The Risks of Management

Originally Published MX July/August 2003

EDITOR'S PAGE

In the current economic environment, investors have grown increasingly cautious about putting their money into medical technology companies. That's especially true among those who have no specialized understanding of the industry, and are therefore uncomfortable with the perceived risks inherent in the field.

Unquestionably, the often-enumerated list of such off-putting risks includes some areas that can be of significant concern to medtech companies and their investors. The difficulties of operating in a regulated environment, for instance, can bring about uncertainties that are the natural enemies of the investment community. Over the years, the inability to predict whether or when FDA will approve a particular premarket submission has become a well-recognized obstacle to investment and company growth.