CDIM○ Point
・ The entry of companies from different industries into the medical field is attractive as a business development in growth fields by utilizing our own technology.
・ As a prerequisite for entry, it is important to understand the nature and characteristics of the medical market, such as regulations, doctors, and technological innovation.
・ "Channel to doctors" and "long-term technological innovation in the area of entry" are particularly important for maintaining and expanding the business after entry.
・ When withdrawing from the business, it is necessary for each of the company, the supply destination, and the regulatory agency to have an exit strategy according to the situation.
From this time on, I will explain "About the entry of companies from different industries into the medical field" twice. This time, as one of them, "1. Introduction" and "2. Sustaining and growing the business after entering the market".
1. 1. Introduction
The medical market is expanding as the domestic market is sluggish and shrinking due to the declining birthrate and aging population, and the population is declining. Entry into the field is increasing. In particular, many electronic device manufacturers and material manufacturers have entered the medical device field, and major electronic device manufacturers have almost all medical device-related fields.
The background to these is that we would like to utilize the technologies we already have and incorporate the medical field, which is expected to grow continuously, into our portfolio as a new pillar of our business.
A lot of information has already been released on strategies, measures, and examples for entering the medical field from such different industries. On the other hand, "successful entry" is not always "successful business", and by sustaining and growing the business after entry and utilizing the potential of the company in the medical field to acquire a growth market, the fruit of entry can be obtained. can do. Unfortunately, if the business cannot be maintained or developed, it will be necessary to consider withdrawing from the medical field.
Here, we have been involved in thinking about important matters for sustainability and growth after entry in the medical field, and exit strategies for withdrawal when maintenance and development cannot be expected. I will consider from.
Regarding the target cases, there are various forms of entry into the medical field from different industries, depending on the size of the company, the technology it possesses, the specific area in which it will enter, and the companies that it will form when entering.Therefore, from the viewpoint of the degree of utilization (application) of our own technology, (1) a form of providing products and services (hereinafter, "products, etc.") with our own technology as the core, (2) our own technology and other companies The form of providing products, etc. by the technology or means of, We will target cases where we entered in the form of (1) and (2) where the utilization of our own technology is high.
Also, since it is a business in the medical field, it is necessary to understand the nature and characteristics of the medical market. It is often said that the medical field is special, but make sure that it has the following characteristics.
First, since medical care deals with non-substitutable things such as human life and health, equalization of access to medical care is desired as well as effectiveness and safety, so the place where medical care is provided and the quality of medical care. , Equalization of medical prices will be promoted, and highly regulated systems and policies will be adopted. Specifically, the location, depending on the medical plan that determines the type and number of beds in each region, the license of medical institutions according to the standards, the license of medicines and medical devices, the medical treatment according to the guidelines, and the medical insurance that sets the medical price. A quality and price system has been established. These have a great impact on the quality, safety, sales and profits of products.
Secondly, medical care for patients is provided by doctors, but doctors have strong authority and responsibility due to their knowledge, technical expertise, physical diagnosis and treatment. .. This has a great impact on product selection and needs.
Third, medical science is based on a wide range of science and technology in which specialized technologies such as genomes, materials, communications, machines, and atoms are applied to basic disciplines such as biology, chemistry, and physics. Is strongly influenced by.
Due to the nature and characteristics of medical care, the medical field market can be said to be a market that promotes technological innovation and provides products, etc., while always being aware of regulations and doctors.
２．Sustain and grow the business after entering the market
By entering our business into the medical field, products of our company or our company and our business partners will begin to be used by hospitals and patients. In order to expand our market share in the medical field where our business has started and to continue to grow our business, two important matters are "channel to doctors" and "long-term technology in the field of entry". We will focus on "innovation".
About "Channel to Doctors"
If the medical field that we have entered is a new or growing field, securing a market share is indispensable for stable growth, and if we enter an existing field later, it will be difficult to survive unless we expand our market share. To that end, it is essential to have a channel with a doctor who has strong authority to select products.
Here, the doctor in this case is a doctor who has the right to make decisions in the medical field that uses the medical products and services provided by the company, and has the ability to transmit, etc. It means a professor class, an executive doctor who is a medical director or higher in a large hospital, etc.). In the world of doctors, because of their high level of specialization, the medical field is becoming more fragmented and knowledge is becoming more sophisticated, and high technology and skills are required, so the relationship of study is strong. Therefore, the medical offices of universities, which are educational and research institutes, and academic societies, which are academic institutions, have a strong influence, and doctors in clinical practice are based on policies such as guidance and guidelines of medical offices and academic societies to which they belong or are related. There is a tendency to select products etc. Products by evaluating the company's products in clinical practice, acquiring needs information, publicizing the superiority of the company's products, etc. by its influence, and jointly developing them through channels to doctors who are mainly active in medical offices and academic societies. It will greatly contribute to the maintenance and growth of the business, such as the improvement of such things.
As a successful example from the case involved, in the medical device for diagnosis using image analysis technology, the "effect" of the medical device was obtained by taking the opportunity of joint research with a specialist with public research funds through a channel with a doctor. There is a case where we succeeded in adding (approval items under the Pharmaceutical Machinery Law) and expanded our market share. In particular, we were able to proceed with product development in terms of cost because we were able to carry out research with the support of public research funds such as AMED by a doctor who is a researcher at the university.
On the other hand, as an example of failure, there is a case where we entered the manufacturing of medical devices, but the channel with doctors was delayed, we could not expand our market share, and we could not take the lead in product development. This is because the relationship with medical institutions (doctors) has become estranged because the sales of products are left to the agency, and the product development at the time of entry was also left to the CRO, so it is valuable as a doctor involved in product development. The cause was that the channel was also interrupted. As a manufacturer, we have a lot of patents and other high technology, but it is a pity that we have not been able to get a firm voice of the needs of products in medical care and changes to medical technology.
「参入領域での長期的な技術革新」について
The most advantageous and attractive thing about entering the medical field from different industries is that you can utilize your existing technology. Since it is normal to develop and enter the latest products and services in the target medical field, our technology will be the most suitable technology at the time of entry. Technology will advance in any field, but medical care is a field of biological science that has been remarkably discovered, and technological innovation is remarkable because rapidly developing technologies such as communication and imaging are applied. In addition, standards such as product quality and safety are frequently revised as technology advances.
Therefore, products that were the latest technology at the time of entry will become obsolete and the selling price will drop significantly after several years. Improving and developing products that meet medical needs is always indispensable for this measure, but in doing so, it is necessary to fully anticipate long-term technological innovation in the area of entry before entering the market. there is. At the time of entry, even if the latest products can be developed by utilizing the existing technology of the company, technological innovation will require technology in the area different from the technology that the company is good at in product development in 5 or 10 years. There is a high possibility that they will come. For example, in medical devices that use materials, the materials were chemical components at the time of entry, but after that, amino acid and protein components became mainstream and may be applied to cells in the future. In this case, even if it is easy to enter if there is an existing technology that is strong in the chemical composition at the time of entry, the technology that is good at the subsequent change in the composition cannot be utilized, and it does not generate synergies in technological development of the entire company. It will be a thing. If we were to develop new technologies and products in-house, it would be necessary to secure and train human resources, and the cost would make them unattractive at the time of entry.
In this way, "long-term technological innovation in the field of entry" is a matter that must be thoroughly considered when entering the medical field from different industries and after entering the field.
Next time, we will continue to "Regarding the entry of companies from different industries into the medical field (Part 2)".
Author: Tokuya Okanouchi
All rights reserved for this column.
Tokuya Okanouchi (CDI Medical Co., Ltd. Managing Consultant)
Completed Graduate School of Pharmaceutical Sciences, Shizuoka Prefectural University, Completed Law School at Toin University of Yokohama, and completed Business School at the University of Massachusetts Lowell. Doctor (Pharmacy), Doctor of Law, MBA (Master of Business Administration)
After working at the Ministry of Health, Labor and Welfare, the National Hospital Organization, the Pharmaceuticals and Medical Devices Agency, the National Institute of Health Sciences, the Ministry of the Environment, the Ministry of Justice, and Kanagawa Prefecture.