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Medical device companies will need to alter approach to M&A and product offerings in 2017

December 13, 2016 By Danielle Kirsh

2017 will be a changeable and productive year for the medical devices industry, as aging populations, the need for cost-effective treatments and consistent innovation continue to drive growth, according to research and consulting firm GlobalData.

The company’s latest white paper states that as 2017 approaches, despite the medical devices landscape favoring large companies who can leverage economies of scale, the high-profile M&A scene will settle down. The shift to strategic M&A activities at a tuck-in level will continue, as medical companies start to reconsider their approach to dealing with execution and synergy capture.

Despite innovation and drivers in the industry, the year ahead will not be without its challenges and concerns. Small and start-up companies are particularly vulnerable to the problem of increasingly diminished venture capital availability, which can cause crippling delays to new product launches. Indeed, this lack of funding can adversely affect the broader industry by limiting growth and innovation.

On top of this, it will soon no longer be enough for medical device manufacturers to simply offer the best quality implant or most clinically successful instrumentation. Instead, companies will need to re-evaluate their offerings and include a range of tools tailored towards physicians and hospital groups, such as applications and services that help physicians monitor patient outcomes, guide hospitals towards cost savings and assist in improving clinical outcomes.

GlobalData believes that 2017 will also see healthcare insurance companies tapping into new applications of the Internet of Things. With the burgeoning number of wearable devices and increased pricing pressures in healthcare, insurance premiums will be determined by a patient’s lifestyle as recorded on a smartwatch in a usage-based insurance model.

With the climbing costs of healthcare services and shortages of healthcare facilities and labor, cost-effective home care devices will be even more in demand. Fueled by technological advances and increasing financial incentives, the number, range and complexity of home care medical devices are surging, indicative again of the changing technological landscape of medical devices.

GlobalData
globaldata.com

About The Author

Danielle Kirsh

Danielle Kirsh is an award-winning journalist and senior editor for Medical Design & Outsourcing, MassDevice, and Medical Tubing + Extrusion, and the founder of Women in Medtech and lead editor for Big 100. She received her bachelor's degree in broadcast journalism and mass communication from Norfolk State University and is pursuing her master's in global strategic communications at the University of Florida. You can connect with her on Twitter and LinkedIn, or email her at dkirsh@wtwhmedia.com.

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  • Home
  • Medical Device Business
    • Mergers & Acquisitions
    • Financial
    • Regulatory
  • Applications
    • Cardiovascular
    • Devices
    • Imaging
    • Implantables
    • Medical Equipment
    • Orthopedic
    • Surgical
  • Technologies
    • Supplies and Components Index
    • Contract Manufacturing
    • Components
    • Electronics
    • Extrusions
    • Materials
    • Motion Control
    • Prototyping
    • Pumps
    • Tubing
  • MedTech Resources
    • Medtech Events in 2025
    • The 2024 Medtech Big 100
    • Medical Device Handbook
    • MedTech 100 Index
    • Subscribe to Print Magazine
    • DeviceTalks
    • Digital Editions
    • eBooks
    • Manufacturer Search
    • Podcasts
    • Print Subscription
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