LISI 2014
66
MOVEMENT
THEMARKETSETSTHEPACE
Constraintsonhealthcosts causeprofounddisruptionof theglobal orthopaedicsmarket.
Starting from2013, consolidationbeganaccelerating.A favorablecontext for LISIMEDICAL.
The global medical orthopaedic market has again experienced
many changes this year. The desire of large States to contain
healthcare spending, which now governs the direction of major
international markets, has been demonstrated by several big,
long-termstructuralmeasures.ObamaCare, started in theUnited
States in2014, constitutesoneof themostsymbolicexamples.
Consolidationsareaccelerating
This new agenda has caused profound disruption in the
Orthopaedic sector. Pressure on prices, which increased once
more in 2014, has resulted in a widespread move towards
consolidation. Started in 2013, this has continued in 2014 to
support thepolicyof cost savingadoptedbyall themajorplayers
in the sector. Price cutting has also significantly altered the
balance between therapeutic choice and patient typology in a
shift towardseconomic improvement for thehealthsystems.
Product rangesarebeingstreamlined
These two major changes position the market and influence
today’s strategies. They demand the streamlining of medical
deviceproductrangesandfavortheemergenceofagenericsector.
In the search for scaleeconomies, themajormanufacturershave
effectivelyundergonea refocusingof theircorebusinessactivities
and heightened their efforts in streamlining supply chains. They
have also tended tooutsource someof the costs related to their
associated activities (research and development, inventory,
validation, etc.) to sub-contractorswhocanoffer total integration
solutions in the formofa
“OneStopShop”
.
Developmentofgenericoffers
This environment which speeds up the development of generic
offerings, also favors the emergence of a commodity market,
suchas those found in theconsumables sector, focusedona few
tried and tested technologies and recognized as being the
“Gold
Standard”
. This is one of the axes on which LISI MEDICAL has
decided tobuild its strategy, at the same timeasaccelerating the
processof rampingup its skills inorder to respond to theparallel
demandsof the
Premiummarkets
.
LISI MEDICAL
Economicenvironment
