Medical device companies could deliver market domination by using the Bloomberg playbook
Stryker, Medtronic and other medical device manufacturers need a Plan B; but the billion dollar pivot they're missing is in cold-chain logistics
Whilst there are many success stories of businesses in the latter part of the 21st Century, one remarkable achievement is that of Michael Bloomberg, who has managed to create, retain, continue to monetize, and develop a significant indispensable piece of technology for every financial institution in the Western world.
For those unfamiliar, Bloomberg operates a subscription model for each trader within a financial institution, which gives access to industry news, market prices, data insights, as well as a trading platform operated by their own proprietary hardware, infamously named the Bloomberg terminal. It's an iconic industry standard, and one that has never changed.
The Bloomberg Terminal's continued use throughout modern day financial institutions is one of general compatibility - as it is utilised by all of the financial institutions, it remains an important staple part of all operations. Nothing performs as well as the hardware, and no other hardware integrates as well with the software.
It's the same playbook that Apple have created with their hardware and software pairings; and Blackmagic Design with their daVinci products also with their video editing software and controller.
A Chilling Truth: Cold Chain Logistics is Currently Crap
One of the fastest developing sectors in pharmaceuticals is the the rise in the prevalence of biogens and personalized medications. This is arguably fast approaching the peak of medical and pharmacological technology, but it's being let down by the simplest factor - logistics.
The issue with these medications, is that they often require to be kept at a very stable temperature - which can be down to as a cold as -150 degrees celsius for cryogenic chilling; but as a bare minimum, many require a stable temperature of around 2 to 8 degrees celsius.
There's a few reasons for the piss-poor performance, but it can all be distilled down to a simple fact - noone owns the process. And as such, there's no accountability for when it doesn't go to plan.
(which, conversely, seems to be most of the time).
Firstly, there can be a complex chain of custody. Sometimes this involves many different logistics partners. Many use completely different systems. Some good, some bad. Some are fine, but badly operated; some are bad, but operators just have to do their best.
This means that as soon as there's a gap in the tracking, there's a chance of mishandling - for products to exceed their safe temperature range, damage to product or packaging etc.
As with much of logistics, the real weak point is the last mile delivery. Everything from bicycle courier through to HGVs can be utilized. The product can travel thousands of miles in perfect condition, and then is ruined at the last stage. Infrastructure is often lacking when delivering to more remote areas - making transit times and methods very unpredictable.
Very few logistics partners have dedicated solutions for these purposes. Temperature regulated storage can exist, but it's a little rudimentary - the reality is that medicinal products only form one tiny part of their total packages they will handle; and their vehicles will be built to suit the widest specification of packages, and not tailor made to the transportation of medical goods. About the best solution that's currently mustered is an insulated coolbox, usually ABS shelled with expanded polystyrene cores.
There's other more macro problems with this practice also:
Complexity from Personalized Medicine: The rise of biologics, gene therapies, and patient-specific treatments requires smaller, more frequent, and highly specialized shipments. These products often have unique storage needs (including ultra-cold or cryogenic temperatures) and short shelf lives, complicating logistics and increasing the need for precision and speed.
Regulatory Compliance: Stricter global regulations demand robust tracking, serialization, and data integrity throughout the supply chain. Meeting these requirements is resource-intensive, particularly as regulations evolve and differ across markets.
Visibility and Data Fragmentation: Ensuring real-time visibility of temperature, location, and chain of custody is challenging, especially when using multiple logistics partners and crossing borders. Data silos and fragmented systems make it difficult to monitor and respond to issues promptly.
Sustainability and Rising Costs: Environmental regulations and the push for sustainability are driving up costs. There is pressure to adopt eco-friendly packaging and reduce energy use, but these solutions can be expensive and technologically demanding.
Packaging Optimization: Advanced packaging is needed to maintain temperature stability during long or unpredictable transit times. This includes insulated containers, gel packs, and smart packaging with temperature sensors. However, optimizing these solutions for cost, weight, and sustainability is a complex balancing act.
Expansion into Emerging Markets: As pharma companies reach into new regions, they face challenges transporting temperature-sensitive products over long distances, often through areas with poor infrastructure and unpredictable customs processes.
A cold-chain gold rush; and why medical device companies have the perfect shovels
There's an opportunity to simply specialize in cold-chain medical logistics, and the bar is currently set very low to do it well - with a little effort, and a deliberate attempt to get this implemented, the market can be totally sewn up before competitors even have a chance to begin assessing it's addressability.
So why medical device manufacturers?
There's a Cashflow Gap - Pharmaceutical developments in arteas such as diabetes means that some divisions of medical device companies have been quietly shut down. Something needs to fill the hole left from that lost revenue.
This requires a hardware solution, and they're already pros at it - It's a simple product development, and noone is better set up to handle the challenges, select the best materials and practices to get this designed and operational. It can be manufactured in their existing facilities, using their existing equipment - and so can be scaled as linearly as required as the business and network develops.
As the hardware is proprietary, it's software system can be integrated into the MedDev company's existing system. It's a simple GPS tracker and in-case sensors with cellular connectivity, implemented into the logstics system with a simple API.
The only gap is the logistics side, but this could be completed with a simple acquisition of the right company. A perfect acquisition could be a division of Brinks or Axiom - these companies regularly carry out the ultra-secure logistics for transferring cash and valuables between banks. They're used to uninterrupted chain of custody solutions; transport utilizing secure specialist vehicles that are fully tracked and monitored from end-to-end; and delivering with a precision with effectively zero margin for error. All of the existing skills and systems could nearly be entirely replicated and it would carry a perfect success.
Medical Device companies already have the existing contact and customer base within the medical industry - everyone from hospitals and clinics through to pharmacies and individual practitioners. It should be an easy sell - they're already a trusted partner, and offering a specialized service that has been lacking for a serious amount of time.
And finally - operating just one specialist logistics domain enables a potential monopolization of the market for this. Existing logistics partners are too overleveraged in their other operations to implement this with any form of agility. The MedDev company will own and operate the specialist transport containers, which will protect them from competition - other companies can implement the transit, but none are as well positioned to design, develop and manufacture the storage containers.
Pull this off, and you've just created the Bloomberg of cold-chain logistics. Hardware, software and distribution cornered; and then it's just a case of maintaining and expanding however far you wish to go.
Holes in the hardware
Insulated containers are being used currently, but they're a little basic - alot of them passively cooled with an ice block nestled in a expanded polystyrene container with an outer plastic shell; the most complex is usually a mini-battery powered fridge.
The good news is that there's an opportunity to develop it leaps and bounds, and much of the technology already exists - little development is needed, it's more just a case of packaging existing solutions correctly.
I'd suggest a modular solution - three compartments, individually sealed - a battery and component base, (with all of the technology and main systems installed); cryogenic container in the middle, cooled via a closed loop of liquid nitrogen. And finally, a refrigerated container on the top, to enable a lesser temperature to be maintained in a separate sealed
The majority of the weight will be at the bottom with the batteries and refrigeration components, so the case will naturally always store this way - and reduced chance of the case ever tipping over or becoming disturbed in transit.
Although this is mainly cooled via active systems, the whole exterior is finned so the entire case continuously acts as a passive heatsink. A metal outer finned shell will assist in this through material properties.
A visual indication screen will assist in monitoring for the courier - with audible and visible alerts and warning lights showing any signs for concern or attention. The case will have an integrated GPS system, and cellular or satellite connection. As the whole outer is to be metal fins, these can be wired in to act as a whole antenna for these systems, resulting in absolute minimum chance of it losing signal etc.
ChatGPT’s best guess at my design concept. Not exactly what I had in mind, but close enough!
Specifics for the software, please
1. Trusted Real-Time Chain-of-Custody Platform (Digital Custody Transfer)
There's no universal, immutable, and simple digital platform for logging chain-of-custody handovers in real time, especially one usable by low-tech field workers. This addresses:
Lack of trust or traceability during transport (handoffs between logistics providers, drivers, hubs).
Manual paper logs still common in many markets.
Gaps in audit trails during temperature excursions or delivery delays.
Solutions could include:
A blockchain-based or tamper-proof digital logbook for handoffs, using mobile/NFC/Bluetooth validation.
Each participant (driver, warehouse, pharmacist) confirms custody and condition with a tap or scan.
Simplifies GDP (Good Distribution Practice) compliance.
2. Predictive Thermal Degradation Analytics (Beyond Temp Monitoring)
Existing trackers tell you if a product exceeded temperature thresholds, but don’t predict or quantify the impact on drug stability or efficacy. This could address:
Uncertainty about whether to discard a product after an excursion.
Need to minimize wastage and insurance claims while ensuring safety.
Solutions could include:
AI/ML models that consider time, temperature curves, and medication type to estimate remaining potency or shelf life.
Mobile app or API integrated with existing temperature data loggers.
Could guide pharmacists on accept/reject decisions and improve incident response.
3. Micro Cold Chain for Last-Mile Transport in Rural/Underserved Areas
Many developing or rural areas lack reliable last-mile cold chain infrastructure. Vaccines or biologics can commonly spoil in the last few miles (bike courier, rural clinic, etc.), and temperature control is often out of the sender's hands during final delivery. A proprietary hardware would address most of these issues; but additional solutions could include:
Peer-to-peer or local courier optimization software, integrated with a compliance and monitoring app.
Backup solar-powered or phase-change-material-based containers for low-resource settings and markets.
4. Simplified Cold Chain Data Standardization and Interoperability Layer
There’s no easy way to standardize and share cold chain data across stakeholders using different hardware and platforms. Manufacturers, third party logistics providers, warehouses, hospitals often use different systems. As a result, data silos and there's a lack of a universal data schema for cold chain status. The easiest solution for this would be:
Lightweight middleware or API layer that normalizes data from disparate IoT sources (data loggers, GPS, ERP); creates a real-time dashboard for all stakeholders, but should enable a “plug-and-play” integration with minimal effort.
5. Environmental Condition Forecasting & Routing AI
Few products combine weather, route, and vehicle conditions to preemptively adjust logistics in real time. Most logistics providers operate static routing, which can't adapt to sudden environmental risks. Integrating this functionality would place increased priority on product integrity, which is core for vital medications.
This could be implemented by utilising AI to route in real-time and provide packaging recommendations based on current and forecasted temperature/ humidity, traffic conditions and types of product being transported.
And that's it.
Simple hardware combined with a relatively straightforward software. A market which is a serious roadblock in modern pharmaceutical manufacturing and distribution, and slightly too specialist to be offered by existing logistics providers.
This is a ripe opportunity for the right person; companies with large cash reserves or access to capital should consider moving with agility, and the market could be cornered relatively quickly.
In addition, there's additional opportunity for distribution of blood, breast milk and organ and tissue transplants between medical facilities also if the tracking and traceability protocols are refined sufficiently to meet regulatory compliance.
Although this has the potential to be a gold mine for the company that corners this market, there's a more important outcome from this -less missed opportunities and treatments, and increase in patient welfare and probability of successful outcomes.
TH
You may also find these of interest:
Bleeding Out
Since I turned 18, four times a year I find myself sat in a local town hall or church. A few questions before a needle is stuck into my arm, and 1 pint of fresh blood is drawn. Usually within a day or two, I receive a text telling me where my donated blood has ended up.
Medical device manufacturers can navigate out of the pharmaceutical shit creek they find themselves up
I'll start with a caveat - I say medical devices companies are up shit creek; but Medtronic made $33 billion operating profit last year, so I'm sure they're not shitting themselves just yet. But in the manner of artistic flair, I'll elaborate on why I think the tactics that have got these companies this far may not get them any further…
The drug dichotomy creating the inevitable climb of biocrimes
It’s been 5 years since peak-COVID, and the dust has largely settled for most. Throughout and following the global pandemic, there was always hints of speculation that the virus was synthesized - and it’s release was even planned.