Biological insights or technical innovations that can improve current technology or address a need in the healthcare environment are usually the starting point for the development of new products.
When it comes to new products, good science is essential to establish efficacy and safety but on its own is not enough to make a product successful. Scientific expertise must be leveraged within the context of market forces. Various regulatory and commercial issues must be taken into account to successfully position a new product in the healthcare market.
Healthcare is shifting from being reactive to being preventative and proactive. This offers incredible potential for product development but there are barriers to the production of healthcare solutions, usually relating to the strenuous and lengthy product development cycle.
Thorough analysis and market research
You may have the science and engineering knowledge but you need to understand the entire ecosystem in which your solution will be used. Analyzing the needs of your target market helps you to define the potential of your solution and how it addresses needs.
If you’ve invented a clever medical device, for example, you need to understand how it addresses the pain points of users and create a great product experience for each user if you want to achieve commercial success.
Understanding the pros and cons of other products in the market helps you to define your competitive edge. This enables you to develop a marketing plan and decide on pricing.
Awareness of regulatory and legislative issues
The healthcare industry is highly regulated. An awareness of the regulatory and legislative pressures of the healthcare industry is important. Identifying the regulatory status of other healthcare products can help to guide you to position your product.
You can gain information from the websites of regulatory agencies and competitors. Other sources of information are product labels, marketing and published literature, public databases and tradeshows.
Evaluation of pricing and reimbursement
Pricing and reimbursement are factors that can greatly affect product development and positioning in the healthcare industry.
They need to be considered early in the product development process because they can be complex due to the different systems used in varying jurisdictions. You need to identify the payers (government, hospital, insurance company, consumers) and payment procedures.
Reimbursement planning should begin before new product development. It can help you to develop clinical data to differentiate your product in terms of performance and benefit for different customers. It also helps to you to determine whether your product will be profitable and to identify strategic business relationships before you launch.
Outsourcing certain skills
It’s important for new product developers to consider outsourcing certain skills. They can focus on areas where they have skills and have the opportunity to learn from outsourcing partners.
You want to seek out a reputable company to assist you to bring to market your innovative product designed to your technical specifications. You also want to make sure you retain full intellectual rights to the products created on your behalf.
Some new product development companies will help you with everything from refining your idea to getting your finished product into the shelf. Some of the services such companies offer are sourcing and testing raw materials, verifying market claims and verifying that your product meets government and industrial regulations.
The bottom line
Development of healthcare products can be a lengthy and expensive undertaking. As well as scientific expertise to establish the safety and effectiveness of a product, market research, regulatory requirements and pricing strategies must be evaluated.
An overall approach that takes all these factors into account can yield insights and feedback that help in product development and positioning in the market.