THE  MARGIN  BRIDGE
MEDTECH EDITION My profile ↗

The framework

The 40-point
bleed.

Large-cap medtech grosses 63 to 70 cents on every dollar. By the time it reaches operating income, roughly half of that is gone. This maps where, across six pillars, at your own numbers.

63-70%
Gross margin
An indicative margin profile based on your channel mix, channel economics and ASP trajectory.
~22%
Operating margin
Indicative operating-margin benchmark for leading large-cap medtech companies. The distance between the two is where the economics get explained.
40-50 pts
The gap
SG&A, field assets, channel costs, underactivated demand. Six places to look.

All figures are indicative estimates; benchmarks vary by portfolio, geography and channel mix.

The Margin Bridge is a diagnostic. Six pillars, each one a different place the margin leaks. Pick the one closest to your problem.

Which pillar is yours

Portfolio Yield KOL Engagement Patient Awareness Sales Enablement Channel Leverage Asset Productivity
Pillar 01
Portfolio Yield
Start here if your channel mix is shifting
Your channel mix sets a ceiling on gross margin. Most teams have never calculated what it is, or how far below it they sit.
Run the diagnostic
Pillar 02
KOL Engagement
Start here if trained HCPs are not adopting
Training is an event. Adoption is a journey most programmes never measure. How many of the surgeons you trained are actually using your product?
Run the diagnostic
Pillar 03
Patient Awareness
Start here if awareness spend is not converting
Awareness that ends at a view is spend. The version that ends at a booked procedure is demand. Most eligible patients never present.
Run the diagnostic
Pillar 04
Sales Enablement
Start here if field force costs are rising faster than revenue
The judgement that took a rep ten years to build has nowhere to accumulate now. What your field force costs per unit of revenue, and the risk sitting inside it.
Run the diagnostic
Pillar 05
Channel Leverage
Start here if your distributor holds more than they should
Your partner holds the registration and the customer relationship. Five questions that place how much of the economics you actually control.
Run the diagnostic
Pillar 06
Asset Productivity
Start here if sets are sitting idle in the field
Instrument trays in car boots and hospital stores, sterilised, shipped, and never opened. Every cycle costs money whether the tray is used or not.
Run the diagnostic

Not sure where to start?

The bleed rarely comes from one place. If you see your problem across two or three pillars, that is normal. Start with the one where you already have the numbers.

Share the shape of your P&L and I'll suggest the first pillar to examine.

Get my starting point shaoniemaitrra@gmail.com