sir chris o’donnell retired chief executive, smith & nephew future medical technologies and...
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Sir Chris O’DonnellRetired Chief Executive, Smith & Nephew
Future Medical Technologies and
Drivers
GLOBAL GLOBAL MANUFACTURING MANUFACTURING
FESTIVAL SHEFFIELD FESTIVAL SHEFFIELD 20122012
Sir Christopher O’DonnellMarch 2012
Medical Technology
Innovative high-value addedmanufacturing technology
MedicalMedicalTechnologyTechnology
Innovation – Personal Innovation – Personal HistoryHistory
1970’s1970’s• High speed clinical chemistry analyser
• Servo-control infant incubator
• Portable human isolation nursing system
1990’s1990’s•Hydrocellular wound dressings
• Lightweight fracture casting products
• High vapour permeable IV dressings
• ‘Easy to use’ orthopaedic implant instruments
1980’s1980’s• Infection control urinary catheter
• Integrated heart by-pass oxygenator
& tube packs
2000’s2000’s• Tissue engineered wound dressings
• Oxidised zirconium hips/knees
• Bio-resorbable arthroscopic fixation
Sir Christopher O’Donnell – Sheffield 2012
Healthcare system Healthcare system demandsdemands innovationinnovation
Market dynamics
• Demographics• Active lifestyle• Better-informed patients• Declining surgeon income• Nurse shortage• Healthcare Spending• Specialization• New technologies
Value added innovations
• Smarter materials• Less invasive (MIS)
procedures• Accelerated healing• Alternative therapies• Faster patient turn-round• Positive health economics• Ease/convenience of use
Sir Christopher O’Donnell – Sheffield 2012
Global Medical TechnologyGlobal Medical TechnologyMarket by Region 2011Market by Region 2011
Source: Espciom 2011 Sir Christopher O’Donnell – Sheffield 2012
Global Market Value: $250bn
Factors affecting national Factors affecting national ability to innovate / ability to innovate /
differentiate productsdifferentiate products
1. Differences in customer demand:-
• Levels of healthcare spend per capita
• Approval, procurement and reimbursement practices
• Clinical practice, medical training and healthcare philosophiesSource: Arthur D Little/ DTI report 2004 Sir Christopher O’Donnell – Sheffield 2012
Factors affecting national ability Factors affecting national ability to innovate / differentiate to innovate / differentiate
productsproducts2. Access to scientific/clinical
knowledge:-• Varies according to maturity of technology• Clinicians have multiple linkages with
innovation process
Source: Arthur D Little/ DTI report 2004
First “product”breakthrough
ImagingElec.med/respiratory
Radiotherapy
Orthopaedics
IV Diagnostics reagents
Active wound management
Advanced wound management
(Tissue engineering)
Time
Mar
ket S
i ze
Increasing Technology MaturityEmbryonic Growth Mature Ageing
Sir Christopher O’Donnell – Sheffield 2012
MedTech InnovationMedTech Innovation
• Medical technology is a large and growing global industry
• Innovation is the key driver of growth and is global in nature
• Technology plays a major role in driving this innovation – but needs strong industry / clinician / health service collaboration to succeed
Sir Christopher O’Donnell – Sheffield 2012
MedTech Sector in the UKMedTech Sector in the UK
Companies - 2,500+
Domestic Market - £6bn
Exports - £5bn+
Employees - 50,000
Sir Christopher O’Donnell – Sheffield 2012
UK Yorkshire Region
Companies - 150
Turnover - £1.8bn
Strengths - Woundcare Orthopaedic Devices Surgical Instruments
Example of Innovation: Example of Innovation: Knee Joint ReplacementKnee Joint Replacement
Sir Christopher O’Donnell – Sheffield 2012
SMITH & NEPHEWGENESIS II
Knee Systemwith Oxinium™ Technology
OXINIUMOXINIUM™™ – a major – a major innovationinnovation
in reducing wearin reducing wear• Ceramic is generally accepted as the ideal bearing surface
for total joints but has strength limitations
Sir Christopher O’Donnell – Sheffield 2012
• For more than 15 years Smith & Nephew worked to develop an innovative material that combines the benefits of ceramic with the strength of metal
• The result OXINIUM™, a metal with an integral ceramic surface
• Performing clinically equivalent to or better than conventional alternative Cobalt Chrome
• In the Laboratory OXINIUM™ wear at 30 years is less than Cobalt Chrome at 3 years
Oxinium = OXIdised Oxinium = OXIdised ZircoNIUMZircoNIUM
Sir Christopher O’Donnell – Sheffield 2012
Define & Prove Alloy
Scale Up and Prove Smelting
Net ShapeForging
Shaping &Grinding Process
Finishing & PolishingProcesses
Biocompatibility
Small scale novel alloy
No other Manufacturerforges Zirconium
Zirconium dust combusts spontaneously and burns at 3,000°C
Completely novel mirrorfinish requirements
Process IssuesManufacturing Process DevelopmentManufacturing Process Development
Healthcare system Healthcare system demandsdemands innovationinnovation
Market dynamics
• Demographics• Active lifestyle• Better-informed patients• Declining surgeon income• Nurse shortage• Healthcare Spending• Specialization• New technologies
OXINIUM
• Smarter materials• Less invasive (MIS)
procedures• Accelerated healing• Alternative therapies• Faster patient turn-round• Positive health economics• Ease/convenience of use
Sir Christopher O’Donnell – Sheffield 2012
More Information?More Information?• INDUSTRY OVERVIEW
Strengths and Opportunity: Annual Update Dec 2011HMG; www.bis.gov.uk
• LOCAL INDUSTRY NETWORK/ASSISTANCEMedilink Yorkshire & Humber Ltdwww.medilink.co.ukTelephone: 01142 329200
• INNOVATION IN THE HEALTH SERVICEDevices for Dignity (D4D) Healthcare Technology Co-OperativeSheffield Teaching Hospitalwww.devicesfordignity.org.uk
Sir Christopher O’Donnell – Sheffield 2012
GLOBAL GLOBAL MANUFACTURING MANUFACTURING
FESTIVAL SHEFFIELD FESTIVAL SHEFFIELD 20122012
Sir Christopher O’DonnellMarch 2012
Medical Technology
Innovative high-value addedmanufacturing technology