AorTech's Staying Power

With its flagship product, a polyurethane-based heart valve, not yet in human trials, AorTech is in-licensing revenue-producing products, both in its core area of heart valves and in non-core critical care as well. The company hopes the strategy will give it the wherewithal to withstand a difficult financing environment and the doldrums of development.

Finding ways to withstand the resource drain of developing an initial product is a typical problem for medical device start-ups. In the case of AorTech International PLC , the issue is magnified by the unusually long and expensive development cycle for heart-valve devices. For most of the last decade, the Scottish company has been developing a polyurethane-based valve that it believes combines the best attributes of tissue and mechanical valves. But it is competing in a static market dominated by a few large companies including St. Jude Medical Inc. , Medtronic Inc. , and Edwards Lifesciences Corp. To make headway against its entrenched competitors, it must at a minimum show a clear, convincing, and long-term clinical benefit.

The ten-year-old company has taken a number of steps to ensure that it has the staying power for the long...

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