Contract manufacturing The consolidation


For medtech OEMs, consolidating their manufacturing provision can realise significant benefits but requires careful consideration. Ross Law reports.


question O


riginal equipment manufacturers (OEMs) in the medtech industry continue to weigh the merits of maintaining multiple contract manufacturing organisation (CMO) partners against consolidating manufacturing with full-service providers as ongoing cost pressures and a volatile geopolitical landscape make consolidation an increasingly attractive option. Research by CMO Intricon reveals that in recent years, OEMs have moved to shrink their approved supplier lists to ensure their supply chains are less fragmented and more certain – a factor driven by the dislocations wrought by the Covid-19 pandemic. Market experts highlight that many medical device OEMs now want to allocate most of their resources to design, development and commercialisation of their finished devices. Factors such as speed to market and cost therefore drive OEMs’ considerations around moving to full-service providers that can handle more of the manufacturing and related processes behind their finished products.


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www.medicaldevice-developments.com


www.medicaldevice-developments.com


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