Baird Global Healthcare Report 2016-2017 Global Healthcare Report | Page 13

when the products are tested in humans relative to what is seen on the laboratory bench or in animal studies. One particular advantage for anti-infective devices and therapeutics is the higher success rate for these products in clinical studies, given the higher correlation of microbial kill in vitro when studied in vivo. In addition, for certain areas of infection prevention, the time needed for follow-up can be quite short, significantly decreasing the overall length of a clinical study. STRATEGIC INTEREST While the infection prevention and control space is very broad with a lot of room for improvement, business innovation does not truly happen until investment dollars are behind it. Infection prevention has been a key area of focus among strategics that are increasingly focused on delivering complete care – moving beyond a single device or diagnostic toward building a total package of services around those pieces to deliver better care. They are looking for complete product offerings and being a full healthcare solution provider. The number of strategics focused on infection prevention is also larger than in other typical business sectors. This shifting dynamic piques our investment interest and has pushed us to ask a number of fundamental questions: Is there a clear and addressable clinical need? Is there potential to make this a platform technology? Does the business model for the new solution fit seamlessly into what the company currently does? Is the solution the same price or lower than what people are using today? Looking ahead, we see a tremendous opportunity within the infection prevention and control space, especially in diagnostics. While it continues to be challenging to develop solutions in real time on major outbreaks like the flu or more recently Zika, we believe there are strong opportunities for predictive analytics. Imagine leveraging data to know when a person enters the emergency room door that he or she is likely 50 percent of the way to sepsis. We believe that type of data is something that could very meaningfully impact the course of care and save lives. 11