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In recent years, medical device manufacturers have embarked on an acquisition binge, sparked in part by the belief that absolute scale creates competitive advantage. But Bain research shows that profitability in medtech is more a function of category leadership than overall scale. And accumulating follower positions across categories creates aggregate scale but leads to poor economics. In short, medtech companies pursue breadth over depth at their peril, says Bain Partner Tim van Biesen, who leads the firm's Healthcare practice in the Americas.
Read the Related Bain Brief: The power of focus in medical technology