Turning knowledge into profit

Novel technologies introduced into mature markets generally lead to price instability or market share gain.

What was clear from the information gathered on behalf of our client was that the suppliers of fully furnished catheters did not know that they had the ability to push catheter prices higher – they are always viewed as a packaged commodity to be used in the sale of stents.

The estimated market value for balloon catheters in the USA in 2006 was $410 million, which had declined from $475 million in 1999. Although usage rates had increased by 5% per annum, pricing had receded. Armed with superior performing products, a price premium of at least 10% was possible for catheter manufacturers.

This conclusion was derived through incisive discussions with cardiologists and interventional radiologists across the major geographic markets, relating their requirements to the interventional products of major manufacturers.

Our work showed that a superior performing product would enable our client’s customers to sell at premium prices to end users, giving market leadership and pricing stability within an invigorated market place.

Our client launched a new product in January 2006, and because of the work we performed they are now engaged in further product development.