GLOSSARY
All
| Term | Definition |
|---|---|
| Liquidity event |
The transaction that enables an investor to receive cash in exchange for its equity stake in a company. Also referred to as exit events. |
| LLC (Limited Liability Company) |
A type of corporation that establishes a board and limits liability to the owners of the company. |
| Longitudinal data |
Data collected in studies that take place over several years, often decades or more. |
| Loss leader |
An item sold at a lower cost (often below the cost to the manufacturer) in order to stimulate additional sales of profitable items. |
| Management controls |
One subsystem of a Quality Management system; Controls that ensure adequate management support for Quality Systems. |
| Manufacturing costs |
Costs for material (COGS), manufacturing labor, facilities and equipment. |
| Market segmentation |
Using specific parameters to partition the market into identifiable, homogeneous segments in order to understand sales and marketing needs. |
| Market withdrawal |
A response to a minor violation that is not caused by legal action by the FDA. |
| Marquee physicians |
High-profile practitioners who are influential with their colleagues. |
| Materials controls |
One subsystem of a Quality Management system; Controls that ensure material quality and consistency. |
| MAUDE |
The FDA database of all significant adverse events due to medical devices. |
| MDD (Medical Device Directives) |
Medical Device Directives 93/42/EEC; one of three regulatory approval directives used in the European Union. |
| MDR (Medical Device Reporting) |
The reporting vehicle through which the FDA receives information about significant medical device adverse events that was established by the Safe Medical Devices Act. |
| MDUFMA (Medical Device User Fee and Mode |
The federal act that established user fees in the medtech industry. |
| Me-too products |
Products that are relatively undifferentiated from products that are already on the market. |
| Mechanism of action |
The specific biochemical or biomechanical interaction through which a drug or device produces its effect. |
| MEDLINE (Medical Literature Analysis and |
A literature database of biomedical research papers. |
| Medtech |
Medical Device Technology. A short form to allow comparisons to Biotech, for instance. |
| MEPS (Medical Expenditures Panel Survey) |
The longitudinal data on health expenditures of 30,000 US households provided by AHRQ. |
| Mezzanine funding |
Funding that is required when some of the most significant risks have been resolved but the company has yet to generate sufficient revenue to be self-sustaining. |
| MHRA (Medicines and Healthcare Products |
The organization that approves devices and drugs for Europe (including UK). |
| Mixed need |
A need that has features that are easily achievable (more incremental to existing approaches) and other elements that introduce significant technical or clinical risk. |
| Morbidity |
When a human is harmed in some way (short of death) - infection, decreased quality of life, extended hospital stay, physical impairment, etc. |
| NAI (No Action Indicated) |
A classification for an FDA audit that indicates that no further action is required by the inventor or company in order to seek approval for a device. |
| NCD (National coverage determination) |
One of two types of reimbursement determinations made by Medicare that provides guidance on national reimbursement coverage. Typically applies to payments for inpatient services. |
| NCHS (National Center for Health Statist |
The US-based principal health statistics agency; they compile statistical information to guide actions and policies to improve health. |
| NDA (Non-Disclosure Agreement) |
An agreement between two parties such that the party receiving confidential information from another party will not disclose the information to anyone for a fixed period of time. |
| Niche strategy |
A strategy whereby a company seeks to own the customer relationships in a specific, focused area of medicine. |
| Non-exclusive agreement |
Agreements where both parties are free to enter into agreements with other companies. |
| Non-exclusive license |
A license that allows the licensee rights of use within a given field and within whatever other limitations are provided by the license, but allows the licensor to grant similar rights to other parties. |
| Non-governmental organizations |
Non-profit organizations that are often working for a cause. These organizations provide resources and assistance to parties when those parties’ own or other governments will not or cannot. |
| Notice of Allowance |
The notice from the USPTO to indicate the patent has been accepted. |
| NSE (Not Substantially Equivalent) |
A determination by the FDA that a new device is not equivalent enough to a predicate device and therefore cannot use the 510k pathway. |
| OAI (Official Action Indicated) |
A classification for an FDA audit that indicates that action is required by the inventor or company in order to seek approval for a device. |
| Observational Studies |
Studies that make conclusions about the efficacy of a treatment or device on a group of subjects where the assignment of subjects into the treated versus control groups is outside the control of the investigator. |
| OCP (Office of Combination Products) |
Office of Combination Products; the section of the FDA that reviews medical technology that is a combination of drugs and device or drugs and biologics to determine which center of the FDA will regulate it. |
| OEM (Original Equipment Manufacturer) st |
When a company provides technology and/or components to another company that then assembles and sells the finished product. |
| Off-Label use |
The use of a treatment for conditions other than those approved by the FDA. |
| Office action |
A document issued by the USPTO that outlines objections or necessary changes to an application or claim due to finding prior art. |
| OIPE (Office of Initial Patent Examinati |
The first agency that examines patent applications for completeness. |
| Operating profit |
The difference between income and the expense incurred during operations. |
| OpEx (operating expenses) |
Costs considered not to be manufacturing costs, including R&D, sales staff, general and administrative functions, and non-production facilities costs. |
| Opportunity cost |
The opportunity forgone by choosing a different opportunity. |
| OPRR (Office for Protection from Researc |
Office for Protection from Research Risks; now called the Office for Human Research Protections. |
| Option pool |
The total number of stock options available for a company to grant, typically to employees. |
| OTC (Over the Counter) |
Drugs or devices that are sold directly to the end consumer. |
| OTL (office of technology licensing) |
The office within a university that manages its IP assets. |
| OUS (Outside United States) |
Refers to clinical trials that are performed outside the US. Used in reference to obtaining regulatory approval. |
| P&PC (Production & Process Controls) |
One subsystem of a Quality Management system; requires that production processes be controlled and monitored to ensure product conforms to specifications. |
| Partnering strategy |
One option in getting an idea to market - joining with another company to help develop a device. |