The medical device market continues to show a strong growth and a positive outlook
The medical device market continues to show a strong growth and a positive outlook. However, the industry landscape is changing rapidly driven by increased downward pressure on healthcare costs and disruptive technologies. As a result, medical device companies need to increase their scale and become more diversified whilst redefining their place in the value chain.
In the context of South Africa, there is an immediate opportunity to consolidate the fragmented medical device industry by acquiring distributors / manufacturers and create a scaled, diversified MedTech group. Ethos will bring the access to capital to execute this M&A strategy as well as fueling the organic growth with the objective to create a competitive and diversified business.
Vertice MedTech’s strategy will be also addressing the new paradigm of “value-based healthcare” by delivering services beyond the device and transforming the traditional business model from cost driven to data driven value. Partnering with “digital companies” and investing in enabling technologies will bring integration of intelligence into the product and service offering. Quality management, processes and digitization will also enable the company to reinvent its traditional business and operating models.
Ultimately, VMTG’s position will shift from being a participant in the value chain to being a solutions provider for sustainable healthcare costs that will ultimately fit with the ambition and objectives of the future NHI.