Med tech consolidation brings a need for focus. Here are 2 ways to get it

The medical technology industry has grown quickly and has been concentrated more on top-line, rather than bottom line, growth.

With smaller startup companies launching innovation with the sole purpose of being acquired and larger companies eager to take the place of revenue from sun setting products there was a long, frantic period of acquisitions. Now that the industry is maturing you can expect to see even more consolidation and M&A activity.

All of this has led to medical technology companies engaged in a whole host of disparate market areas. Specifically, Accenture research showed that medical technology companies may be organized around 20 or more disconnected therapy areas, based on customer and end use of products. The outcome is a significant reduction in focus.

It is time for these companies to make an adjustment. Our research indicates that a meticulous focus on a limited amount of lucrative targeted portfolio areas will help medical technology companies achieve differentiation in an evolving market.

To achieve high performance these companies will need to develop a focus on:

• Portfolios of products focused on a limited number of areas where differentiation and market dominance are achievable and divest the rest.
• Emerging markets that directly align with the company’s focused portfolio and where local differentiation can be achieved.

How do medical technology companies achieve focus on these topics? I’ll delve into that further in my next blog posts.

[Photo from photobucket user turhamkey]