Change is in the Air: A Medtech Industry SWOT Analysis (QMED)
Medical device companies are being forced to rethink their business models and strategies, thanks to a changing landscape and the looming 2.3% excise tax currently slated to be levied on devices beginning in January 2013. In light of this dramatically shifting marketplace, Frost & Sullivan has evaluated some of the current strengths, weaknesses, opportunities, and threats to the medical device industry.
Because of the impending impact of this tax, a lot of companies have undergone a great deal of restructuring; we’ve seen spinoffs of late, management changes at big medical device companies, layoffs, rethinking of strategies, and even a lot of M&A activity. Medical device companies are opting to shed certain business units that are identified as slow growth with limited opportunities, for example. On the other side of the coin, manufacturers are also making aggressive moves to ensure that they’re well positioned in more-desirable market segments. As a result, there has been significant market fluctuation recently in M&A and divestitures, coupled with marginalization of more-declining and slow-growth market op...
