CMs about to start taking share from OEM

The writing is on the wall. The oems are buying tech or doing the private label thing. Their development pipelines take entirely too long and the FDA isn't giving an inch. Nothing truly unique out there and the price war keeps eroding OEM profits. I know the value of a good rep but the hospitals don't care.

How long before the CM are selling generic products (knees, hips, plates and screws) direct to the hospitals since the docs have lost their buying power.

 

Makes perfect sense on the face of it, but until the hospitals decide to open up their contracts to competition, the multi-nationals will continue to enjoy all the marketshare. Generics and Chinese implants will be the next logical evolution of the industry once that happens.

 

i get a chance to promote our CM suppliers as potential options for development projects. Seems to be a small list of qualified suppliers and even then they don’t have scale to enable cost models that match our expectations. Why is is taking so long for the CM space to catch up? We don’t want to design and manufacture a lot of what is presently consuming our resources. Who are the best options out there?