Medical technology

An overview of the

With the continuous development of health care and bring new challenges, many companies find that growth is slowing, while the profitability of the existing products and traditional methods are falling.L.E.K.在整个医疗技术价值链（从合同制造到分销再到医疗服务的实际提供）上都具有经验，可帮助客户克服他们眼下面临的许多关键挑战，抓住自发涌现出来的独特机遇。这些挑战和机遇包括：

• A slowdown in the American health care costs:The cost of health care system pressure forced medical equipment company in the domestic business growth shows a tendency of slow, forcing them to find new revenue growth way, especially in fast-growing emerging markets.Rely on from emerging markets, however, still cannot meet the incremental part of the shareholders of growth expectations, medical technology companies are rethinking the growth of other unconventional way, for new sources of income.In the overall health care spending, less than 8% of the expenses for medical equipment, medical technology company opportunity lies in the extension of its solution, especially those who reduce other cost solution (such as reduce the cost of expensive market segments in patients with pharmacological burden, improve labor efficiency).

• People's emphasis on value brought opportunities and challenges to the medical technology company:Relative to the quality of the product, clinical effect and the surrounding specifications, product use, delivery and after-sale support services, health care providers have to/and the cost of the product affordable to make concessions.

• Each stakeholder in the medical technology value chain by blurring the traditional boundaries between:Medical technology companies to redefine its business boundary to seize the opportunity.Such as there are many big medical technology companies in expanding the scope of the services, and even to provide medical services (e.g., medtronic acquisition Diabeter);Distributors expand its portfolio of products, sales of own brand products (such as cardinal health group);On the contrary, some manufacturers longitudinal into distribution business (e.g., Bard, acquisition of the sex that dominate).GPO (centralized purchasing organization) are also in the development of outside contractors to expand its scope of services, and medical equipment contract manufacturer is involved in the upstream industry, such as product design and prototype design.
• Medical technology supplier integration:Integration between medical care providers and pressure to provide more broad product portfolio, for smaller players in increasing concentration of competition environment has brought challenges and opportunities.

• The focus of services and solutions to improve:Compared with the other types of suppliers to the medical system, medical technology company is especially have advantage in differentiation, can be positioned itself as a "solution provider", solve key customers unmet needs, and increase customer stickiness.Some enterprises in the competition be the first choice of the leading medical system partners in the lose (they are more and more want to co-operate with partners with less deeper cooperation), but given the continuous integration, to invest in advance in order to win long-term interests is worth it.

• Medical technology business model evolutionConsidering the change and the direct regulation behavior in markets such as China, medical technology companies are reassessing method into the market, to provide customers with better service, also entered the market was forced to re-examine the way of cooperation, and the target market segment approach, so that more effective, efficient customer service, the customer's own composition (such as regulatory influence to improve) and a wider range of demand (for example, deal with the continuous development of accountability) is also changing.

• Pricing and signing the evolution of medical technology:Considering the situation to the evolution of medical providers, medical technology company found that need to be continually updated customer segmentation, product pricing, and the means of contract.Historically, higher product profit and medical treatment of pay to submit an expense account model potential allows medical technology company to send a group of sales reps selling to individual physicians and signing without too much attention to strategy and pricing rules.However, the pharmaceutical industry a fundamental reform of payment made medical technology companies need to constantly look for ways to provide customers with tiered pricing and service, to review the existing relationships, and improve the method of signing a contract directly with large medical system.

Considering the opportunities and challenges, we believe that changes in the field of health care for those who can bring new and successful development of the company a profitable opportunities.In this environment, medical technology companies must try to get maximum benefits from existing business not only, also must use source of core competitiveness and establish a new development opportunity.

Medical technology company can pursue several different growth vector, but which one is appropriate for your company?As a strategy consulting company, L.E.K. has confirmed his experience to help medical technology companies to solve such problems, through the depth study and elaborate analysis method is used to solve complex problems, refine key insights, and ultimately deliver significant impact on the results.

Our universal service covers the development strategy of each big way, and can be customized, in order to help you get one or more of the best for your development goals and strategic choice of competitive potential.

How can we help

In L.E.K., help customers to expand business and increase shareholder value is our company's inherent responsibilities.Our custom method according to your special situation, our team has rich experience, can help us to determine the best development strategy.Our medical technology consulting business in the industry as a whole, such as supplies, medical equipment, equipment, medical and health information technology of specific programs and dosing equipment and so on all major niche products with rich experience.Our core services in these areas include:

• Customer segmentation and positioning:Considering the merger, consolidation and increasingly diversified pattern of suppliers and the growth of demand, pay medical technology companies must understand the large integration and service type to provide customers with small simple community hospital medical system: the key difference between the larger medical system may seek more long-term cooperative partnership, while the smaller hospitals may be looking for a relationship.We can help medical technology companies cope with the complex environment, based on our own hospital system database and annual L.E.K. hospital research, offer our opinions.

• Services and solutions extension:Customers not only hope to provide innovative equipment, medical equipment company and hope they see this as a more and more specific needs for a broader solution components, whether such demand belongs to the clinical or operational properties.Ideally, the solution should include products, services, and data of the three elements, but also should include the measure/tracking method (or even directly connected with payment).We have to help medical technology company to many hospital departments (such as the operating room (OR), pharmacy, laboratory) and health system (such as ASC) development services and provide solutions.We can through optimizing unmet customer needs, definition to satisfy such requirements necessary technical, service, and data, to help customers make the overall solution.In addition, the effective deployment of such a new solution for the definition and implementation of the organization structure change required, we also have rich experience.

• Business model optimization:In order to succeed in today's healthcare environment, your company's organizational structure and business model must take the customer as the center, and consistent with the demand for the development of leading medical system.We understand the demand of the medical system, and what they expect from medical technology partners.And, more importantly, we offer at each stage of development of medical equipment company advice, help them to establish a win in the market today the organization and business facilities, which usually include redefining the commercial role, adjust sales resources.

• Pricing strategy and value:Due to health care to the driven mode, medical technology pricing model has been changed.In order to optimize the market access, and utilization, the pricing strategy and the value of the enterprise plan must be the same with the product after accurate calibration.Our team to provide support for the whole process, custom-made according to each market segment, help enterprises to effectively convey the core value of the product, to predict and respond to the reaction of the payer, and form a clear strategy, determine a reasonable price level and market entry strategies in order to get maximum benefits.Once the product on the market, we can help you to clarify the product of individual value and combined the value of the solution, and help enterprises to improve internal pricing strategy and related processes.

• Market support:In the past few years, a large strategic company (e.g., Medtronic, Stryker, BD, Abbott) particularly active.Although some deal focused on expanding existing capabilities (such as Zimmer Biomet), but the most recent transactions are focusing on the ability to obtain new (usually in order to "solution" of the more comprehensive migration).We are trading leader support, can provide help for enterprises and private equity clients.As leading trading support consultant, we have to help our clients achieve more than $140 billion of the life science and medical equipment.We provide support for the different stages of the merger and acquisition activity, including mergers and acquisitions and cooperation strategy, target selection, business due diligence, negotiation support and integration after the merger, etc.Our reputation in the field of commercial due diligence investigation, we can be in a very short period of time, the medical technology target company (whether on behalf of the buyer or the seller) a high level of assessment.

• Product/market assessment:Whether you are trying to predict the existing product portfolio returns, or weigh you may purchase of assets or investment of the various options on the market, we will provide you with independent and impartial, evidence-based assessment, make a winning decisions needed to bring you confidence.We adopt the method of rigorous assessment on the product, the quantitative analysis combined with qualitative research, and proprietary to mark, in order to obtain accurate predictions, priorities, and help you distinguish between assets allocation of r&d resources, make reasonable pass/not through project decisions.