A Free--or Freer--Hand in Corporate VC
This article was originally published in Start Up
Executive Summary
If pure-play pharmaceutical businesses, with resulting de-mergers and spin-offs as the tools of choice, is the new name of the health care game, Novo Nordisk is becoming a master. The recent reorganization of the Danish pharmaceutical company gives each of its separate businesses the operating freedom to do what it does best. It creates perhaps the most unusual corporate venture capital group in the industry.
You may also be interested in...
Corporate Venture's Adventures in Europe
A few of Europe's mid-sized drug companies are trying to exploit the advantages of venture investing through in-house venture funds. Success, so far, has been elusive.
Corporate Venture Capital's Complex Agenda
Several forces--rapid technological obsolescence, the impact of information technology on health care, merger integrations, and the need for double digit revenue growth--have caused increasing numbers of large pharmaceutical and medical device companies to create new corporate venture capital groups. But compared to traditional VC firms, whose only goal is to make money for limited partners, corporate VCs have a heavy agenda. They must choose portfolio companies while balancing often-competing goals of strategic benefit and financial return.
Wound Solutions Ltd.
Wound Solutions Ltd. looks to the paradigm of patient self-care in diabetes to address the gaps in chronic wound care, where the feedback provided by blood glucose monitoring encourages changes in behavior. A small device that is placed under a compression bandage helps patients with venous leg ulcers comply with the steps they should be taking to support wound healing, in the process, collecting data that helps clinicians make informed therapy decisions.