Key to Medical Technology Boom

Continued years of strong and steady growth, the medical technology industry is facing a wave of pressure that is forcing companies in the industry to re-examine the fundamentals of how they compete. The traditional medical technology model that is purely focused on product innovation will not be a the only play in the future. Instead, high performance in the medical technology industry will stem from the ability to develop cost-effective solutions driven by the change in buyers that deliver demonstrable improvements in health outcomes.
Example; Spinofix, Inc is a Irvine, CA based spine technology, is working on a low cost option in the posterior spine fixation technology, it has a unique cross connector system that replaces the spinous process that is dissected out during the spine laminectomy procedure to decompress the spinal cord and the nerves. The technology is fresh, low cost and can impact health outcomes. The company is poised to play a big role in the US and OUS (Outside US) spine market.

Undoubtedly, the changes medical technology companies make will be the key contributor to the med tech boom worldwide and the booming M&A market;
Medical technology companies however, will need to transform their business models to meet the changing demands of health care systems globally. They must carefully choose where to focus their energies both in terms of product and markets. Medical technology companies then must align the right capabilities, innovation models and partnerships that will unlock future growth in these market areas. As a result there is an increase in M&A activity in the medical device sector. Companies are more cash positive than ever, so buying capacity has increased at a decent valuations. US acquirers have to compete with international pharma companies for acquisition of domestic companies.