Most small medical device companies develop innovative proprietary technology in hopes of unseating much larger rivals--on the theory that physicians care more about the effectiveness of the technology than who makes it. But Advanced Neuromodulation Systems sees things differently. Its main competition is device giant Medtronic, which not only leads in terms of market share, but has been a technology innovator. ANS's play: not to defeat Medtronic at its own game, but to carve out a lucrative part of the chronic pain management market under Medtronic's radar.
by David Cassak
It's one of the enduring myths of the medical device industry that small companies innovate and, out of innovation itself, create compelling value. Small companies become big winners because physicians...
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