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Compliance In Focus
Posted by John Lehmann on Thu, Oct 18, 2012

Are Implantable Devices On Their Way Out?

C  Users jlehmann Pictures New Staff Images 062011 Imarcfinishemail Are Implantable Devices On Their Way OutA PricewaterhouseCoopers report titled “Operating performance in the med-tech industry: Trends and imperative” was recently published with highlights the operating performance trends for the medical device industry and its various segments. Being a medical device CRO, we read with interest the report, and an article in MassDevice which also covered the report.

Interestingly enough, the report calls out the decline in operating performance of implantable devices indicating that "the implantable devices segment has been the most consistent top operating performer relative to other segments, driven by significantly higher gross margins," according to PwC. "This advantage is declining, however, likely due to the maturation of the cardiology and orthopedic implant markets (both of which have been characterized by low growth and reimbursement challenges) and changes in purchasing dynamics and buyer behavior."

To underscore the report, more than 40% of companies in the implantable device segment saw an operating decline and only 1 in 4 saw improvement. Conversely, the PwC report indicates that nearly 1/3 of IVD companies’ increased operating performance during that same time (2005-2007).

The report hopes to not only explain how various med-tech segments are doing, but also provide direction for med-tech companies as to “which levers to pull to improve their operating performance” according to their website. In brief, here are the recommendations to help improve medical device companies:

  • Broaden innovation
  • Move up the productivity curve
  • Transform the go-to market model
  • Revitalize growth strategies

While implantable devices have long been considered the top performer for many med-tech companies, this may be the start of a new “King” in the medical device market. In fact, there seems to be an upward trend concerning in vitro diagnostics (IVD) and has become the leading growth segment.

Do you think these trends can turnaround?  Or is this is start of the end for implantable devices? We want to hear from you.

Photo Credit: llamnudds

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Topics: Implantable Devices, PricewaterhouseCoopers, Med Tech, Medical Device Industry


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