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Medtech 2013: Device Companies Go Where The Growth Is

To stave off the sluggish growth in established markets, multinational medtechs not only are finding new business in countries with booming health care industries but they’re also forging new ways to serve customers. Device companies now are pushing into services, such as disease management, and angling to compete more aggressively on pricing.

Medtronic PLC’s reporting of disappointing results from its SYMPLICITY renal denervation trials cast a bit of a pall over discussions at the JP Morgan Health Care Conference in San Francisco earlier this month. But by the end of the week, Medtronic’s stock held steady, building off the company’s broader pursuit of health care. The resiliency of Medtronic and the entire medtech sector reflects the fact that 2013 was a good year. Medtech began to reap the benefits of new product introductions, acquisitions, and a better working relationship with the Food and Drug Administration, which has become more collaborative with industry, as discussed below, while providing clarity on some previously murky areas such as guidance around mobile health technologies. (See Also see "FDA’s Mobile Health Guidance Removes Risk For Investors" - Medtech Insight, 22 October, 2013..)

The strength of the sector comes from the growing acceptance that change is coming and, if it’s handled properly, it...

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