Hoya Vision Care [TYO: 7741]

It's extraordinary for a medical device company to pioneer a product that creates an entirely new category of treatments. Over the past years you have been working in the optical industry; how frequently did this occur in this field?

Creating and commercializing a new product category is indeed rare, which makes it truly exhilarating! In the optical lens sector, a standout moment was 65 years ago when Bernard Maitenaz invented the first progressive lenses. More recently, Hoya Vision Care's launch of the first myopia management lens for children in 2018 marks another significant milestone in our industry. It's been an exciting journey!

What benefits are associated with being the first company to develop a new therapy?

From a commercial standpoint, achieving unique differentiation in the market is a primary reward. It places you ahead of competitors, which is a crucial advantage. Furthermore, staying ahead in research and development and establishing thought leadership in the industry are significant rewards.

But most of all, pioneering innovative solutions can be an opportunity to completely transform a company culture by fostering creativity and driving employee engagement and morale. It can be the cornerstone of long-term success.

Let's delve into the challenges that a company may face when establishing a new category. What are some of the key hurdles faced within the medical device industry, particularly in the optical sector?

Navigating regulatory hurdles is a primary challenge. In certain markets, new products face rigorous regulations governing development, testing and marketing. It's crucial to navigate these pathways to ensure compliance while expediting commercialization.

There are also challenges linked to commercialization pathways. Sometimes, the primary audience as well as the distribution model may differ from the rest of the portfolio. It has to align with market needs, regulatory requirements, and financial objectives. This often involves forging new relationships and mapping stakeholders, sometimes differing from conventional commercial routes.

Most of all, pioneering innovative solutions can be an opportunity to completely transform a company culture by fostering creativity and driving employee engagement and morale.

Lastly, establishing new categories demands significant upfront investment, with returns not guaranteed until later stages. Management and local teams need to acknowledge this reality and be ready to redirect investment into the new category creation.

Let’s talk strategy. How do you believe a long-term strategic vision should be approached when companies pioneer a new category of treatment?

When creating a new category, building a long-term plan and integrating this plan as part of the overall company strategy is key. This is why one of the biggest challenges faced by the strategy team is navigating with limited or sometimes no market data. Unlike in established markets, pioneers navigate uncharted territory, relying on intuition, industry insights, and customer feedback. Building an agile organization capable of adapting to this situation is crucial.

You mentioned organization; what organizational challenges do companies face when building new categories within the medical device industry?

Cultivating an innovation culture is paramount, especially in mature organizations. Companies that manage to set up a culture of "test and learn," risk-taking and learning from failures are the ones that will succeed and grab the full benefit of their competitive advantage.

Additionally, they will have to promote cross-functional collaboration throughout the company and set up cross-level exchange platforms to spread knowledge and expertise quickly and efficiently.

Aligning new categories of development with commercial results priorities can also present challenges. This is why, to succeed, the new category development must become a core priority at top management levels and be endorsed by leaders within the organization.