Medical device industry’s outsourcing opportunities scale up tremendously
Medtech sector has been subjected to various pressures ranging from complex regulatory norms to cost pressures from reimbursement agencies. Under these circumstances the only option for maintaining healthy bottom line is to outsource.
Subsequently, question that needs to be asked is: Are there outsourcing partners that can accommodate the in-house contained volume of OEMs?
Answer is yes, and the recent uptick in outsourcing partners activity clearly indicates they are more than prepared to handle this surging demand.
One of these recent activities which go about acknowledging the claim is, SFS acquisition of Tegra Medical. Tegra Medical, leading medical device CMO with sales of close to 80 million USD was acquired by fastening solution provider SFS group.
While Tegra is medtech focussed CMO, SFS has various industries under its purview. One thing in common for both the companies is their relevance in OEM’s operation. Both Tegra and SFS are preferred partners in new product development process and carry outstanding client testimonials for their services so far.
The acquisition definitely bolsters SFS positioning in medtech CMO fraternity, while Tegra enjoys the global presence of SFS to sell its capabilities to new clients and geography.
Medtech CMO activity meter is on run, thanks to strategic acquisitions like Tegra-SFS that are keeping the engine running. OEMs can definitely relax as their trusted CMO partner count moves to new heights.