Much like pharmaceutical companies, medical technology companies face profit pools shifting away from the historically-innovative players to lower-margin sectors. While a few sectors of stability remain, the majority of the medical technology industry’s tried-and-tested formula for success is fundamentally changing. Three trends, in particular, are transforming the way the sector generates value in the largest historical profit pools:
With disruptive changes altering the basis of competition, medtech companies may seek new opportunities to redefine business models, enter new markets and deploy their scale advantages in new ways. To thrive in this emerging environment, Bain’s teams of experts help medtech companies across the globe address a new set of priorities, including:
Considering how to win in rapid-growth emerging markets. Emerging healthcare markets are complex, diverse and evolving, but companies operating in these regions can enjoy rapid growth rates. Winning requires carefully assessing where to play, creating the right product portfolios and distribution models, and, in many cases, finding the right deal partners. Rationalizing manufacturing and costs. Companies must maintain a strategic focus on costs in order to shed unnecessary expenses and reinforce areas of strength. A radical redesign of all processes with a zero-based budgeting approach can help change preconceived notions of how things have been done before. We share our clients' ambitions. We work to understand their reality and deliver true results focusing on strategic decisions and practical actions. And we align our incentives with our clients' objectives, so they know we're in it together.