Brent Barnes: Driving LBT Innovations from Concept to Commercial Success

Brent Barnes stands out as a transformative leader who has adeptly guided LBT Innovations from the depths of research and development into the thriving realm of commercial success. Joining the ASX-listed company in 2016 as CEO and Managing Director, Barnes brought with him a wealth of experience from his tenure at Cochlear Limited, a global leader in implantable hearing devices. Through his focus on building robust internal capabilities, securing crucial regulatory approvals, and forging strategic commercial partnerships, Barnes has not only propelled LBT Innovations forward but has also set a new benchmark for innovation and growth in the medtech industry.

Background

Brent Barnes joined LBT Innovations as CEO and Managing Director in 2016, taking over from the company’s founder. LBT Innovations is an ASX-listed medical technology company that develops AI-based imaging solutions for automating microbiology testing in pathology labs.

Prior to joining LBT, Barnes had spent 11 years in senior executive roles at Cochlear Limited, the global leader in implantable hearing devices. His experience included overseeing operations and growth in Asia Pacific markets.

The Challenge

When Barnes joined LBT in 2016, the company had spent over a decade and significant resources developing its core APAS (Automated Plate Assessment System) technology. However, it was still primarily in R&D mode and had not yet successfully commercialised its innovations. The key challenges Barnes faced were:

1. Transitioning the company from R&D to commercialisation
2. Building internal capabilities to accelerate product development
3. Obtaining regulatory approvals to enter key markets
4. Establishing sales and distribution channels
5. Raising capital to fund growth

Barnes’ Approach

1. Building Internal Capabilities

One of Barnes’ first priorities was to build LBT’s internal scientific, AI and engineering capabilities. He recognised that to maximise the potential of LBT’s machine vision IP, the company needed to bring more of the development process in-house rather than relying heavily on external partners.

Barnes expanded LBT’s team in Adelaide to about 30 people, with a focus on AI, software engineering and microbiology expertise. This allowed LBT to accelerate development of new “analysis modules” – the AI algorithms that interpret different types of microbiology culture plates.

2. Product Development Strategy

Barnes implemented a modular product development approach, with the APAS instrument as the core hardware platform and different analysis modules as “apps” that could be developed and added over time. This allowed LBT to start with key applications like urine cultures, while building a pipeline of future modules.

3. Regulatory Strategy

Barnes prioritised obtaining FDA clearance for APAS with urine analysis, recognising this was critical for entering the large US market. LBT completed a 10,000 patient clinical trial and received FDA clearance in 2019, establishing the regulatory predicate for future APAS applications.

4. Commercial Partnerships

To overcome LBT’s limited sales and distribution capabilities, Barnes pursued a hybrid commercial strategy:

• Direct sales team in key markets like Europe and US
• Distribution agreement with Beckman Coulter, a major player in lab automation, to leverage their brand and sales channels
• Joint venture (Clever Culture Systems) to manufacture and commercialise APAS

5. Capital Strategy

Barnes has led several capital raises to fund LBT’s growth, including an $8 million placement in 2020. He has focused on bringing in institutional investors to provide ongoing support.

Results

Under Barnes’ leadership, LBT has made significant progress in commercialising its technology:

• Obtained FDA clearance and CE Mark for APAS Independence with urine analysis
• Launched APAS in Europe and made initial sales
• Secured Beckman Coulter as a major distribution partner
• Expanded analysis modules to include MRSA and other applications
• Raised over $12 million in new capital
• Transitioned from pure R&D to having commercial revenues

While still in early commercialisation, LBT has positioned itself to scale up sales and capitalise on the growing demand for microbiology lab automation.

Key Entrepreneurial Traits

1. Strategic Vision – Barnes recognised the need to transition LBT from R&D to commercialisation and implemented a clear strategy to achieve this.
2. Team Building – He prioritised building internal capabilities and expertise to accelerate product development.
3. Commercial Acumen – Barnes leveraged his experience from Cochlear to pursue partnerships and a hybrid sales model suitable for a small company entering a market dominated by large players.
4. Capital Management – He has successfully raised capital to fund growth while maintaining investor support through the long product development and regulatory approval processes.
5. Global Perspective – Barnes brought his international experience to position LBT’s technology for global markets from the start.
6. Resilience – He has led LBT through the challenges of transitioning from R&D to commercial stage, navigating regulatory hurdles and the impacts of COVID-19.

Brent Barnes exemplifies the challenges faced by many medtech entrepreneurs – taking promising technology through development, regulatory approval and early commercialisation. His leadership has positioned LBT Innovations to potentially disrupt the microbiology testing market, though significant commercial execution still lies ahead. Barnes’ ability to build internal capabilities, navigate regulatory pathways, and establish commercial partnerships demonstrates key traits needed to lead an early-stage medtech company to commercial success.