What we do
We serve medical products companies in all geographies and sectors, including medical supplies, capital equipment, implantable devices, and healthcare IT. In developed markets, our experience working with leading payors, providers, and regulators allows us to provide a unique perspective on the rapidly changing value chain. In emerging markets, we have medical products experts in all key locations, including China, India, Brazil, Russia, Mexico, and the Middle East, to help companies capture growth.
Our expertise extends across all functional areas:
Strategy: We help companies address issues ranging from business unit strategy to overall corporate strategy. Among other topics, we can assist with mergers and acquisitions, including post-merger management, market entry and growth, business unit turnaround, and development of a new business.
Commercial: Our work focuses on four areas: product launch, marketing, sales, and market access. For instance, we can assist with growth strategies, pricing, market development, promotional campaigns, customer segmentation and targeting, sales force effectiveness, and payor reimbursement. We also support clients in developing innovative commercial models and executing commercial strategies. For more information, visit our Commercial page.
Research and Development: We strive to help clients drive innovation, improve productivity and performance, and develop successful portfolio and asset strategies. We can assist clients in enhancing development of new products, reducing costs and development timelines. In all cases, we help companies evaluate the value proposition for each product in development, considering both clinical and economic benefits. For more information, visit our R&D page.
Organization: We support businesses with all types of organizational challenges, including global expansion and entry into emerging markets. In addition to providing advice on structure and governance, we assist with issues related to a company’s culture and its overall “health,” such as mindset and behaviour problems that hinder performance. We have experience with organizational issues in all departments, including medical, clinical, and regulatory.
Operations: Our operations expertise covers six main areas: manufacturing, supply chain management, external supply, quality and compliance, network strategy, and product development and lifecycle strategy. For instance, we can help clients apply lean process improvements to all operational areas, including manufacturing, finance, and back-office functions. We also frequently support clients in investigating offshoring and outsourcing options, as well as possible partnerships with contract manufacturing organizations (CMOs). For more information, visit our Operations page.
Recent examples of our work
- We helped a client develop a seven-year growth strategy in an emerging market for all of its business units, providing an overview of the medical-device industry in the target market and its likely evolution.
- We assisted a medical device company in developing a new reimbursement strategy, as well as value propositions for payors and employers. This could potentially increase revenues by $20 million to $40 million annually (10% to 20%) over the short term and by $150 million to $200 million (75 percent to 100 percent) over the long term
- We supported a client in the launch of a new medical device in three key markets, which could produce an additional $1 billion in annual revenue
- We helped a client redesign its salesforce strategy and upgrade its sales capabilities, which is expected to double the client’s growth rate within two to three years
- We helped a client accelerate a clinical-development program for a potential blockbuster by assisting with protocol design, developing strategies for working with regulators, and creating a five-year plan of clinical trials. Our recommendations reduced clinical planning time by 12 months.
- We facilitated the post-merger management of two medical device companies, developing new organizational models for R&D and sales. The team also identified functional synergies and helped the company communicate changes throughout the organization.
Proprietary tools and insights
As part of our commitment to serving the pharmaceutical and medical products industries, we continually invest in new knowledge. For instance, we created the Provider Market Navigator exclusively for hospital suppliers and partners in the United States. This tool integrates McKinsey’s US healthcare-reform models with a library of other data sources to forecast profitability for customers and provide insight into service utilization. Because we are a global firm that serves all business sectors, we also have best-in-class tools that are relevant to multiple industries. As one example, the Periscope is a web-enabled tool that helps companies improve pricing.
To learn more, visit our Tools & Solutions page.