Today healthcare providers are demanding products and services that together offer a total medical solution using state-of-the-art technology. Inventors often are good at identifying major problems to be solved and first round prototypes, but do not always come up with actionable products that are ready for full commercialization. A critical element to Eureka’s business model is to introduce to our sponsors actionable products that employ leading edge technology, world-class product design and low cost /high-quality manufacturing techniques.
The key to continued rapid growth for the medical device leaders is to deliver medical breakthroughs offering total solutions to common healthcare problems and make them available to the most appropriate medical supply channels at the lowest manufactured cost. Eureka Medical is dedicated to making this happen by working with the medical profession to identify innovation and commercialize it together with our contract partners and corporate sponsors.
The convergence of advance technologies from across multiple disciplines enables medical breakthroughs previously thought to be impossible. Some of the technologies that are being employed to push the envelope of performance in medical devices are:
Precision plastics modeling, optoelectronics, electro-mechanical equipment, metallurgy, micromachining, laser processing, tubing extrusion, aerosol dispensing, digital monitoring and feedback information capability, temperature control technologies, surface chemistry and coatings, advanced material science, fluid dynamics, information technology, sterile packaging and aseptic techniques, disposable instruments, polymeric film technology, nano-separations, etc. With the convergence of so many rapidly evolving technologies the only way a company can stay abreast of the leading edge advances across the board is through outsourcing to specialized contractors.
Total Solutions Are Actionable Products That Create Value in Medical Markets
It is important for companies to maintain flexibility in seeking the best talent to address the rapidly changing needs. Outsourcing specific talent for the particular need has proven to be an effective method to focus best-in-class skills on product development. Examples of contract services include: FDA registrations, product design and manufacturing. The flexibility associated with outsourcing allows development of a complete solution utilizing the best technologies at the lowest cost and is proving to be a critical to competitiveness in the medical supplies markets.
With these issues in mind, it is not surprising that outsourcing has become a rapid growth market in the medical device sector. Large medical equipment and health care supply companies are able to leverage their resources to achieve more revenues with less capital expended and focus the best talent to solve challenging problems. Today, there are 3,000 medical device contract manufacturers offering specialized services and manufacturing know-how.
Medtronics, a leading device supplier, has reduced its own plants from sixteen in 1998 to eight today and reportedly; is expected to have only three or four manufacturing plants in the next couple of years. Leading outsourcing companies such as Avail Medical Products are growing consistently at 25% per year as outsourcing continues to accelerate.
The primary drivers for contract manufacturing are speed to market, access to best-in-class capability matched to the specific need, reduction in capital expenditures per revenue dollar, and labor and benefits savings.
It is generally recognized that outsourcing contractors must be the best at what they do to compete against internal company resources and other contractors in the space. This is the mind-set we bring to outsourcing our sponsors innovation services. Eureka has established relationships with the leading independent product designers, FDA consultants, and contract medical device manufacturers.
We are building world-class project management capability to maximize flexibility and to source the best-matched contract services to the specific design and manufacturing requirements for each new innovation. Eureka’s model leverages this top capability to refine product ideas into actionable medical solutions at minimum costs. Sponsor companies are able to achieve complete flexibility in outsourcing innovation and product development while demanding complete medical solutions with experienced and reliable new product development know-how. Capable project management can be leveraged to accomplish more world-class product development cost effectively.