Powering Implantable Medical Devices Dr. Sujeet Kumar - PowerPoint PPT Presentation

Powering Implantable Medical Devices Dr. Sujeet Kumar MIT•Stanford•UC Berkeley Nanotechnology Forum October 6, 2005

About Us 2

Highlights � Founded by Wilson Greatbatch in 1970; IPO in 2000 (NYSE: GB) � Leading component supplier to the Cardiac Rhythm Management (CRM) industry � High growth medical technology market � Proven product portfolio of technology leadership products � Pipeline of emerging technology opportunities 3

Critical Component Supplier Batteries Feedthroughs Engineered Components Capacitors EMI Filters Value Add Assembly Coated Electrodes Commercial Batteries Enclosures 4

Corporate Strategy � Maintain a strong new product pipeline with advanced Technology Manufacturing proprietary technology � Leverage manufacturing and assembly capabilities to provide Customer best value solution � Drive quality improvements throughout product life cycle Quality Commercialization � Broaden traditional customer interface 5

Facility Locations Minneapolis, MN 10. Enclosure Plant Carson City, NV Canton, MA 8. Commercial Battery Plant 11. Filtered Feedthrough Plant Columbia, MD Fremont, CA 9. Feedthrough and Coatings Plant 12. Advanced Research Lab (Nanomaterials) Tijuana, MX Western NY 13. Assembly Plant 1. Advanced Power Source Plant 2. Battery Plant / R&D Center 3. Capacitors Plant 4. Machined and Molded Components Plant 5. Destructive Analysis Facility 6. Sales & Marketing Facility 7. Headquarters Facility 6

Sales $ Millions 250 Full Year Guidance $216.3M Electrochem Commercial Power $200.1M Implantable Medical Components 200 26.1 27.4 $167.3M 25.4 150 $135.6M 27.9 $97.8M 190.2 100 172.7 14.0 141.9 107.7 50 83.8 0 2000 2001 2002 2003 2004 * Represents midpoint of Management’s guidance dated May 3, 2005 7

Market & Products 8

CRM Market � Market that deals with electrical problems of the heart � Bradycardia/Tachycardia � Congestive Heart Failure � Sudden Cardiac Death � Estimated $11 billion market in 2006 � 80% of Greatbatch revenues driven by CRM � Customer concentration � Medtronic 30% � Guidant 36% � St. Jude Medical Guidant � Biotronik St. Jude Medical � ELA Medtronic Others 10% 24% 9

CRM Devices – Function & Growth Device Function Unit Growth – 2005E Implantable Detects abnormally Cardioverter 10 – 15% fast heart beat (tachycardia); Defibrillators shocks the heart to restore normal function Resynchronize Cardiac ventricular Resynchronisation contraction; now 35% Therapy combined with ICD + pacing in one device Pacemakers Detects abnormally 0 – 4% slow heart beat (bradycardia) 10

How It Works ICD SVO Battery 11

ICD Selection Criteria Closely Tied to Power Source Characteristics Criterion Role of Power Source Size Shape Programmer & Interface Charge Times Device Lifetime Feature Set Source: Morgan Stanley CRM Conference 09/03 12

Technology Leadership 13

Silver Vanadium Oxide: Background � Battery chemistry originally developed at Greatbatch, Inc. � 98% of ICDs use SVO as the high rate battery due to its combination of: � High rate capability enabling faster charge times � High capacity enabling longer device lifetimes � Stepped discharge profile enabling easier end-of-life detection � Battery function in ICD � Monitor circuitry on continuous basis � Charge high voltage capacitors in less than 15 seconds 14

Q Series Battery Technology � Our next generation of battery that combines the advantages of two distinct cathode materials via an innovative electrode design � SVO: Low energy density but high rate capability � CFx: High energy density but low rate capability � Qseries battery technology is the best implantable battery technology available today. � Technology protected by IP � 5 years of real-time data 15

Innovation in Nanotechnology 16

NanoGram Devices Corporation � Spun out of NanoGram Corporation in August 2002 � Leader in nanomaterials enhanced power sources; developed NanoSVO for implantable medical devices � Raised $9.2MM in Series A financing led by Venrock, Bay Partners, and N th Power (January 2003) � Acquired by Greatbatch in March 2004 for $45MM; currently Advanced Research Laboratories 17

Nanoparticle Manufacturing Technology (NPM™) � Unique Features � Auto nucleation due to abrupt temperature change � Size growth control due to quenching � Wall free reaction zone reduces contamination � Uniform laser reaction zone chamber � Engineering Benefits � Flexible design of reactor by optics � Programmable control of process � Capability � Control of grain growth � Uniform size � High chemical purity 18

Technology Benefits Complex compositions Controlled properties Highly reproducible Scaleable ---VOX 702 ---VOX 709 ---VOX 716 ---VOX 702 ---VOX 709 ---VOX 716 ---VOX 703 ---VOX 710 ---VOX 717 ---VOX 703 ---VOX 710 ---VOX 717 VO 2 VO 2 ---VOX 704 ---VOX 711 ---VOX 718 ---VOX 704 ---VOX 711 ---VOX 718 ---VOX 705 ---VOX 712 ---VOX 719 ---VOX 705 ---VOX 712 ---VOX 719 Throughput (kg/hr ) ---VOX 706 ---VOX 713 ---VOX 720 ---VOX 706 ---VOX 713 ---VOX 720 ---VOX 707 ---VOX 714 ---VOX 722 ---VOX 707 ---VOX 714 ---VOX 722 ---VOX 708 ---VOX 715 ---VOX 708 ---VOX 715 Nozzle Length (mm) 19

NanoSVO Technology � Nanoscale version of bulk SVO � Precisely tailored nanocrystalline structure yielding low impedance and high power capability Technology Benefits Bulk Nano � High power capability + LOAD - - LOAD + � Low impedance Li + Li + Li + Li + � Greater stability Li + Li + � Smaller size Current Collector Current Collector Anode Anode � Improved design flexibility Bulk Cathode Electrolyte Nano Cathode Electrolyte 20

Nanotechnology Benefits Dramatic in Medical Implantable Power Source Market Shorter Charge Times Low Impedance Greater Capacity “Fast per Lithium Volume Transport” Higher Current or “Rate” Nano-enhanced Cathode Has Better Capability Longer Accessibility for Lithium Ions Lifetimes 21

Contact: Dr. Sujeet Kumar Ph: 510-825-0798 Email: skumar@greatbatch.com www.greatbatch.com