The following market dynamics affect the way you and your team do business. Just as in every industry, there are trends we wish we could avoid, while others we warmly embrace. Regardless of which side of the coin you find yourself on, it is critical to set strategies to address these market trends, and plan business initiatives accordingly.
The health technology industry is projected to continue growing 4-5% per year in medical device and 6.5% in pharmaceutical.
The orphan drug market is expected to almost double during the 2016-2022 period, peaking at $209B in 2022. The research and development spend on orphan drugs demonstrates there are narrow, but mostly ignored, patient populations that make the case for a streamlined time to market.
Traditional venture investor activity in medical devices rebounded in 2017. There had been a downward investment trend in medical devices in the past few years; however, 2017 painted a different picture. Nine firms had at least four deals in 2016-2017, compared to only three firms with deals in 2015-2016. This is leading to a large pool of available capital, creating opportunity for tremendous growth in innovative medical device, pharmaceutical and health IT companies.
Recent cyber security breaches of connected medical devices have prompted the FDA to issue recommendations for mitigating these risks. Organizations will need to comply with the new FDA security regulations and stay ahead of competing businesses.
The digital health market continues to grow, driven by the need to support an aging population desiring to live independently (by 2050, 17% of the world’s population will be 65 and older). In addition, the caregiver support ratio is drastically declining.
Regulatory hurdles will require an increased amount of testing and oversight within the health technology industry. The clock has started ticking to prepare for the EU’s Medical Devices Regulation (MDR) which is set to go into effect in 2020.
These trends will impact you and your team in many ways. You will especially need to ensure you have the right team in place to accomplish your goals. In upcoming blogs, we will dive deeply into the impact that these trends have on your team and talent acquisition, and address ways for you to overcome obstacles.
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About Talencio: We help the Health Technology community make progress by putting the right people in the right place to solve problems and identify opportunities to move healthcare forward. To learn more about career opportunities in health technology, or to hear how other companies have partnered with Talencio to tap into our skilled professional talent pool, contact us at 612.703.4236 or email. Talencio has been the preferred provider of vetted, accomplished professionals to the Health Technology Community for over 10 years.