That is the burning question asked at last week’s OneMedForum in San Francisco. Facing a tight funding climate, price pressure and the new medical device tax, the medical device is facing a very tough business environment. As Stephen Ubl, AdvaMed president and CEO stated, “It has probably never been harder to bring a device from bench to bedside.”
The panel included David Dvorak, Zimmer CEO and AdvMed’s chairman, Virginia Rybski, president and CEO of Regenesis and Peer Schatz, president and CEO of Qiagen. Some of the key points raised during AdvaMeds CEO’s Unplugged panel discussion were as follows:
• To succeed, life science companies should rethink innovation
• Medical device companies have largely focused on incremental product improvement
• Medtech companies should “invest” in bigger “leapfrog-type improvements
• The medical tax has a significant cost to companies that will impact innovation budgets
• Larger companies can absorb the tax easier
• The business environment is forcing companies to become more efficient
The consistent theme in the discussion was for medical device companies to focus on innovation. Innovation will help drive device improvements and its incumbent that companies figure out a way to fund innovation.
Peer Schatz seemed to be the most upbeat of the panelist, stressing that Qiagen is prioritizing the cost- effectiveness of its products and is working hard to demonstrate savings to payers. Dvorak stressed the need to focus on where your team can create value.
Check out the mddionline article and let us know your thoughts on the state of the industry. Are you an optimist or do you feel 2013 will be a tough year for the medical device industry?
Photo Credit: @Doug88888