Some of the best moats in the world are seen in healthcare. A few:
1. Agency pricing: These are formed through Dr. expertise + trust = sticky workflow. Trust can be formed through distribution + hospital networks, academic journals, educational development, and regulations.
1. Agency pricing: These are formed through Dr. expertise + trust = sticky workflow. Trust can be formed through distribution + hospital networks, academic journals, educational development, and regulations.
2. Regulatory approval: Can be seen as FDA approval for drug or device.
3. Regulatory capture: Products or services listed in conjunction with regulatory approval applications or other regulatory guidance.
4. Market share: leads to self reinforcing Pareto curves + trust.
3. Regulatory capture: Products or services listed in conjunction with regulatory approval applications or other regulatory guidance.
4. Market share: leads to self reinforcing Pareto curves + trust.
5. Precedents: FDA rulings on new or orphan tech form precedents and lead to agency pricing/knowledge flywheel + future reg capture.
6. Scientific focus: Rare disease focus = larger pricing power.
7. IP protection: Formed by patents or other exclusive arrangements.
6. Scientific focus: Rare disease focus = larger pricing power.
7. IP protection: Formed by patents or other exclusive arrangements.
8. Large sales force and distribution: Can keep smaller competitors at bay leading to skewed Pareto curves and cost optimization.
9. Sophisticated manufacturing: Hard to replicate, experience with FDA audits.
10. Data: forms sticker services, models + new regulatory reqs.
9. Sophisticated manufacturing: Hard to replicate, experience with FDA audits.
10. Data: forms sticker services, models + new regulatory reqs.
11. Partnerships: In this fast moving field, partnering with behemoths (ie. large pharma or suppliers) through unique or exclusive arrangements can fortify market position.
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