Market Strategy for Pharma, Medtech and Diagnostics Markets
Identification of attractive market segments
In the case of medical technology projects, Novumed has established a medtech atlas with more than 1,000 market segments. This tool and our industry insight enable us to efficiently identify the most attractive market segments according to the clients' capabilities and requirements. Furthermore, when identifying attractive pharma indications and API segments, Novumed employs a structured filtering process and is capable of identifying ideal growth areas for our clients.
Ideal applications for existing technologies/products
Novumed has supported many Venture Capital, Private Equity and strategic investors to determine the fair value of innovative products, product portfolios or entire companies. Many clients prefer to work with Novumed due to our deep technological understanding of life science markets and technical capabilities.
Analysis of market attractiveness
A range of criteria define the attractiveness of one market compared to another market. Novumed helps to prioritize potential markets and creates transparency if an investment in a new market looks attractive or not.
What are the reasons that other competitors have larger market shares and higher growth rates even if they have inferior technologies and products or service deficiencies? Novumed has conducted many competitor analyses on a global scale to identify the market drivers and how the major competitors are positioned. A good understanding of the competitive landscape is crucial to position the product, the sales and the marketing strategy.
Novumed is able to assist clients in identifying key decision makers, analyze the purchasing process, or the purchasing criteria of current or potential clients. This ability to analyze customer requirements is an important step to prepare the sales and marketing plan.
Novumed has frequently analyzed the attractiveness of potential investments within numerous countries and is able to prioritize the most attractive pharma, medtech and diagnostics markets across the world in a highly effective manner. Our offices on two continents give us unrestricted access to markets across the globe.
Medical Technology: A safe haven for volatile industries?
Facing ever increasing volatility, industry groups from various sectors seek stability in the medical technology market which explains the high prices paid in recent acquisitions. High margins can be achieved, especially with a leading technological position. In comparison to the pharmaceutical industry, the relatively low regulatory barriers of the medical technology industry make it a very attractive segment for expansion.
Valued at more than US$ 270 Bn, the global market for medical technology showed high annual growth rates around 8% in recent years. Medical device companies have been surprisingly resilient to the financial crisis compared to other industries. From a profitability perspective medical technology companies in general show high performance. The average net profit margin in the industry amounts to 13.7%. This is one reason why we observe other industries looking for ways to enter the medical technology market as well. Automotive suppliers, for example, experience high pressure on margins, which is why they are increasingly driven to diversify their business. Whether these companies should act as a supplier to the medical technology industry or develop their own medical devices needs to be analyzed on an individual level. However, to successfully enter the medical technology market the major trends and developments regarding e.g. proof of efficacy and cost reduction need to be part of strategic considerations.
What factors make medical technology so attractive? Which industries can benefit from expansion into this segment? In this publication NOVUMED provides a good overview of important market segments, market sizes and growth drivers. It further gives an introduction to regulatory challenges, important trends and recent M&A deals.