Globalization in the Medical Device Sector
FOR IMMEDIATE RELEASE
“US medical device manufacturers have been able to shorten time to market by re-locating clinical research to non-US markets like Europe and Australia, and now to emerging markets, such as South America and Asia,” says Thomas M. Loarie, Executive Chairman, Mercator - MedSystems. The globalization of the medical device industry has created a great deal of competition, making it difficult for organizations to keep up, he adds.
A speaker at the upcoming marcus evans Medical Device Manufacturing Summit Spring 2012 and Medical Device R&D Summit Spring 2012, Loarie discusses why companies are re-locating clinical research and manufacturing.
What does it take to prosper in today’s competitive marketplace?
The medical device manufacturing and research and development (R&D) sectors are extremely complex. Young companies are facing financial challenges, as there has been a reduction in capital available for early stage companies.
In addition, there are product development issues with the FDA. While many medical device executives speak of the need for predictability and transparency, capital and time to market are their key concerns.
US manufacturers have been able to shorten time to market by re-locating clinical research to Europe and Australia and now are shifting to emerging markets, such as South America and Asia. The globalization that has come from this has created immense competition. The Chinese government has stated that it wants to be the world leader in medical technology by 2020, and is providing incentives and has pricing protection polices that are making it difficult for companies outside of China to price competitively. We will begin to see innovative and affordable products coming out of Asia that will be a major threat to US companies.
Why are companies choosing to manufacture devices offshore?
Companies with labor intensive processes are always looking for production workers that are paid at lower rates, in countries such as Mexico and Costa Rica. Ireland, however, is bidding for US high-skilled manufacturing and is providing tax incentives for automation processes that require engineering support. It is becoming more and more attractive to manufacture offshore, as the FDA is imposing heavy taxes on medical products.
Are medical devices becoming more portable?
The Healthcare Reform Act is placing a strong focus on Accountable Care Organizations, forcing doctors, clinics and physicians to work together, as a continuum in patient care, as they will share the financial risks and rewards of each patient. Patients are moving out of assisted care and back into the home setting, which will lead to a need for smaller and more efficient devices.
Looking forward, pharmacies and drug stores will become major access points in healthcare with regards to blood tests and shots. Organizations will start making wireless and small devices for drug stores to use, putting the viability of large laboratories in jeopardy.
What is your outlook on the future? What should medical device executives prepare for?
Medical device manufacturers must pay more attention to the Healthcare Reform Act, as there are major plans underway for re-structuring the system. A single healthcare bill can make or break an organization.
Contact: Stacey Melvin, Journalist, marcus evans, Summits Division
Tel: + 357 22 849 400
For more information please send an email to email@example.com or visit the event websites below:
Medical Device Manufacturing Summit Spring 2012
Medical Device R&D Summit Spring 2012
marcus evans group - manufacturing sector portal
Please note that the Summit is a closed business event and the number of participants strictly limited.
About marcus evans Summits
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