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TMFHelical (98.85)

Medical Technology Innovation

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January 21, 2011 – Comments (1) | RELATED TICKERS: MR , MDT

Well, another snowy day in the Northeast has cancelled school and has me home with the kids.  A good time to catch up on some reading (while the kids clean the house -- kidding).  First up is a recent report from PriceWaterhouseCoopers - Medical Technology Innovation Scorecard.

[Report is free with registration - look to the box 'download report' on the  mid right of the page]

A shorter, but very good, preview read is here

The report talks about why the US has had leadership in the area of medical technology and highlights 5 "pillars" that have led to the innovation inspiring leadership.  These are:

- Financial Incentives driven by a high amount of healthcare spending. 

- Resources including academic and research hospitals.

- Good clear regulatory system

- Patients who demand improvement, in part due to their insensitivity to costs.

- Investment community positioned to incubate innovation, particularly venture capital.

The US will continue to lead for these continued reasons, but the rest of the world is growing as they embrace this environment, and the US position diminishing as some of these factors diminish.  Venture capital has struggled with effective exits, and the ability to continue to increase health spending (and hide it from patients) diminishing. 

The takeaway is that the best investments in medical devices over the next few years may well be in those companies focused on cost and ease of use, rather than the next great feature / service add-on.  Something for the Helical port to consider.  Time to maybe look again at Mindray perhaps.

TMFHelical

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1 Comments – Post Your Own

#1) On January 21, 2011 at 2:20 PM, TMFJake (58.78) wrote:

We'll send a rescue team if your kids get too rowdy. :)

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