Over the past few decades, health care has been a shifting landscape that has had to adapt to political, economic, demographic, and societal changes. It comes as no surprise then that the medical technology industry has found a prime location in this trajectory, accruing an estimated global market size of $400 billion. This field creates life-changing innovations that not only allow for early disease detection and effective treatments, but also reduce the economic burden of health care cost and creates job growth.
Canada’s medical technology industry is ranked 9th globally and continues to be a booming market. In 2015, it was valued at $6.2 billion and exported $3.1 billion worth of products in 2016, yet there was a trade gap of $5.5 billion in medical devices. Unfortunately, these devices are mainly imported to Canada- which make up approximately 80 per cent of medical technology sales- rather than domestically manufactured.
This widening trade gap presents both concern and opportunity for Canadian health care businesses, especially since the world market is projected to grow due to an aging population and increased health awareness. The number of citizens above the age of 65 years old is skyrocketing; it’s estimated that this age group –which currently makes up 14 per cent of Canada’s population- will make up 25 per cent of Canada’s population by 2036. In this day and age alone, Canada spends an average of $6,298 per individual aged 65 to 69 years old, a value that jumps to $24,387 for someone aged 85 to 89 years old. With advancements in medical technology, individuals will have greater autonomy to track and self-evaluate their health, as well as allow health professionals to monitor and treat patients remotely. This indicates the need for more domestic competition and puts pressure on Canadian manufacturers to produce medical devices that will minimize cost and growth capacity.
Toronto’s Humber River Hospital continues to be a leader in adapting to a tech-centered environment. In November of 2017, the Hospital launched North America’s first Command Centre, a room filled with screens that display real-time events occurring in other areas of the hospital. The Hospital also plans to equip the Centre with additional software that will analyze data and determine which patient needs to be stabilized or assisted prior to an unwanted situation. While Humber River Hospital is well on its way to digitalization, entrepreneurial training programs such as Medventions, at Sunnybrook Hospital, understand the need for Canadian entrepreneurs in the medical technology industry. Through the Medventions program, individuals are able to shadow health care professionals, develop new medical devices, and learn more about product commercialization.
There are a few notable tech changes occurring in the global medical industry that are projected to significantly enhance patient care and outcomes. Artificial intelligence is one of the latest technologies to merge with health care and provide medical professionals with information from electronic health records for immediate need. In addition, gene-editing techniques using CRISPR/Cas9 are on the rise, allowing for targeted modifications to DNA in a cost effective and reliable way. Finally, 3-D printing has been a growing development that is being used to print organs, tissues, and prosthetics limbs. This can dramatically reduce surgical time and cost, and allow more patients to receive the transplants they need.
In 2017, the medical technology industry saw steady growth, with deals being made between some of its largest players. At the end of the year, Becton Dickison, a leading medical technology company in the US market acquired C.R. Bard for $24 billion. This combination has enabled the company to improve both the treatment of disease and the process of care for health care providers. It has also allowed the company to expand its focus beyond diabetes to vascular disease, hernia, cancer, and urology. This massive deal is set to generate annual revenues of over $16 billion and will lead to a global presence for both companies, especially with Bard’s strong product portfolio and innovation pipeline. At the beginning of the same year, Johnson & Johnson closed its $4 billion acquisition of Abbott Medical Optics, which is a leader in the cardiovascular device market.
Medical technology saves lives, improves patient outcomes, and helps lower the overall cost of health care; three impactful solutions that Canada’s health care system is on the lookout for. As major medical technology companies continue to take hold of the North American market, Canada is starting to inspire and assist young entrepreneurs in commercializing their ideas in this industry. Change calls for innovation and innovation leads to progress. It’s this very mindset that can shape Canada into a true competitor in the global medical technology market.