Our Thinking
We put much emphasis on contributing our thoughts and insights to managerial practice and political debate. We publish and present on topics ranging from distinct fields of medical innovation to broader political and societal challenges. We kindly invite you to join the debate.
Global Medical Diagnostics 2030
|
One focus area in BGM Associates’ consultancy practice is the field of medical diagnostics and its associated supplier industries. In this context, as part of our ongoing work, we review the broader long-term developments in this field from time to time in order to assess on a high level the attractiveness and commercial viability of the medical diagnostics industry at large. In this working paper, we focus on a quantitative outlook on the sizes and dynamics of medical diagnostics markets for the next decade until 2030.
Global ‘megatrends’ drive a steady quantitative expansion of diagnostics services in the next decade (after some Covid-19 related turbulences). Diagnostics services growth creates the demand in various supplies markets which we group into the two ‘macrosegments’: Laboratory/IVD and (Medical) Diagnostic Imaging supplies. Notable trends in the next decade among others are the accelerating demand for Point-of-Care/Direct-to-Consumer testing, of Digital Pathology or of Ultrasound Equipment & Software supplies. For artificial intelligence/machine learning applications in Diagnostic Imaging we see the real broad ‘take off’ more in the second half of the next decade. Concerning the desirable goal of ‘diagnostic integration’ at the professional level as well as the Big Tech driven promise of the ‘empowered patient’ we will probably need a perspective well beyond 2030 before they will have a major impact in healthcare around the globe. |
|
How to Organize State-of-the-Art Medical Diagnosis
|
BGM Associates recently supported Swedish Private Equity firm EQT in the acquisition of two German radiology networks, “Meine Radiologie Holding (MRH)” and “Blikk”, creating the largest imaging network in Germany. We believe that the trend towards larger imaging networks will inevitably continue and that this trend provides significant opportunities to further improve quick access to high-quality yet affordable medical services in radiology and maybe even foster a new form of “integrated diagnostics”.
This working paper shares our perspective on the attractiveness, challenges and opportunities for imaging networks and financial investors to make further inroads into developing and improving imaging and diagnostic services and even embark towards ‘integrated diagnostics’ and comprehensive care’ platforms in the mid- to long- term. |
|
Envisioning the Future of the Diagnostic Imaging Market Today
At the annual congress of European Society of Radiology, Managing Partner Prof. Hans Maier shared his thoughts in an interview with European Hospital, on the current industrial and competitive dynamics in imaging. He also provided further insights into the increasing competition, novel technologies and changing radiology service provider landscape.
The full contents of the interview is published on Vol 25 Issue 1/16 of EH@ECR.
The full contents of the interview is published on Vol 25 Issue 1/16 of EH@ECR.
Digital Transformation and its Potential for Healthcare
|
While the digital transformation is already in full swing in many sectors and holds the potential for fundamental changes, the digital transformation of healthcare faces tremendous challenges. Prof. Dr. Ing. Horst K. Hahn, Director of Fraunhofer MEVIS – Institute for Medical Image Computing, and Andreas Schreiber, former Principal at BGM Associates, review in their article the current state and future potential of the digitalisation in medicine.
Important aspects are the future "integrated diagnostics", the role of artificial intelligence in analysing medical images as well as in complex clinical therapy decisions, and the future role of the "empowered" patient. Apart from paving the way to precision- or personalised-medicine, the digital transformation offers significant efficiency gains, will lead to major changes in the overall healthcare provision and systems, and will establish new major players in the healthcare industry. The article is a chapter in a recently published book edited by Reimund Neugebauer, President of Fraunhofer Gesellschaft. |
|
China will leapfrog other countries in AI-based healthcare digitalisation
|
At the conference 'Digital Health Asia - The Future Transformation' during the Asia Pacific Week 2018 in Berlin, Prof. Gert Bruche, Co-Founder and Partner of BGM Associates presented on "Digital Healthcare Transformation and Artificial Intelligence - Where is China Heading?"
In the presentation the authors argue that the Chinese healthcare system is facing enormous challenges and that China is currently still lagging behind in the broader digitalisation of its healthcare provider landscape. The unique Chinese circumstances suggest however that China will leapfrog other large emerging and advanced markets with an AI-based digital transformation of its healthcare system in the next decade. |
|
Rising Asia: Chance and Challenge for Berlin-Brandenburg’s Medical Technology Firms
|
More than 40% of global medical technology market growth until 2020 will come from Asia, compared to 28% and 16% from the US and Europe. Our Management Survey of Berlin-Brandenburg Medical Technology firms shows how they are positioned in view of this opportunity, which Asian countries they have prioritized, whether they have been successful and what strategic challenges must be overcome.
|
|
Thoughts on the Future of Medical Imaging: An Industry Perspective
|
In the current environment of increasing generic competition and novel disruptive innovation, incumbent players in the diagnostic imaging industry are facing significant change in the next decade. This working paper summarizes our perspective on the broader radiology landscape and technological innovation that drives these developments. We also share our thoughts on how the industry can respond to and proactively shape this changing environment.
|
|
The future of image-based medicine
|
On the occasion of the 20th anniversary of Fraunhofer Institute for Medical Image Computing (MEVIS) in Bremen, Germany, Managing Partner Hans Maier has given a speech on the future of image-based medicine.
Summarizing the outstanding achievements of radiology over the past decades and the challenges it faces today, Hans Maier provides an outlook on major dynamics shaping the medical imaging practice and industry of tomorrow. Referring to growing intensity of global competition and the distinct role of the Fraunhofer Society for translational research and innovation in Germany, Hans Maier makes a case for stronger public support of healthcare and life sciences clusters in Germany to fuel the domestic innovation pipeline. |
|
German Mittelstand Champions and the shift towards Asia as a strategic imperative
|
In a recent study commissioned by Singapore Economic Development Board, our Managing Partner Gert Bruche and German Mittelstand expert Bernd Venohr report the findings of their survey with 80 German Mittelstand Champions and individual interviews with 22 CEOs, owners or board level managers on their Asia strategies.
The study concludes that in an increasingly multipolar Asia which represents some 50% of global GDP growth until 2020 German Mittelstand Champions must shift gears, address the middle markets and become insiders if they want to maintain their world leading positions. |
|
Learnings from a successful M&A transaction
|
Two years after BGM Associates accompanied the German flow cytometry specialist Partec GmbH in its sale to Symex Corporation of Japan the former owner family Göhde draws positive conclusions. The double digit sales growth in the first full year after the integration reflects the perfect strategic fit of the two companies, a major investment leads to the creation of a large number of jobs in Germany, and the integration process is well underway. The success of the transaction is based on Partec's excellent technology and products, an outstanding strategic and good cultural fit, and the well prepared and executed partner search and transaction process. A short report on the transaction is available in a Special of transkript on The Best Deals.
|
|
Opportunities, challenges and strategies in the Chinese medical device market
Healthcare in the next ten years: Challenges and solutions
|
At the beginning of 2014, a small group of high caliber experts met at the invitation of BGM Associates in Berlin for a Healthcare Roundtable. Under the headline "Healthcare in the Next Ten Years: Challenges and Solutions" the participants discussed the fundamental technologies and institutional changes which will transform prevention, diagnosis and therapy in the coming ten years.
We would like to share a short summary of the roundtable with you and kindly invite you to further discuss these trends with us. |
|
Dragons and Tigers Hunting in Germany: Chinese and Indian acquisitions of German firms 2002 – 2012
|
Based on BGM‘s database of all acquisitions by Chinese and Indian firms in Germany in the period 2002-2012 the report finds a generally rising trend in M&A activities. The 59 Chinese firms put a strong focus on machinery & equipment industries whereas the 69 Indian firms cover a broader industry spectrum. ‘Cherry picking’ strategic assets of hidden champions, knowledge absorption, and gaining access to high end markets are major strategic intentions behind the M&As. After the acquisition, the acquirers usually pursue a ‚light touch‘ approach by leaving the structures and management intact. Such a move not only reflects their strategic intentions, but also their often limited M&A integration capabilities.
A massive surge in outward foreign direct investment and in M&As from India and China can be expected in the coming years until 2020. German companies should prepare themselves for these changes by ‚dressing the bride‘ in case owners look for an exit strategy, or tackle the new challenges through alliance and competitive investment strategies. In parallel, European policy initiatives should ensure greater symmetry in the market rules for corporate control between Europe, China and India. |
|