Executive Search for Medical Device International Business Development

Capitalizing On High Growth Emerging Markets

Growth for medical device companies is beginning to flattening out. The developed industrialized markets of the United States, European Union and Japan comprise nearly 75% of total sales revenues for medical device companies. By all estimates these markets will continue to grow due to an aging global population. However this growth will be at rates that are much slower than those of emerging markets.

Growth of Demand

In contrast emerging markets are expected to grow at rates 2X to 5X that of the industrialized markets. China, India, Brazil and Russia for example have sharply increasing demand for health care as these populations see steadily rising rates of degenerative disease. By some estimates, in India alone over 60 million people will be diagnosed with congestive heart failure by the year 2015.

With improving standards of living in these locations and general enhancements in the local health care system, investment in new care facilities is on the rise. In these markets there now are delivery systems to provide and deliver care which did not fully exist just a handful of years ago. Foreign governments have also made significant investment in facilities and have provided support to improving health care in many of the emerging markets around the world.

The growing middle class society in these regions now have the wherewithal and resources to buy and own health insurance. This will contribute to the economics of supporting improved quality of care.

Greater Opportunity for Small Cap and Mid Cap Med Device Companies

For those companies that can respond and adapt to the changes and opportunities in these markets, the forecast for growth looks promising. This window of opportunity favors those who have the products, know how, sales and distribution channels that will capture market share in advance of the competition. Some larger firms with pricing structures and margin requirements may not adapt as quickly as smaller more nimble and skillfully managed middle tier device makers.

Right Formula for Emerging Markets

Companies who have enjoyed dominance and high margins in domestic markets may need to adapt to the emerging markets that are keenly sensitive to price, availability and service. R&D may need to be focused on new product introductions that are cost competitive, manufacturing may need to be local and sales/distribution channels may need to be a hybrid model of direct and 3rd party distributors. A major differentiator for U.S. based device makers could be the use of back end service agreements as a way to create continued value and cash flow in addition to generating healthy profits after the initial sale.

Why Human Resources Matter

CEOs continue to rank talent as the most important challenge to ensure business growth.

The competition for talented and capable human resources has gone global. This is especially so in the medical device space. The United States has the paradox of high unemployment yet a large and growing talent and development gap. Many device firma have the quandary of looking to fill key positions even in high unemployment environments and continue to struggle to find suitable candidates.

The number of research professionals in China for example is rapidly eclipsing the number in United States and is already twice as large as that of Japan’s. Yet the demands for skills that will power international growth are in short supply and getting more difficult to find.

Winning in Emerging Markets

Succeeding on the international stage, competing with domestic and foreign competitors and taking advantage of the explosive growth opportunities in emerging markets requires competent leadership.

Having among your ranks the expertise to set a course for success, managing all of the links in the value chain that will put you in a position to succeed in foreign markets may require you to reach beyond the boarders of your own organization.

What is clear is the window of opportunity for rapid and significant growth has been opened and now is the time to get in the position to take advantage.

Some organizations are taking action to build their bench strength now by seeking out external talent that possesses competencies necessary to for doing business and capturing market share in the emerging market space.

These competencies include top tier talent with demonstrable and measurable success in opening and growing new markets.

These skills often include:

  • Planning strategic product mix
  • Pricing products for target geographies
  • Developing distribution partners
  • Establishing foreign government relations
  • Establishing local manufacturing
  • Hiring and developing local talent
  • Country/regional P&L management

Creating a Partnership With You

Your road map to continued growth will likely be paved with key leaders who can be the architects and builders of your business in emerging markets. Further, it can be easily justified that the quickest route will be to buy vs. build the necessary talent that will be needed to compete effectively.

JP Boyle & Associates can help you in your efforts to penetrate these emerging markets and succeed by acquiring, assessing and selecting the key contributors that will be vital to prevailing in the next decade.

We work with you as an adviser to craft the pathway to bring the cornerstone individual that can make the difference and accelerate your growth and expansion.

Call us at 847-221-2744 or contact us online to discuss how we can be part of your organization and grow and expand your international medical device business.