ESTRO 2025 - Abstract Book

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Invited Speaker

ESTRO 2025

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Speaker Abstracts Investing for healthcare innovation Florian Schuster Board, Venga Ventures, Cambridge, United Kingdom

Abstract:

Balancing Risk and Return in Radiotherapy Investments

Life sciences and biotech investors face significant challenges due to high failure rates and the need for market acceptable returns. Typically, only about 10% of investee companies achieve meaningful success with another 20 40% breaking even. To compensate for failures, investors must target companies with potential 20x returns on invested capital. This risk-return balance is crucial for the sustainability of biotech funds compared to other asset classes. In the radiotherapy market, radioligand companies offer promising business models with large markets and early cash flows through pharma deals. In contrast, device companies face slow and saturated markets with limited early cash flows, making them less attractive for venture investment. A reevaluation of business models, such as pay-per treatment models, could accelerate innovation in the device space by aligning returns with outcomes, potentially preventing market failures. Clinicians can support innovation by adjusting their risk assessment and purchasing decisions accordingly.

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Speaker Abstracts Why do innovative healthcare products cost so much? Tracy Underwood Research Department, Leo Cancer Care, Crawley, United Kingdom. Department of Medical Physics and Biomedical Engineering, University College London, London, United Kingdom

Abstract:

Innovative healthcare products play a crucial role in improving the lives of patients and their families. While advancements are vital for better outcomes and quality of life, new products often come with high costs, reflecting the complex processes required to turn them into a reality. For radiotherapy in particular, the market is relatively small compared to other sectors such as radiology. Further, radiotherapy delivery systems are more complicated and usually contain 3D imaging systems as QA devices. The financial burden of developing this cutting-edge technology is spread over a smaller customer base, leading to increased prices.

This presentation will explore investment figures and examine costs involved in bringing innovative healthcare products to market. The difficult journey from concept to clinic will be considered.

Key areas of healthcare company spending will be discussed. For instance, research and development is essential not only for the creation of new technologies but also for refining them. Unfortunately, not all attempts are successful, so the cost of failed research and development must also be factored in. The regulatory compliance required to meet standards from organizations such as the FDA or CE is also extremely costly.