3 Criteria to Consider When Looking for Untapped Markets
Industry Voices | January 20, 2021
by Carolyn LaWell, Orthoworld
Content republished with permission from ORTHOWORLD® Inc., www.orthoworld.com
Medical device companies often first look to the United States and Europe when launching a new device. That frame of mind is understandable, knowing the size of the markets. Orthoworld estimates that the U.S. accounts for nearly 60% of the orthopedic market, while Europe, the Middle East and Africa combined account for about 25% of the market. However, there are other countries worth considering early in a worldwide expansion due to ease of their regulatory and reimbursement processes.
What criteria make a new market ideal for successful medical device commercialization? At the Virtual MedTech Conference’s session “Considering Untapped Markets for Innovative Product Introduction: Where to Go?” Frederic Rupprecht, Worldwide Vice President, Health Economics and Market Access, Johnson & Johnson, discussed the crucial qualities companies should look for when exploring new countries.
Strong Domestic Competition
Companies should proactively seek out markets with a strong domestic competition, since it’s a sign the framework is in place for successful commercialization strategies.
“Going where you have competition can seem counterintuitive, but it would mean that there’s an appetite for your technology, for your domain,” Mr. Rupprecht said. “There’s also a strong willingness to pay for this market, for this technology, and the market has already been created.”
Having a strong, competitive market is also a sign of a robust culture of innovation, which is another sign of a promising untapped market. After all, innovative companies thrive in (and are drawn to) places that encourage firms at the forefront of cutting-edge technology. As an example, Mr. Rupprecht cites Brazil, which has supported more than 500 health technology startups in the last four years and has an active venture capital market.
Look for Solid Market Access
Mr. Rupprecht points out that getting regulatory approval for a medical device is just the start, as companies also need to have a clear pathway to market access to sell the product. “Which comes back to why it can be good to look at what is the local competition doing,” he said, “because the local competition may have already overcome this access problem for us.”
Data is Accessible
Countries where it’s possible to generate data, which Mr. Rupprecht said can be used to measure the quantitative value of a technology and help facilitate market access, also have a major advantage.
To read the full article, visit: https://www.orthoworld.com/3-criteria-to-consider-when-looking-for-untapped-markets/
