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.
A market with continued long-term growth
The expected global volume growth for medical devices remains stable at around 4–5%. The main drivers are global population growth, increased access to medication in developing countries, an aging population, and more people being affected by lifestyle diseases. This is resulting in a greater need for health care, much of which will have to take place in the form of self-care at home using medical devices that patients can easily handle themselves. The need for more precise diagnostics of clinical samples is also a key driver for in vitro diagnostics (IVD).
Medical Solutions’ market is characterised by companies that:
- need to focus more on developing pharmaceuticals, i.e. the companies’ core business. This increases the need for outsourcing to global cooperation partners for both advanced development and production of medical devices.
- are endeavouring to reduce the number of suppliers, which requires cooperation with global companies that can handle the entire value chain; from development and pilot projects to full-scale production and supply.
- are developing new medications that require new medical devices for administration.
- are conducting more and larger development projects that demand shorter lead times in the development phase.
One effect of these market trends is continued consolidation among both customers and competitors. On the one hand this means that small providers with limited offerings and a restricted geographical presence are at risk of being eliminated or bought up. On the other hand, established end-to-end providers with a global presence have good opportunities to grow faster than the market.
Two business sectors that solve customers’ problems
Medical Solutions is well positioned to respond to the changes taking place on the market. This is primarily 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 solutions for a global market. It has good capabilities to meet the growing demand for green materials, i.e. to lead development towards a lower proportion of fossil raw materials in packaging solutions. And to respond to rapid technological development, particularly in the area of the Internet of Things (IoT).
Over the past decade, Medical Solutions 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. Pharma Packaging’s forte is being one of only a few packaging system suppliers that is focused solely on the pharmaceutical and dietary supplements sector.
The favourable development for Medical Devices and Pharma Packaging was further bolstered during the year through a combination of earlier projects resulting in production at the same time as new projects were initiated and progressed according to plan.
Strategy for sustained 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 rapid global expansion. The strategy is also based on growing alongside customers’ businesses, and ensuring offerings comprising global production, design optimisation, 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.