Nearly 60 companies joined the seminar on the Reimbursement Environment in Europe May 27, organized by MassMedic and the Netherlands Foreign Investment Agency in Boston. Buck Consultants International (BCI) presented attendees with an overview of the reimbursement environment in the main medical device markets in Europe. Medical device companies from the Boston area also presented their experiences in getting reimbursement arranged as a start for successful market launches. Here’s a snapshot:
- Europe is an interesting medical devices market
A first key message from the presentations was that Europe still is a very interesting market for U.S.-based medical device manufacturers. First of all it is and will remain for the coming decade at least the second-largest market for medical devices worldwide, with approximately 33 percent of global sales taking place there. Second, it is a developed market, with in general good infrastructure, systems and regulations and with an open attitude towards foreign investors and products. - The complexity of the European medical market is high
The second message was that although interesting from a business perspective, Europe is also a complex market, with more than 40 countries speaking upwards of 24 languages, national and even local regulations, large cultural differences, etc.Because of this complexity, four key success factors were defined for entering the European market:
- Develop a good understanding of the market;
- Understand the regulatory environment;
- Set a clear business strategy;
- Build a strong operational structure.
Especially for companies in healthcare, from medical devices to pharmaceuticals and biotech products, the regulatory environment has a large impact on the way of doing business. European reimbursement systems are a key factor in that.
- Reimbursement should be taken into account already in the product development phase
Although the European Union tries to harmonize its different regulatory systems, in practice many differences still exist in the application of reimbursement systems. These include number of institutions involved in the whole process in a given country, the application time, the number of product classes defined, etc.For this reason the speakers at the conference brought up a third message: Start taking into account reimbursement as early as possible in the process, from product development to market launch.
- Reimbursement is "just" one part of building a European business strategy
Although an essential part, reimbursement still is just one part of building a strong European business strategy. Other elements to be developed for a successful market launch include the route to market (direct sales versus distributor models), the partner network, the European organization, the distribution network, etc.
For more information, visit http://www.nfia.com/boston-
reimbursement.html or contact BCI.
Johan Beukema is a partner with Buck Consultants International. An experienced transport and logistics expert, he specializes in optimizing supply chains, selecting locations and developing route to market strategies in the healthcare industry. Past clients include Amgen, Johnson & Johnson Vision Care, Stryker Healthcare and Ocular Sciences. He can be reached via email at. He can be reached via email at johan.beukema@bciglobal.com.