Total “Cost of Content” in US Medical Device Industry Equals $1 Billion
Posted by crimsonlanguage on 2011/07/23
- The Finance Minister of Greece
Q: What do European Finance Ministers and the US medical device industry have in common?
A: They are both unhappy about costs.
Everyone knows that cost pressure is growing in the medical device industry. Comparative effectiveness research, reimbursement rates, regulatory requirements, industry taxes, materials costs and much more are all contributing to increased margin pressures. Not surprisingly, manufacturers are on a reletenless hunt for lurking, unnecessary costs. Cutting these has a direct dollar-for-dollar effect on a company’s bottom line and more effect on profit than a comparable increase in revenue (for an oldie, but a goodie in this vein, see Bob Fifer’s classic, Double Your Profits) .
Based on primary research (and verified by industry analysts) the total “Cost of Content” for the US medical device industry is estimated at $1 Billion (1% of industry’s total revenue). That includes the cost to author and develop, verify, check for compliance, format, update, and translate/localize your device-related content in the marketing, clinical, and regulatory areas. But is it all necessary?
Of this total amount, estimates project that some 40% ($400 million) is not necessary…and therefore available for margin improvement. That’s a big addition to the bottom line….I bet the Finance Minister of Greece wishes he could save that much.
To learn more about how to dramatically reduce your cost of content and claim your share of $400 million in industry-wide savings, contact me: mmiller@crimsonlanguage.com
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