Medtech Companies: Prepare for an Innovation Makeover

A report from PricewaterhouseCoopers’ (PwC) Health Research Institute concludes that Medtech companies must change the way they innovate. In a new economy that rewards better care, innovation is the key if they want to keep adding value to its customer.

The report indicates new alternatives for medtech companies to innovate and become more competitive, outside traditional research and development. The report also shows a survey made with medtech executives, with questions about their innovation activities. PwC analyst suggest a innovation makeover for medtech companies, because customers (either hospitals, accountable care organizations or individual customers) now demand more in financial, convenience and health terms.

“Medtech companies must focus more on service and business model innovations that meet new industry demands rather than on incremental product improvements.”

Besides, the report suggests three ways for medtech companies to innovate: operate as a “lean startup”, new innovation metrics and get closer to the patient.

References: http://www.mpo-mag.com/contents/view_breaking-news/2013-10-24/report-medtech-firms-must-change-approach-to-innovation/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%253A+MPOBreakingNews+%2528Medical+Product+Outsourcing+Breaking+News%2529

Google will start a new company focused on healthcare and biotechnology

Calico will be a new company focused on “health and wellbeing, in particular the challenge of aging and associated diseases”, says the company CEO and co-founder Larry Page in a Google+ post. He goes on in a press statement arguing that, even though the healthcare sector is a lot different from what Google does today, he believes that his company can “improve millions of lives”.

Google hasn’t released any specific plans or projects yet, but to keep the shareholders from worrying, Page says that these investments are very small in comparison to Google’s core business. This is Google’s second effort in the healthcare and biotechnology industry. Google Health was an attempt to store patient medical records online and it was abandoned because of privacy concerns. Besides, app developers in Google were also focused on others projects like Google Glass.

References: http://www.mddionline.com/article/google-calico-wants-you-live-forever

Healthcare Industry Continues to Impress

Startups of the healthcare sector in USA attracted $1.81 billion from venture capitalists in the second quarter of 2013. Medical device startups represented 38% of the deals and 35% of the dollars invested. This according to the Q2 Venture Capital Activity Report issued by CB Insights, a venture capital database.

Although money invested by venture capitalists into startups declined 14% when compared to the same period last year, the number of deals remained the same. Total investments represented 24% increase over the first quarter when the money invested reached $1.47 billion.

California was the investments main destination (43% of the $1.81 billion invested in the sector and 41% of the deals), followed by Massachusetts (20% of the money invested in the sector and 15% of the number of deals).

The healthcare IPO (Initial Public Offer) market also impressed: 11 of the 22 IPOs in the second quarter of 2013 were of healthcare companies.

References:http://www.mddionline.com/article/q2-venture-capital-investments-early-stage-healthcare-companies-reach-five-quarter-high

Medtech Global Market 2011-2018

As the world lives a crisis season, economic and financial advice has become one of the most important analysis. Result Healthcare intends to guide healthcare companies providing these kind of advice and one of these attempts is the “What’s hot and key trends in Medtech in 2013[1]”.

The report indicates a growth in the medtech global market at 4.4% until 2018. It also predicts that the pharmaceutical sector will grow at only 2.5% and the in vitro diagnostics will be largest medtech segment, with some important sub-segment areas as robotic-assisted surgery and mobile health.

Some of the main conclusions of this report can be seen in the tables below:

So, one can say that there are reasons for medtech companies to be optimistic about the future.

References: http://medicaldesign.com/business/medtech-be-440b-market-2018-says-report

---

[1]  To check on the report, go to http://www.resultshealthcare.com/media/105652/medtech_2013.pdf

Opportunities for the healthcare industry in Brazil

Emerging countries have been attracting attention from investors in the last years, and in the healthcare industry Brazil is especially promising, since it has the 7th largest nominal gross domestic product in the world and one of the largest populations, that is about 200 million people. Some recent changes, such as the higher income per capita and the aging population point for an even higher demand for healthcare services and products. For many years, healthcare expenditure in the country has been growing at a double-digit percent annually. On an absolute basis, Brazil's healthcare expenditure is nearly as high as China's and a multiple of India's.

Healthcare services, medical devices and the pharmaceutical industry are the most promising in the country, and it is even more attractive for companies that can offer innovative products and services. However, even though there are big opportunities, it is important to notice that there are also many barriers for those planning to do business in Brazil. Some of these barriers are the social differences among regions, the regulatory system, and the available sources for financing. The opportunities seem to overcome the barriers but it may be better to count on local specialists who know the country and its particularities in depth.