According to QMED, besides regulatory complexity and the challenges of handling large companies, healthcare firms' profit margins are falling leading medtech companies to rely more heavily on contract manufacturers – which, in these days, quickly turns into contract development: from early product design to the manufacture of finished products.
Since companies are looking for assistance with product development, working with contract firms often signifies cost savings in the long run. “Decisions made early in the design cycle typically end up driving a majority of a finished product’s ultimate cost”. “The earlier you can look at a design, the earlier you can optimize it for manufacturing,” says Tim Hopper, CMO at EG-GILERO.
Such partnerships, between a design and a manufacturing company, bring together the theoretical and practical, according to Betten. “The merger gives the organization the ability to go from A to Z,” Betten said Wednesday at MD&M Philadelphia.