Investigating the vestibular space as a viable business opportunity for a medical device manufacturer

Abstract

Due to the socioeconomic burden, growing attention has been given to vestibular impairment. This heterogenous condition is known to affect the postural balance and gait, consequently interfering with routine activities such as walking and driving. Regardless of the impact on the quality of life, no effective treatment is yet available. By leveraging its key resources, Cochlear is exploring the vestibular space as a viable business opportunity. The first steps have been made by initiating the development of devices to restore vestibular function. The purpose of this study is to provide Cochlear with key insights on the vestibular space to assess the opportunity from a business perspective. This comprehensive report allows Cochlear to make an informed decision on entering the vestibular market in a controlled manner. Based on our research and analysis performed during this project, we consider the vestibular space as an interesting opportunity for Cochlear to explore. Value can be generated as the core business will expand, the customer relationship will strengthen and Cochlear can benefit from a first mover advantage. However, more market research is needed to get an estimation of the total market size. Cochlear should take several risks and challenges into account in order to prepare its entry in the vestibular space. The major risk is that the market size would not be large enough to be a viable opportunity for Cochlear. Therefore, we advise Cochlear to perform more market research and define which segments can be targeted in the future. Apart from possible competitors entering the vestibular implant market, another major risk is that the devices developed by Cochlear cannot meet the safety and effectiveness requirements. Therefore, Cochlear should perform more clinical research and enhance the devices according to the results. To support Cochlear in its decision to expand to the vestibular space, we advise to follow fourteen actions: (i) Support further academic research in the vestibular field (ii) Perform vestibular tests on CI-patients, pre- and post-operative (iii) Focus on the BionicVest to collect data on the CVI (iv) Invest in the partnership with the University Hospital of Las Palmas (v) Await the results of the clinical trials of the BalanCI (vi) Continuously improve the vestibular devices (vii) Find new candidates for clinical trials (viii) Perform clinical trials to gather data (ix) Re-evaluate the business case (x) Use the business case to convince all internal stakeholders (xi) Acquire reimbursement for every device (xii) Prepare the market before commercializing (xiii) Enter the vestibular market by commercializing (xiv) Collect more data and look into new possible market segments such as PVP which is presumed to be a large segment with a high socioeconomic burden.