EMDT_European Medical Device Technology

European Medical Device Technology, Spring 2014

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emdt.co.uk European Medical Device Technology Spring 2014 | 37 Materials Development • Testing • Assurance SUPPORTING ORTHOPAEDIC IMPLANT MANUFACTURERS LUCIDEON The new name for Ceram and M+P Labs www.lucideon.com/mdt cies of payers, this development pushes the margins of medical technology companies downwards. Payers are becoming increas- ingly reluctant to pay for incremental prod- uct innovations; they want proof that new developments noticeably improve patient outcomes or take costs out of the system. Even in the more dynamic markets of the emerging countries, it becomes increas- ingly difficult to boost sales with complex product innovation. That's because local competition forces foreign companies to manufacture simpler and cheaper products. All of these factors mean that the days of double-digit annual growth are over for most medical technology companies. Getting into the Game In the face of such turbulent times, medical device companies are exploring alterna- tive business models that ensure continued growth despite myriad external challenges. Larger companies, in particular, are evolv- ing from manufacturers of single medical products to providers of comprehensive services and solutions across the continuum of care. One such evolving company is Fre- senius Medical Care. The company no longer produces only dialysis machines; it now offers a variety of services related to the treatment of dialysis patients, ranging from vascular care and medica- tion management for patients with kid- ney disease to the management of entire dialysis clinics. Fresenius also claims to treat comor- bidities such as renal failure and cardio- vascular diseases. Ultimately, the group cares for 270,000 patients in 3,250 dialysis clinics worldwide, according to its 2013 financial report. Other companies are also targeting various disease states. GE Healthcare, for example, aims to provide compre- hensive offerings for the management of different types of cancer, ranging from predictive diagnostics to the selection of the most fitting form of therapy for an individual. "We believe we can build a $1-billion-plus business by developing integrated diagnostic solutions for cancer and other diseases," John Dineen, CEO of GE Healthcare, said in 2010. Global medtech giant Medtronic entered into the services and solutions business last year when it announced the formation of a new business unit, Medtronic Hospital Solutions. "To date we have over 15 CathLab man- aged service partnerships live in hospitals in the UK, The Netherlands, and other Euro- pean countries. Under multiyear contracts, we manage the catheterization laboratories in these hospitals to high standards, pro- viding the latest medical technology and infrastructure, optimizing operational effi- ciency and clinical outcomes, running daily operations, and developing local cardiac ES430840_EMDT1405_037.pgs 04.29.2014 03:30 UBM black yellow magenta cyan

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