MacMillan opined that the device industry doesn't need a tax considering that the industry is attempting to develop innovative products while creating additional jobs. Yet, some salient points were made by MacMillan as to the nature of our industry. The medical device industry is fragmented when compared to major pharma, dominated by many small players where the capital cost of entry to the market is low. One point, that TSB must argue is that we are no different than pharma where we are dominated by the big players. All one has to do is look at a market analysis regardless whether it is spine, recon or trauma. The big boys dominate. The one major difference that exists is that in today's climate, one that was fostered over the last 8-10 years, it was the start-up and early-growth stage companies that had contributed in terms of producing emerging technologies. The Cartels of the industry spend more time on marketing and acquisitions.
MacMillan spoke of the short-term and long-term concerns. In the short-term most of us will figure how to survive by adapting and creating new strategic objectives and by managing our capital with more prudence. Gone will be the day of frivolous spending and no accountability. In the long-term, the country could be straddled with a greater federal deficit. After the cost of the Iraqi and Afghan Wars are we really all that upset with another couple of billions of dollars in spending? Let's face it, we bailed out Wall Street to the tune of billions and there wasn't nearly half the public rancor that has existed of Healthcare Reform.
In closing, one has to admire MacMillan's salesmanship when he lumped Stryker in the same breath as Microsoft and Google. Stryker a legendary company in the device industry? Yes. Comparing it to Microsoft and Google is taking it a bit too far. Overall an informative and calm analysis of what awaits all.