- Health care is often more insulated than other industries
during a downturn, but it's not immune.
Biopharma and medtech companies
need to develop strategies to improve their resilience,
including reducing costs.
That means looking across all functions
from marketing and sales to operations,
to general admin, including HR and finance.
With tightening financial conditions
and a potential recession,
companies need to consider the implications and risks
for their supply chain.
This is particularly true in medtech
where companies often have small or mid-size suppliers
which could be at particular risk
of experiencing financial trouble in a downturn.
If even one of those small suppliers
suddenly goes out of business
and the final product can't be completed
due to missing materials from that supplier,
production can be disrupted.
Companies need to understand their overall supplier risk
and have a mitigation strategy.
Some businesses might want to help suppliers
in managing their own cost increases,
others may need to find backup sourcing.
Either way, companies will need a plan.