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To apply for a patent and get it approved on some major markets may cost 100 000 Euro (almost UK £67,000 - US $127,000) and to defend it against infringements it may cost even ten times more. However, in early project phases it is important, for not to say indispensable, to go for patents to make the project commercially interesting for potential investors. Looking back there had probably not been a continuation of the BAHA project during critical project evaluations in the mid and late 1980´s if no key technical solutions had been patented.

Today (2006) it can be estimated that more than 30 000 patients have been operated world wide which indicates that the project rests on solid technical and medical ground, see Figure 3. It has been argued when the management and investors behind Entific came in after 1999 that this project so far was a “sleeping beauty” and that “things” begun to happen after that. However, if we look back on the estimated figures of the average annual percentage increase of number of patients operated for BAHA (counted as number of abutments sold as no direct figure about the number of patients is available) it was 22% for the years 1988-1998 and 26% for the years 1999-2005. Often the number of patients treated is mixed up with the number of devices sold which is not the same. One has to consider that devices are sold either to new patients that are treated for the first time or to old patients that already have an implant that need a replacement device because their old one is worn out or a new and better model has been launched.

 

Figure 3: Accumulated number of patients and devices.
 
After 1999 the replacement devices have played a more important role than before in the sales statistics especially since Entific introduced the “insurance replacement program” on some markets implying that the devices are continuously replaced every third year. Due to the introduction “insurance replacement program” and that the new models have been launched (Compact, Devino) replacement devices have increased its share. The average technical lifetime of the devices was before the “insurance replacement program” estimated to 5-6 years but then a more extensive repair program was needed. Not to misunderstand I believe it is probably better for the patients to follow the insurance program in order to minimize number of repairs, which can be very bothersome depending on the service level available, and to get access to the latest technical updates within a reasonable time.

When Entific was established in 1999 the BAHA project was very well prepared for commercial expansion where most technical solutions were adapted to serial production with relatively high reproducibility and to a reasonable cost. Also, clinical experience and a solid acceptance in important internationally key ENT departments were already established. Altogether these circumstances were prerequisites for Entific’s significantly intensified international market investments to be as successful for the investors as they turned out to be (more than ten times return of invested capital within approximately 5 years).

 

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Posted on 24 Jan 2008 by Baha Users Support
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