Engineering economics of cranio-maxillofacial (CMF) degradable implant production in Indonesia

One effort to develop the medical devices industry in Indonesia is to downstream research products that have been carried out by a research institution. Currently, many research institutes that work in the biomedical engineering field have focused on developing medical devices that have funding supp...

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Bibliographic Details
Main Authors: Fadhilah, Shabrina, Agus, Anna Amalyah, Kreshanti, Prasetyanugraheni, Budiono, Hendri D. S., Supriadi, Sugeng, Whulanza, Yudan
Format: Conference Proceeding
Language:English
Subjects:
Biodegradability
Biomedical engineering
Business
Dental implants
Economic models
Industrial development
Mathematical models
Medical electronics
Medical equipment
Medical research
Net present value
Parameters
Product development
Profitability
Research centers
Research facilities
Sales
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Summary:One effort to develop the medical devices industry in Indonesia is to downstream research products that have been carried out by a research institution. Currently, many research institutes that work in the biomedical engineering field have focused on developing medical devices that have funding support from a government agency of Indonesia. However, a pre-financial study is also needed to be carried out to understand the profitability and business model that proposed with a manufacturer. This paper aims to calculate economic parameters from various scenarios that involved the pre-operation cost to develop a new model. A new product development (NPD) is needed to gain more sales volume to the existing medical device manufacturer. However, this activity is not cheap and mostly needs new investment. Therefore, we iterated various scenarios such as: establishing a new production line, expanding new products apart from an existing product, getting grant support from government trough collaboration with a research institute, and expanding sales volume to profitable parameter. Our calculation shows that the involvement of a government agency, i.e., LPDP and research institute through new product development, will empower the manufacturer. Ultimately, the profit will return to the research institute as licensing the product property right to the corresponding manufacturer. Here, we showed that a new product of biodegradable cranio-maxillofacial implant would have a Net Present Value (NPV) around -12.7 billion IDR to establish the line production. However, we also showed various scenarios to enable us to have NPV of 6.0 billion IDR.
ISSN:0094-243X
1551-7616
DOI:10.1063/5.0000875