Sir Chris O’Donnell Retired Chief Executive, Smith & Nephew Future Medical Technologies and Drivers MANUFACTURING FESTIVAL SHEFFIELD 2012 Medical Technology Innovative high-value added manufacturing technology Sir Christopher O’Donnell March 2012 1970’s 1990’s • High speed clinical chemistry analyser •Hydrocellular wound dressings • Servo-control infant incubator • Lightweight fracture casting products • Portable human isolation nursing system • High vapour permeable IV dressings • ‘Easy to use’ orthopaedic implant instruments Medical Technology Innovation – Personal History 1980’s • Infection control urinary catheter • Integrated heart by-pass oxygenator & tube packs 2000’s • Tissue engineered wound dressings • Oxidised zirconium hips/knees • Bio-resorbable arthroscopic fixation Sir Christopher O’Donnell – Sheffield 2012 innovation Market dynamics Value added innovations • Demographics • Smarter materials • Active lifestyle • Less invasive (MIS) procedures • Better-informed patients • Declining surgeon income DEMANDS • Accelerated healing • Alternative therapies • Nurse shortage • Faster patient turn-round • Healthcare Spending • Positive health economics • Specialization • Ease/convenience of use • New technologies Sir Christopher O’Donnell – Sheffield 2012 Global Medical Technology Market by Region 2011 Global Market Value: $250bn Source: Espciom 2011 Sir Christopher O’Donnell – Sheffield 2012 to innovate / differentiate products 1. Differences in customer demand:• Levels of healthcare spend per capita • Approval, procurement and reimbursement practices • Clinical practice, medical training and healthcare Source: Arthur D Little/ DTI report 2004 Sir Christopher O’Donnell – Sheffield 2012 Factors affecting national ability to innovate / differentiate products 2. Access to scientific/clinical knowledge:• • Varies according to maturity of technology Clinicians have multiple linkages with innovation Increasing Technology Maturity process Embryonic Growth Mature Ageing IV Diagnostics reagents Active wound “product” management First breakthroughAdvanced wound management (Tissue engineering) Orthopaedics Imaging Elec.med/respiratory Radiotherapy Time Source: Arthur D Little/ DTI report 2004 Sir Christopher O’Donnell – Sheffield 2012 MedTech 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 UK UK Companies - 2,500+ Domestic Market - £6bn Exports - £5bn+ Yorkshire Region Companies - 150 Turnover - £1.8bn Strengths - Woundcare Orthopaedic Devices Surgical Instruments Employees - 50,000 Sir Christopher O’Donnell – Sheffield 2012 Example of Innovation: Knee Joint Replacement SMITH & NEPHEW GENESIS II Knee System with Oxinium™ Technology Sir Christopher O’Donnell – Sheffield 2012 OXINIUM™ – a major innovation in reducing wear • Ceramic is generally accepted as the ideal bearing surface for total joints but has strength limitations • 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 Sir Christopher O’Donnell – Sheffield 2012 Process Manufacturing Process Development Issues Define & Prove Alloy Biocompatibility Scale Up and Prove Smelting Small scale novel alloy Net Shape Forging No other Manufacturer forges Zirconium Shaping & Grinding Process Zirconium dust combusts spontaneously and burns at 3,000°C Finishing & Polishing Processes Completely novel mirror finish requirements Sir Christopher O’Donnell – Sheffield 2012 innovation Market dynamics OXINIUM • Demographics • Smarter materials • Active lifestyle • Less invasive (MIS) procedures • Better-informed patients • Declining surgeon income DEMANDS • Accelerated healing • Alternative therapies • Nurse shortage • Faster patient turn-round • Healthcare Spending • Positive health economics • Specialization • Ease/convenience of use • New technologies Sir Christopher O’Donnell – Sheffield 2012 More Information? • INDUSTRY OVERVIEW Strengths and Opportunity: Annual Update Dec 2011 HMG; www.bis.gov.uk • LOCAL INDUSTRY NETWORK/ASSISTANCE Medilink Yorkshire & Humber Ltd www.medilink.co.uk Telephone: 01142 329200 • INNOVATION IN THE HEALTH SERVICE Devices for Dignity (D4D) Healthcare Technology Co-Operative Sheffield Teaching Hospital www.devicesfordignity.org.uk Sir Christopher O’Donnell – Sheffield 2012 MANUFACTURING FESTIVAL SHEFFIELD 2012 Medical Technology Innovative high-value added manufacturing technology Sir Christopher O’Donnell March 2012