Medical Technology

Are Medical Technology Companies in it for Profit or Medical Science

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"Are Medical Technology Companies in it for Profit or Medical Science"
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Every company is spawned by a creative idea. The beginning of a medical technology company may also have its start due to purely altruistic intentions and for the advancement of medical science. However, to fund the development of such a company does require financial backing. The unfortunate trait within humanity is that there needs to be a return on time and investment. This is not the fault of the company but a societal problem. We exist in a society that requires the accumulation of wealth to survive whether as a company or an individual.

A company is not an entity within its own. It is made up of people and the tools required to discover cures, develop products and as any other company a means to manufacture, market and distribute them to the world's population. It takes financial strength to recruit talented people, provide a workplace and to ensure that they are provided the necessary tools to maximize their creative genius. If the company is a startup this is funded by investors that provide capital with a promise of a return. A company which has matured and has products in the marketplace does fund research and development with a portion of the profits from the sale of their products. So, reasonable profit is required to ensure the continued existence and longevity of any company.

Medical technology companies due to the nature of the products they develop possibly require a greater profit margin than most conventional companies. The research to product development cycle is long and may require years to produce a viable product. Medical technology companies are required by law to prove the effectiveness and safety of their products by long clinical tests performed under stringent regulatory scrutiny. The activities necessary to productize a medical science discovery requires an investment of many dollars as well as many other resources and time. This makes profit essential in providing adequate funding to ensure the continued existence of the medical technology company.

Medical technology companies walk a fine line between return on investment and social conscience awareness. Not enough return on investment jeopardizes the existence of the company and too much profit on a product is viewed as price gouging and making money on the miseries of the less fortunate. I would not want to see more governmental regulation on an already heavily regulated industry. I believe that competition and the marketplace will help determine what reasonable profits are for the medical technology companies.

More about this author: Richard Bramante

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