“Moving to finished devices is a major shift in strategy for firms focused on contract manufacturing.” Read Tony Freeman’s latest column in MPO Magazine.
AS Freeman in the news
Tony Freeman’s latest column for MPO Magazine: J&J-Jabil Deal Truly Is Transformative for the Medtech Supply Chain On Aug. 2, 2018 Johnson & Johnson announced a reorganization of its Medical Devices division. Many medtech supply chain company managers spend time, effort, and worry to obtain their next big customer. Increasingly, their competition for these opportunities are global contract manufacturers whose roots are in the electronics industry. Johnson & Johnson’s Medical Device unit signaled an epic shift toward these multi-billion dollar international suppliers in transferring a large percentage of its manufacturing capability to Jabil Inc. last summer. The Jabil transaction is often unremarked by longtime medical device specialists, yet it should draw focus as the economics point to shifts in the profit margins of the medtech industry. Additionally, there is the possibility that these manufacturing behemoths will, over time, shift the procurement for device components from traditional North American and European suppliers to Asian firms where global contract manufacturers have the local infrastructure to ensure both low prices and good quality. Read full article here.
Tony Freeman: Evolving Players in the Medical Device Supply Chain Today’s medical device supply chain was shaped by two far-reaching trends: A realization among OEMs over the last 20 years about outsourcing’s ability to reduce manufacturing costs while producing safe, reliable products; and OEMs’ tendency to outsource to larger contract manufacturing firms when possible. Reasons included financial stability, fewer vendors to coordinate in product manufacturing, and confidence in larger firms’ abilities to invest in new facilities, equipment, and quality systems. Beginning in 2000, OEMs’ desire for outsource manufacturing partners of scale often took the form of roll-ups, with companies like Accellent/Lake Region Medical, Tecomet, Freudenberg Medical, and Medplast built through acquisitions of smaller, well-established medical device supply chain entities. Read full article on MPO Magazine
Tony Freeman was this year’s first presenter at the MPO Summit (October 11-12, 2018) in Broomfield, CO. Talking about the State of the Medtech Industry, the talk covered large-scale trends; several categories of risk, along with responses to deal with them; and rules for prospering in the current market. MPO Magazine covered the Summit in real time, with their summary of all speakers here. The presentation in full is now posted on this site. If you are interested in having this presentation for your company, or have any questions or comments, please contact Tony Freeman at tfreeman@asfreeman.com.
I’ll be presenting on “Global Trends in the Medical Device Industry and the Supply Chain” at the MPO Summit in Colorado later this week, Thursday October 11 at 9am. If you’re attending, please say hello.
I was asked to contribute an article for the 15th anniversary of MPO Magazine. In it, I reflect upon the growth of the medical device industry and supply chain since 2003. In addition to a discussion of the trends for the last 15 years, there is a section on future trends. Read the full article here. If you have comments or questions, please feel free to contact me at tfreeman@asfreeman.com.
Oberg Industries, Inc. has acquired X-L Engineering Corp. A.S. Freeman Advisors advised Oberg on this transaction. Read more
Medical Product Outsourcing (MPO) has published its annual report on the Top 30 companies in the Global Medical Device marketplace. The ranking of companies includes reporting on industry trends of the past year. The piece features Tony Freeman’s insights on the performance of Medtronic, Johnson & Johnson, Becton, Dickinson and Company, and Stryker.
After twelve years as Managing Director of Manning Advisors I am pleased to announce the formation of A.S. Freeman Advisors, LLC based in New York City. A.S. Freeman provides merger and acquisition advisory services to specialty materials, specialty chemicals, and precision manufacturing companies around the world. In addition, A.S. Freeman offers strategic consulting services to firms valuing companies and markets. This is an exciting time in the high-value manufacturing markets. Value creation, new fields, and evolving economics are topics executives must consider as they guide their companies. A.S. Freeman provides the external perspective managers often require. Please get in touch to learn more about our offerings and experience. I look forward to speaking. Best regards, Tony Anthony S. Freeman President A.S. Freeman Advisors, LLC www.asfreeman.com (917) 868-0772 direct