903 Berkeley Rd, Wilmington, DE 19807, US
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Clarit

Strengthening your business

Navigating the US Medical Device Market  

How can Clarit help?

We can bring Clarit.y to your business in the U.S. Medical Device Market

 Let us help you build your business in the US Medical market by working with you to develop a solid business plan based on a market assessment that will lead to a successful execution of the plan. Our associates have extensive experience running businesses in the United States, Europe, Asia and the Middle East.  From devices to pharmaceuticals we have helped launch and in some cases kept companies from launching products based on in-depth assessments of the potential of the market, cost of entry, competition, reimbursement and distribution potential.  

So your product works well in its home market

 There are significant differences in the needs and values reflected in the various medical market segments in the United States. Also regulatory hurdles may be quite different from those that you are used to.  We can help you chart a course to understand who the customer is for the product, what their values are and how you might access them. 

You are a US manufacturer with no medical experience

 Look to us to help you understand the market. Each medical discipline has different access points.  Just because the product is in health care, do not be trapped into thinking all the medical disciplines are the same. Strangely enough they respond in more different ways than you might imagine.  

Leadership

Robert "Mac" Sommerlatte, Managing Partner


Martin Andersson, Chief Marketing Officer


With over a century of experience in the US and International Markets, Clarit associates are ideally suited to help you achieve your business goals in the US Medical Marketplace.

 Martin Andersson and Robert Sommerlatte are the principals of the organization.  They and their associates have run large and small businesses throughout the world. Whether you need to have an assessment of the viability of the product in the market, form a US corporation, establish a manufacturing operation, Claritcan bring you the needed data. Planning for your business should have the benefit of experience, data and a plan for success. We can put our resources at your disposal.   

Business

What we do

 

Clarit is a business consulting organization. We provide a wide range of services either by members of our organization or working with others with specialized expertise. We are able to help you in the role of consultant, your agent or principal working partner in the US Market The following matrix shows some of the business activities that you might need to address in the US Medical Device Market and where we can be of assistance.

Activities

    

                                           Consult   Agent   Partner       


Market Assessment               ✔           ✔         ✔     

Business Planning                  ✔           ✔         ✔     

Company Incorporation       ✔            ✔        ✔     

Site Selection                          ✔            ✔        ✔     

Clinical Trials                           ✔             ✔        ✔    

FDA Clearance                       ✔             ✔        ✔     

Marketing Investment Case

US Medical Market, a good time for device companies to invest?

  US Medical Market, a good time for device companies to invest?

  • Should a medical device company invest in the US Medical Market during a period of market uncertainty?  At Clarit we believe that with the right product and approach to the market, companies can successfully use this time to enter or expand into the market.  The US market is large.  Along with its size the choices need to be made about segmentation, pricing, distribution complicate gaining market share. The market rewards companies with a clear view of their target markets, focused strategy and a well defined execution plan.  
  • A company with plans to enter or expand in the US market would need to meet the following criteria. 
  • The product or service meets a clearly defined need. 
  • Validation that the market believes that the product/service addresses its need.
  • Determine how to access the market to maximize market penetration and profitability.The complexity of the US market comes from the Individual medical market segments with their different attitudes values and beliefs, the access to the segments and product pricing and reimbursement mechanisms. 
  • Choices for Market Entry Reviewing an example of market positioning, pricing and promotion of a simple medical device – an exercise resistance cord - gives some insight into the choices that one can make to achieve market penetration, profitably.  The resistance cord was conceived by physical therapists that used various sizes of surgical tubing attached to a handle to provide their patients with different levels of resistance when performing rehabilitation exercises.  The product could have been launched in the medical market or taken directly to the consumer in the retail market. The choice was made to launch in the medical market where the cords were positioned in the physical therapy, orthopaedic surgeon and rehabilitation physician (physiatry) market segments.  Each of these groups has differing access points (with some overlap) for promotion of the product.  Specific reimbursement coding and pricing for billing to insurance companies was not sought. Some insurance companies were billed using generic or codes that defined products similar to the cords.  A higher price point for the products was chosen for the medical market.  The rationale for higher pricing came from the enhancement to the product’s value proposition with the medical professionals’ recommendation and training of the patient in its use.  The smaller volume in the medical market precluded longer manufacturing runs to gain a lower cost of goods.
  • As the Resistance Cords gained traction in the medical markets, they began to migrate into the retail market (health clubs and retail stores).   In the retail market, volume increased, medical expertise was not provided with the product and with the higher unit volume manufacturers chose a lower price point for the retail cords. 
  • Was the medical or retail market more profitable for the manufacturer?  The quick answer is the medical market since medical margins are about twice that of retail margins.  However, that analysis would be incomplete and potentially lead to the wrong conclusion.  An assessment of role of the product in the overall medical company’s marketing strategy, market access and whether cost of goods could be driven down markedly with higher unit volume would be some of the questions needed to be reviewed to answer the profitability question. 

Our mission at Clarit is to help you sort through these questions and arrive at a plan that will improve your corporate bottom line.  

Contact Us

Drop us a line!

Clarit

903 Berkeley Rd, Wilmington, DE 19807, US

(302) 571-0263

Hours

Monday - Friday: 9am - 5pm