Bill Murray, President & CEO Dawn Bardot, PhD, VP Technology Innovation March 17,

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A Public-Private Partnership collaborating on Regulatory Science to make patient access to new medical device technologies faster, safer and more cost-effective Bill Murray, President & CEO Dawn Bardot, PhD, VP Technology Innovation March 17, 2017 1 www.mdic.org

2 Background: Regulatory Science The science of developing new tools, standards, and approaches to assess the safety, efficacy, quality, and performance of FDA-regulated products Advances in regulatory science benefits patients by speeding the rate of important technologies reaching market Advances in regulatory science reduces time and resources needed for device development, assessment, and review. For example: Can lead to quicker, more efficient device approvals Can decrease the size and duration of pre-market clinical trials Faster, Safer, More Cost-effective FDA Strategic Plan, August 2011 Advancing Regulatory Science at FDA

3 Background: CDRH Strategic Priorities Strategic priorities for the Center for Devices and Radiological Health (CDRH) emphasize the need for stakeholder partnerships across the entire Medical device ecosystem 2014 2015 2016 2017 Strengthen the Clinical Trial Enterprise Establish a National Evaluation System for Medical Devices (NEST) Strike the Right Balance Between Premarket and Postmarket Data Collection Partner with Patients Provide Excellent Customer Service Promote a Culture of Quality and Organizational Excellence

4 Background: Flexible Regulatory Paradigms Applied Across the Total Product Life Cycle From Dr. Shuren s presentation to the Medical Device Innovation Consortium s (MDIC) Chief Medical/ Chief Science Officer meeting on September 20, 2016: CDRH Vision Patient-Centered, TPLC Approach Benefit-Risk Tradeoffs PMA, De Novo Benefit-Risk Determination Framework Guidance (2012) Postmarket Benefit-Risk Draft Guidance (2016) Evidence Generation Premarket-Postmarket Balance Science of Patient Input Clinical Trials Regulatory Science Real-World Evidence Early Feasibility Study Paradigm Guidance (2013) MDDT Draft Guidance (2015) RWE Draft Guidance (2016) Expedited Access Pathway Program (2015) Patient Preference Information Guidance (2016) IDE Benefit-Risk Determination Framework Draft Guidance (2015) MDDT Pilot Program Unique Device Identification Final Rule (2013) Balancing Premarket and Postmarket Data Collection Guidance (2015) Medical Device Innovation Consortium (MDIC) Patient Centered Benefit-Risk Project NEST MDIC

5 What is MDIC? Formed in late 2012, the Medical Device Innovation Consortium (MDIC) brings together representatives of the FDA, NIH, CMS, industry, and non-profits and patient organizations to improve the processes for development, assessment and review of new medical technologies MDIC members share a vision of providing patients with timely access to high-quality, safe, and effective medical devices. MDICs primary areas of focus include: 1. Develop Regulatory Science Tools that can be used to transform the development, assessment and review of new medical technologies for patient benefit 2. Establish the National Evaluation System for health Technology (NEST) Coordinating Center (CC). Our Mission: Faster, Safer and more Cost-effective innovation for Patient Benefit

6 What is MDIC? MDIC is a 501(c)(3) non-profit organization and is the first-ever public-private partnership created with the sole objective of advancing regulatory science of medical devices for patient benefit Align Resources WORKING COOPERATIVELY to re-engineer pre-competitive technology innovation Accelerate Progress Achieve Results REDUCING TIME and resources needed for new technology development, assessment, and review HELPING PATIENTS gain access to new medical technologies sooner MDIC HIGHLIGHTS 59 participating member organizations Leading resource on issues important to the Medtech innovation ecosystem 6 Projects have been initiated Congressional testimony on modernizing clinical trials Over $4.4m funding from grants and contracts for Program initiatives.

7 Full MDIC Board of Directors Allan Coukell The Pew Charitable Trusts Director of Drugs and Medical Devices MDIC Vice-Chair William A. Hawkins III Immucor, Inc. Lead Director Retired Chairman & CEO, Medtronic Chip Hance Creganna Medical Former Chief Executive Officer Ross Jaffe, MD National Venture Capital Association, Director; Versant Ventures Managing Director William V. Murray MDIC President & CEO Joseph Woody Acelity President & CEO Mark Carlson, MD St. Jude Medical VP Global Clinical Affairs and Chief Medical Officer Rachael Fleurence, PhD PCORI Program Director Michael R. Minogue Abiomed, Inc. President, CEO and Chairman MDIC Board Chair Randall Schiestl Boston Scientific Corporation VP, Global Operations and Technology Nadim Yared CVRx President & CEO Richard Naples BD Executive VP and Chief Regulatory Officer Bryan Olin, PhD LivaNova, Inc. VP, Clinical, Quality & Regulatory Peter Saltonstall NORD President & CEO Kris Kandarpa, MD, PhD NIBIB, NIH Director, Research Sciences and Strategic Directions Rick Geoffrion Mitralign, Inc. President & CEO Peter Arduini Integra LifeSciences President, CEO and Director MDIC Membership Committee Chair Jeffrey Shuren, MD, JD CDRH, FDA Director, Center for Devices and Radiological Health Food and Drug Administration MDIC Membership Committee Vice-Chair Aran Maree, MD Johnson & Johnson Chief Medical Officer, Medical Devices & Diagnostics Richard E. Kuntz, MD, MSc Medtronic, Inc. Sr. VP and Chief Scientific, Clinical & Regulatory Officer Beth Staub Stryker Corp. VP Global Regulatory Affairs and Quality Assurance Tamara Syrek Jensen, JD CMS Director, Coverage and Analysis Group Steve Ferguson Cook Group Inc. Chairman of the Board Caroll Neubauer B. Braun of America, Inc. Chairman & CEO

8 MDIC Membership Roster 1. Abbott 2. Abiomed 3. Acelity 4. AdvaMed 5. AIMBE 6. ANSYS 7. B Braun 8. BARDA 9. Baxter 10. BD 11. Boston Biomedical Associates 12. Boston Scientific 13. CD-adapco 14. CMS 15. Cohera Medical 16. Cook Group 17. CR Bard 18. Creganna Medical 19. CVRx 20. Dartmouth Device Development Symposium 21. Edwards Lifesciences 22. Exact Sciences Corp 23. Exponent, Inc. 24. FasterCures 25. FDA 26. Feinstein Institute for Medical Research 27. Focused Ultrasound Foundation 28. HeartFlow 29. Holaira 30. ICON plc 31. Imricor 32. Integra Lifesciences 33. IT IS-USA 34. Johnson & Johnson 35. LivaNova 36. MDMA 37. Medical Alley 38. Medidata Solutions 39. Medtronic 40. Mitralign 41. NAMSA 42. NIH 43. NORD 44. NRC 45. NSF International 46. NVCA 47. NxThera 48. PCORI 49. The Pew Charitable Trusts 50. Roche 51. SEMDA 52. SIMULIA 53. Southern Research Institute 54. St. Jude Medical 55. Stryker Corp. 56. Sysmex Americas 57. Terumo BCT 58. W.L. Gore 59. Zimmer Biomet Updated 2/03/17

9 MDIC Strategies MDIC strategies facilitate stakeholder collaboration to expedite regulatory science innovation and ensure board-based benefits Create A Forum For Collaboration & Dialogue Establish a transparent and flexible governance structure Ensure involvement from regulators, manufacturers, and other appropriate stakeholders Implement appropriate intellectual property and data sharing policies Make Strategic Investments In Regulatory Science Establish working groups to identify and prioritize key issues Develop procedures for requesting and evaluating project proposals and for selecting centers to conduct the research Invest in programs aimed at improving the throughput of innovation Provide Tools To Drive Innovation Provide education about the medical device regulatory process and new tools, standards and test methods Develop searchable databases and links to relevant reports and methods Hold an annual medical device regulatory science symposium

MDIC NEST Coordinating Center MDIC s vison is to establish and operate the decentralized, federated NESTcc based on the foundational principles of trust, transparency, scalability, sustainability and accountability serving device manufacturers, payers, regulatory agencies, patient groups, physicians, providers and other relevant stakeholders Objectives for the NESTcc 1. Broad stakeholder engagement including public input 2. Establishment of CC independence from bias from any single stakeholder s interests Patient Groups NEST Industry 3. Decentralized data flow and evaluation systems rather than a single centralized device evaluation program Hospital Systems Clinician Groups 4. Common data analytical and report standards rather than a standardization of mandatory set of data fields and reports Coordinating Center 5. Open science principles of transparency of governance, coordinating processes and policies, and data access CDRH Payers 6. Active oversight of the critical data flow and key operation components employing audit, certification and performance reporting to ensure compliance with standards and reporting recommendations NEST SHARED RESOURCES Data Clearinghouse Communications Partner Network Of Expertise Platform COORDINATING CENTER Governing Committee (Planning and Oversight) Executive Director (Day-to-day operations) These NESTcc objectives build on NEST planning board report* developed by the Duke-Margolis Center for Health Policy Coordinating Center Staff (Implementation and maintenance of NEST shared resources) Expert Advisory Working Groups * Duke-Margolis Center. The National Evaluation System for health Technology (NEST): Priorities for Effective Early Implementation. 2016 10

11 A National System Paradigm Shift Establishment of the NESTcc is intended to facilitate responsible sharing and efficient analysis of real-world evidence to inform and empower patients, accelerate medical device innovation, and improve health care outcomes Passive Surveillance Challenging to find right pre/post market balance without confidence in postmarket data Active Surveillance to better protect patients Leverage RWE to support regulatory decisions throughout TPLC Current National System Parallel track to clinical practice Inefficient oneoff studies Embedded in Health Care System (collect data during routine clinical care) Shared system to inform the entire ecosystem (patients, clinicians, providers, payers, FDA, device firms)

12 MDIC NESTcc Approach The MDIC is currently working to establish the NESTcc Governing Board and to initiate a series of demonstration projects capable of providing direct value to participating stakeholders 1 Phase 1 Establish NESTcc Governing Board with representation from patients, federal agencies, industry, clinicians, hospitals, and health plans 2 Phase 2 Initiate focused demonstration projects centered on high-risk category devices that require tracking and EHR data from hospital systems that use modern means of data collection 3 Phase 3 Demonstration projects will establish sustainability of the NESTcc to the broader medical technology ecosystem MDIC has received letters of support from strategic patient and industry partners indicating commitment to developing demonstration projects

NESTcc Six-Month Tactical Strategy The NEST Coordinating Center (NESTcc) will be stood up through parallel activities over the first six months. Critical Pathway 1. Appoint Interim Executive Director (ED) 2. Appoint ED 3. Appoint Governing Committee (GC) 4. Select and Disseminate Demonstration Project Selection Criteria 5. Launch First Round of Projects Nov Dec Jan Feb Mar Apr GC Selected GC Selection Criteria Approved GC Candidates Solicited GC Application Closes Application Review GC Is Filled ED Appointed ED Hired Working Groups Established Landscaping Analysis Objectives of Analysis Confirmed Information Collected Information Analyzed WG Selection Criteria Identified Preliminary Findings Feed Project Selection Criteria Temporary Research Agendas Defined by MDIC Board Early Findings Shared with Stakeholders High Priority Working Groups Kicked Off i.e. Landscape/Sustainability Subsequent Working Groups Established Interim Findings Report Disseminated Demonstration Project Selection DP Selection Criteria Drafted Draft DP Selection Criteria Are Shared with Stakeholders DP Selection Criteria Edited by GC & GC Solicits Call for Projects First Wave of Projects Selected and Launched Communications and Education Platform Nest website URL active Communication partner identified Communications launch and roadshow 13 = Milestone = Event = Current Status

14 MDIC NESTcc Project Structure

15 NESTcc Governing Committee Composition The NESTcc will include a variety of stakeholder voices when building the Governing Committee AdvaMed Nominee MDUFA IV Appointments MDMA Nominee MITA Nominee Voices to Include Filled Open ACLA Nominee CDRH Representative Jeff Shuren MDIC Representative Bill Murray CMS Representative TBD Patient Representative TBD Federal Rep. Industry Patients Clinician Hospitals Health Plans

160 26 RWE Applications Across the TPLC RWE Applications Across the Total Product Life Cycle Cost- Effectiveness Effectiveness in Subpopulations

What Does This Mean for You? How can NEST benefit your organization or stakeholder constituencies? Patients Government Clinicians Early engagement to guide product development and regulatory expectations Higher quality regulatory submissions for product approval and reimbursement One-stop shop for safety and efficacy information Hospitals Payers Device Industry Higher quality products for patients Reduced health care costs due to higher quality products Reduced costs of product development and total time to decision, and better assurance to patient safety Research Organizations Mission-Focused Investors Other Professional Organizations 17 Increased access to highquality audited data and leading medical device research Improved medical devices on the market to solve pressing health needs Better achieve mission goals of developing safe and effective medical devices www.nestcc.org