Why should you consider medical licensing as a vital need?
The medical device sector is one of the largest in health care, and it is driven by new technology and creativity. Many conventional medical technology corporations, including pharmaceutical companies, are investing heavily in the sector in the hopes of capitalising on the shift toward personal health and home-based self-care. Similarly, non-traditional high-tech businesses and consumer electronics behemoths are exploiting their technologies to get into these industries.
As these businesses concentrate on the med software industry, companies must create strategic collaborations in order to prosper. This essay will go over four main reasons why licencing is one of the finest strategic alternatives for any firm in the fast-paced and fiercely competitive med tech sector.
- Medical devices are a confluence of technology-, mostly centred on mechanical/electrical, information, and systems engineering. Many gadgets are technically complicated, requiring a variety of technologies that are frequently covered by millions of patents spanning the construction, function, and/or methods of use. Many gadgets have to go through the FDA's and other regulatory organisations' complicated approval processes. Few, if any, medical device businesses, particularly startups, can master all of these competencies in-house.
- Advanced treatment is a fiercely competitive business driven by the enormous quantity and variety of equipment and designs with numerous variations in advances. Aside from established implantable devices players like Johnson & Johnson, big IT and home entertainment firms like Apple, Ebay, IBM, and Samsung are investing billions of dollars in digital health projects, particularly around smartwatch, life sciences, and telephones. These businesses have extensive experience managing and commercialising intellectual property in the financial industry, and they will leverage their marketing and advertising power forcefully to compete in this rapidly rising industry.
- Shortening the Lifespan of Technology: As a result, the healthcare sector business is transforming into a high-volume marketplace for consumer electronics. As a result, the commercial lifespan of medical device technology is now 18-24 months, far less than the patent term of 20 years. To be successful in this sector, med tech IP must be strategically used. Especially in the case of patent technology, when both the patent and the invention's lifespan are limited, and pushing it into the market as quickly as possible is the aim.
- Big Players Want to Licence Innovative IP: In the medical technology industry, innovation is moving too quickly, and many of the major corporations are exiting the R&D sector. Their internal mechanisms are excessively sluggish, but so many possess a structure to allow for the sort of rapid innovation that is required. Instead, they are establishing dormitories and private asset managers in order to collaborate with small- and medium-sized enterprises. They are, in effect, outsourcing their R&D. As a result, med tech businesses have fantastic licensing potential.
The greater the value of your medical device technology in terms of licencing, the closer it is to market readiness. Another way to look at it is that as your med tech gadget progresses through the development process, from idea to market ready, each stage minimises market risk.