Medical Devices: The Guide to Success in the American Market
After leading the American operations of a company to a successful sale for $1.3 billion and experiencing the challenges of the American market firsthand, Ron Melts established a commercial accelerator for Israeli medical device companies, guiding them to success.
Ron Melts readily admits to making many mistakes in his career. It is this recognition of his past errors that led him to establish a business that helps others avoid them. With a resume that includes seven years leading the American operations of a company, culminating in a $1.3 billion sale, he chose to leverage these mistakes into opportunity.
Melts has lived and worked in the US for 11 years. He began his current career path as US CEO of Equashield, an Israeli medical device company that made the above-mentioned exit under the leadership of CEO and owner, Arik Shem Tov. Although he expanded the company's customer base from a few dozen hospitals to more than 1,000, Melts readily recognizes he made many mistakes along the way while steering Equashield through the intricacies of local business culture in the medical device field. In his next role, as US CEO of Sight Diagnostics, he saw that the model he built indeed worked, and the company reached the sales stage within a short time.
"I realized we needed to open a commercial accelerator that would help companies in the field shorten their penetration time into the American market, avoid the mistakes I made, and thus lower the cost threshold. MarketWinch does exactly that," he says. "We provide a 360-degree solution for companies in the field of medical devices—from establishing and managing the US subsidiary to providing American offices and handling logistics, warehouse operations, and sales."
And the cost?
"Negligible compared to what the process would cost them if they were to do it independently. The timeline is a factor of economic significance, especially for young companies in the field; therefore, MarketWinch provides an essential, not to mention crucial, package."
What mistakes do Israeli companies tend to make in the US?
"The most common and critical mistakes are in the recruitment process. An Israeli who isn't immersed in the local market doesn't know how to hire and fire correctly. Incorrect recruitment of salespeople can be a fatal mistake. The cultural gaps are substantial and make assessment and recruitment difficult, especially since there are significant cultural gaps also within the US. It's all about nuances such as familiarity with local high school sports leagues, what not to discuss during small talk, and how to conduct a conversation to create a sense of identification and belonging. In the end, it's the art of sales based on cultural partnership. And that's just one point regarding recruitment. An innocent question about the interviewee's age or family status could lead to a lawsuit. It's taboo. Even internal management discourse can be risky. One company I assisted was sued for $700,000 over something trivial said to an employee. That's a fatal blow to a young company."
"Between recruitment and termination, you need to lead the company to success, build a business culture adapted to the market in which it operates, close deals, and draft proper contracts with hospitals and distributors."
The WeWork of medical devices
When a medical device company approaches MarketWinch, Melts and his team first examine the product and its added value for the American market. With his years of experience, Melts knows how to diagnose what will work: "Healthcare here is essentially a private market whose revenues rely almost entirely on insurance coverage. Therefore, the only way to sell medical devices to a hospital is to prove that the product increases revenue or reduces expenses. Otherwise, your product is simply not relevant. In the second stage, your competitors are evaluated, and a correct penetration strategy is designed, taking into account your funding stage and budget constraints."
"When conditions are ripe, MarketWinch will establish and operate the US subsidiary. The company will enjoy a complete operational package: the setup phase focuses on recruiting and training employees, specifying and establishing information systems as well as office and warehouse services. During the operational phase, salespeople open doors and close deals in hospitals, orders are supplied from our warehouses, and money is collected and deposited in the company bank account."
And what if the company is already operating in the US with its own people?
"Some companies that already have a manager in the US still need our operational services, and companies in the FDA approval process may need nothing more than a physical presence and address in the US. The service package is modular and adapted to the client's specific requirements."
"The company site on Long Island, 40 minutes from Manhattan, also offers workstations should company employees need offices to work from. In this sense, we're somewhat like WeWork in the field of medical devices."
Give an example of a company that succeeded thanks to you.
"About six months ago, a company joined us that chose our package, including GM services. As US operations manager, I recruited a single salesperson. We gained entry to one of the top 20 hospitals in the US. We were accepted for a product presentation and in the coming weeks should receive final approval for sales. This is an exceptionally fast process and proof that precise recruitment can bring significant results."
"Ultimately, we're unique; there are no other services like this," Melts concludes. "The offer is very appealing to companies I've spoken with. In most cases, the high entry cost into the American market prevents or significantly delays market penetration, but our model creates a real opportunity for success. When you know the system well and know how to navigate it correctly, it becomes possible to bridge the commercial and cultural gaps."
In collaboration with MarketWinch
