This month's headlines

MEDICA draws IMDA members. Had you looked real closely at some of the 137,000 attendees at MEDICA 2007 in Germany, you might have noticed among them a handful of "Ask Me About IMDA" badges.

Last chance to sign up for ‘Smart Selling' seminars. Time is running out to sign up for one or both of IMDA's Smart Selling seminars, presented by sales coach and speaker Gerry Layo.

Newest IMDA case study focuses on Oridion. No matter how superior a new medical technology may be to the current standard of care, it doesn't sell itself.
                                                                                                                                                              MEDICA

Had you looked real closely at some of the 137,000 attendees at MEDICA 2007 in Germany, you might have noticed among them a handful of "Ask Me About IMDA" badges.

That's right. A number of IMDA members made the trip to Dusseldorf in November to take part in of one of the world's largest medical shows. They joined visitors from about 100 countries to view medical products from 4,300 exhibitors. For some, it was their first visit. Others understood the drill from previous visits.

Their reasons for attending MEDICA varied. Some sought products from overseas companies that they could begin distributing in the United States or Canada in fairly short order. Others wanted to hunt for technologies that might find their way to North America some time in the future. Still others – IMDA's manufacturer members – came to MEDICA to schedule visits with their non-U.S. distributors and to seek relationships with new companies. And some came simply to see what it was all about.

Overwhelming

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"Overwhelmed" is how many first-time visitors describe their reaction to MEDICA. That's no surprise. To understand the size and scope of the exhibition, take the American Association for Respiratory Care and multiply it about 30 times, says Don Reiter of SRC Medical, Northridge, Calif. "It's everything from disposables to capital equipment, from surgical tools and instruments to imaging equipment," says Reiter, who made his second trip to MEDICA in November. Some of the big players – e.g., GE and Philips – had booths on the order of 100 ft. by 100 ft., with second stories with lounges, cafeterias and meeting areas, he says.

"My first year, I was overwhelmed," he says. But this time, Reiter had specific objectives in mind, which kept him grounded throughout the show. One goal was to identify technology that has not yet found its way into the United States (perhaps because of FDA hurdles), but which could hit the States in the future. Another was to find specific products that his customers had requested, regardless of whether SRC might ultimately distribute them or not.

While at MEDICA, Reiter visited the U.S. pavilion. (MEDICA sponsors pavilions in which manufacturers from different countries can exhibit together, in hopes of attracting potential distributors and customers from around the world. Of the 368 U.S. companies that exhibited at this year's MEDICA, 168 displayed their products in the U.S. Pavilions.) "I was looking at some of the manufacturers I represent, to see what they're doing in Europe," says Reiter. "Perhaps they're testing products overseas before [doing so] in the United States."

Another benefit of going to an overseas show such as MEDICA? At such shows, U.S. specialty distributors have easier access to information from the competitors of their manufacturers than they might at a U.S. show, says Reiter.

Overseas manufacturers with specialty products understand the value of a company such as SRC, with its expertise in respiratory therapy and anesthesia, and its longstanding relationships with key decision-makers. But in some cases, they lack FDA marketing clearance. Companies that can guide them through that process would be offering them a huge service, says Reiter. In many cases, overseas manufacturers simply don't understand what it takes to penetrate the U.S. market, he adds. A show like MEDICA allows specialty distributors and reps a chance to show such companies what they can do.

Checking it out

For Ed Boracchia of Boracchia + Associates, Petaluma, Calif., MEDICA 2007 was his first visit to the big show. And if the multiple exhibit halls were overwhelming, Boracchia didn't let that get to him.

"I went with absolutely zero expectations," says Boracchia. "I had never been to MEDICA, but I decided, ‘OK, let's see what this is all about.'" He figured there would be plenty of overseas manufacturers looking to gain entry into the United States. With 30 years of experience marketing products in the United States, Boracchia + Associates could be a valuable partner for any one of them, he believed. "My mission was to learn what MEDICA was all about, and to drive people to our Website to see if there was any interest," he says. In fact, Boracchia got 91 hits on his company's Website on Day 1 of the show.

Next time he goes to Dusseldorf, he will have a more concrete agenda, he says. "I will start e-mailing people I am interested in meeting, and actually have meetings set up before I get to Germany," he says. Still, the experience in November taught him lots about representing overseas manufacturers. For example, he learned that the U.S. Department of Commerce can be a valuable resource for companies looking for overseas partners. And he walked away with the names of all the manufacturers who exhibited at the show.

"The take-away is this: Smaller overseas manufacturers don't understand the U.S. market," concludes Boracchia. "IMDA members are in a great position to teach them about it."

The other take-away? It's a small, small world. "I was sitting in a pub in Cologne [about 25 miles from Dusseldorf] when I heard someone say, ‘Eddie, what are you doing here?' I looked and it was Butch Lawhon, [former IMDA member], with the managing director of Itochu [the Japanese company that bought Lawhon's company, Products for Surgery]."

Proactive approach to the market

Shawn Walker and Tom Birmingham of Bay State Anesthesia also made their first trip representing the company to MEDICA this year. (Walker had attended about 15 years ago, in a different capacity.) It was something they had talked about for years.

Their mission was exploratory. "Even though right now our bag is pretty much full, we feel we need to be more proactive in our search for new products coming along and tap into the pipeline for the future," says Walker. "We wanted to get a sense of what was out there in the marketplace.

"I knew it was a huge show, but I didn't know what to expect." She learned that if one were to walk the floors to view every exhibit, one would have traveled about 21 miles. Given dimensions like that, it's imperative for show-goers to be judicious in their floor-walking. "Before we left, we did some research about what types of manufacturers were in which halls," says Walker. Based on that information, she and Birmingham spent just a few minutes walking the halls devoted to commodities and disposables. "That's not our strong suit," she says.

They covered more thoroughly the three halls devoted to medical devices. "We kind of took everything in," she says. Monitors, orthopedic devices and laparoscopic/endoscopic instruments seemed to be popular, she says. Another hall was devoted to architectural products, such as OR lights and headwall systems, while another was devoted to software and information technology. "The scale was unbelievable," she says.

One welcome aspect of MEDICA is this: Virtually everyone – even manufacturers from small Eastern European countries – spoke English on the show floor.

Walker will return to MEDICA in the future, though she's not sure it's necessary to go every year. Like Ed Boracchia, she learned about services offered by the U.S. and other governments to facilitate face-to-face meetings between U.S. distributors and potential overseas partners. She'll likely make use of them during future visits.

Bay State remains committed to working with overseas manufacturers of truly innovative products, says Walker. Already, the company distributes products for several overseas companies. But the fact is, those companies have distribution facilities in the United States. It's a riskier proposition when that is not the case, particularly if the company is located in a politically unstable part of the world. If that's the case, says Walker, the distributor needs to know whether that manufacturer has a Plan B and Plan C should trouble break out near their manufacturing plant.

Even more important, though, is identifying overseas partners whose business culture is similar to yours, she says. For example, is a company good for its word? Those are the kinds of things an IMDA member must try to ferret out should they visit a show such as MEDICA.

Looking for partners

IMDA allied member Rick Pfahl of Bovie Aaron Medical, St. Petersburg, Fla., had a different agenda in mind – finding overseas distributors for the company's products, and meeting with its existing overseas partners. It was Pfahl's fourth MEDICA representing Bovie Aaron Medical.

"This show has everything and anything related to the medical markets," says Pfahl. "It is a collection of manufacturers and distributors, and although there are some physicians and peri-clinicians who attend, they are diminishing – in my estimation – in numbers, while distributors and manufacturers match up."

But the opportunities for IMDA members are great, says Pfahl. "Many non-U.S. manufacturers are interested in entering this market, but have limited knowledge of how to do so."

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Time is running out to sign up for one or both of IMDA's Smart Selling seminars, presented by sales coach and speaker Gerry Layo. The seminars are geared specifically for sales reps from medical specialty distributors and rep organizations. They will be held in two convenient locations:

• Jan. 17-18, Atlanta, Ga.
• Jan. 21, Scottsdale, Ariz.

Laurie Hinkson, master of customer care for Sales Coach International – Layo's Granite Bay, Calif.-based company – offered the following questions and answers to help IMDA members understand what the seminars are all about.

Q: What is the difference between these two training sessions?

A: The one-day workshop in Scottsdale will focus on the fundamentals of Gerry's Smart Selling approach by laying the foundation of personal responsibility and accountability in the sales process. This workshop is geared to helping the sales rep learn how to ask the right questions and listen his or her way to a sale. The end result of the workshop will be a strategic, customer-focused selling approach, which will not only set the rep apart from all the rest, but will "open the customer" for more successful sales and thus greater profits.

In the 1.5 day workshop in Atlanta, Gerry will dig much deeper into the strategies and tactics of Smart Selling. The focus will be on strategically driving more sales across the finish line, and will show the rep how to manage objections by pre-addressing them. This workshop goes beyond a cursory overview of selling tips and techniques, and delivers a laser focus on the effective management of time and getting one's head and heart in the game to close more often and at the margins the rep – and distributor owner -- seek. This longer format is designed to not just introduce more training topics and initiatives. Instead, it is designed to go deeper and to further engage all attendees in the application of the topics that are introduced – specifically, attitude and motivation, goal setting, pre-call preparation, price negotiation and overcoming objections.

Q: Will my reps benefit from attending both training sessions?

A: Absolutely! Different strategies and tactics will be presented during each of these sessions.


Q: What's the point of offering two training sessions so close together?

A: IMDA wanted to be able to offer world class sales training to both coasts and in between. Many IMDA members requested training on the West Coast, while others stated they would appreciate the training more centralized or on the East Coast.

To learn more about IMDA's Smart Selling seminars, visit the IMDA Website at www.imda.org. Or call headquarters at 866-IMDA-YES (866-463-2937).

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Note: The following is a case study showing how one manufacturer – Oridion Capnography – is using specialty sales and marketing organizations to bring its innovative technology to the U.S. market. It will be posted on the IMDA Website, so that visitors to the site can get a better sense for the services IMDA members provide the medical industry. The first case study, which already appears on the site, is about Vidacare.

No matter how superior a new medical technology may be to the current standard of care, it doesn't sell itself. Rather, it takes knowledgeable salespeople, who have earned the trust and respect of key clinical decision makers, to drive adoption of it. That's why Oridion Capnography uses specialty distributors to sell its innovative technology to anesthesiologists and respiratory therapists.

FDA news View a list of all medical devices receiving FDA marketing clearance in November by visiting the FDA Website at. http://www.fda.gov/cdrh/510k/sumnov07.html. You might find a company in need of your expertise.

Oridion Capnography Inc. is an Israeli company with U.S. offices in Needham, Mass. Founded in 1987, Oridion developed a superior measuring technology for capnography, which is the graphical depiction of the amount of carbon dioxide being exhaled by a patient – a sure sign of ventilation. Its measuring technology, called "Microstream®," differs from that of conventional capnography systems in a number of ways:

• It measures carbon dioxide molecules only, unlike other technologies, which are influenced by other gases (such as oxygen, nitrogen, nitrous oxide or helium) requiring compensation steps for their presence. This makes the technology very easy to use.
• It requires a very low flow rate of 50 mls, which allows accurate sampling in patients typically not candidates for CO2 monitoring, like neonates and infants. These patients have high respiratory rates and very low tidal volume.
• Because of its precise measuring technology, it allows clinicians to transition from Intubated to Non-Intubated monitoring with a simple change of a filterline. This can be done without missing a single respiration.

In addition to the improved measuring technology, Oridion developed superior products for sampling patients' breath, which it calls FilterLine®. These intubated and non-intubated sampling lines offer clear advantages over those of its competitors:

• The Intubated filterlines employ patented sampling ports and naphion strips, which provide extended use in the ICU environment.
• They have the ability to function in any orientation, enabling monitoring during patient motion or transport
• A lightweight design reduces the risk of endotracheal tube kinking and accidental extubation.
• The Non-Intubated Filterlines employs Oridion's patented Smart "Sampling" Technology. This means a patient breath can be sampled from either the nose or mouth, depending on where the best sample quality can be acquired.
• With the increasing number of minimally invasive procedures being performed today – which do not call for intubation – the ability to monitor non-intubated patients undergoing opioid sedation is increasingly important for patient safety.

"We have the best measuring technology coupled with the best sampling technology, which means the clinician has an easy-to-use, plug-and-play system to monitor patients they weren't able to monitor in the past," says Tom Millonig, global vice president of sales. "And we have customized patient interfaces for a variety of clinical environments throughout the hospital, unlike anything else in the market."

In order to get its technology into the market quickly, Oridion sold its monitoring hardware through OEM relationships with some of the biggest monitoring companies in the world, including Medtronic, Philips, Draeger, Siemens and Datascope. "These partners have been able to sell 140,000 Microstream enabled monitors worldwide," says Millonig. "Our OEM partners are some of the most respected monitoring companies in healthcare, and they have done a great job selling our core science as part of their overall monitoring platform throughout the world."

But product placement is just the first step in overall product adoption. In order to drive utilization of consumables, Oridion needed people in the hospitals to show clinicians how to use Microstream, how to interpret the information yielded, and how to select the right patients. "That required a different approach," says Millonig. Such an approach not only would ensure the very best in patient care, but it would drive sales of the consumables associated with Oridion's technology.

"We built a profile of the ideal specialty distribution channel," says Millonig. Oridion determined that such an organization would be expert at selling concept-oriented technology. It would also be effective at so-called "missionary selling," that is, creating markets for new technologies.

"In order to drive the adoption of Microstream, we must find clinical champions who understand why CO2 monitoring is important," he says. "Anesthesia and respiratory clinicians are the key clinical stakeholders who will truly appreciate the benefits of our technology. So we needed to find companies who had people in place with strong relationships with these key areas. These salespeople could sell the concept, do the missionary work and leverage these key contacts to drive hospitalwide utilization. When they walk into the OR and see the anesthesiologist, that anesthesiologist asks them, ‘What do you have to show me today?'"

Sales representatives would also be able to teach clinicians how to use the monitors with Oridion's core science, and would be attracted by the recurring revenue stream generated by Oridion's consumables. It all added up to specialty distributors.

And so, in 2005, Oridion set up the Oridion Distribution Network, whose distributors have access not only to the company's consumables, but to some portable, hand-held monitors as well. Many IMDA members are part of the network. They have not disappointed. Oridion's North American consumables business has grown 136 percent in the past two years.

"I came from direct-sales management experience," says Millonig. "When I looked at indirect distribution, I was suspect of how effective it could be. But as I have gotten to know these companies and their ownership, I am impressed by their credibility in the marketplace, and the strong businesses they have built. My initial meeting with IMDA members started with Stan Tangalakis of Mercury Medical. Stan was quick to educate me that Mercury Medical was not a distributor but rather a ‘specialty marketing organization.'

Since that initial meeting, I have come to truly understand the role of specialty marketing organizations. Specialty distributors bring their reputation of carrying the best products to the market every day. Their credibility is on the line every time they bring a product to the customer. They want to represent products of the highest quality, and they want to be the experts on the technology. That's great for where we are with our product line."

Oridion's experience demonstrates one of IMDA's recurring messages to manufacturers looking for distribution: If you make commodity products, seek out a general-line distributor. But if you make an innovative technology that calls for an educated, technical missionary sell, consult a specialty distributor. Consult IMDA.
 

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IMDA Update Published by IMDA 5204 Fairmount Ave., Downers Grove, IL 60515 Phone:  (630) 655-9280 (866) IMDA-YES (866-463-2937) Fax: (630) 493-0798 Website:  www.imda.org E-mail:  imda@imda.org   Staff Katie Swartz: Executive Director Judy Keel: Executive Vice President Patti Perillo:  Database & Finance Admin. Mary Moran:  Chief Financial Officer Mark Thill, Editor (847) 255-0716 Laura Thill, Associate Editor (847) 255-4854 Mitchell Kramer, Legal Counsel (800) 451-7466   2007-2008 Directors President Shawn Walker, Bay State Anesthesia (978) 682-6321 President-Elect Kevin Trout, Grandview Medical Resources (412) 914-0950 Secretary/Treasurer Leo Mindick, Med-Tech Consultant Partners, LLC (516) 708-1111 Chairman of the Board Dave Campbell, Vital/Med Systems (303) 660-0888 Directors-at-Large Hal Freehling, O.E. Meyer (419) 609-1633 Tom Birmingham, Bay State Anesthesia (978) 682-6321 Tony Marmo, Martab Medical (201) 512-1100 Past-President Ed Boracchia, Boracchia + Associates (707) 765-3100 Manufacturer Representative to Board Rick Pfahl, Bovie Aaron Medical (727) 384-2323 The ideas presented in this newsletter may or may not be applicable to your particular situation.  Always consult your tax advisor, attorney or CPA before putting them into effect.