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Voice of Industry

Business Development Execs Speak on M&A and Innovation

Merger and acquisition activity amongst large and medium players dominated business development talk in 2014. Trends driving consolidation of all sizes related to new technology, process efficiency and international expansion. Business development leaders from Biomet, Smith & Nephew and Medtronic convened for a roundtable at the Musculoskeletal New Ventures Conference. While speaking to an audience of professionals seeking to raise or invest money, discussions focused on acquisition and insight to provide all with a glimpse of current and future movement in the orthopaedic industry.

Products
Biomet looks to acquire companies and technologies at the forefront of innovation, specifically those that address trends in surgery and the shift from hospitals to ASCs, said Linda Smyth, Group Vice President, Business Development, Biomet Spine, Bone Healing Tech & Microfixation. Potential acquisition targets must provide product differentiation and economic value.

Smyth identified minimally invasive surgery, complex procedures and treatments for pre-fusion indications to be current hot segments.

Processes
Chris Lyons, Director, Global Business Development, Medtronic Spine & Biologics, said that device companies must continue to strengthen hospital relationships and add value by streamlining organizational processes and the supply chain.

“Companies like Medtronic have definitely taken a serious look at this space, especially in the U.S., and I would say of the low-hanging fruit, that’s the lower,” he says. “We look at how we can help hospitals attain the bottom line that sustains the account and creates a stronger relationship between the corporate entity and the hospital.”

Models
Innovation within the U.S. is different than the innovation occurring in other global markets, said David Evans, Vice President, Business Development, Smith & Nephew. He noted that Smith & Nephew is investing in redirection of its product offerings to provide valued technology that meets the mid-tier needs in emerging markets.

Evans added that product innovation in the U.S. is taking place in the soft tissue repair and extremities markets, while innovation in surgical efficiency and business models are the focus in ortho recon.


Review past M&A activity here.