Consider th
e dictionary definitions of “global” — relating to the whole world — and “community” — a group of people who have characteristics or location in common — and you can see that our world really has become a global community. Economies and the industries that drive them are interconnected around the world; they rise and fall in tandem. What happens in one region of the world affects people in other parts of the globe.
Most people in the business world, including the life sciences industry, are aware of our interconnectedness. You can see that awareness in American reactions to the Brexit vote earlier this year, when a majority of voters in the United Kingdom decided their country should break away from the European Union. From gentle chiding and thoughtful caution to outright predictions of disaster, political, business and social leaders in the U.S. all had something to say about what Brexit would mean for Great Britain, the European Union and the entire world.
The life sciences connection
The U.S. and U.K. both have robust life sciences sectors that are as entwined as any in the world. What affects our colleagues in the U.K. is bound to influence life sciences businesses here. However, the consensus among industry leaders — not to mention world leaders — is no one can really predict the long-term effect of Brexit.
In her very thoughtful and thought-provoking article “Do you Believe in Life (science) after Brexit?” published in Medical Plastics News, Lu Rahman, group editor of Medical Plastics News, European Pharmaceutical Manufacturer, and Digitalhealthage.com, touched on the effect the Brexit vote has already had on the U.K.’s life sciences sector.
We asked her to explore how Brexit might affect the medical device and polymer science industries, not only in the United Kingdom, but in the U.S. and around the world as well.
Polymer Solutions Incorporated (PSI): Reports by Visiongain and Deloitte both predict significant growth opportunities in the medical device industry over the next decade. How might Brexit influence that growth?
Lu Rahman: The U.K. has a strong life science sector, in which the medical device industry sits. The country as a whole is seeing an increase in the use of digital technology, and science parks are gaining ground as innovative hotbeds for technology and business.
How Brexit affects this longer term remains to be seen, and how it affects the medical device sector is also unclear. Under current regulations, European directives cover medical devices being sold in the U.K. We don’t have a handle on how or if this will change as we are still so early in the (exit) process. There are hypothetical options for special trade agreements to take place like the one between the U.S. and Europe. In terms of manufacturing, industry bodies here are discussing the need to protect this sector when Brexit negotiations do take place.
Brexit may well affect growth. It may have done so already. Until we know the full extent of the U.K.’s long-term relationship with Europe, I would imagine many businesses are adopting a “wait and see” attitude. Confidence has been knocked and for sectors such as medical devices which rely on regulation, investment and being able to attract key talent, it could be viewed as an uncertain time. In this environment companies are likely to avoid investment and any financial risk until they can see a fuller picture for the future.
PSI: In what areas are we likely to see growth?
LR: In the U.K., there is a lot of excitement around the digital health sector. The National Health Service has committed to increased use of digital technology in hospitals and doctors’ surgeries, and wearables are increasing. Their use in clinical trials is really coming to the fore at the moment. With the rise of conditions such as diabetes due to increased levels of obesity, devices that can help ease the burden on the health service and allow patients to access care in their own homes are becoming highly attractive.
Other areas of the market are strong — stents, orthopedics and devices such as pacemakers.
PSI: What are the main drivers of growth?
LR: Innovation is a key element of the medical device sector, and the U.K. attracts and keeps individuals who are looking to push back the boundaries of technology to create products and services that are future-facing. Academic excellence nurtures the talent through our universities and the growth of science parks means we have the ability to foster and further the skills that are crucial for the development of new devices for the healthcare sector. And of course, we are always going to need medical devices, which is good news for the sector!
PSI: Has Brexit already impacted the medical device industry, and if so, how?
LR: We hear positive talk about the U.K. being free to establish its own trade deals, but we also have uncertainty about what will happen once the UK does finally break free from Europe. The EU is the largest trade partner for the U.S. and the UK is the fifth biggest export market for U.S. exports, so it seems fair to assume that going forward this may have a significant effect on trade.
It’s a mixed picture at the moment, which is to be expected until the terms of the UK leaving the EU are fleshed out. While these conditions exist, while the financial markets are vulnerable and while the global medical device sector is watching the UK, it is possible that opportunities are being diverted outside of the UK to places where economic stability is more certain.
PSI: If the impact has been negative, will the industry rebound/overcome that influence and when?
LR: You have to hope so!
A recent report from KMPG showed that three-quarters of British company bosses are thinking about moving operations abroad following the Brexit vote. While this may seem to herald gloom it’s interesting that 73 percent of them are also confident that business will grow, with 69 percent expressing confidence in the British economy.
Despite its manufacturing history, it’s no secret that the UK has lost a significant amount of its industrial heartland. Cheaper materials and labor have impacted the country’s manufacturing businesses. However, its life science sector is world-class and thriving. The combination of academia, research, transport infrastructure and talent in the country mean that it not only attracts, but also retains talent. If the medical device sector does experience a dip, we have the key factors in place to overcome it and find renewed success. How long this takes depends on how confident the sector feels about the future.
PSI: What does growth in the medical device industry mean for the polymer industry?
LR: Polymers, of course, play a huge role in the medical device sector. From the casings that the devices are made from to implant and coatings, manufacturers are continually looking for new materials as well as more efficient ways to design and produce goods. Antimicrobial plastics are becoming increasingly important in the light of antimicrobial resistance. The development of bio-absorbable materials and technologies such as soft robotics also means that applications for these materials continue to grow.
Optimistic caution
Rahman’s optimistic caution resonates for us. As populations in first-world countries continue to age, and global consumers are increasingly cognizant of health issues, it’s reasonable to predict demand for advances will continue to grow in all categories of life sciences — including medical devices and polymers.