When I think of medical device hotbeds in the U.S., a few locations come to mind: Boston, San Diego, Minneapolis, Austin, Miami, and Warsaw. According to the recent MPO article “A Battle Royale”, there are a couple of emerging markets for medical devices: Ohio and Utah. The article also reports that Southern California, Minneapolis, Florida, and Massachusetts are still going strong in the medical device industry.
I’d like to share some excerpts from this article, specifically related to Ohio:
“The Buckeye State has more than just a large pool of engineers to attract biotechnology companies. With 636 FDA-registered medical device companies and millions of dollars in state funding (the state allocated $100 million in May for biomedical business growth), Ohio quickly is becoming a mecca for biotechnology and medical device manufacturing firms.”
“What sets Ohio apart is its history of manufacturing,†said John F. Lewis Jr., vice president of BioOhio, a non-profit organization created in 1987 to build and foster the state’s bioscience industry, research and education. With a business culture steeped in automotive manufacturing, he said, “the old-style businesses are skilled at bending metal and, now, creating FDA-approved devices. Massachusetts and California are good places, but it’s more expensive there. And at the end of the day, companies are in business to make as much money as they can.â€Â
“A growing number of medical device manufacturers are beginning to realize the cost benefits of doing business in Ohio. An average of 58 new biomedical companies set up shop there each year between 2004 and 2006; as a result, Ohio now has the second-highest number of FDA-registered medical device firms in the Midwest. The total (636) surpasses the number of firms in states—such as Minnesota, Michigan, Indiana and Wisconsin—that have more well-established medical device manufacturing hubs.”
Creo Quality is based in Indiana. And many in the Hoosier state claim superiority in the Midwest when it comes to the medical device market. But the numbers about Ohio don’t lie and are quite telling. It is true that Indiana has a similar manufacturing heritage to Ohio.
“The attributes that have made Ohio an appealing destination for medical device manufacturing firms also have made it a target among states that are trying to replicate its success. The fight for biotechnology investments and medical device manufacturing has become fierce among states well known for their industrial base or technological innovations and states famous for their temperate climates and breathtaking landscapes.”
Certainly Indiana is an important state in that it has Cook Medical’s corporate office (Bloomington)and a large plant in Ellettsville. A large BSC facility in Spencer rounds out the offering not to mention a number of smaller start-up outfits. The city of Warsaw is home to the top three orthopedic device manufacturers, but I don’t think of firms like DuPuy as medical device manufacturers because a medical device to me is something that is used most in minimally invasive surgery. But that’s my definition.
But the biggest state in terms of med device growth would have to be California, esp in the SF Bay area, although southern California is catching up. Minneapolis/St Paul would be a large metro market as would Salt Lake City, Utah. But the next big state after California would be Massachusettes, esp in the Boston area. And don’t forget southern Florida: it is home to Cordis, BSC, Syntheon, and a host of other outfits, esp in the Miami area.
The Dallas Fort Worth and Atlanta areas are growing, but I wouldn’t put them in the top tier…not just yet.
Chris,
Thank you for your response. I spent a majority of my career at Cook Medical and did some consulting at BSC. I’m now more involved with early stage companies. I also agree with your assessment regarding CA, MN, MA, and FL. The term medical device is such a broad term. Some view your definition as correct, while others also include orthopedics and in vitro diagnostics.
Cheers,
j
Hi Jon,
I am the Sr. Director for Regional Business Development for the Western US/Western Canada for Nerac, Inc. We are a research & advisory company within business solutions, technology/innovation, and intellectual property. Two of our primary verticals are in medical devices, pharma, and biotech. I serve on one of our medical practice management teams and have a background in medical devices. My company does a lot of work in emerging medical technologies and analyses.
The larger medical device markets would be: San Diego, San Francisco Bay Area/Silicon Valley, Northeast (including Boston), Research Triangle Park (NC)—of course, there’s also Minneapolis/St. Paul, some other areas of the midwest, and Washington State. Florida is also an upcoming market.
A good place to check out the markets is on BioSpace—www.biospace.com There are meetings of the key players that occur in each “hotbed” area — you’ll find the hotbed areas listed on biospace.com For example, I regularly attend BayBio breakfast and events both for pharma and med devs. (See a typical site at http://www.baybio.org)
Contact me if you want to discuss any of this further—I’m on LinkedIn.
BTW—medical devices are both invasive and non-invasive. There are also convergent technologies that combo pharma and a medical device.
Susie,
Thanks for the information!
Cheers,
j