Home / Insights / M&A among medical device CMOs offer hidden value to category managers

insights-espresso-icon blog

M&A among medical device CMOs offer hidden value to category managers

Espresso-live Speakers
by Sakthi Prasad
27 April 2014

Medical devices sector has household names such as Johnson and Johnson, Medtronic, and Boston Scientific among others. These big firms, in turn, partner with Contract Manufacturing Organizations (CMOs) such as Accellent, Great Batch and many others to manufacture devices used to treat ailments in therapeutic areas such as cardio, vascular, neuromodulation and so on.

On the one hand, the healthcare industry has lately been witnessing hectic M&A activity.  And on the other, even medical devices CMO sector has seen quite a few deals leading to supplier consolidation.

About 30% of top CMO players were involved in either M&A or expansion plans in emerging and developed markets, according to Beroe's medical devices expert Chanderkanth Gautham.

For example, the CMO space saw Accellent merging with Lake Region Medical, and Nordion combing operations with Sterigenics. Likewise there have been quite a few other deals that have resulted in a unique mix of CMO portfolio.

These deals have further bolstered the bargaining power of leading CMOs as top ten players account for 60% of medical device CMO market, as per Gautham's calculation.

The usual buyer reaction to consolidation of supplier base is one of skepticism. However, Gautham opines that such consolidation offers hitherto hidden opportunities that could be made use of by buyers such as J&J and Boston Scientific.

During the webinar scheduled for May 8, Gautham will discuss the impact of M&A activities among CMOs and opportunities it creates for buyers in highly complex and regulated device supply market.

Key Take Away from the Webinar:

  • What are the major KPIs that need to be evaluated while partnering with leading CMOs?
  • What are the services that can be bucketed when partnering with leading CMOs in order to simplify the supply chain?
  • What are the services that are being included by leading CMOs in their current product offerings?
     
SHARE
Linkedin Twitter Facebook
Leave a comment

Please enter a valid name

Post your comment

Please select captcha

Instagram

Get more stories like this

Subscirbe for more news,updates and insights from Beroe

Get Ahead with AI-Enabled Market Insights Schedule a Demo Now

Schedule a Demo Now