In recent years, drug reformulation has emerged as a popular defence strategy among pharmaceutical companies seeking to prolong the life cycles of their best-selling products. It has also attracted growing interest from specialist companies developing novel formulations of off-patent drugs and which either launch them as replacements for the originator products, or reposition them for new indications.

Perhaps the question most often posed by entrepreneurs and start-up company executives is, "What are device investors looking for these days?" At Windhover's recent IN3 West conference, industry leaders provided several different perspectives on that question. In this article, we excerpt portions of a discussion that featured two prominent organizations with long-term commitments to medical device investing, but which operate from different points on the investor spectrum: Medtronic Inc. and the Carlyle Group.

Judging from the number of recent well-financed company launches and the size of follow-on rounds for established players, specialty dermatology hasn't lost its allure for investors. Add to that two successful 2004 IPOs--for Barrier Therapeutics Inc. and Cutera Inc.--and it's clear that aesthetic and therapeutic dermatology are still good bases for building specialty pharmaceutical businesses.

Judging from the number of recent well-financed company launches and the size of follow-on rounds for established players, specialty dermatology hasn't lost its allure for investors. Add to that two successful 2004 IPOs--for Barrier Therapeutics Inc. and Cutera Inc.--and it's clear that aesthetic and therapeutic dermatology are still good bases for building specialty pharmaceutical businesses.