How Mayo Is Maximizing On The Medical Device Tax Suspension
Mayo Clinic announced Monday the launch of Vitruvian Networks, a cell and gene therapies company that utilizes the “internet of things” and other digital tools to treat patients.
The Rochester-based medical organization’s latest project was made possible through a partnership with General Electric’s Ventures outfit. Company officials expect health care providers, biotech companies and pharmaceutical businesses will utilize Vitruvian’s personalized regenerative medicine capabilities to assist patients in combatting cancer and other life-threatening diseases.
“Merging GE’s operational excellence with emerging cell and gene therapies will enable faster, more effective and safer treatments for patients,” said Sue Sigel, CEO of GE Ventures, in a release. “Mayo Clinic is a key leader in patient treatment delivery in cancer care and regenerative medicine, so we are honored to have incubated this solution in joint partnership.”
To that effect, the birth of Vitruvian has added yet another tally to Mayo’s list of partnerships and deals performed this year, not long after Congress voted to temporarily lift the medical device tax burdening health tech companies around the nation. With the two-year suspension of the 2.3 percent tax, Mayo’s ventures have ramped up in 2016, bringing about claims that its Rochester headquarters is leading the city’s transformation into an entrepreneurial hotbed.
A few of the company’s most recent collaborations include:
- Its research and development partnership with Boston Scientific, a medical device manufacturer that employs roughly 7,200 workers in Minnesota. Although the two’s “R&D marriage” has flown under the radar for three years, both companies decided to announce the partnership last month in part to show the benefits of what a total elimination of the country’s medical device tax could bring about.
- A Massachusetts startup known as HART—short for Harvard Apparatus Regeneration Technology—is utilizing a similar form of regenerative medicine as Vitruvian to bioengineer replacement tissue for cancer-ridden human organs. The technology could evolve into a lucrative business relationship for Mayo where HART would be required to pay royalties for its use of the medical technology.
- Through a licensing agreement, Mayo shared its patented Galvanic Vestibular Simulation (GVS) technology with a Los Angeles entertainment company called vMocion. In a release, vMocion said its own software would be paired with Mayo’s GVS technology to create “a complete 3-D sensation of motion that mitigates [virtual reality] sickness in the vast majority of the population.” With the recent release of virtual reality headsets Oculus Rift and the HTC Vive, this partnership could become significantly rewarding for Mayo now and in the future.