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How Device Firms Can Play the Pricing Game to Improve Franchise Value

Executive Summary

Price erosion--and its significant impact on profitability--has been a way of life for most medical device companies for years. But changes in the markeplace, particularly in GPO contracting strategies, may open the door to a re-thinking of the inevitability of price discounts. For many medical device and supply companies, the potential impact from raising the game on pricing performace is significant and available now. It can add 15-30% or more in franchise value and be a source of sustained competitive advantage.

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