Tony Freeman will be attending MPO Summit 2022 and Device Talks West 2022, and welcomes the opportunity to meet with colleagues. Schedule: MPO Summit in Austin, TX on Tuesday, October 18 – at Austin Marriot Downtown Device Talks West in Santa Clara on WednesdayOctober 19 – at Santa Clara Convention Center Get in touch with me at (917) 878-0772 or by email at tfreeman@asfreeman.com to set up a time to get together.
Medical Device
My latest piece for MPO Magazine discusses business strategies for the medical device supply chain in response to two trends: the rise of reliance on contract manufacturers vs OEMs, and supply chain consolidation.
Two strategies have emerged: the integrated contract manufacturer approach, and the specialist niche approach. I discuss the advantages and disadvantages of each, and opportunities for strategic expansion.
My annual report on Global Trends in Medtech for 2022 is now available.
I presented Part 1 and Part 2 for MPO at their webinar series on March 1 & 2, 2022, followed by a panel discussion on March 3. MPO will archive the webinar segments for one year (free registration may be required).
My latest, “Digital Devices, OEMs, and the Supply Chain: The End of the World as We Know It”, out today in MPO Magazine. Introduction: Even casual readers of OEM product websites and the device industry press are aware medical devices contain increasing amounts of digital technology. Putting numbers to the trend, recent Medtronic product announcements show 13 of 17 new products and 24 of 27 of planned products are digitally enabled. Of MPO’s Top 30 OEMs, 26 offer or plan to sell analytics or artificial intelligence products. Nine of the Top 30 offer or have announced robotic surgery devices. Another four are concentrating on digital products to enhance robotic systems. Driving these innovations are economics. Digitally capable, linked devices often produce superior outcomes to mechanical and electromechanical devices that have been the mainstays of OEM product lines for decades. Superior results often lead to lower cost per procedure, pleasing the governments and insurance companies worldwide that pay for healthcare. Read the entire article here, and please get in touch with any comments or questions.
In an April 21 press release Medtronic plc (NYSE:MDT) announced sharp revenue drops in comparison to 2019’s March and April results: Revenues in the United States declined 60% “over the last few weeks” with the exception of customer bulk purchases. The US represented 53% of Medtronic’s pre-COVID-19 sales. Western Europe has seen a 20 to 30% contraction vs. the same weeks last year. Western Europe represented 20% of Medtronic’s pre-COVID sales. China has seen a modest recovery. Mid-March revenues declined as much as 50% from the same period last year. Sales are up but still lag 20 to 40% below last year’s numbers. Medtronic also reports customers tightly managing inventories to conserve cash. To read the press release please visit http://newsroom.medtronic.com/news-releases/news-release-details/medtronic-provides-update-covid-19-pandemic-response-and-impact Please contact me at (917) 868-0772 or tfreeman@asfreeman.com with questions or comments. Stay well.
Solving the Supply Chain: What Happens After COVID-19? I’ll be part of a roundtable of industry experts discussing how the global pandemic will change medical device supply chains now and in the future. Joining me virtually will be Sean Fenske, Editor-in-Chief of Medical Product Outsourcing magazine, Todd McCaslin, Global Sourcing Director for Boston Scientific, and Matt Robida, VP of Corporate Development from Spectrum Plastics Group. UPDATE: In case you missed it, you can listen to a recording of this webinar here (registration required).
“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.
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