Survey: Medical Device Companies Positive on 2010
BY LAUREN UZDIENSKI, DECEMBER 8, 2009
Last month, regulatory consulting firm the Emergo Group conducted a survey of over 1,000 medical device professionals to gauge concerns about the economy. According to the results, respondents feel positively about the health of the industry going into 2010 and are more optimistic than this time last year. Additionally, companies also spoke of increasing sales and plans for international expansion.
About a third of respondents said their domestic sales increased over the prior three-month period (the survey was conducted in the first two weeks of November, perhaps giving a preview of upcoming fourth quarter sales.) Another third said their sales were about the same as prior periods. Just under 20% reported declining domestic sales.
International sales were also reported to have increased substantially over the past three months, with 37% of respondents saying sales increased, while 32% said international sales were about the same. In 2010, respondents identified China, Brazil and Europe as markets they planned to enter.
72% of respondents expect their company's sales to increase in 2010, and over half expect to have more employees by this time next year. For the industry overall, over two thirds say they are "very positive" or "somewhat positive" on the health of the medical device space, improved from when the survey was conducted in 2008.
The survey also featured a short-answer question where respondents could address the "biggest challenge" facing the industry. These challenges included rising costs from healthcare reform and increased regulatory requirements, pricing pressure from hospitals and competition for VC funding for pre-revenue companies, though this particular answer noted that the VC climate appeared to be opening up.
Over half of the respondents represent small companies with fewer than 50 employees worldwide. 65% of respondents are affiliated with medical device firms, with the remainder comprised of IVD companies, distributors, labs, professional service and consulting firms and the government. Of these respondents, just under half are regulatory and quality professionals.
