In an article featured on MassDevice, a group of large-cap Med-tech CEOs in a panel discussion at the recent OneMed conference in San Francisco indicated that emerging markets are too complex for smaller firms to navigate. Given the slowing growth of the U.S and European markets, emerging markets are very tempting. However, entry into these markets can be very challenging.
"Of course it's attractive, especially if you think about a place like China – their interest in technology is tremendous," Edwards Lifesciences chairman and CEO Michael Mussallem told an audience in San Francisco last week.
The CEOs on the panel acknowledged that these emerging markets are a major focus of the large Med-tech companies. The panel agreed that these are vital for future medical device growth and prosperity. However, they warned that these markets can be extremely challenging for smaller companies that might not understand what they are getting into.
Vincent Forlenza, CEO of Becton Dickinson & Co., told conference attendees, "The distribution in these markets is so fragmented. Then you have compliance issues on top of that. You're taking a lot of risk that you're not intending to take when you go into these marketplaces.”
If you're a small-to-mid-size med-tech company, do you agree with the CEOs assessment? Share your thoughts with us.