Tighter FDA Review Squeezing Device VCs
For over three decades, medical device investors have accepted the Food and Drug Administration's crucial role as traffic cop for their start-ups. Yes, the agency could be tough, but a green light opened a lucrative road for device companies. But venture capitalists are increasingly worried that tighter controls on regulation could endanger innovation.
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OrbiMed Advisers just closed a $550 million fund, a tick more than its previous general fund and raised mostly from previous backers. OrbiMed’s general partners say they’ll make no radical departures from their previous formula despite the upheaval brought on by the recession and the federal health care reform saga.
A year ago, things looked bleak everywhere, including devices. But investors and executives battened down the hatches, tightened their belts, and adopted every other conceivable austerity-tied cliché. Things now are beginning to look up…a little.
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