Industry Trends to Watch in 2023

As we proceed into 2023, I reflect on our year and the trends I anticipate ahead. ?2022 has proven to push, test, and elevate the drive towards better health with innovation across Medical Devices, HealthTech, and Biotech.? My perspective is based on three decades of building innovative companies and careers over thousands of conversations with individuals in the trenches in the life sciences. Following are some big conceptual trends that will continue to drive our industry towards higher ground.

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Return to fundamental clinical need.?Robust HealthTech funding over the last few years came with good intention, but has created confusion.?Technologists who attempted to enter the FDA regulated world underestimated the required work.?Investors accustomed to technological timelines realized protracted return on investment.?One significant trend in a fiscally conservative economy is a return to core clinical need; less “nice to have” and more “have to have” innovation.?We will see investment continue in treatments for stroke, heart disease, diabetes, and cancer amongst others based on size of market, plus smaller plays of “singles and doubles” with clear clinical focus, procedural efficiency, shorter hospital stays and reimbursement benefits.?

The integration of Health and Technology continues.?Many technology companies have taken a hit, including those that are health focused.??With this said, there remains tremendous value in the market for the right technology influences within healthcare. ?The opportunity to empower individuals with data, give clinicians more capable tools and insight, and create efficiencies in our archaic and stressed healthcare system are all gaps to fill. ?2023 will see more orientation of medical application driving product development, rather than the technology finding a market.?Maturity of FDA discussions will assist in a brighter outlook for young companies/products/services and associated approval timelines.?

The quest for Health and Clinician Equity.?Allowing access to everyone, without obstacles such as poverty, discrimination, or geography, is driving innovation across healthcare.?Tools that can accelerate the learning and adoption for clinicians, while increasing opportunity for the patient, will continue to be of high interest.?Robotic surgical platforms intend to democratize surgery, allowing more surgeons to perform at an experienced level sooner. Remote surgery is providing access to geographies and demographics otherwise prohibited. Technological advancement in clinical trials allow for more efficiency and accessibility to required patient population.?

Get the patient home. Remote patient management will continue to grow. Doctors no longer need to rely exclusively on a small piece of data captured in a procedural or office visit. Diabetes, cardiovascular, neurovascular, and renal disease specialists are utilizing tools to allow disease management monitoring from anywhere. This movement is empowering the patient with information to better manage their own health. Ambulatory Surgical Centers are the natural evolution of our healthcare ecosystem as surgeries become less invasive. The patient can go home faster, decreasing the window of necessary supervised care, decreasing risks of hospital infections and improving outcomes. TeleHealth is becoming more widely accepted, and will continue to expand its reach.

Product development and Supply Chain. Expect R&D investment in both products and services to increase in 2023, it is a natural effect based on return to clarity of mission. Efficiencies in product development will be priority, while focus on supply chain resolution and stabilization continue.?What, why, and how we bring a product or service to market will be focus for companies in 2023 and beyond.

Commercialization and market development converge. The "sales cycle" of life science technology starts early prelaunch, and the value based selling groundwork is a mind shift incorporated in the process. Product ownership will have influence over upstream and downstream marketing, allowing for more input into design and development. Sales teams will need to have sophisticated market understanding. Every marketing and sales professional needs to understand the value of digital tools and media rich branding.

Regulatory and Policy. Digital Health, Price transparency, Inflation Reduction Act, are all hot topics expected to impact organization and development of strategy next year. ?As more specialty therapies become available, biopharma companies should expect scrutiny to justify costs burden to payers and build into plan and development. Progressive digital health companies will work closely with first movers to develop roadmaps for successful navigation.

Remote work and trust.?Empowering the individual with autonomy on where and when they work has proven to drive production, cut costs, and improve overall satisfaction in many organizations.?Employer/Employee relationships are built on balance that is constantly ebbing and flowing.?After the last few years, the power of predictability will rise. ?We trust people by our experience with them, what they do, how they act, if they follow through, with us and others.??Some teams need to be together to become this high powered, trustworthy team, others do not and remain effective.?As you navigate individual relationships within the world of work, the road to building that trust is imperative, and some will require more face time.

Success is build by People.?Contrary to the hype of layoffs and cuts, hiring and retention will continue to be a challenge. Many organizations struggle to shift mindset from Talent Acquisition to Talent Engagement as they recruit.?Entering a relationship with a power player for your organization is a dance, a courtship, a bidirectional process that involves your product, market, mission, and leadership.??People are the number one driver of a company’s success, and that is true in any economic climate. ?

I am optimistic for a prosperous year for our industry.? As you stay close to industry trends, you are gifted with insight that can help you drive your career in a direction in which your marketability continues to grow. Life sciences is rooted in better health for all of us, and as we learn and grow, the lessons of yesterday become tools for tomorrow.

Wishing you all Happy Holidays and a prosperous 2023.