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GLP-1 and MedTech: An uncharted relationship
GLP-1 receptor agonists have surged into the spotlight for their remarkable effectiveness in managing type 2 diabetes and obesity. Initially designed for controlling blood sugar levels, medications like Ozempic (semaglutide), and Mounjaro (tirzepatide) have proven to deliver impressive weight-loss results, leading to their swift acceptance beyond diabetes treatment. These advancements have sparked significant interest not only within the pharmaceutical industry but also among healthcare providers, payors, and regulators.
Despite widespread discussion among pharmaceutical experts and the general public, the impact on the MedTech industry remains largely underexplored. The common yet unverified belief is that the demand for MedTech products might decrease due to these therapies' positive effects on obesity-related conditions. However, our survey of MedTech professionals challenges this notion.
Through insights gleaned from this survey and comprehensive interviews with senior MedTech executives, the study delves into the implications of these medications' expansion for the MedTech sector. It examines how companies can adapt to shifting market dynamics, uncover new growth opportunities, and play a pivotal role in the future management of obesity and other diseases.
Impacts on the MedTech industry
The expansion of these therapies is making waves across the healthcare system, affecting pharmaceutical companies, healthcare providers, insurers, regulators, and patients alike. 78% of our survey respondents anticipate that these medications will redefine the healthcare landscape within the next five years. Our analysis identifies three pivotal ways GLP-1 influences MedTech: segment variability, revenue growth opportunities, and ultimately, a shift toward preventive care.
- 1Segment variability: GLP-1 therapies impact different MedTech segments in different ways. Survey findings reveal significant differences in respondents' perceptions based on device categories. Notably, 76% of professionals in therapeutic devices foresee a marked impact, compared to just 33% in monitoring devices.
- 2Revenue growth opportunities: Initially seen as a potential threat, GLP-1 therapies are now being viewed as catalysts for revenue growth within the MedTech industry. Historically, expectations leaned toward a decrease in demand for insulin pumps and glucose monitors due to declines in diabetes cases, along with reduced need for bariatric surgery tools as obesity rates dropped. However, our research offers a more optimistic outlook.
- 3Shift to preventive care: The advent of GLP-1 therapies is driving a transformative shift toward proactive health management, prioritizing preventive care. Our survey indicates that specific MedTech segments – particularly in vitro (IV) diagnostic devices, consumables, and biomedical devices – are positioned for substantial sales growth.
Staying ahead of the transformation
The swift adoption of GLP-1 therapies offers exciting challenges and opportunities for the MedTech industry. As healthcare increasingly focuses on wellness management and disease prevention, MedTech companies have a chance to innovate with early diagnosis tools, monitoring systems, and adjunct therapies that enhance GLP-1 treatment. With these agonists transforming the healthcare landscape, MedTech firms need to strategically adapt to thrive in this evolving environment. By following these five essential steps, MedTech companies can effectively prepare for the transformation:
The future of MedTech in the GLP-1 era
The MedTech industry must proactively embrace the transformative impact of GLP-1 on healthcare. Companies that swiftly identify and respond to these changes will position themselves for success, while those adopting a cautious wait-and-see approach may face declining sales.
Adapting to the GLP-1 era is an ongoing journey. To thrive in this evolving environment, MedTech organizations must cultivate a culture of agility and strategic foresight.
Therefore, MedTech companies should focus on the five essential steps mentioned before to prepare for success in a healthcare landscape directly shaped by GLP-1 advancements. By maintaining vigilant monitoring, fostering collaboration, and continuously driving innovation, they can enhance lives and prosper commercially.
Oliver Dolny and Ellen Zimmermann co-authored this report.
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