While British voters' decision to leave the European Union could have a major impact on the medical device industry there, the effects on medtech globally will be far more subtle, say experts at ZS Associates. Answer Qmed's survey. We'd like to know what you think.

Chris Newmarker

Voters in the United Kingdom rattled global markets last week with their decision to leave the European Union. While non-binding on the British government's actions, the vote is still generating a great deal of uncertainty and political turmoil over the U.K.'s future in Europe.

The British medical device industry itself could be facing some major changes, according to a new blog post from global consultancy ZS Associates (Evanston, IL). The U.K. could become a less attractive place for investors, innovation could be stifled for British medtech companies, and the U.K. could lose its place among the "big five" markets for medical device manufacturers. While a weaker pound would make it easier for British medical device companies to export, their access to free trade with the rest of Europe could be endangered. (Experts have made similar dire predictions to Qmed's sister media outlet MD+DI.)

A major medical device industry customer, Britain's National Health Service, could be due for major disruptions, too.

When it comes to the overall global medical device industry, though, the effects are not as dramatic, ZS Associates medtech experts Brian Chapman (U.S.) and Roz Lawson (U.K.) tell Qmed. Here's more of what they had to say:

Qmed: How could Brexit affect the global medical device industry overall?

Chapman: The effects on the medtech industry are not yet obvious. There is a very, very long list of things that need to get unwound between the U.K. and the E.U. that range from aerospace and passenger jet landing rights to more obvious things like banking rules, that could damage London's position as the center of global trade. The Brexit vote, largely an emotional one, seemed to be centered around the issue of autonomy regarding regulations and immigration. While there is speculation on literally everything, I expect they will not diverge in regulatory agreements or norms around CE marking and similar. The U.K. may well become a less attractive market for investment from global medtech companies, but impact on global medtech as whole will be subtle at best.

Qmed: NHS has been pioneering a great deal of mobile health/digital health/big data projects. How could Brexit affect those initiatives?

Lawson: The impact on the NHS will be less subtle. Economic pressures will increase for various reasons. Related specifically to some of the pioneering that they have done on disease management, it is difficult to know for certain how they will respond. They could choose to cease these programs and release funds to the local level to alleviate the budget pressures. On the other hand, they could double-down on the mandate of the NICE and the NHS to provide these solutions to their local CCGs. But yes, this is an area where Brexit will matter. A likely outcome is an acceleration of the existing trend towards the privatization of some or all healthcare services in the U.K., and this could fuel even more investment into projects that ultimately help provide care at reduced cost--which is one of the big promises of mobile/digital health.

Qmed: Any reason for Medtronic to worry, now that it is headquartered next door in Ireland?

Lawson: I don't think there is much to worry about here specifically. The Republic of Ireland is already in the E.U. and not a part of the U.K. The issue is more Northern Ireland, which has a special status that could be threatened. But to be honest, I don't see a big risk here.

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Chris Newmarker is senior editor of Qmed and MPMN. Follow him on Twitter at @newmarker.

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