How will the new administration affect user fees? Will the ACA be repealed? Where will the device industry see more growth? These and other trends were identified in Kalorama Information’s latest report, The Global Market for Medical Devices.
Learn more about the top industry concerns but attending the 2017 MedTech Intelligence conference programs | LEARN MOREIt is still not known what direction President-elect Donald Trump will take regarding device legislation or the ACA. “One test of the new admin’s stance towards the device industry will be the Medical Device User Fee agreement fee negotiations,” according to Kalorama. The research firm states that the launch of a new device with FDA cost more than $200,000, while the 510(k) application route cost $4700. Industry is also pushing for a repeal of the medical device tax, but any changes to the legislation remain to be seen.
Other trends for 2017 include:
- Slow & steady revenue growth of $390 billion medical device market; expect 2.8% growth over the next five years
- Mergers and acquisitions remain key driver in accelerating growth and market share
- Hospital consolidation continues
- Slow pricing growth due to GPOs, value analysis committees and other buying committees
- R&D remains strong, with device manufacturers spending about 7% of revenue to fund research
- Cybersecurity is an increasing concern
- Wearable devices to enjoy growth that is double the general device market (the global wearable medical device market was valued at more than $13.2 billion in 2016)