Covid-19 has destabilized fundamental processes by which the U.S. healthcare system creates, sells and administers care solutions. In the medical device industry, pressures to provide market leadership, combined with erratic demand changes, are creating new tensions. And the markets reflected the widespread uncertainty as COVID escalated: Stocks across many major manufacturers dropped significantly at the end of Q1.
- Social distancing and HCP overutilization may disproportionately affect sales of medical devices. Compared to pharmaceuticals, medical device sales puts a large emphasis on training and trial, yet sales reps have been pulled from the field by most companies.
- With CMS announcing delays on non-essential medical procedures, medical device companies can no longer rely on these profit-driving surgeries. The nearly total procedure shutdown could create a significant backlog that will likely take more than a year to work off.
- But economic implications could be even more drastic for companies that provide hospital equipment. And the decline in capital purchasing will likely linger even beyond the acute crisis, as care delivery centers struggle to refinance.
But there are also opportunities arising. As hospitalizations increase, so too does the demand for hospital basics, such as PPE, beds and equipment. As we continue learning about the virus, future innovation requires cross-industry partnerships, and the FDA and EMA have shown a willingness to work together, by relaxing regulations to accommodate immediate needs.
This white paper builds a strong foundation to design a strategy for medical device manufacturers to realign with these market disruptions.
Ipsos recommends three workstreams to help medical device manufacturers understand the areas of existing opportunity within their businesses and define their strategic direction:
- Characterizing the buying process
- Portfolio prioritization
To take you further along your journey, we would welcome the opportunity to discuss a tailored approach to help you understand areas of existing opportunity during Covid-19 and define a strategic direction. Explore our rapid review approach and reach out to your Ipsos account manager or Bob Rava, SVP & NA Lead, Medical Devices & Diagnostics.
[WEBINAR] Medical Devices & Diagnostics: Current view of the entire ecosystem
We invite you to join Ipsos’ Medtech experts to explore the impact of COVID-19 across the entire medical devices & diagnostics ecosystem. Learn how labs, surgeons, payers and hospital administrators are being affected and take a look at what lies ahead for manufacturers.