Navigating evolving pricing shifts
What do we mean by the margin squeeze trap in the medical device industry? Once characterized by robust growth and healthy margins, the medical device industry grapples with significant pricing pressures. These pressures are driven by:
Demands for more affordable yet innovative solutions
Rising costs
Stringent reimbursement policies and regulations
Increasing competition
Evolving healthcare landscape
Demands for more affordable yet innovative solutions
Rising costs
Stringent reimbursement policies and regulations
Increasing competition
Evolving healthcare landscape
Demands for more affordable yet innovative solutions

The traditional commercial models that propelled your industry to success are now becoming constraints as you find your company caught in a margin squeeze that can quickly erode your profit margins. Several factors contribute to this margin squeeze trap yet there are emerging strategies to help you navigate this challenging environment.
Eroding profit margins: A perfect storm
BEYOND THE
STETHOSCOPE
THE MARGIN
SQUEEZE TRAP
Navigating
pricing shifts
Downside of
traditional pricing models
Next-generation
pricing
Path to
future growth
Releasing
the trap
NEED FOR
CONTINUOUS
INNOVATION
Edge of a
new frontier
Empowering
patients
A new frontier
for innovation
Innovation
pressures
The inflection
point
RESHAPING THE
VALUE CHAIN
It’s not just a
device anymore
Power of licensing
and royalties
Collaborating
for innovation
Rise of CMO/
CDMO’s
Device-adjacent
value pools
SHIFT FROM
COST TO VALUE
Pricing for
performance
Value is in the eye
of the beholder
Value proposition
for innovation
Defining value
with data
VBC’s can
be a win-win


