The Role of New Markets Advisors in Healthcare

Case Study in Medical Devices

General challenges facing medical device companies

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New excise tax on medical devices

Lack of patient

adherence and

engagement

Emerging preference for non-invasive and wearable devices

Need to integrate with

mobile apps and

provider interfaces

Demands from many different stakeholders

Lengthy approval processes and high hardware development costs

The challenge

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The Client: DeviceCo

• Leading medical device manufacturer with billions of dollars in annual revenue

• Market presence in nearly 100 countries and over 20,000 employees worldwide

The Challenge:

• DeviceCo had assembled a team to develop a new device or related offering that could bring in at least $5 million in new annual revenue within 2 years

• DeviceCo needed assistance identifying and evaluating opportunities, creating a business plan in support of promising opportunities, and identifying potential partners to help bring the opportunity to market

The approach

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Searching for new revenue streams:• The first phase of the project involved researching

existing offerings in three target fields and identifying marketplace gaps and opportunities to play

• For the second phase, New Markets developed several value propositions to help DeviceCo determine how it wanted to address the needs of different stakeholders

- New Markets also built a criteria screen to help determine how various opportunities could fill market voids while playing to DeviceCo’s strengths

• In the third phase of the project, New Markets helped design a comprehensive solution that encompassed a suite of components that could aid multiple key stakeholders, reduce healthcare costs, and improve outcomes

• In the final stage of the project, New Markets identified acquisition targets and potential partners to help bring the solution to market

Promising startups?

The results

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Macro-level impact:• New Markets helped DeviceCo recognize the value in

pursuing service-oriented opportunities

• New Markets helped shift DeviceCo’s focus from isolated opportunity areas to a comprehensive solution that could create more value for stakeholders and provide higher revenues

Project-level impact:• New Markets helped identify the most promising

opportunity areas from a large range of potential

• New Markets helped create a business plan to garner support for the opportunity from senior leaders

• New Markets generated detailed financial projections to show the potential for the proposed solution, as well as cost estimates for a pilot launch and full-scale launch