Breaking the Barriers to Investment

March 1, 2004

1 Min Read
Breaking the Barriers to Investment

Originally Published MX March/April 2004


halasey.jpgThe natural enemy of investment in any industry is unpredictability. World events and market forces that can cause sudden and unexpected turns in the marketplace are understandably nerve-racking for those whose willingness to invest depends on the predictability of obtaining a timely return.

When seeking to reassure skittish investors, executives of regulated medical technology companies suffer from a double dose of unpredictability. Medtech companies are subject not only to general market forces, but also to the policy issues and budget constraints that all too often prevent regulatory agencies from acting in a timely fashion. Such regulatory unpredictability can severely hamper the ability of medtech companies to raise funding.

Today, most medtech investors believe that reforms implemented at FDA have reduced the unpredictability associated with that agency. Instead, they say, their greatest concern is for the processes used to determine reimbursement coverage and payment rates--especially those of the Centers for Medicare and Medicaid Services.

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