What is your role at Fresenius Kabi?
I am responsible within the business unit devices and this role has several facets including global strategic marketing, research, and development as well as portfolio management. We deal with products for hospitals that administer e. g. infusions and clinical nutrition, and these products are very close to the patients. My goal is to constantly develop further our core range of products.

Nutrition probably isn’t the most important topic for hospitals considering that patients have to deal with serious illnesses.
On the contrary. For ill people, nutrition is a decisive factor. An inadequate intake of calories, protein, and micronutrients can slow down their recovery. Even in Europe, there are millions of patients that have a risk of malnutrition which is associated with longer hospital stays, higher health care costs, and increased mortality. There has been considerable evolution in the past two decades. Earlier, patients often were fed intravenously when they could not eat. But the importance of feeding trough the stomach and intestine as early as possible is now established. The intestine has a big influence on other organs of the body. Today, the composition of medical nutrition, the amount of proteins and fat, for example, is adapted to specific illnesses.

There are several sizable companies that supply clinical nutrition, including B. Braun, Nutricia, and Nestlé. But is it safe to say that Fresenius Kabi has a strong offering in both types of clinical nutrition, the one that is administered through the veins and the other that goes through tubes into the stomach or intestine?
Yes, our offering and presence in the market in both enteral and parenteral nutrition are what differentiates us from our competition.

How often do you deal with startups as a possible source of innovation?
In my field, it is not that common. Many ideas that lead to product improvements come directly from their users or our Marketing or R&D departments. We’re more geared towards a classic M&A-approach, buying large and mid-sized companies that are already contributive. This is why we’re rather cautious in principle when we deal with startups. But we do acknowledge that there are also interesting things out on the market that are worth looking at.

In the case of the startup Vipun Medical, which develops a stomach monitoring system for hospitals, you did have closer contact. How does a large firm like Fresenius Kabi assess a startup like Vipun?
I became involved in the discussion around a year ago, some of my colleagues already talked to the startup earlier. We follow a standardized process where we involve usually product management first. They deemed the idea interesting so our M&A department conducted closer due diligence that also involved medical experts. After that was passed, we assembled a project team with people from several departments.

What was the result of this process?
Vipun Medical’s product idea has a very good strategic fit with both of our portfolios in enteral and parenteral nutrition [nutrition administered through the stomach or through the veins]. At the moment, physicians rely on their experience when to feed patients, but every patient is different. Vipun’s stomach monitoring system could support that by an evidence-based approach that gives a physician a clear indication when to start feeding and how. There is no comparable device on the market, which makes it an interesting opportunity.

Given this positive assessment, why didn’t you simply decide to buy the startup before it progresses further and gets more expensive?
Mainly because it is a startup. Fresenius Kabi is used to acquire large companies that immediately contribute to the bottom line. This case was the opposite, a potential small deal that still has development risks and will not be profitable instantly. In a large organization like ours, there are always plenty of other projects you have to compete with, and it was difficult to convince management to invest this early in a company.

Were you disappointed that this didn’t get through? 
If you’d ask my product managers, they’ll say yes, they’re very disappointed. But I’m used to working on many different projects. I’ve learned that successful deals happen when the time is right. It pays to be patient.