2014: A Good Year for the Medtech Sector

JPMorgan Chase Analyst Michael Weinstein believes that 2014 will be good to the medtech sector. This week, the JPMorgan analyst published a research where he says to expect the medtech sector to grow 4.2% this year, up 0.8% from 2013.

“We see growth broadly accelerating in 2014-2015 as an industry that bottomed in 2011-2012 sees the benefits of new products, new markets, and small to mid- sized M&A. This is particularly true in cardiovascular devices, where we see growth accelerating at all three large cap names and ample room for innovation in small-cap, emerging growth companies – both public and private.”

Michael Weinstein

References: http://www.mddionline.com/article/jpmorgan-chase-analyst-2014-will-be-strong-year-medtech

Apple gets a Patent for a Seamlessly Embedded Heart Rate Monitor

Apple was awarded a patent for a seamlessly embedded heart rate monitor within in an electronic device (an iPhone, maybe?). The patent was granted on December 24, although the the application was made in January 2009. The patent describes an electronic device with an embedded sensor to detect cardiac activity and cardiac electrical signals.

However, Apple is not interested in becoming a FDA-regulated entity, so the company’s purpose is to use the heart rate as a way to authenticate a user’s identity or to determine the user’s mood from the cardiac signals and provide data related to the user’s mood. Anyway, it is not inconceivable that there could be medical applications of this heart rate monitor by third parties, already there are companies using the iPhone to build cardiac monitors.

References: http://www.mddionline.com/article/will-your-future-iphone-come-embedded-heart-rate-monitor

Second World Health Organisation’s Global Forum on Medical Devices

The Second World Health Organisation’s Global Forum on Medical Devices took place in Geneva on November 22-24th and gathered together the academia, international organisations, industry and NGOs. While one of the WHO’s strategic objectives is “to ensure improved access, quality and use of medical devices”, during this event the organisation emphasized how important it is to align medical device innovation with the public health need. According to the WHO, there is a mismatch between these two spheres.

      After hearing the stakeholders’ opinion, five insights were listed to help the industry work towards resolving the mismatch: 4 ‘A’s define the agenda to improve access to appropriate medical devices (Availability, Accessibility, Appropriateness, and Affordability); Diagnostics industry contributes to low resource settings beyond Corporate Social Responsibility activities; Bring research and manufacturing to low resource settings; Young entrepreneurs have a good grasp of localisation; Mobile is the way to go.

       To know more about the event, go to  www.who.int/medical_devices/2nd_gfmd/en/ 

References: http://www.medtecheurope.org/blogposts/195/40/blog/2013/12/02/5-WHO-Insights-into-conquering-the-medtech-mismatch

“3D: Printing the Future”

           3D Printing, or more professionally called Additive Manufacturing, is a process of making three dimensional solid object from a digital model. It can print in plastic, metal, nylon and so many other materials. It can make manufacturing prototype, end user products and even human organs by using a person’s own cells. This is possible because of its technology: it creates a three dimensional object by building it layer by layer successively.

        Besides the industry sector and academic researches, 3D Printing is being used by physicians and surgeons. The most recent event, that was all over the international media, is a case that took place in the United Kingdom. Surgeons are using 3D Printing to rebuild a patient’s face which was crushed in a motorbike accident. However, the surgery hasn’t been booked yet. The theme became an exhibition at the Science Museum in London and it is called “3D: Printing the Future”.

References: http://www.3dprinter.net/reference/what-is-3d-printing

        http://www.bbc.co.uk/news/uk-wales-south-west-wales-24926598

Brazilian Healthcare Industry: first semester of 2013

In the first semester of 2013, the Brazilian medical device sector increased 6,5% (compared to the same period of 2012). This is according to Abimed (Brazilian Association of High Technology Equipment, Products and Medical Supplies). This association represents 150 healthcare companies which are responsible for almost 60% of the Brazilian medical device sector.

According to the report, the sales were also increased by 8,6% and the sector was responsible for the creation of 3500 new jobs, both industrial and commercial sector. These numbers are way above national economy average.

The healthcare sector represents 0,6% of Brazil’s GDP, gathers 13 thousand companies responsible for 120 thousand jobs and its revenue was about US$ 9 billion in 2012.

References: http://www.abimed.org.br/notPadrao.aspx?idNoticia=110

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

Emerging Markets: Brazil and the Medical Device Industry

Since the 2008 crisis that took place mainly in the United States and Europe, it’s been said a lot about the opportunities in emerging countries. But one shall be careful when analyzing these markets and try to evaluate its potential as objectively as possible.

        When it comes about Brazil and the medical device industry, some challenges one may face when trying to approach this market. Some of them are the bureaucracy, strong regulatory system added to long timelines and delays, high taxes and a structure that varies according to the product which makes hard to know in advance how much the price will be for the final customer.

        However, when you overcome the language and the cultural barriers, it is all worthwhile because Brazil is a huge market, with more than 190 million people, a large public healthcare system which represents 4.1% of its GDP, a US$4 billion in imports and US$700 million in exports of medical devices.

References: http://www.emdt.co.uk/article/medical-devices-brazil-oportunity?cid=nl.emdt03