Medtech 360 Reports Methodology

 

Prior to the initiation of any syndicated market research publication, MRG Analysts determine the particulars of the market to be researched, considering factors such as customer demand, market size, market maturity, level of technological innovation, market dynamics, among many others. MRG’s research team – with extensive consultation with industry and medical professionals – then defines the size, scope, and objectives of the project.  

 

 

 

Secondary research is used to identify the initial key data points.

Primary research is used to develop, augment, verify, and refine the market model.

 

At the outset of the research phase, a thorough and impartial scan of information gathered through secondary research is performed. Secondary sources illustrate market competitors and product offerings (past, current, and future); recent market events; regulatory and reimbursement issues; the economic environment; competitive strategies; and the potential emergence and impact of new technologies. 

 

Each piece of information is then evaluated and prioritized according to its relevance, age, and utility based on the specific requirements of the report. These secondary sources act as the basis for the primary research stage, which builds and enhances the quantitative and qualitative attributes of the early research. Secondary data are collected from a variety of sources, including government sources, company literature, and internal resources such as proprietary market databases.

 

During this research stage, early assumptions are formed as to the implications of the information for the various market segments. These assumptions are then used to determine hypotheses using both inductive and deductive approaches.  

 

Demand-side users of medical devices and supplies include participants ranging from the primary purchasers of medical devices to the medical professionals that incorporate the devices into their everyday practice. These respondents provide particularly useful insights into the relative strengths and weaknesses of specific treatments, technologies, and devices; likely technological developments; adoption patterns; purchasing patterns; criteria involved in the purchasing decision; and the relative effectiveness of companies’ sales and marketing campaigns. MRG has established relationships with over 5,000 healthcare providers around the world, conducting research in 5 continents, over 35 countries, and more than 10 languages every month.  

 

Supply-side providers of medical devices and supplies include the manufacturers, distributors, and marketers of these products. This includes established market leaders, smaller market participants, and emerging and future market entrants. Professionals within these organizations provide a unique perspective on market and pricing dynamics, and on some of the competitive dynamics shaping the medical device landscape. These individuals, in particular, provide insight into the modeling of markets and have substantial input on quantitative data parameters. Common titles of individuals interviewed as part of MRG’s primary industry research include: marketing managers, product managers, directors and VPs of marketing, sales representatives, research and development personnel, CEOs, etc. As a rule, MRG ensures that companies representing a minimum of 80% of the market share in each segment covered are contacted through primary research.

 

 

Using this “bottom-up” system, each final market data point represents the sum of many detailed, lower-level data points. 

 

At the outset, a comprehensive breakdown of procedures is prepared using data from numerous sources, including: MRG’s expansive in-house data repository, government statistics and databases, private media/research sources, and professional associations.   

Using the best estimates derived from the input of supply-side industry professionals (manufacturers, distributors, etc.), demand-side medical practitioners, and numerous secondary sources, year-on-year growth rates are applied individually to each procedure subcategory to derive forecasts. These estimates are cross-checked by industry experts and medical practitioners to ensure accuracy and verify observed trends, and are further refined as required. Overall findings are then compared against market and procedure forecasts published by other sources to ensure reasonable estimates. MRG is confident that this methodology produces procedural and unit volume forecasts that are within an acceptable range of variability.

 

Initial installed base estimates are derived from a combination of secondary sources, including: MRG’s expansive in-house data repository (and databases), private media and research sources, and relevant professional associations. Initial reference points are further refined following the compilation of additional information regarding installed units, product life cycles and new unit sales from both supply-side providers and demand-side users of the capital units. MRG is confident that this methodology produces installed base forecasts that are within an acceptable range of variability.

 

Pricing Determination & Forecast Methodology 

Average selling prices (ASPs) are derived from primary interviews with industry sources (manufacturers, distributors) and customers (hospitals, surgeons, purchasing managers, nurses, etc.) as well as additional secondary sources.  

In order to determine pricing forecasts that are within an acceptable range of variability, ASPs in MRG’s reports take into consideration a variety of factors, including:
 

Revenues and revenue forecasts are calculated by multiplying the number of units sold per year by the ASP per unit in the same year. As such, changes in revenue forecasts are a result of changes in pricing, unit sales, and/or the product mix. Revenue forecasts should therefore not be construed as absolute predictions, but rather as indications of revenues derived from particular devices given a particular set of pricing, unit growth, and product mix assumptions.

 

Manufacturer sales and market shares are obtained through a combination of primary and secondary sources. These market shares reflect MRG’s definition of a given market, take into account the unit sales and ASP(s) for each company, and will not necessarily correspond to those developed internally by each individual manufacturer. Estimates are cross-checked by industry experts, competing firms, and medical practitioners to ensure accuracy and are further refined if necessary. MRG is confident that this methodology determines market shares that are within an acceptable range of variability.

 

All data are subject to rigorous individual and group analysis by the research team. The entire research team, in collaboration with the quality control department, is responsible for assessing and cross-checking all research results thoroughly to determine their validity, accuracy, relevance, and weight. From this process, qualitative conclusions are reached and data points finalized.