How the new EU

Medical Device
Regulation will disrupt
and transform the
industry

How the new EU Medical Device Regulation will disrupt and transform the industry 1
1
2 How the new EU Medical Device Regulation will disrupt and transform the industry
 Contents
4 How the new EU Medical Device Regulation will
disrupt and transform the industry

6 W hat will the EU MDR look lik e?

9 A whole- of- b usiness approach

1 1 B eyond compliance

1 2 A safer world

1 4 P lanning for an ideal scenario

1 6 A fundamental impact on innovation

1 8 A ck nowledgments

1 9 C ontacts

How the new EU Medical Device Regulation will disrupt and transform the industry 3
How the new EU Medical Device Regulation
will disrupt and transform the industry

S weeping reform of the rules that govern the medical device

sector in Europe represents one of the most disruptive changes compliance in the world’ s second- b iggest medtech mark et. T he
to affect the industry in recent times. W hen the European costs associated with compliance may force some companies
Medical Device Regulation ( EU MDR) replaces the current set
of directives, companies will have three years to comply with a putting themselves up for sale. T he aftermath of the shak e- up
b road swathe of new rules for almost every k ind of product in the will b e a stronger, more accountab le medtech industry that may
medical device spectrum. look sub stantially different from today’ s.
Under the new rules, medtech companies will have to: Many medtech companies have b egun to look at how they
should address compliance, and realiz ed that the ex tent of the
• P rovide sub stantially more clinical evidence to get products to
changes req uires a company- wide approach. T hese companies
mark et, or even to k eep some products on the mark et
have grasped that the EU MDR represents not j ust a compliance
• C onduct deep portfolio audits to determine the new rules’ challenge, b ut an opportunity to add value to the b usiness at the
impact on margins same time.
• Relab el products and mak e data ready to b e made
pub licly availab le

4
4 How the new EU Medical Device Regulation will disrupt and transform the industry
 C hanges to the ex isting rules, which date b ack to the 1 9 9 0 s and
have b arely b een updated since, are long overdue. I ncremental
The events that triggered the need for changes b egan to b e discussed b y European policymak ers as
regulatory reform far b ack as 2 0 0 8 . B ut it was a series of events from 2 0 1 0 ( see
b ox ) that emphasiz ed, to b oth policymak ers and the industry,
Medtech is one of the most trusted components of the
health care ecosystem. A glob al poll of patient groups
concerns were adeq uately addressed. I n 2 0 1 4 , “ regulation”
b y P atientV iew, a consultancy, found that device
b egan to b e used to refer to the updated medical device
companies had a b etter reputation than all other
legislation, rather than the softer “ directive” — this served as a
health sectors — even retail pharmacists — with b iotech
wak e- up call for the sector. B y mid- 2 0 1 5 , the b road details of the
and pharma companies some way b ehind. Medtech
new legislation were b eing widely discussed, and the current and
companies are largely seen as providing useful, q uality,
innovative products. B ut the sector’ s reputation was
b y the so- called “ trilogue” of the EU C ommission, P arliament
tarnished b y a series of recent events, prompting an
and C ouncil.
urgent need for regulatory reform.
T hat long run- up to legislative change offered ample time
for medtech companies to b egin to ex plore the right path

August July to compliance. B ut how far have they gone down that path?
A uditoriums at recent medtech conferences in the US and
Europe where the EU MDR has b een discussed have b een

2010:
DeP uy announced a
2011:
T he U. S . F ood and
pack ed, suggesting that for many companies the real compliance
work has not b egun. Y et the implications of the EU MDR for the
sector, glob ally, are b ig — the European medical technology
voluntary recall of its Drug A dministration
A S R metal- on- metal hip ( F DA ) warned of 3 1 % , and is estimated to b e ab out € 1 0 0 b illion ( US $ 1 0 8 b illion) ,
replacement system after serious complica- according to the W orld Health O rganiz ation’ s Eurostat datab ase
a study showed that the tions associated with and calculations b y Eucomed, an industry association.
surgical mesh for
product was ab out 1 3 % . transvaginal repair W hat is the holdup? T he challenge for medtech companies here
after nearly 4 , 0 0 0
adverse events. of the regulation will b e interpreted, and we don’ t k now when the
players in the industry will b e ready for its implementation — so
what should we b e preparing? ”

June July
2012:
P oly I mplant P rothé se ( P I P ) ,
2012:
W histleb lowers
F or many companies, the real
a F rench company, was claimed that the F DA compliance work is yet to b egin,
revealed to have k nowingly had approved medical b ut the implications for the
sold b reast implants made devices that posed
with industrial- grade severe health risk s.
sector, glob ally, are b ig.
silicone, rather than medi-
cal- grade. A b out 3 0 0 , 0 0 0
women were affected.

How the new EU Medical Device Regulation will disrupt and transform the industry
55
W hat will the EU MDR
look lik e?
S ince the earliest days of reform discussions, policymak ers have
focussed on several weak nesses in the current directives:
• Ex isting rules have failed to k eep pace with technical and

•
evidence ab out devices’ safety and clinical performance.

• I t is not always possib le to track devices b ack to their

original suppliers.

• Different EU countries interpret and implement the directives in

different ways.

W ith these issues in mind, medtech companies should have b een

ab le to predict that the new rules would clearly focus on patient
safety, b y stipulating greater transparency and traceab ility and
b etter clinical evidence to support claims of a product’ s safety

W ithin medtech companies, these issues, unsurprisingly, land in

the regulatory team’ s inb ox . B ut as more detail emerged ab out
the composition of the new EU MDR, it b ecame apparent that the
full impact of the changes would ex tend b eyond regulatory. T he
proposed legislation will b e b roader in scope than the reforms

• T he estab lishment of the Eudamed medical device datab ase,

• A req uirement for clinical trial data to b e provided b efore a C E
through which regulators, providers and the pub lic can access
mark is granted for implantab le and high- risk devices
technical data, clinical trial results and adverse event reports
• P re- mark et and post- mark et approval processes for high- risk ,
• Ex panded “ directions for use” content associated with products
implantab le devices
• A possib le b an on some restricted sub stances in the manufacture
• Data transparency — including pub lication of clinical trial data
of products, and a req uirement to track certain chemicals and
and safety summaries
restricted sub stances throughout the supply chain
•
•
support registration

• T ightening of vigilance reporting timelines from the current implantab le devices

3 0 days to 1 5 days
• A req uirement that companies retain at least one person
• responsib le for regulatory compliance
that implemented in the US

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6 How the new EU Medical Device Regulation will disrupt and transform the industry
 highly lik ely that, at least while companies are in the process of

mark et” destination. Mark et authoriz ation timelines will b ecome

protracted, curtailing patients’ access to technology innovations.
A nd the costs of operating in Europe will increase, too. F rom a
regulatory point of view, one b onus of the EU MDR is that it will
iron out inconsistent determinations over devices b y individual
Memb er S tates. L ik ewise, plans to introduce a centraliz ed

possib ly a positive one, assuming it does not lead to b ottleneck s.

capacity and deeper ex pertise. T his will lead to more competition

will restructure for success and gain more mark et share. I t will b e
important for medtech companies to pay attention to the health

getting products to mark et.

F rom an operational point of view, companies are anticipating

req uirements still have a numb er of uncertainties, there is no

evidence from manufacturers of higher risk products if they are

to b e allowed on the mark et, including, to some ex tent, products
already on the mark et. Mark et access will req uire companies to
conduct deep portfolio audits to determine impact on margins,
assess UDI readiness, relab el products and mak e data ready to
b e made pub licly availab le. I t all adds up to a complex change
• Economic operators in the medtech supply chain will need to program — a paradigm shift, even, after which nothing will look
q uite the same. Meanwhile, companies must maintain b usiness
surveillance and reporting rules as usual and ready themselves for a “ new normal” to sustain
compliance: “ lik e trying to change a car’ s tires while it is b eing
T hese are transformational shifts for medtech companies, from driven on the highway, ” as Erik V olleb regt of A x on L awyers in
several points of view: accessing the EU mark et, complying with A msterdam told Regulatory Focus in 2 0 1 5 . T here is a scale issue
regulations, restructuring operations and planning future b usiness.
ones to manage all these issues at once. S ome will simply not b e
port of call for most medtech products entering the mark et: ab le to afford the cost of remediation, particularly when it comes
after ob taining a C E mark in Europe, suppliers could test their to generating clinical evidence, and may therefore look to ex it the
products there in vivo, b uilding the dossier of clinical evidence mark et or put themselves up for sale. O ne effect of the EU MDR
they would need in order to secure F DA approval down the track .
portfolios or ex pand into new areas.
A s and when the new legislation is passed, that familiar path
to mark et will almost certainly need to b e reviewed. I t seems

How the new EU Medical Device Regulation will disrupt and transform the industry
77
 C ompliance with legislation is generally viewed as a driver of
complex ity and costs for b usinesses, whose regulatory teams
What does compliance cost? are task ed with ensuring that their companies are compliant
with legislation and minimiz ing the risk s associated with it. B ut
it is apparent that tack ling the list ab ove goes b eyond the remit
what will b e the total cost of compliance with the EU MDR. of even the most dedicated regulatory team. P roviding data on
F or some companies, only a small part of their portfolios will product lines may req uire conducting new clinical trials. S ome
b e affected b y the changes; b ut for others, the compliance
process may b e applicab le to nearly all product lines. O ne validated clinically, or b e at risk of b eing removed from the mark et,
rough estimate is that the total cost of compliance, industry- although the “ proven technologies” principle — otherwise k nown
wide, will b e b etween 3 . 5 % and 5 % of revenues. as “ grandfathering” — is one of the k ey points of the EU MDR
I n 2 0 1 3 , the industry group Eucomed surveyed its determined b y the trilogue ( I f grandfathering is accepted, it will
certainly come with the req uirement that each case is b ack ed
b y some k ind of supporting evidence) . N onetheless, the EU
on that survey, the estimated costs to the industry were MDR’ s three- year compliance period should b e enough time
calculated as follows: for companies to b ack up the claims they mak e for products.
T he legislation is ex pected to b e less stringent for less complex
products, such as sutures.

€7.5b However, the additional clinical evidence req uirements lik ely
to b e stipulated b y the EU MDR will mean that products in

€17.5b
( US $ 8 . 1 b illion) : development may tak e longer to get to mark et — which is lik ely
cost to industry of
compliance with allocation of capital. S uppliers, too, will need to b e audited to
a UDI system, ( US $ 1 8 . 9 b illion) : cost to mak e sure they are also compliant. C ompanies will need to refer
improvements in industry if a centraliz ed pre- to their b ills of material and track down the whole chain of each
lab elling and clinical mark et authoriz ation system product’ s component to the suppliers of that component, and even
performance data is implemented possib ly to those suppliers’ suppliers. S ome suppliers to medtech
companies have already realiz ed that compliance with the EU
MDR will differentiate them from competitors, and are acting
accordingly. I f some products req uire new materials in order to

€17.5m
( US $ 1 8 . 9 million) : cost to a small- to- medium- siz ed
comply, production processes may need to b e redesigned.

enterprise ( S ME) to b ring a new C lass I I I product to

mark et under a pre- mark et authoriz ation system b odies will intensify. Many in the industry fear b ottleneck s will

and regulatory policy ex ecutive advised to delegates at the 2 0 1 5

MedT ech Europe conference, companies should b e look ing to

B ut despite these costs, respondents generally agreed that

seamless path to mark et.
the proposed UDI , lab elling, clinical performance data and
administrative changes would b e welcome improvements to
the ex isting legislation.

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8 How the new EU Medical Device Regulation will disrupt and transform the industry
A whole- of- b usiness approach
Even with a three- year window, regulatory teams will not b e ab le crucial element in the conversation is to look b eyond compliance
to complete all this work in isolation. I t is evident that compliance
with the EU MDR req uires an approach that tak es in all aspects of
the b usiness. F or the regulatory teams into whose laps this has operations, and present b est- case and worst- case scenarios. T he
fallen, this represents a separate challenge: how to engage senior q uestions on EU MDR to which medtech C EO s and C F O s will most
leadership to understand the importance of the task ahead and want answers are:
commit resources to tack le it.
• W hat percentage of our revenue is at risk ?
“ Regulatory teams k now what’ s coming, and how much of the
• W hat is the total cost of compliance? ( A nd what is the cost of
portfolio will b e impacted, ” says EY A dvisory P artner L ucien de
compliance b y product line, function and interdependence, e. g. ,
B usscher. “ W hat we are ask ed b y regulatory people is advice on
supply chain? )

ask s ab out the EU MDR are, ‘ W ill it go away? ’ and ‘ I f it won’ t, what • W ill we have to rationaliz e our product lines?
is the impact if we’ re not compliant? ’ T he third q uestion is, ‘ W hat
• Have we conducted due diligence around EU MDR preparedness
will it cost us? ’ A nd the fourth q uestion is, ‘ W here does it hit our
portfolio hardest? ’ ”
Regulatory teams that successfully convinced the C - suite of the

A dopting the new regulations will impact different parts of the b usiness in different ways along three distinct phases of the process:

Pre-final text Final text (day zero) Transition (3–5 years)

• • S trategic issue escalation

•
Leadership and leadership supports
and prioritiz es as strategic ob j ective •
transition

•
• • Enab ler proj ects to support
Business •
• j ourney to compliance
management

•
• •
Financial •
• •
support transition

•
• Remit for validated
Governance • • I mplementation management
implementation plan
•

How the new EU Medical Device Regulation will disrupt and transform the industry
99
 I t is the companies with C lass I I I and implantab le products in their
readiness program, even b efore all the differences b etween the portfolios which have the b iggest compliance task ahead. T he EU
ex isting directives and the new legislation are understood, will MDR’ s central tenet — that clinical information on these products
b e to design and perform a gap analysis. T his itself could prove is provided and made pub licly availab le — will add cost and
to b e a complicated and time- consuming process and needs to complex ity to the European registration process. T his will clearly
encompass b usiness functions right across the enterprise, as in b e a challenge for companies that are not used to doing clinical
the ex ample b elow. trials — they will have to estab lish not j ust an in- house clinical
organiz ation, b ut a complete clinical network .

How many of our b usiness units/

Business
franchises/ product families will need to
structure
b e assessed?

structure? How many design centers

Technical files
do we use, and do they use a consistent
format internally?

Notified bodies
products?

A re the I T systems, data repositories

Process and data
and processes consistent b etween
systems The US UDI precedent
franchises?
O ne lesson for companies seek ing to b ecome compliant
Manufacturing How is our supply network ( authoriz ed with the EU MDR may b e in the way companies responded
and distribution representatives, distrib utors, importers)
network structured? legislation in the US . Minnie B aylor- Henry, Medical Devices
P ractice L ead at Y ourEncore and former W orldwide V P
of Regulatory A ffairs for Medical Devices at J ohnson &
Restricted
product family? I f so, do they share the UDI legislation, lik e EU MDR, was also deb ated for
substances
components and materials? many years b efore coming into effect in 2 0 1 4 . “ Medtech
management teams grew sk eptical that it would b e
How many C lass I I I and implantab les do enacted, ” Ms B aylor- Henry says. “ W hen the UDI was
we have in our portfolio? F or how many
Clinical trials of our products — on the mark et and in b udgeted to ensure compliance. However, as will b e
development — will we need to generate the case with EU MDR, teams of diverse stak eholders —
evidence? encompassing, for ex ample, regulatory, supply chain,
q uality, I T and safety divisions — were formed to oversee
How many q uality management systems compliance. T his was long discussed, b ut many companies
QMS
do we have in operation? grew weary of the anticipation. ”

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1 0 How the new EU Medical Device Regulation will disrupt and transform the industry
B eyond compliance Preparing for MDR: opportunities
for manufacturers
I t is fair to say that few companies are now unaware that
regulatory change is imminent. I f any companies can b e Brand Competitive positioning.
describ ed as laggards in addressing the compliance process, it is enhancement. I t is lik ely that different
largely b ecause they are small companies, operating in only a few C ompliance with companies will adopt
mark ets, with a handful of products and with limited resources to the EU MDR, with different strategies in
its focus on pub lic response to the new
b efore assessing the implications of EU MDR for their companies. safety, will enhance legislation, b ased on their
companies’ capacity to undertak e
Many medtech companies — particularly those with b road standing as the potentially ex tensive
product portfolios and revenues over US $ 5 b illion — have at trusted partners in changes. T his may
least already b egun to look at how they should address EU health care. present mark et ex pansion
MDR compliance. I n those companies, a common thread is opportunities and/ or
an awareness at the senior leadership level that an ex tensive acq uisition targets for the
strategy will need to b e implemented to assess portfolios b usiness.
and create an organiz ational structure that can deal with
the changes.
T hat k ind of focus has given the early adopters a uniq ue Portfolio rationalization. Market
perspective. Understanding that the impact of EU MDR on their W hile portfolio audits are opportunities.
operations and b ottom line will b e sub stantial, they regard the part of life at medtech I n response to
process not as simply a compliance ex ercise, b ut an opportunity companies — in principle, at the points ab ove,
to add value to the b usiness at the same time. T hey have already least — compliance with EU commercial teams
b egun to analyz e gaps in their b usiness models, in terms of MDR will req uire a deeper
regulatory risk hotspots and parts of their portfolio where dive. T he opportunity revenue potential
regulatory compliance will eat into margins. A nd they have to critically ex amine the and the opportunity
started to b uild implementation road maps that they will ex ecute product portfolio to assess to revise mark eting
b efore the legislation comes into effect, including creating the EU MDR’ s impact on and sales.
cross- functional teams. margins, or the need for
product redesign, new
W here companies seek to leverage the opportunities inherent in
manufacturing processes or
compliance with new legislation, the outcomes for the b usiness
new supplier agreements,
can b e fruitful.
offers opportunities for
portfolio optimiz ation and/ or
divestments and acq uisitions.

How the new EU Medical Device Regulation will disrupt and transform the industry 11
1 1
A safer world
I nvestment in transparent clinical processes, traceab ility
and the ab ility to prevent or at least cushion the effects of
adverse events involving medtech can only b oost the industry’ s
standing among those who most value it. O f course, someone
C ompliance with new regulations may seem onerous, costly and will ultimately need to shoulder the operating and compliance
distracting. B ut as they go into the process, companies ought costs initially b orne b y medtech companies as they ready
to remind themselves of the ultimate goal. W ill the new EU themselves for the impact of the EU MDR. T hese costs will not
MDR mak e the world a safer place for the end users of medtech b e b orne b y regulators or policymak ers. T he industry will need
products? T hat, after all, is the driving force b ehind the reforms. to demonstrate its commitment to the end users b y ab sorb ing
J ohn B rennan, Eucomed’ s Director of Regulations and I ndustrial much of the cost of compliance over the nex t several years. B ut it
P olicy, think s so. “ W e, the medtech industry, welcomed these
changes [ to the legislation] , ” he says. “ T he industry was facing a improving its pub lic image. F or ex ample, some companies have,
trust issue. Q uestions were b eing ask ed of the regulatory system, for many years, b een ab le to b ring products to mark et without
and if the system cannot answer those q uestions, then that having to provide much in the way of clinical data to prove their

the industry. ”

12
1 2 How the new EU Medical Device Regulation will disrupt and transform the industry
A nd intensive scrutiny of their b usiness practices and processes associated with products, or patients “ health hack ing” their own
can leave companies considerab ly b etter eq uipped for the future.
“ T ransformation can b e a fantastic opportunity to b reak down b ody, argues that the proposed EU MDR focuses too much on
silos within companies and b etween products and processes, regulation of “ traditional” medtech, and “ software- related issues
and to b etter tak e advantage of interesting acq uisitions on the such as compatib ility, interfacing standards and security are not
horiz on, ” says EY ’ s L ucien de B usscher. “ I t’ s an ideal opportunity addressed in any detail. ”
B ut all that aside, from the day the EU MDR passes into law,
T he merits of the EU MDR will b e deb ated for some time. O ne companies will have three years to thoroughly understand the
q uestion will b e whether the authors of the legislation intend legislation and its impact on their portfolios, to comply with the
that it will b e in place for as long as the current directives. B ut law and to position themselves to tak e b est advantage of a new
in view of the rapid rate of change within the medtech sector, era in medtech regulation.
the EU MDR in its draft form does not appear to contain enough

custom- made for individual patients via 3 D printing, apps

How the new EU Medical Device Regulation will disrupt and transform the industry 13
1 3
P lanning for an ideal
scenario

Minnie Baylor-Henry
Medical Devices P ractice L ead, Y ourEncore
F ormer W orldwide V P , Regulatory A ffairs ( Medical Devices) ,
J ohnson & J ohnson

T he new EU MDR promises to disrupt medtech in several ways.

F or years, launching new devices in Europe was b elieved to

whether that will still b e the case under the updated EU MDR.
T his is an important consideration, b ecause as a company enters
its strategic planning process, there will b e greater uncertainty
ab out whether its product will b e registered in certain mark ets
and b y what date. W hile there has always b een a certain amount
of amb iguity in this process, the impending European regulation

that smaller mark ets around the world often look to the US or
Europe as a reliab le b enchmark for product entry into other EY and YourEncore Alliance
mark ets. T he uncertainty in Europe around the EU MDR may
result in many unanticipated conseq uences, including delayed L ife sciences and consumer products companies are facing
launches in other parts of the world. a continuous state of change. Rapidly evolving regulations,
rising costs and the accelerated pace of innovation req uire
Many companies may see this as an opportunity for portfolio different approaches. EY and Y ourEncore have estab lished
a strategic alliance to help companies outthink , outpace and
that one b urdensome element of the new regulations will lik ely outperform in this highly complex , competitive and glob al
b e an increased need for clinical data. T herefore, as companies mark etplace. F or more information on this alliance, visit
ex amine their product lines, they will identify products that may
ey. com/ eyyourencore.
req uire a considerab le investment in new clinical data if they

14
1 4 How the new EU Medical Device Regulation will disrupt and transform the industry
 to ex perience fatigue ab out where the impending European

it has b een challenging for regulatory affairs, q uality and

T he uncertainty in Europe around
commercial teams to motivate senior leaders in disparate parts
the EU MDR may result in many of the medtech organiz ation to stay focused on the enormity
unanticipated conseq uences, of this issue. T his challenge is even greater when the potential
including delayed launches in
other parts of the world. S ome may argue that large companies will have the resources
to mak e sure they are in compliance with the new regulations.
I n some instances, they are b uilding special teams capab le

are to b e compliant with the EU MDR. T he outcome, in many

companies with fewer resources, the EU MDR b ecomes more
cases, may b e to divest the asset, particularly if the products
b urdensome. S maller companies might choose to wait and
are associated with smaller margins or don’ t have much future
focus instead on getting products to the mark et — although the
growth potential. Despite the clinical req uirements not b eing
clear, portfolio review is a prudent approach for companies to
for launch may not b e feasib le.
W ith so much uncertainty in the mark etplace, medtechs can b est
end of the day, consumers, patients and physicians all want prepare for the coming changes b y performing a gap analysis
devices that are safe, reliab le and effective, and that improve that b enchmark s a company’ s current capab ilities against what
outcomes and get reimb ursed. is k nown will b e included in the coming legislation, in hopes of

I n an ideal scenario, the enactment of the EU MDR could have

associated with higher- risk products. P erforming a gap analysis
numerous positive results. F or instance, the pub lic is consumed
tak es time and is not something companies should hold off doing.
with stories ab out sub standard devices, such as the P I P b reast
I t is prudent to understand what the b aseline look s lik e today
implant scandal, which have led to sk epticism ab out the q uality
in order to b egin to plan the resources and task s necessary for
of medtech products. I f the new regulation restores consumer
compliance in the future.

products, it will b e a good thing.

A b out Y ourEncore
S o why the concern? O ne challenge in tack ling the changes
req uired for compliance with the EU MDR is that companies Y ourEncore is the leading provider of highly ex perienced,
have b een hearing ab out the new regulations for so long that
preparing for the new req uirements may b e viewed as a low device, and consumer goods industries.
Using its network of 1 1 , 0 0 0 + ex perts, who average 2 5 +
European Medical Devices Directive would undergo a huge shift,
there was a great deal of anx iety ab out what this would entail. years of industry ex perience, Y ourEncore mob iliz es the
However, when the directive was reframed as a regulation wisdom and k now- how of encore professionals to help
in 2 0 1 3 , it signaled that the initiative may b e an even b igger companies outthink , outpace, and outperform.
regulatory shift than many originally thought. P erhaps that F ounded in 2 0 0 3 , Y ourEncore was named a ‘ 1 0 0 Most
should have spark ed a sense of urgency within companies. B ut, B rilliant C ompany’ b y Entrepreneur Magaz ine and serves
with the implementation many years in the future, other issues 8 0 % of the largest F ortune 5 0 0 pharmaceutical and
took precedence, including UDI implementation in the US , the consumer goods companies.
I nternational Medical Device Regulators F orum, medical device
T o learn more, visit www. yourencore. com.
provisions in C hina and many others. A s companies b egan

How the new EU Medical Device Regulation will disrupt and transform the industry 15
1 5
A fundamental impact
on innovation

John Brennan
Director, Regulations and I ndustrial P olicy, Eucomed

W e live in a Europe that cherishes health and wants to invest in

health, which mak es it a good place for b eing in the medtech
b usiness and a good place to innovate.
F rom a reputational point of view, the new European Medical
Device Regulation is an important step. I t will lead to an EU W hile there are many positives, industry strongly maintains
registration datab ase and transparency ab out issues associated that the draft tex ts pub lished so far still req uire improvement to
with products. I t will lead to clarity ab out what is needed in
terms of clinical development. I t will lead to clarity on adverse a high level of protection to patients while fostering innovation
events — when they occur and how they are controlled, track ed in the EU. F or ex ample, industry is strongly against the foreseen
so- called “ scrutiny mechanism” — a duplicative look b y a panel
will aid track - and- trace for health systems. A nd, importantly,
redundant with other improvements and only serves to delay
what competencies they have and how they do their check s. access to needed innovation for patients.
T he legislation gives authorities more power to mak e sure that
the system is work ing as it should. T he current legislation says
and how data from clinically eq uivalent devices can b e used

normal in the 1 9 9 0 s, b ut a lot of that information would never b e attractive — especially at a time when the US F DA is actively
mak ing its system more ‘ European- lik e’ and innovation friendly
with a stated vision of patients in the US having “ access to
W e, the medtech industry, welcomed these changes. T he high- q uality, safe and effective medical devices of pub lic health
legislation needed to b e refreshed and updated. T he legislation
was also facing a trust issue, particularly after the P I P b reast
implant scandal. Q uestions were b eing ask ed of the regulatory T here will b e b ig impacts at b oth ends of the medtech spectrum.
system, and if the system cannot answer those q uestions, S mall, entrepreneurial b usinesses, particularly those mak ing an
implantab le or C lass I I I product, are going to have to mak e sure
reputation of the industry. that they get their clinical pathways correct, and hopefully in

16
1 6 How the new EU Medical Device Regulation will disrupt and transform the industry
 US , b ut certainly longer than it is today. B usinesses will need
to factor the additional time into all their future developments
and planning decisions. W e understand, for ex ample, that the
scrutiny mechanism could add up to 6 0 days. T he b iggest
concern ab out that is that patients will have to wait longer for
access to products.
W hat we have heard from the b ig consultancies is that the
b est- in- class companies are getting ready for the impact of the
changes, many are sitting on the fence and wondering when to
start getting ready, and some are in denial, think ing it will go
away. T he level of readiness can’ t b e link ed with a company’ s
siz e or geographic location; it’ s more that b usinesses which
have decided to b e close to the discussion are further ahead
than b usinesses which have not. T hose which have not may b e

having adeq uately provisioned resources to deal with some

for many companies to maintain their focus. I t is highly relevant

to their b usiness, b ut it has gone on far b eyond the horiz on for
many C - suites. B usinesses want clarity and predictab ility. A nd
the continuous prolongation of the end date for the European
legislative process coupled with the secrecy of the process is
more than frustrating to companies that want to get on with the
j ob of helping patients and doctors have b etter outcomes.
T here is also the secondary legislation that will follow from
in terms of getting their clinical risk management plan right
the primary regulation — which will also trigger changes to
and thereb y securing the right investment to get their product
harmoniz ed standards and EU guidelines. T his will involve
to mark et. A nd larger companies will have to re- ex amine their
consultation with stak eholders including Eucomed and is a
large “ second phase” of work . A t Eucomed, we intend to help
whether they need to b e reshaped or reviewed to mak e sure they
the industry b y developing a solid training pack age offering
b est practice guidelines on the new regulation — which can
new regulations.
b e implemented b y S MEs as well as glob al players — to b ring
I t’ s clear that there will b e a fundamental impact on the together industry’ s views for input into the EU legislation’ s
innovation pipeline. T he work req uired to get a C E mark will second phase.
change: companies will need to put heavier emphasis on solid
I am hopeful that in considering the legislation, the policymak ers
clinical dossiers for C lass I I I and implantab le products. I t will
have also considered its impact on growth, j ob s and investment
req uire ex tra time and investment to put those dossiers together
in the medtech sector. W e need to get the safety and patient
to mak e sure products meet the new req uirements — and the
safety aspects of the regulation correct. Y ou can do that with
b odies will b e more competent, so there will b e pressure on
investors — which is a negative for advancement in patient
companies to invest more time and effort to mak e their dossiers
outcomes. O r you can do it with a system which is less
user- friendly and approachab le for reviewers — intuitively simple
b ureaucratic, more transparent and more approachab le
and easy to follow and verify under the new, more intense
for b usiness — which is a positive for advancement in
review they’ re going to get. T he assessment process itself is,
patient outcomes.
in all lik elihood, going to tak e longer — not as long as in the

How the new EU Medical Device Regulation will disrupt and transform the industry 17
1 7
 Acknowledgments
We would like to acknowledge the invaluable
contributions of Lucien de Busscher, Andrew Flockhart,
Minnie Baylor-Henry, John Brennan, Glen Giovannetti and
Frank Kumli in the writing of this report.

18
18 How the new EU Medical Device Regulation will disrupt and transform the industry
 Contacts
Pamela Spence
EY Global Life Sciences Leader
pspence2@uk.ey.com
+44 20 7951 3523

Jon Lange
Principal, Advisory Services
jon.lange@ey.com
+1 215 448 5904

Lucien de Busscher
Partner, Advisory Services
lucien.de.busscher@be.ey.com
+32 2 774 6441

How the new EU Medical Device Regulation will disrupt and transform the industry 19
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