Do Medical Devices and Diagnostics Rule?
Steven Burrill, the life science investor and analyst, is always an interesting read. His interview,
Life Science Leader
, a new trade magazine, includes the following remarkable exchange:
: "You run a venture firm that invests almost exclusively in life science companies. What existing or emerging technologies would you recommend for investment?"
: "Historically, the life sciences industry has relied on revenue from high-value-high-margin therapeutics (Rx) and lower-value-lower-margin medical devices and diagnostics (Dx). However, with healthcare reform going forward and the changes in science that allow us to move closer to a personalized, predictive, and preventative medicine world, there is going to be a reversal in the Rx/Dx value proposition - that is, I believe Dx rather than Rx will drive future profitability in the life sciences sector. In the future, the Rx business will be transformed from a high-value-high-margin into a high-volume-low-margin proposition, whereas the Dx side of the business will change from a high-volume-low-margin to a high-value-high-margin opportunity."
We report, you decide.
Thoughts to share?