Medical Solutions business area
The Medical Solutions business area comprises two business sectors:
- Medical Devices: Develops and manufactures complex product systems and components based on advanced polymer technology and automation.
- Pharma Packaging: Develops and manufactures advanced packaging solutions for pharmaceuticals and dietary supplements.
Market – stable outlook with long-term growth
In the long term, global growth on the medical device market is expected to be around 4–5%. Drivers supporting these expectations are global population growth, an aging population and the increase in lifestyle diseases. This accelerates the need for health care, with some care needing to be provided in the form of home-based care. This increases the need for medical devices that are easy for patients to use. The in vitro diagnostics (IVD) market is seeing strong growth, fuelled in particular by the need for more precise diagnostics of clinical samples.
Medical Solutions’ market also includes customers who:
- need to focus more on their core business, i.e. the development of pharmaceuticals. This increases the need for outsourcing to global cooperation partners that can manage both advanced development and production.
- are looking to reduce their number of suppliers. The easiest way for them to do this is to cooperate with companies that can handle the entire value chain; from development and pilot projects to full-scale production and supply on a global market.
- are developing new medications that require the development of new medical devices to be administered.
- are conducting more and larger development projects that also demand shorter lead times in the development phase.
One effect of these market trends is continued consolidation in the industry, with many small suppliers with limited offerings and restricted geographical presence at risk of being wiped out or bought up. Meanwhile, established end-to-end providers with a global presence have good opportunities to grow their businesses.
The business sectors’ market positions
Over the past decade, Medical Devices has progressed from being a local component manufacturer to being a global end-to-end provider with the resources and capabilities to support customers throughout the process; from concept and design to validation and full-scale production. The offering consists of a broad technological base, advanced support in the development process and a global presence with production units in Europe, Asia and North America.
Pharma Packaging’s leading market position in Scandinavia and the UK is complemented by significant global exports. The strong customer offering is based on in-depth understanding of regulatory management and applicable quality requirements for both individual components and entire packaging solutions. A key strength is that Pharma Packaging is one of only a few packaging system suppliers that is focused solely on the pharmaceutical and dietary supplements sector.
Over the year, a number of projects moved from the development phase into production, and several large new product development projects started. This applies to both Medical Devices and Pharma Packaging.
Medical Solutions is well placed to meet the changes taking place on the market. This is thanks to its in-depth medical understanding that puts the patient front and centre with wide-ranging expertise to develop and manufacture both customer-specific solutions and platform (standard) solutions for a global market.
Strategic focus on continued growth
Medical Solutions’ vision is to be the acknowledged best systems solution development and production partner for medical technology and pharmaceutical companies.
This strategic focus is based on growing faster than the market in all segments. The aim is to do this both organically and through acquisitions, enabling global expansion.
The strategy is also based on growing alongside customers’ business, ensuring the offering of global production, expanding the offering in areas such as design, product development and integrated electronics. This is combined with the sale of standard products via own channels and distribution networks.
Examples of products
Examples of therapy areas and products: Asthma (inhalers, check valves), diabetes (insulin pens, infusion sets), hearing aids (seals, earpieces), heart rhythm treatment (seals for pacemakers, cardiac anchors), dialysis (seals, connectors), urology (catheter balloons, uridomes), surgery (catheter balloons, complete blood purification equipment), diagnostics (allergy tests, pregnancy tests).
Standard or customer-specific primary plastic packaging that meets pharmaceutical and dietary supplement industry requirements.