Devices & Diagnostics

For success in medical technologies, understanding the market is crucial

Many medical technologies never realize their full potential because the factors that limit broad adoption are not fully understood and addressed. This is why many technologies realize no more than 15-20% of their true potential, despite massive investments and nearly heroic efforts of the sales, marketing and leadership teams.

This post is sponsored by Dymedex Consulting.

Many leaders of medical technology companies believe that once they’ve cleared regulatory hurdles for their products, their toughest days are behind them. However, at Dymedex Consulting, they know that the opposite may be true.

One of the biggest issues today in medical technology is not regulatory, or reimbursement, or the burden of clinical evidence; it is the lack of a sufficiently clear understanding of the market and market dynamics.

“At Dymedex, we know that understanding the true annual revenue potential for a medical technology is critically important early in the development and investment cycle,” said Joseph Galatowitsch, President & Managing Partner at Dymedex Consulting. “It is also necessary in order to assess the size of different indications and segments, especially those first ‘perfect patients’ which yield important insights into the optimal regulatory, reimbursement and clinical strategy. Annual revenue potential informs go-to-market plans, positioning, and, most importantly, the revenue forecast in the early stages of post-launch growth,” he said.

This assessment of the market is important not just for new medical technology but also for mature technologies. Dymedex Consulting explores the critical strategic questions of how much more revenue potential is still out there, where it is, and what is the cost of realizing it.

“We have a combined experience of over 40 years in building businesses and developing and implementing successful market growth strategies, with over 30 years focused on growth and market development in the medical technologies industry,” said Ross Meisner, Managing Partner at Dymedex Consulting, which will be at booth number 122 at the LifeScience Alley Conference and Expo on Dec. 8 at the Minneapolis Convention Center.

Many medical technologies never realize their full potential because the factors that limit broad adoption are not fully understood and addressed. This is why many medical technologies realize no more than 15-20% of their true potential, despite massive investments and nearly heroic efforts of the sales, marketing and leadership teams.

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The $150 billion medical technology industry spends upwards of 30% on R & D, sales and marketing – about $50 billion annually. Yet after 30 years, there are only about a dozen actual billion-dollar medical technologies. The issue is not the lack of a billion dollar market potential, but in understanding and scaling to access the realizable revenue efficiently and profitably.

Understanding the dynamics of behavior change, patient population dynamics (incidence and prevalence) and indication characteristics — and how they intertwine to inform a true picture of the market — is essential for any leader tasked to bring a new medical technology to market and deliver on promised sales and profits — to demonstrate that the vision and the valuation is real.

Only 12% of med-tech ventures return significant returns to investors, and over 50% fail despite seasoned leadership and sufficient funding, according to the National Venture Capital Association’s Medical Industry Group. Beating these statistics requires a true understanding of the medical technology market. Companies of all sizes rely on Dymedex Consulting‘s expertise to help them fully understand their markets and plot a successful revenue growth path.

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