Waves of patent cliffs, stringent regulation on marketing practices, and a consolidating customer base have presented many challenges to medical device companies. Competition is fiercer than ever, from both traditional and emerging sources, and technology gaps have closed. M&A has been a common response, leading to an arms race for platforms, scale, and pricing power. And while many mergers never achieve the strategic and financial objectives that originally justified the investment, it’s hard to resist the urge to simply get bigger.
Scale alone isn’t enough. To protect margins in the face of intensifying competition and consolidation, medical device manufacturers must identify innovative ways to deliver greater value through their products and beyond. The current shakeup and realignment of incentives in the broader healthcare sector opens the door to non-traditional growth opportunities, new alliances, and alternative approaches. By considering adjacencies and innovative ways to collaborate with other stakeholders – from providers to payers to other companies that sell into the industry – you’ll be poised to develop truly new offerings and insights that enhance patient care and stand out from the competition.
Numerof can help you respond to intensifying competition and consolidation. Explore our solutions for your industry.