From 2005 to 2010, the implantable device segment boasted the greatest operating profit. However, the trend reversed for the first time from 2010 to 2011. In addition, this segment saw the slowest growth in the operating performance index from 2005 to 2011.
"This advantage is declining, however, likely due to the maturation of the cardiology and orthopedic implant markets (both of which have been characterized by low growth and reimbursement challenges) and changes in purchasing dynamics and buyer behavior," the analysts wrote.
Other challenges include SG&A expenses and inventory turns. Analysts offered four strategies to improve operating performance at medical device companies:
• Broaden innovation.
• Move up the productivity curve.
• Transform the go-to market model.
• Revitalize growth strategies.