearly two-thirds of all pressure ulcers originate in the hospital. About 25% can be traced to the operating room. "OR-acquired sores account for nearly 40% of hospital costs to treat pressure ulcers," Beckrich explains. "Every year, more than 1.5 million hospitalized patients develop pressure ulcers, and nearly 60,000 die from related complications." In recent clinical studies, the MicroPulse system prevented pressure ulcers in more than 95% of test cases. With an introductory rental price of $300 a month per "control box" unit, MicroPulse says its new system is the first clinically demonstrated, FDA-cleared patient support system designed to keep pressure ulcers from developing without disrupting the patient. Placed beneath the patient is a MicroCell Pad, a plastic material consisting of more than 2,500 small air-cell pockets that work by alternatively inflating and deflating so that no body part endures prolonged pressure, thereby allowing unimpaired blood flow to the tissue. The entire inflation/deflation cycle takes less than five minutes, Beckrich says, adding that anyone can use the product because all they need to operate the technology is a flip of a switch. With its proprietary technology, multiple market applications and a growing portfolio of products, Beckrich insists the company is well-positioned against key competitors such as Charleston, S.C.-based Hill-Rom Co. Inc. (a wholly owned subsidiary of Hillenbrand Industries Inc., Batesville, Ind.) and Kinetic Concepts Inc., San Antonio Texas, which also produce surfaces for this market. "Their products are used primarily in the treatment of pressure ulcers, while our technology emphasizes prevention," Beckrich says. -- www.aorn.org -- www.cohr-inc.com/purchase.html -- www.dupont.ca.com -- www.hillenbrand.com/hillrom.html -- www.wocn.org n Candela readies "mini-rollout" for new SkinPlus 2J dual laser system With FDA clearance in hand, Candela Corp. has begun marketing a new, double- powered version of its SkinPlus[ordinal indicator, feminine] dual laser system. Known as the SkinPlus 2J, the device is the only one of its kind to carry two distinct lasers associated with resurfacing and fine spider veins in the face, says Burt Salkin, Candela's product manager. At press time the Wayland, Mass.-based manufacturer was completing final preparations for a "mini-rollout" of its souped-up laser system at the American Academy of Dermatology's Academy 1998 meeting, July 31 in Chicago. To gear up for the product debut, the company sent out a direct fax blast to each of the 10,000 AAD members and mailed hundreds of brochures featuring the SkinPlus 2J as well as other of the company's products. The mail effort is backed by journal ads placed in Cosmetic Dermatology, Skin and Allergy News, Dermatology Times, Skin and Aging, Photonic Spectra, Medical Laser Insight, Cosmetic Surgery Times and Medical Laser Report. Using glass demo boxes within the company's 10'x20' AAD booth and a piece of fruit as a medium, trade show attendees will see first-hand how the SkinPlus 2J generates two joules of laser energy to peel the surface of the fruit. The idea is to demonstrate the device's ability to safely conduct skin resurfacing procedures, as well as treat fine facial veins and other vascular lesions. The SkinPlus 2J system combines the "kinder, gentler'' Erbium:YAG laser for skin resurfacing, which offers highly uniform beam quality for precision ablation, and a focused-spot handpiece for increased physician control, with a KTP/532 laser for the elimination of small facial veins. A one-joule version of SkinPlus was introduced last February at the AAD annual event. "The response to the introduction of the initial version of the SkinPlus was excellent," Salkin says. "With its features and functionalityNalong with the 2J's doubling of energy and its dramatically attractive priceNwe expect to see even greater demand." However, Salkin cautions that price sensitivity is common in a commodities market. "Price is always an obstacle," he says. "We put together a package deal. There are a lot of Erbium lasers on the market, so our pitch is that we have an Erbium with a KTP. But if a doctor already has a KTP laser, we have to convince him why Candela is better and that they need a two- joule system. That's the challenge. That's the marketing. That's the sales effort." Candela competes in the laser market with market leader Coherent Inc., Santa Clara, Ca., as well as companies like Laserscope Inc., San Jose, Calif.; Schwartz Electro-Optics Inc., Orlando, Fla.; and Sharplan Lasers Inc., Allendale, N.J. The U.S. skin resurfacing market includes an estimated 400,000 laser procedures. The SkinPlus 2J version carries a list price of $69,900. However, buyers can also purchase the device through a package deal that combines the SkinPlus 2J with the SkinScan[ordinal indicator, feminine] computerized pattern scanner at a total U.S. price of $79,900. The SkinPlus is also available without the KTP laser for $49,900, or with SkinScan at $64,900. Candela also offers its customers a lease-to-buy option for all Candela products that features three- or five-year terms. Candela owns exclusive marketing rights for the SkinPlus system in the U.S., and in selected global markets including all of Asia, South America, South Africa, and some European countries. The system was developed and is being manufactured by Fotona d.d, a company based in the Republic of Slovenia. The projected annual market growth rate is about 10%. In 1997, an estimated 1,000 units were sold, compared with about 1,800 units forecast to sell in 1998. But Salkin says the projections show a likely slump in 1999. "I think the projections decline because the market is becoming saturated. There are so many companies. In a commodities environment, you jump on the bandwagon with the latest thing. Then you have so many Erbium lasers per group of square miles and it's hard for another doctor to move in," he says. Next year, Candela plans to display the new device at the American Society for Laser Medicine and Surgery (April 16-18 in Orlando), the California Society of Plastic Surgeons and the American Urological Association (May 2-5 in Dallas). Pop-up booths or table top booths will be used to demonstrate the SkinPlus 2J at regional shows and sectional course meetings, including Fundamentals in Laser and Endoscopic Surgery, the Emerging Technologies in Plastic Surgery and the annual Aspen Winter Surgery Seminar. In addition to trade shows and regional meetings, the company will market the product to plastic surgeons, dermatologists and ophthalmologists through various face resurfacing laser workshops. Mailers are targeted to doctors interested in attending such workshops to promote the sessions. Two-day, university-sponsored laser workshops have previously been held at the New York University Medical College and Harvard Medical School. Candela offers an entire training process for the device at those workshops to familiarize customers with the product after installation. -- www.aad.org -- www.clzr.com -- www.coherentmedical.com -- www.laserscope.com -- www.seord.com -- www.sharplan.com n Stille launches new line of Beta tables for image-guided surgical procedures After working with surgeons to develop patient table platforms that accommodate the emerging technologies for minimally invasive and interventional techniques, Stille Beta Inc. has launched an advanced line of Beta tables for image guided surgical procedures: Beta[ordinal indicator, feminine] 4133, Beta 4131 and Beta 4006-PN7. The Akron, Ohio-based manufacturer rolled out the new product line in March at the Assn. of Operating Room Nurses congress in Orlando, displaying the tables in a 20'x30' booth. Since the debut, Stille has continued to market the tables to the cardiovascular, endovascular, and pain management markets with exhibits several major shows and regional meetings, including: The Society for Cardiac Angiography and Interventions (last May in Montreal); the Advanced Therapies Meeting (sponsored by New York's Lenox Hill Hospital); the Joint Vascular Meeting (in San Diego); the International Society of Minimally Invasive Cardiovascular Surgery (in Minneapolis). Stille advertises the new Beta tables in three journals: Surgical Products, the AORN Journal and Outpatient Care. An outbound telemarketing program is in place to identify surgical requirements for departments and determined what their buying mode is for tables. "The telemarketing firm has been asked to call the top 300 hospitals that are doing cardiovascular procedures," explains Stille marketing manager Scott Horowitz. "The cardiovascular market is expected to jump so much that it presents an unbelievable opportunity for us. There are about 28,000 MIS cardiovascular procedures that are presently being done now. That's expected to go up to 460,000 within five years." Horowitz said finding the right "people politics" to present the tables is a challenge in marketing the new products. "One department wants to have a particular piece of equipment, but they don't want to let another department use it. So there are some technology equipment conflicts going on within a hospital," Horowitz said. All the Beta tables share three features and advantages: (1) all Beta tables permit unrestricted movement of the C-arm; (2) all Beta tables allow maximum unobstructed access to patient anatomy; (3) all Beta tables absorb minimal radiation, giving a higher quality image with the least amount of radiation scatter. The list prices for the products are as follows: Beta 4133, $49,650; Beta 4131, $36,300 (like 4133, but with no four-way float); and Beta 4006-PN7 at $33,800. Physicians typically spend one day getting acquainted with use of the tables with assistance of a Stille staffer. r -- www.stille.se