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).
News/Reports
Market Alert: Johnson & Johnson 1st Quarter 2020 results show 4.8% Decline in Medical Device Revenues J&J reported growth in consumer products and pharmaceuticals while noting a 4.8% decline in sales in their Medical Device unit vs. the first quarter of 2019. The Company attributed the drop to delays in general surgical, orthopedic, interventional medicine, and vision procedures due to COVID-19. For more details please visit https://johnsonandjohnson.gcs-web.com/news-releases/news-release-details/johnson-johnson-reports-2020-first-quarter-results. Please contact tfreeman@asfreeman.com with questions and comments.
Dear Colleague, Below please find a link to an article I wrote for the current online version of Medical Product Outsourcing magazine. The brief piece discusses the short, medium, and long-term effects of the coronavirus pandemic on medical device supply chains. https://www.mpo-mag.com/issues/2020-04-01/view_columns/covid-19s-impact-on-the-medical-device-supply-chain I look forward to your thoughts on the subject. Please contact me at tfreeman@asfreeman.com. Stay safe and well.
“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’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.
Biomerics has merged with Northeast Laser & Electropolish to form Biomerics NLE. A.S. Freeman Advisors advised Northeast Laser on the transaction. For more information please visit https://biomerics.com/biomerics-merges-with-northeast-laser-and-elecropolish.
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
WellWorx Energy has acquired Newgate Instruments, formerly a business unit of Joining Industries LLC. A. S. Freeman Advisors advised Joining Industries on this transaction.
Tecum Capital Partners and Western Allegheny Capital Partners have invested in Oberg Industries, Inc. A. S. Freeman Advisors advised Oberg Industries on this transaction
ARCH Global Precision has acquired Universal Precision Instruments, Inc. A. S. Freeman Advisors advised Universal Precision Instruments on this transaction.