I had the honor of being interviewed by Wendy Pease of Rapport International.
Wendy is a great interviewer! She pulled our Medi-Vantage strategy out in the first two minutes; every project is designed to decrease risk, disrupt existing markets, and drive medtech market share while improving patient outcomes and reducing cost. For clients from Japan, Australia, the EU, and the United States, Medi-Vantage has developed a comprehensive approach to services encompassing everything from developing engineering marketing specifications to reimbursement, pricing strategy, go-to-market planning and conducting clinical due diligence for acquisitions. Wendy got our roadmap for bringing medical devices to global markets: careful research and strategic pricing built upon a deep understanding of local healthcare systems.
The Complexities of Global Medical Device Pricing
With increased transparency in the digital age, the days of setting different prices regionally are over. Transparency has forced companies to develop more sophisticated approaches to market entry in different regions. Some strategies include providing complimentary capital equipment with the purchase of disposables or the implementation of subscription models. These approaches must be carefully considered, however, as some markets are known to resist certain pricing models. The key is finding a balance across different healthcare systems while maintaining profitability and market access.
Budgetary Impact Models help companies determine pricing and demonstrate value. A recent Medi-Vantage project involving a device to help OB-GYNs make more informed decisions about C-sections. The model factored in:
Current C-section rates (36% in the US versus 24% globally)
Hospital costs associated with C-sections
Potential complications and ICU stays
Impact on mothers and babies
NICU costs
Associated litigation risks
Long-term implications like cerebral palsy
A comprehensive analysis quantified immediate and long-term cost savings, making it easier for healthcare providers to justify the investment. Such models are particularly valuable when introducing disruptive technologies that require changes to established medical practices. Medi-Vantage quantified all of those and put them into the Budgetary Impact Model because, oftentimes, nobody really sees an alternative to C-section. Hospital administrators don’t sit down and figure out, what if we didn’t have to do this C-section? Then there are the costs to the mother, of complications, death (rare), extreme impairment, or long hospitalization.
Clinical Due Diligence in Global M&A
Medi-Vantage conducts clinical due diligence for medical technology companies considering acquisition. It’s not unusual for a surface-level appeal to fall short of reality, describing a rare instance in which she resisted an acquisition. A new technology promised to reduce a procedure requiring two in-hospital procedures to one hospital procedure plus one office visit, a clear surface win for efficiency and cost reduction. During the due diligence process, however, the Medi-Vantage team uncovered significant resistance from both physicians and hospital administrators. The physicians were concerned about losing control of the second procedure to another specialist; hospital administrators worried about lost revenue. The feedback proved invaluable to their client’s decision-making process, highlighting the importance of understanding local healthcare dynamics and stakeholder interests.
Advice for Global Market Entry
Medical device companies seeking global expansion face a complex web of challenges that extend far beyond basic market research. Standing out in a competitive market requires working with consultants who have deep expertise in specific medical specialties, and a network of partners who understand both the clinical and business aspects of the device industry. This targeted approach helps to prioritize the steps toward market acceptance based on unique workflows and decision-making processes.
For companies planning international expansion, Medi-Vantage recommends a methodical approach:
Find consultants with relevant medical specialty expertise
Ensure all research and communication is handled by qualified professionals with appropriate language and clinical knowledge
Develop market entry strategies that account for local healthcare systems and cultural nuances
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OUR LAST 4 PROJECTS:
Budgetary impact model development for a start up in orthopedics
M & A due diligence for a mid-market tuck in
Medtech price sensitivity analysis