EMDT_European Medical Device Technology

European Medical Device Technology, Spring 2014

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emdt.co.uk European Medical Device Technology Spring 2014 | 39 Our range of products contains nearly all types of springs (compression, constant force and torsion springs), small stamping and bending parts and assembly components i.e. for injectible and respiratory applications in the ┬┐HOG RI GUXJ GHOLYHU\$OVR FOHDQLQJ DQG SDFNLQJ XQGHU whiteroom conditions (DIN ISO 7) is applicable in the SCHERDELGroup. Visit us at the MEDTEC Europe in Hall 7 Stand 7D70. www.scherdel.com Visit us at MEDTEC Europe Stand 5F16 when it decides to pursue such a strategy. Evolving from a prod- uct manufacturer to a service provider can deeply impact such areas as supply and cost management, controlling, staffing and R&D. "Many companies are taking the steps needed to create an 'owning the disease' business model," Williams of PwC explains. "However, it is not a turn-key approach. Companies must use an iterative approach that allows them to experiment with components of an integrated solution, refining and inte- grating each part, leading to commercialization of the parts and eventually to an integrated solution." According to PwC, identifying the right market segment is crucial for medtech firms. Companies must first look at their portfolio and clearly understand in which area they have com- petitive advantages that allow targeting a certain disease state. Before they consider owning a disease, companies need to first think about which disease they can afford. Given the vast financial and organizational effort needed, it might be wise to concentrate on a submarket or niche. Then, companies must assess which products and services already exist within the company, which can be developed inter- nally, and which can be obtained externally either by acquisi- tion, partnership or codevelopment. Around the time Medtronic started managing cath labs, for example, it acquired Cardiocom, a provider of disease-manage- ment and patient-monitoring solutions, for $200 million. The company also entered into a strategic alliance with NGC Medi- cal, an Italian company with experience in running outsourced cath labs. Likewise, in order to complement its portfolio in cancer diag- nostics, GE acquired the molecular diagnostics company Clari- ent for about $580 million and embarked on a partnership with pharmaceutical powerhouse Eli Lilly. And when Roche, one of the biggest providers of cancer drugs, found out that only 6% of the Chinese population had health insurance that covered cancer treatment, they worked together with Swiss Re to offer a respective insurance. Of course, not every company has the resources to amass the portfolio necessary to own a disease. And once a manufacturer owns a disease, high competitive barriers will likely arise for new entrants. According to Williams, however, this doesn't necessarily mean that pure size gives corporations an edge when trying to own a disease. "Mid-sized and small-sized companies can take advantage of their lean decision making and operating structures to move quickly to capture and develop these oppor- tunities," he notes. For medtech companies, transforming their business mod- els to own a disease requires a great deal of strategic analysis, planning effort, organizational adjustments and maybe even a good deal of trial and error. But the potential rewards could be worth the risk in order to effectively compete in healthcare's new world order. ES433904_EMDT1405_039.pgs 05.02.2014 14:05 UBM black yellow magenta cyan

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