Top CMOs of Drug Delivery Devices

Drug delivery devices are product diffrentiators for Pharma companies and in some cases influence the success or failure of pharma products. Here are some contract manufacturers who have made combination product journey easy for Pharma buyers:

SteriPack Contract Manufacturing LogoSHL Group (Scandinavian Health Limited) LogoSynectic Medical Product Development (A MACK Molding Company) LogoNEMERA LogoCarclo Technical Plastics LogoForefront Medical Technology LogoRöchling Medical Lancaster, LLC. LogoDonatelle Logoforteq Healthcare LogoNextPhase Medical Devices LogoMedterials, Inc LogoPolymer Conversions, Inc. Logo

For more updates follow Pharmed Intel


Electronics contract manufacturing : Facts and Figures From MMI


A year ago, few people would have associated contract manufacturing with southwestern China, which is far removed from the production centers of China’s coastal cities. But today, anyone paying attention to the notebook industry has learned that the city of Chongqing in southwestern China will soon become a major base for contract manufacturing of notebooks. Hon Hai Precision Industry and two of the four largest notebook ODMs have all decided to locate notebook manufacturing operations in Chongqing, and it has been reported that Hon Hai’s PC factory is already being staffed. But notebooks won’t be the only contract manufactured products in Chongqing, and Chongqing won’t be the only city attracting outsourced manufacturing in southwestern China. And for good reason. Compared with coastal cities, labor and other costs are lower in southwestern China, and its labor supply is more plentiful. Before Hon Hai and the ODMs committed to Chongqing, there was HP, which in 2008 announced plans for a Chongqing plant to produce notebooks and desktop PCs for customers in China. Then in the fall of last year, news broke that Hon Hai began construction of a notebook manufacturing facility in Chongqing (Oct. 2009, p. 4).
In the notebook ODM space, Hon Hai is a relative newcomer, and two of the first-tier notebook ODMs soon made it known that Hon Hai would not be without competition in Chongqing.

Source :

Should we doubt the future of 3D Printing?

Cost is a major concern regarding  3D printing ,with skepticism revolving around 3D printers being too expensive for mainstream audience. We think it is not.

With annual spend of pharmaceutical companies being close to USD 50 billion , spend that is channelized without awareness of what could be the potential return; 3D printing offers a assured ROI. This is mainly because of personalized offering angle that 3D printing brings on table.

Close to 2 million tons of medical waste is generated every year, primary part of this waste is unused medical devices and supplies, this wastage can be directly avoided by 3D printing, as this manufacturing process produces products on demand, thereby shrinking inventory levels.

While the inventory management and spend reduction remains as operational advantage points backing  3D Printing, reduction in error rates in surgeries, bio printing of organs are some technical advantage the process brings forward.

To summarize 3D Printing is an amazing form of personalized medicine , where the providers are tailoring plans for individuals rather than one size fits all approach.

Logistics service provider like UPS are putting their best foot forward to help this  manufacturing process reach levels that it deserves.

Content Outline Picked from MPO.

download (1)

Market Insights:

Untitled 1

Watch out for this CMO’s work in EU

We are referring to Flexan’s recent expansion strategy in Europe. Company had previously acquired Medron to bolster it’s foot print in European market for medtech industry.

Currently it does lot of contract manufacturing of hearing aid devices in EU geography along with manufacturing of rubber and silicone based products. It also has recently appointed Werner Karau as new European commercial leader.

With a move of new office in Germany and other aforementioned activities, company seems to be leaving no stone unturned  to make it’s end customer’s life simpler.

Insights on Orthopedic Medical Device OEMs financials

Medical device companies generally enjoy gross margins anywhere in the range of 40% to 75%. Which means their spend (COGS) lies in the range of 25% to 60%. Though this range seems a little too much we were able to research figures for Orthopedic sector.

Analysis by Avicenne highlights that Orthopedic behemoths operate at best gross margins of 70-75%. Further their spend which is 25% of revenue is divided equally between in-house and outsourced activities.

While the entire medtech OEM fraternity plays at a outsourcing range of 25% as per recent analysis from PMCF, orthopedic has surpassed the outsourcing percentage to 49%. Old data from 2012 indicates for a combined revenue of 34.5 billion USD from orthopedic focused OEMs outsourcing to third party contract manufacturers was close to USD 3.7 billion.

Thanks to below mentioned contract manufacturers who scaled their capabilities to a level, which provided OEMs with confidence to board on outsourcing wagon which is out speeding all its other counter parts.


Further another graph below indicates why outsourcing for overall medical device industry still has good potential in coming days. There are still OEMs who are thinking about utilizing medtech CMOs capabilities for their manufacturing need, and if the CMOs are able to convince the decision makers the change in current 25% number is highly likely.



Source 1:

Source 2:

6 tooling machines, 1/2 a million dollar of investment


Freudenberg is one name that strikes our mind when it comes to strategic medical device contract manufacturer. Company has been on rampant growth rate and has been channelizing quiet a spend on growth activities ranging from expansion to new technologies.

Company recently acquired 6 new machines to increase its offerings in medical device contract manufacturing space. These CNC machines have been acquired with a goal to reduce the repair lead times and increase usage of customer molds to optimal levels.

Medical device outsourcing needs are on rise and according research reports it is poised to touch USD 90.5 billion by 2020. Company competes with likes of

– Flextronics
– Jabil Circuit
– Benchmark Electronics
– Greatbatch
– The Tech Group (West Pharmaceutical Services)
– Tecomet (Symmetry Medical)
– Nortech Systems
– TE Connectivity (Creganna Medical)
– Forefront Medical Technology
– Vention Medical in medical device contract manufacturing segment.

Strength & Opportunity Analysis : Freundenberg

  • Company has been making significant investments on technologies and capacity additions.
  • It has expanded its operations in APAC geographies such as China giving at an edge for competitive price offerings to medical device OEMs.
  • Its unique offerings of rapid tooling and prototyping gives it good push on highly competitive contract manufacturing sector.

Technical and Operational Strengths: Company Score:∗∗∗∗∗ <4.75>

Technical (Absolute) : 5/5

  • Design : Yes
  • Prototyping or Development : Yes
  • Manufacturing : Yes
  • Niche { Premium or Niche Segments (Invasive, connected and robotics) : Yes
  • End to End  or Consolidated Service Offerings :Yes

Number of yes determines rating of technical parameter

Operational (Relative) : 4.5

  • Years of experience – 5 (Bench-marked with peers)
  • Number of employees – 5 (Bench-marked with peers)
  • Geographical foot print- 5 (Considered global presence i.e.Developed and Emerging Country Penetration)
  • Investments on new technologies – 3 ( Evaluated investment on novel industry themes such as 3D Printing, Connected Healthcare, Robotics or Others)

Note: Technical positioning is done based on absolute Key performance indicators while Operational positioning is done based on peer analysis.

Main Competitors

  • Vention Medical

  • Tegra Medical

  • MedPlast Inc.

  • Confluent Medical Technologies

  • Posey Company

  • SMC Ltd

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.


Looking to consolidate tooling, prototyping & volume production requirements, here is med CMO partner to go for

Our claim stands on recent strategic move of Carclo plastics acquisition of Precision Tool & Die.

Carclo’s acquisition was strictly aligned towards objective of moving closer to their key customers in north east part of US. This move also provides medtech OEMs based out of north east US geography an opportunity to tap into consolidated offering of the conglomerate.

While lot of medtech CMOs are bringing in the tooling expertise in-house, considerable chunk of tooling requirements is still met by stand-alone tool manufacturers. And hence Carclo’s acquisition of PT&D surfaces as strategic activity, which positions the company on one stop shop radar.

Deal transaction was valued $ 6 million plus.



Looking to get your medical device into Chinese Markets, here is the only MRO, who can help you materialize your healthcare dreams

We are referring to NAMSA’s recent expansion into Chinese markets. NAMSA is the only medical research organization that offers support through entire product lifecycle from design to market launch (Company has recently put up a beautiful video on its transition from CRO to MRO, URL:

NAMSA recently expanded its APAC capabilities by adding 80000 Sq.Ft facility in China. Facility is equipped with technology that helps you across 3 major aspects of product success, these aspects include:

  • Concept testing
  • Feasibility testing
  • Post market surveillance

Though the operations of the newly started facility are based out of China, the goal of the facility is to serve as gateway for both domestic and global clients. While domestic healthcare companies can leverage the NAMSA’s capabilities to launch product in China (Almost all regulatory agencies, CFDA inclusive treat NAMSA’s name as synonym to good quality), global companies can extend their relationship with NAMSA to new APAC geographies in terms of launching their innovative products.