Often medical device companies have numerous technologies incubating. Executives can determine technologies that have the potential to deliver the highest return on investment. Once you are sure you have the best medical device contract manufacturing in your business, there are still a couple of things you will want to take care of. When there are multiple technologies in different development stages, the company requires portfolio management. Medical device portfolio analysis is one of the key services offered by medical device consulting firms. This analysis helps the medical device developer in resource allocation. It provides an objective direction to project technologies that will deliver the greatest reward. Medical device portfolio analysis includes competitive and market analysis, peer-reviewed literature analysis, and interviews. This analysis projects:

• Device’s clinical adoption 
• Technology’s commercial interests at different development stages 
• Technology adoption drivers and barriers
• Development time to commercialization
• Commercialization risk 
• Competitive advantage 

The analysis helps executives, medical device developers and investors in making informed decisions. The medical device company prioritizes resources for medical technologies that are the most desired by the clinicians and at the same time has the potential to generate revenues. The company can achieve profits and growth with portfolio diversification. Product diversification is important for the following reasons: 

Diversification Protects the Core 

There is a misconception that diversification distracts from the core operation. However, product diversification can actually strategically protect the core business if medical device diversification is managed properly. Let’s understand this with an example, a health system expanding ambulatory footprint can increase revenue and also increase patient in flow. Medical device portfolio analysis can also attract investment and ensure financial security for efficient core operations. 

Diversification Accelerates Growth

Healthcare organizations rely on organic changes or incremental improvements for growth. However, to secure accelerated growth in the future, the medical device company can achieve accelerated growth by focusing on non-core business areas as well. 

Diversification Attracts Investment  

With increased health awareness, individuals are investing more in their health. Governments across the world are also spending more on health infrastructure. This shows that pharmaceutical companies and medical device companies can secure more revenue and growth. Investors view a return on investment and growth into high-value revenue streams. A medical device company can build new revenue streams by diversifying its product portfolio. It can meet the expectations of a wider target audience. A company that diversifies its product portfolio secures more investment and growth than a company that focuses on core business operations only.   

Diversification Should be Programmatic

A medical device company that conducts medical device portfolio analysis for successful product diversification undertakes merger and acquisition programmatically. The company gains the capability to do multiple deals. Companies that complete the most mergers and acquisitions secure the highest return on investment. A medical device company can succeed through diversification by replicating this value. The company can develop a model that can be used programmatically for merger and acquisition. In this model, the company sets an agenda and identifies an opportunity. It also requires a plan for entering a new market and integrating new business. The company can also make diversification a core strength.

To achieve a diversified medical device portfolio, a medical device developer should work with a medical device consulting firm offering medical device portfolio analysis services.