Medical Device Outsourcing Partnerships | The OEM and CMO

Developing the True Partnership: A Full-Service Outsourcing Roundtable

Medtech Feature Story, Thought Leadership

Successful OEMs recognize their top medical device outsourcing providers as development partners instead of transactional suppliers.

In the May issue of Medical Product Outsourcing, Integer President & CEO Joe Dziedzic took part in a roundtable discussion on the evolving relationship and growing partnerships between OEMs and contract manufacturing organizations.

Sean Fenske, editor-in-chief, MPO, writes in the intro, “Outsourcing has become a pervasive aspect of the medical device manufacturing business for virtually every company within the industry, from startup through to the major players. This is in stark contrast to years ago when the practice wasn’t discussed (or admitted to) and many medtech firms were still attempting to keep certain tasks in-house. Fortunately, those days have been left behind as companies have found it more efficient to focus on core competencies and new development projects, electing to move some processes to service providers and legacy products to contract manufacturing organizations (CMOs).

The growth, in fact, has been significant, with the global medical device contract manufacturing market valued at $63 billion in 2016, according to ReportLinker. Further, indications point to continued, aggressive growth within the sector. Visiongain forecasts the market to increase to $102.9 billion in 2021 and $177 billion in 2027 (a robust 9.8 percent CAGR between 2016 and 2027).

With the growth, however, comes an array of challenges for both the OEMs and their service provider partners. One of the primary pushes in healthcare today is cost containment. That squeeze felt by hospital staff and private practice physicians alike is extended to their technology providers. These healthcare professionals are demanding devices that enable them to do more at a lower price. They will no longer accept incremental innovation as a reason to invest in a new product. …” Read the full MPO story here.