Let's talk about an unpopular topic in orthopedic circles - profitability.
Many orthopedic device companies can deliver world-class products that surgeons love, can grow top line revenue, but cannot create a profitable business. In other words, they have a financial leverage problem.
This leverage problem is caused by some sort of operational drag on the business. Let's look at a four examples.
1/An inventory drag - Too much incremental inventory cost for each new customer added.
2/A selling drag - Too much incremental sales/distribution cost (or selling cost) for each new customer added.
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