“Incremental improvements are not enough” – Interview with Frank Desiere, CEO of CorTec

With the second successful in-human implantation of a fully implantable brain-computer interface system, Freiburg-based medtech company CorTec is sending a strong signal for the next generation of stroke therapy.

The technology addresses patients beyond the limits of traditional rehabilitation and opens up new functional potential. In this interview, CEO Frank Desiere talks about scaling, the role of long-term investors and mindset issues for medtech founders.

The second implantation of CorTec’s brain-computer interface is an important milestone. For which patients is the system suitable?

Our system is intended for stroke patients who have not made any progress after years of intensive rehabilitation. Our device makes it possible to restart and accelerate therapy for these people, so to speak. The initial results are very promising.

How can your technology change rehabilitation in the long term?

Around 15 million people worldwide suffer a stroke every year. 80% of them suffer from paralysis, especially of the arms and hands, and 40% struggle with long-term limitations. That’s a real problem. Traditional neurorehabilitation helps for a certain period, but after six to twelve months, progress stagnates. This is exactly where we come in: our technology is designed for patients who no longer benefit from traditional therapy. We ensure that these people can regain their mobility and independence.

The two implantations were carried out in collaboration with the University of Washington School of Medicine. How did international scientific expertise and research influence the further development of your technology?

This is extremely important. We operate globally and collaborate with leading scientific partners in the USA, Europe and Japan. In addition to the University of Washington in Seattle, where we are advancing stroke treatment, we collaborate with the Mayo Clinic in the field of epilepsy, with Utrecht University for ALS patients and with the University of Freiburg in the field of depression. These networks accelerate innovation and ensure that we are always working at the cutting edge of research.

How far along is development for the other indications?

Stroke is our main indication and clear focus. In collaboration with the Mayo Clinic in the field of epilepsy, a very promising clinical trial involving 13 patients to date is already underway. This trial focuses on the early detection and prevention of epileptic seizures. Unlike with stroke patients, our device is used externally and is not implanted.

HTGF is an early investor – since 2011. What role did this support play in the development of CorTec?

Long-term investors such as HTGF are crucial for supporting and developing truly groundbreaking ideas. The investment managers at HTGF deserve great credit, because it takes a high level of expertise in various areas to recognise promising innovations. It also requires a clear vision and decision-making ability. Caroline Fichtner and Marco Winzer are to be congratulated for demonstrating this foresight. It is now becoming apparent that brain-computer interfaces are set to become a huge topic.

Where do you see yourself in the international competition?

We are not only on a par with our international competitors in the USA and China, but even ahead of them. Our unique selling point is that we can not only read the brain, but also write to it, i.e. send targeted signals to the brain. This opens up possibilities for neurological therapies of the future that others are not yet able to address.

Can you already give us an idea of what the next steps will be – especially in the area of stroke treatment?

We are now preparing the next round of financing. The next studies will be larger and more complex and will require more capital because of that. Europe is well positioned in the early stages, but when it comes to financing and conducting larger studies, we have a gap in the financing landscape. That is why we are also looking specifically at options in the United States and China to raise additional capital. Developing a medical technology product costs around €100 million, and we are in an area with many uncertainties.

So far, we have been very capital-efficient as a company. We have also raised public funds and have come a long way with them. Many competitors have raised significantly more capital and are still nowhere near as far along as we are.

What advice would you give to medtech founders?

You have to think big and long-term: incremental improvements are not enough. It is important for founders to address issues that can make a real difference for patients. This creates a genuine medical and social impact and market potential that attracts investors.

The right partners in academia are very important. You want to work with the best in the field to be at the forefront of implementing the latest ideas and findings.
Partners from industry should ideally complement your own skills to really move forward in an innovation ecosystem.

Finally, you need a team that is not only technically strong but also shares a common vision and drives an idea forward in an interdisciplinary manner.

Thank you for the interview!