Key Learnings From Reinhard’s Experience
- It’s easy to get caught up in adding features that don’t necessarily translate to better usability or functionality. In medtech, the compelling need is often the simplest device with an intuitive design. To achieve that, you need to thoroughly understand the market you're entering by interrogating your stakeholders with an open mind.
- Develop a deep understanding of your market, not just in terms of what your technology can do, but how it fits into the existing healthcare ecosystem. Understand the specific medical and economic environment, as structural dynamics, such as regulatory requirements, reimbursement policies, and standard of care procedures, can either hinder or facilitate the adoption of your product.
- Consistent investor communication is crucial for securing funding. When it comes to pitching, you have to be able to tell an engaging story. Use every opportunity, regardless of the outcome, as a learning experience. Analyze what worked, what didn’t, and why. Continuously refine your pitch to ensure it not only tells the right story but also resonates with potential investors.
After more than a decade at the helm of Phagenesis, Reinhard Krickl is stepping aside as CEO, setting the stage for the company to spread its wings in the United States. An engineer and an academic passionate about applying technology in medicine, Reinhard stepped into the world of medtech with Medtronic in 2000, where he drove sales of neuro-based therapies in Austria. He was eventually promoted to the European headquarters in Switzerland, where he honed in on his career as a corporate entrepreneur.
Reinhard’s primary focus was on neurology, and he worked on advancing therapies from their nascent stages to full market maturity, first in Austria and then across Europe. At Medtronic, the job that taught him the full complexity of medtech commercializing, he led the deep brain stimulation (DBS) business for Europe.
After 14 years of corporate entrepreneurship at Medtronic, Reinhard decided to tackle startups and joined Phagenesis, which is a UK-based company that emerged from neurology research conducted by Prof. Shaheen Hamdy, at Manchester University.
The company is dedicated to addressing dysphagia, a condition that impedes patients' ability to swallow. It affects about 50% of stroke survivors and long-term ventilated patients, and can lead to severe complications, including malnutrition and aspiration pneumonia.
Phagenesis’ neuromodulation system, Phagenyx, is designed to restore normal swallowing function after just a few days of pharyngeal electrical stimulation (PES). The ability to significantly reduce the length of hospital stays and intervene early, even without the need for patients to collaborate, holds immense potential for this therapy and heralds a paradigm change in care, according to Reinhard.
Reinhard spearheaded the commercialization of Phagenesis' technologies across Europe and after the Phagenesis team secured FDA approval, he set up the company’s U.S. business. Before passing the baton to a CEO with black belt experience in commercializing in the U.S., Reinhard led a Series D funding round of over $40 million. With this capital boost, Phagenesis is set to evolve from clinical-stage to a fully commercial company, ready to expand its reach overseas.
Reinhard Krickl, CEO of Phagenesis, is an Austrian engineer with over 25 years of experience in medtech, specializing in neurology-based medical devices. After beginning his career in academia, Reinhard got his industry start with Medtronic in 2000, where he would eventually lead the company’s efforts with deep brain stimulation (DBS) therapy across Europe. He is also an INSEAD-certified director and serves on several boards, chairing two of them.
The Simplest Device is Often the Best Device
Despite his background in the complex field of deep brain stimulation (DBS), Reinhard has come to appreciate the value of simplicity.
As Conor Mulrooney, co-founder and COO of Phagenesis, who developed the Phagenyx system, always says, “What's important is not what your device can do, but what it can do for the end user.” In contrast to DBS, where different specialists handle the device implantation and patient care, Phagenesis benefits from a simpler treatment process: the same professional who sees the patient can apply the therapy and monitor the results, leading to a very direct feedback loop. Such simplicity not only makes the device safer but also increases the chances of market adoption. Reinhard observes, “Because the same person who is applying the therapy sees the outcome, this encourages the same user to then treat more and more patients because the positive feedback loop is very convincing.” While Phagenyx might seem underwhelming in its lack of advanced features, that simplicity is precisely what makes it safe and effective.
Reinhard’s philosophy is that “The simplest device is often the best device.” The device might be complex internally, but its external simplicity is what matters to the user.
In the early stages of the company, Prof. Hamdy used off-the-shelf lab equipment to validate whether electrical stimulation of the pharynx—the muscular tube in the middle of the neck—could effectively improve swallowing in dysphagia patients. By doing so, the team understood the mechanism of action before designing a product tailored to it. Then, the focus was on making the therapy as easy as possible to apply. The catheter is designed similarly to a nasogastric feeding tube, which speech pathologists and nurses are familiar with, so they can use it with minimal training. It works just like a standard feeding tube but with the added functionality of neurostimulation.
The point is to create a product that integrates smoothly into existing practices and yields efficacious clinical results. This way, you minimize disruption and maximize adoption. And the way to do that is to spend quality time with the end users—observing and listening with an open mind. Reinhard advises, “Just be in the corner of the room, watch what they're doing, take a lot of notes, because that's going to guide you to the best design solution.”
How to Change the Status Quo
Reinhard has had the opportunity to work on different novel technologies throughout his career. One of them was Medtronic’s DBS therapy. “It's oftentimes really fun to work on this stuff, but also very challenging because you're trying to attempt to change the status quo,” he shares.
For him, introducing a disruptive piece of technology starts by first understanding the audience and the market needs, and then the specific barriers that might hinder adoption. Reinhard eventually adopted a "market access checklist” built on three foundational pillars: structural barriers, therapy readiness, and physician adoption. Here’s a rundown:
Structural barriers: Clearly identify the patient demographics that will benefit from the therapy and the indications you’re solving for. Understand economic incentives like Diagnosis Related Group (DRG) codes and relative value units (RVUs). Then, you collect robust clinical evidence supporting the benefits of the therapy. This forms the basis of market adoption and shapes the clinical strategy.
It’s important to note that these factors can have both positive and negative impacts. For example, in the U.S., in cases of severe dysphagia in stroke patients, if the patient cannot safely swallow by the second week of care, the standard procedure is the surgical placement of a Percutaneous Endoscopic Gastrostomy (PEG) tube. This invasive procedure not only extends the patient’s hospital stay due to recovery but also brings additional risks and costs. Phagenesis offers an alternative that can prevent the need for a PEG tube, presenting a strong incentive for early adoption in the U.S. market. On the other hand, in Europe, patients with similar conditions can be discharged with a less invasive nasal gastric feeding tube, which translates to less of an immediate incentive for adopting Phagenesis' therapy.
Therapy readiness: Assess how easily the therapy can be integrated into current practices and how simple it is to train staff to administer it. The complexity of the therapy, complication rates, and safety risks can greatly influence its adoption.
Physician adoption: Understand who will apply the therapy, who prescribes it, and who refers it. Make their job easier, not more complicated.
Foster Relationships Through Compelling Storytelling
Phagenesis closed a substantial Series D round earlier this year of over $40 million. Reinhard says, “You're always fundraising, basically, and you should start long before you need the money.” You need to build relationships with investors who ideally follow not just your company's growth but also your personal development as a leader, observing how you meet or exceed the commitments you've set.
It’s also crucial to find the right financial partners who are not just interested in your sector but are also at the right stage in their fund's lifecycle to support you. Ideally, you want investors who are early in their fund lifecycle. Reinhard emphasizes, “That basically means the first two, three, or four years max of the specific funds.” This gives them ample time to engage with your growth and see a return on their investment before their fund closes.
In addition to these strategies, you must master another skill: storytelling. In the business context, this means distilling complex ideas or technology into narratives that are easy to understand.
When you’re fundraising, the first respondent you’ll encounter at a VC firm is often someone junior—an associate who preliminarily assesses your fit. The goal is to communicate your story so compellingly to this associate that they can relay it to the investment committee with the same punch. In essence, your job is to make this person able to pitch their partners on your behalf behind the scenes.
Mastering this is an art that takes time. It’s best to treat each pitch as a learning opportunity and never a waste of time. Reinhard’s tactic is to start with low-stakes investors, who might not be the perfect fit—they provide a rehearsal space to test your presentation in a real-world scenario without repercussions. Even if your pitch doesn’t land, you can refine it with the feedback you get without the pressure of losing a crucial investment opportunity.
The Right CEO Profile
“You need to ask yourself as a CEO, as the company enters new phases, am I still the right person for this role? Do I still have the best profile to lead and drive the company’s best interest? It’s probably the most difficult question because it's about yourself.” says Reinhard.
As Phagenesis gears up for scaling commercialization in the United States, Reinhard – based in Europe – discussed this challenging decision with the incoming Series D investors. "Would a CEO based in the United States be better suited?" Together they concluded that, under the circumstances, stepping down was best for the next phase of the company.
After handing over Phagenesis to his U.S. based CEO successor, Reinhard is looking forward to new opportunities later this year.
Key Learnings From Reinhard’s Experience
- It’s easy to get caught up in adding features that don’t necessarily translate to better usability or functionality. In medtech, the compelling need is often the simplest device with an intuitive design. To achieve that, you need to thoroughly understand the market you're entering by interrogating your stakeholders with an open mind.
- Develop a deep understanding of your market, not just in terms of what your technology can do, but how it fits into the existing healthcare ecosystem. Understand the specific medical and economic environment, as structural dynamics, such as regulatory requirements, reimbursement policies, and standard of care procedures, can either hinder or facilitate the adoption of your product.
- Consistent investor communication is crucial for securing funding. When it comes to pitching, you have to be able to tell an engaging story. Use every opportunity, regardless of the outcome, as a learning experience. Analyze what worked, what didn’t, and why. Continuously refine your pitch to ensure it not only tells the right story but also resonates with potential investors.
After more than a decade at the helm of Phagenesis, Reinhard Krickl is stepping aside as CEO, setting the stage for the company to spread its wings in the United States. An engineer and an academic passionate about applying technology in medicine, Reinhard stepped into the world of medtech with Medtronic in 2000, where he drove sales of neuro-based therapies in Austria. He was eventually promoted to the European headquarters in Switzerland, where he honed in on his career as a corporate entrepreneur.
Reinhard’s primary focus was on neurology, and he worked on advancing therapies from their nascent stages to full market maturity, first in Austria and then across Europe. At Medtronic, the job that taught him the full complexity of medtech commercializing, he led the deep brain stimulation (DBS) business for Europe.
After 14 years of corporate entrepreneurship at Medtronic, Reinhard decided to tackle startups and joined Phagenesis, which is a UK-based company that emerged from neurology research conducted by Prof. Shaheen Hamdy, at Manchester University.
The company is dedicated to addressing dysphagia, a condition that impedes patients' ability to swallow. It affects about 50% of stroke survivors and long-term ventilated patients, and can lead to severe complications, including malnutrition and aspiration pneumonia.
Phagenesis’ neuromodulation system, Phagenyx, is designed to restore normal swallowing function after just a few days of pharyngeal electrical stimulation (PES). The ability to significantly reduce the length of hospital stays and intervene early, even without the need for patients to collaborate, holds immense potential for this therapy and heralds a paradigm change in care, according to Reinhard.
Reinhard spearheaded the commercialization of Phagenesis' technologies across Europe and after the Phagenesis team secured FDA approval, he set up the company’s U.S. business. Before passing the baton to a CEO with black belt experience in commercializing in the U.S., Reinhard led a Series D funding round of over $40 million. With this capital boost, Phagenesis is set to evolve from clinical-stage to a fully commercial company, ready to expand its reach overseas.
Reinhard Krickl, CEO of Phagenesis, is an Austrian engineer with over 25 years of experience in medtech, specializing in neurology-based medical devices. After beginning his career in academia, Reinhard got his industry start with Medtronic in 2000, where he would eventually lead the company’s efforts with deep brain stimulation (DBS) therapy across Europe. He is also an INSEAD-certified director and serves on several boards, chairing two of them.
The Simplest Device is Often the Best Device
Despite his background in the complex field of deep brain stimulation (DBS), Reinhard has come to appreciate the value of simplicity.
As Conor Mulrooney, co-founder and COO of Phagenesis, who developed the Phagenyx system, always says, “What's important is not what your device can do, but what it can do for the end user.” In contrast to DBS, where different specialists handle the device implantation and patient care, Phagenesis benefits from a simpler treatment process: the same professional who sees the patient can apply the therapy and monitor the results, leading to a very direct feedback loop. Such simplicity not only makes the device safer but also increases the chances of market adoption. Reinhard observes, “Because the same person who is applying the therapy sees the outcome, this encourages the same user to then treat more and more patients because the positive feedback loop is very convincing.” While Phagenyx might seem underwhelming in its lack of advanced features, that simplicity is precisely what makes it safe and effective.
Reinhard’s philosophy is that “The simplest device is often the best device.” The device might be complex internally, but its external simplicity is what matters to the user.
In the early stages of the company, Prof. Hamdy used off-the-shelf lab equipment to validate whether electrical stimulation of the pharynx—the muscular tube in the middle of the neck—could effectively improve swallowing in dysphagia patients. By doing so, the team understood the mechanism of action before designing a product tailored to it. Then, the focus was on making the therapy as easy as possible to apply. The catheter is designed similarly to a nasogastric feeding tube, which speech pathologists and nurses are familiar with, so they can use it with minimal training. It works just like a standard feeding tube but with the added functionality of neurostimulation.
The point is to create a product that integrates smoothly into existing practices and yields efficacious clinical results. This way, you minimize disruption and maximize adoption. And the way to do that is to spend quality time with the end users—observing and listening with an open mind. Reinhard advises, “Just be in the corner of the room, watch what they're doing, take a lot of notes, because that's going to guide you to the best design solution.”
How to Change the Status Quo
Reinhard has had the opportunity to work on different novel technologies throughout his career. One of them was Medtronic’s DBS therapy. “It's oftentimes really fun to work on this stuff, but also very challenging because you're trying to attempt to change the status quo,” he shares.
For him, introducing a disruptive piece of technology starts by first understanding the audience and the market needs, and then the specific barriers that might hinder adoption. Reinhard eventually adopted a "market access checklist” built on three foundational pillars: structural barriers, therapy readiness, and physician adoption. Here’s a rundown:
Structural barriers: Clearly identify the patient demographics that will benefit from the therapy and the indications you’re solving for. Understand economic incentives like Diagnosis Related Group (DRG) codes and relative value units (RVUs). Then, you collect robust clinical evidence supporting the benefits of the therapy. This forms the basis of market adoption and shapes the clinical strategy.
It’s important to note that these factors can have both positive and negative impacts. For example, in the U.S., in cases of severe dysphagia in stroke patients, if the patient cannot safely swallow by the second week of care, the standard procedure is the surgical placement of a Percutaneous Endoscopic Gastrostomy (PEG) tube. This invasive procedure not only extends the patient’s hospital stay due to recovery but also brings additional risks and costs. Phagenesis offers an alternative that can prevent the need for a PEG tube, presenting a strong incentive for early adoption in the U.S. market. On the other hand, in Europe, patients with similar conditions can be discharged with a less invasive nasal gastric feeding tube, which translates to less of an immediate incentive for adopting Phagenesis' therapy.
Therapy readiness: Assess how easily the therapy can be integrated into current practices and how simple it is to train staff to administer it. The complexity of the therapy, complication rates, and safety risks can greatly influence its adoption.
Physician adoption: Understand who will apply the therapy, who prescribes it, and who refers it. Make their job easier, not more complicated.
Foster Relationships Through Compelling Storytelling
Phagenesis closed a substantial Series D round earlier this year of over $40 million. Reinhard says, “You're always fundraising, basically, and you should start long before you need the money.” You need to build relationships with investors who ideally follow not just your company's growth but also your personal development as a leader, observing how you meet or exceed the commitments you've set.
It’s also crucial to find the right financial partners who are not just interested in your sector but are also at the right stage in their fund's lifecycle to support you. Ideally, you want investors who are early in their fund lifecycle. Reinhard emphasizes, “That basically means the first two, three, or four years max of the specific funds.” This gives them ample time to engage with your growth and see a return on their investment before their fund closes.
In addition to these strategies, you must master another skill: storytelling. In the business context, this means distilling complex ideas or technology into narratives that are easy to understand.
When you’re fundraising, the first respondent you’ll encounter at a VC firm is often someone junior—an associate who preliminarily assesses your fit. The goal is to communicate your story so compellingly to this associate that they can relay it to the investment committee with the same punch. In essence, your job is to make this person able to pitch their partners on your behalf behind the scenes.
Mastering this is an art that takes time. It’s best to treat each pitch as a learning opportunity and never a waste of time. Reinhard’s tactic is to start with low-stakes investors, who might not be the perfect fit—they provide a rehearsal space to test your presentation in a real-world scenario without repercussions. Even if your pitch doesn’t land, you can refine it with the feedback you get without the pressure of losing a crucial investment opportunity.
The Right CEO Profile
“You need to ask yourself as a CEO, as the company enters new phases, am I still the right person for this role? Do I still have the best profile to lead and drive the company’s best interest? It’s probably the most difficult question because it's about yourself.” says Reinhard.
As Phagenesis gears up for scaling commercialization in the United States, Reinhard – based in Europe – discussed this challenging decision with the incoming Series D investors. "Would a CEO based in the United States be better suited?" Together they concluded that, under the circumstances, stepping down was best for the next phase of the company.
After handing over Phagenesis to his U.S. based CEO successor, Reinhard is looking forward to new opportunities later this year.
