The medical device industry is undergoing a dynamic shift and Medical Device OEM manufacturers are focused on bringing new technologies to the market.

Medical Device OEM companies design, engineer, develop and deliver different types of medical devices. Some of the popular industries to which Medical Device OEMs cater are Biotechnology, Life Sciences, Therapeutics, and so on. Nowadays, most Medical Device manufacturers are outsourcing their manufacturing to reliable Contract Manufacturers.

Here we briefly describe and understand each of the manufacturing types one by one.

Definition: Medical Device OEM

Medical Device OEM is an organization involved in the development of a Medical Device product. The acronym OEM stands for “Original Equipment Manufacturer“. An Original Equipment Manufacturer aggressively contributes to ideating innovative healthcare solutions. A Medical Device OEM can be a Diagnostic Device Manufacturer, Therapeutic Device Manufacturer, Mental Healthcare Device Manufacturer, or Clinical Equipment Manufacturer.

Difference between OEM and Medical Device Contract Manufacturer 

Medical device OEM

Original Equipment Manufacturer (OEM) owns the idea and design of a novice Medical Device. The contract manufacturer on the other hand is not the prime owner of the Medical Device Design. A Medical Device Contract Manufacturer is solely responsible for making modifications and scaling the production as per the OEM demand. Based on the requirement and scale of production a Medical Device Manufacturing organization can act as OEM and contract manufacturer at different times.

Generally, a big firm with a massive capital investment potential outsources its entire manufacturing or a part of its manufacturing project. This is referred to as contract manufacturing.

What is Medical Device Outsourcing? 

Medical Device outsourcing is a way to strategically handle the manufacturing process to remain profitable. The big OEMs usually outsource the manufacturing process to small-scale medical device manufacturing firms to focus on core activities of branding & research. Choosing the right contract manufacturing partner can have multiple benefits including cost optimization, faster Go-To-Market, a Wide range of vendor networks, expanded resources, and much more. An experienced contract manufacturer can take care of most of your manufacturing needs.

What is own Brand Labeling or Private Labeling? 

Own-brand labeling or private labeling is selling a product by another brand than of the manufacturer.

Once the product is given for private labeling, the rights of the product lie with the private labeling partners. The manufacturer has no right over the profits or changes that the private labeling partner does. Also, often the private label agreement has a clause that a device cannot be again manufactured for any other brand.

Benefits of Medical Device Outsourcing 

Cost Optimization: The manufacturing process is a massive investment. Specifically, when you are entering a new segment for which you don’t have any prior experience or machinery. Outsourcing your manufacturing to another manufacturer who already has appropriate machinery can save costs. This also saves the extra effort and cost of managing the manufacturing floor.

Innovation & Modification: Collaborating with a relevant Contract Manufacturing partner you get many experienced hands to work on your project. The designers and engineers might suggest modifications to optimize cost and add value to the existing product.

Fast Go-To-Market: Outsourcing Medical Device Manufacturing to a Contract Manufacturer can significantly increase your Go-To-Market time. Outsourcing manufacturing gives you ample time to strategize your branding and focus on pitching your product to the right market.

Focus on Core Activities: Once the process of manufacturing has been outsourced the OEM can focus on the branding and marketing of the product. The manufacturing process is a complex task and it requires a careful look after and guidance. When manufacturing lies with the core company, it’s a bit difficult to focus on the branding and marketing part.

Global outlook towards Medical Device Outsourcing  

With COVID-19 hitting the market, the demand for healthcare and Medical Devices has gained a significant boom. Especially the home healthcare devices like wearable devices, In-vitro diagnostic devices, and portable therapeutic & aesthetic treatment devices have gained popularity. The medical devices manufacturers who were earlier passive in these segments are taking immense interest in entering these segments. Following the trend, many big Medical Device OEMs and Medical Device Contract Manufacturers are working towards fulfilling the growing demand for new connected healthcare devices. Popular devices include smartwatches, sensor-based sleep tracking devices, Connected monitoring devices, and many more.



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