McKinsey September 15, 2023

Medtech leaders are devising strategies to catch the next wave of value creation amid uncertain macroeconomics and evolving industry trends.

The medtech industry has saved millions of lives and improved quality of life for millions more around the world. Medtech companies have a long history of patient-centered innovation and remain committed to this cause, with more than $42 billion invested in R&D in 2022 alone. Recently, however, medtech companies have faced unprecedented disruption and now confront a challenging macroeconomic climate marked by high inflation, constrained capital markets, uncertain supply, and rising geopolitical tensions, among other factors. After a decade of solid performance through 2019, value creation in medtech has decelerated.

In this environment, medtech leaders are refreshing their strategies to...

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