EMDT_European Medical Device Technology

European Medical Device Technology, Spring 2014

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emdt.co.uk European Medical Device Technology Spring 2014 | 11 New Approaches to Marketing and Product Development Medical technology companies have to adapt their approach to work with the new players and remain competitive. "Sales and marketing need to avoid having mere price discussions with buyers. In their commu- nication, they have to point out the clinical benefits in a way that is understandable to nonclinicians," explains Kruetten. "While scientific reasons played a bigger role with the physicians, now economic arguments like potential efficiency gains are getting more important in order to justify higher prices." In the development of new products, this issue becomes a factor earlier. "Companies must thoroughly review if they can demon- strate the benefits of a new product as early as in product development," according to Kruetten. "'New is better' is not enough. It must be an innovation that has provable clinical and/or financial benefits. The com- panies should already initiate studies dur- ing the R&D process in order to have a robust evidence base demonstrating the clinical and health economic benefits once the product goes to market." Innovative Contracting Another way to respond to the changing model is through contract design. Kruetten recommends developing contracts that go beyond the pure product business. "Nego- tiations can either be carried out on a net price level or I can set conditions on price discounts," he says. "Rather than negotiat- ing a net price, I attach the price to factors such as overall purchasing volume, length of contract duration or how different prod- uct groups are covered by the contract." Companies can also negotiate package deals. Kruetten cites the area of dialysis as an example: Hospitals need a dialysis machine, consumables, and special liquids to perform a session. "You can sell the machines and the hospi- tals buy the individual materials as needed from any supplier," he explains. "The other option is that the provider pays per treat- ment —the provider receives a fee from payers, the hospital pays a fee to the supplier per patient. On the supplier side, the whole thing becomes more a service business than a pure product business." The third possibility, according to Kruetten, would be for medical device companies to move to an operator model. "Medtronic, for example, operates catheter laboratories for hospitals in the field of cardiology. The clinic's patients are treated in the lab operated by the supplier, which receives an annual administration fee." —T.K. Schobertechnologies GmbH Industriestr. 2 · 71735 Eberdingen/Germany Tel +49 7042 790-0 · Fax +49 7042 7007 info@schobertechnologies.de S5.GB_EMDT.0414 www.projekt-x.de Development and design of machines, modules and spare parts for the production of Electronic & Technical Products Precision and Efficiency – Building Blocks for your Success! Rotary Converting Systems from Schobertechnologies guarantee easy, cost-effective and trouble-free production of high precision assembly parts, components and insulators for the communication, electronic and automobile industry. A perfect technology for high-tech applications! www.schobertechnologies.de if you are interested in Die Cutting, Punching, Cutting, Perforating, Creasing, Scoring, Embossing, Sealing, Ultrasonic Welding, Dispensing, Cut & Place, Collating, Folding, Gluing/Bonding or Laser Applications ... Please contact us! We can assist you – worldwide. Jörg Kruetten, head of the global life sciences practice at the consultancy Simon- Kucher & Partners. ES432922_EMDT1405_011.pgs 05.01.2014 01:16 UBM black yellow magenta cyan

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