Medica 2025: vertical integration gains importance for medtech OEMs

Core Insights - There is an increasing demand from original equipment manufacturers (OEMs) for vertically integrated contract manufacturing partners in the medical device industry [1][2] - Vertical integration is becoming a strategic differentiator, with OEMs seeking partners that can provide full-cycle solutions from design to global distribution [2][5] - The medtech industry is undergoing a reset in manufacturing and supply chain cost structures, emphasizing continuous cost optimization post-Covid-19 [3] Industry Trends - A report by Alira Health indicates that vertical integration is a key driver of mergers and acquisitions (M&A) in the medtech sector, with acquirers focusing on core competencies like design and assembly services [4] - OEMs are reducing their approved supplier lists to create less fragmented and more reliable supply chains, often opting for manufacturers that offer vertically integrated services [5] - Speed, time to market, and cost are critical metrics influencing the growing interest in vertical integration among medical device OEMs [6]