The Silent Killer of Growth in MedTech: Portfolio Drift

More Products, Less Growth?

Picture this: your team keeps feeding the pipeline; another line extension, a quick OEM private label, a nifty acquisition that almost fits the strategy. Quarter by quarter the catalogue inches thicker, the sales deck bulges, the regulatory spreadsheet scrolls for miles. Revenue should skyrocket, right?

Yet the top line hesitates. Margins contract. Commercial teams whisper that they’re overwhelmed. And finance is begging for warehouse space.

Complexity is the silent killer of growth. It sneaks in SKU by SKU until momentum stalls.

I’ve watched it happen in well-run, venture-backed scale-ups and billion-dollar divisions alike. But I’ve also seen the antidote work – because I’ve wielded it.

Portfolio Drift: How It Happens (While You’re Busy Hitting Targets)

Portfolio drift is the gradual misalignment of your assortment with the strategic core that actually wins. It looks harmless:

• Incremental launches everyone swears will be cannibal-proof

• Legacy stalwarts we keep "just in case"

• Acquired SKUs that ride along because killing them feels politically expensive

Individually, none of these derails you. Collectively, they create:

• Distraction – Sales spreads its energy thin across too many stories

• Operational drag – Planning, regulatory, supply chain and quality each add overhead

• Capital dilution – R&D and marketing budgets fragment instead of amplifying the winners

And because the drift is incremental, leaders don’t feel the hurt—until growth mysteriously plateaus.

Case in Point – 40 Brands Out, 10 Brands In Focus, 25% CAGR Unlocked

In one business I inherited, the catalogue had ballooned to over 200 brands across multiple clinical areas. Leadership’s instinct was "sell harder."

Mine was: sell fewer things better.

Within twelve months:

• We retired ~40 low-impact brands that soaked up regulatory and marketing euros but delivered less than 3% of revenue

• We doubled down on 10 clear winners with strong clinical proof, margin, and rep enthusiasm

• We re-trained field teams around a single, crisp value narrative

Twelve months later? The start of 25% compound annual growth, a 6-point gross margin lift, and the first true capacity for disciplined new-product launches.

No magic. Just ruthless portfolio focus and an execution rhythm the entire organisation could feel.

Why Portfolio Drift Is Dangerous Right Now

1. EU MDR & FDA QMSR Tighten the Screws

Regulators have raised the bar. Every extra SKU now drags an outsized load of CER updates, re-testing, and notified-body fees. If a device isn’t pulling its weight, it’s taxing your future.

2. Capital Is No Longer Free

Post-COVID, capital isn’t cheap. PE and corporate boards are punishing complexity and rewarding focus. Stranded cash in zombie SKUs is cash you can’t deploy into robotics, AI, or commercial muscle.

3. Commercial Teams Are Exhausted

Ask your best rep how many products they demoed last quarter. Now ask how many they sold more than three times. Complexity isn’t just a supply chain issue – it kills sales velocity.

Product Obsolescence: A Strategic Lever, Not a Sales Risk

Product obsolescence is not a threat to a rep's revenue. It is a tool to re-engage the customer.

The reps who see discontinuation as abandonment are missing the bigger play. Done right, a discontinuation is a relationship refresh: it reopens conversations, it introduces upgrades, and it gives your rep the chance to solve a problem again—but with better tools.

Reps who don’t know how (or don’t want) to communicate obsolescence early are the ones who lose customers. They show up too late, with no plan, no migration path, and no added value. The customer feels dumped.

On the flip side, great reps use discontinuation notices to:

• Schedule face-to-face meetings they’d otherwise struggle to book

• Introduce higher-margin, higher-impact alternatives

• Position themselves as proactive advisors rather than passive order-takers

If your sales team sees obsolescence as sabotage, you haven’t trained them on the playbook.

Strategy Meets Execution: My 90-Day Portfolio Clean-Up Playbook

Step 1 – Illuminate the Drift

Run a 2-day war-room with sales, marketing, RA/QA, and finance. Plot every SKU on a matrix: Strategic Fit vs. Economic Contribution. Anything in the bottom-left quadrant gets the yellow sticker of doom.

Step 2 – Decide What Not to Do

Leadership signs off on three lists:

• Keep & Grow – Core growth engines

• Harvest – Maintain with minimal spend; sunset when volume or margin dips

• Exit – Start discontinuation, last-time buys, and transfer letters

Step 3 – Align Incentives

Nothing dies if the comp plan says "sell everything." Reset incentives so reps earn more on fewer SKUs. Free the ops team’s bonus pool by tying it to SKU reduction.

Step 4 – Overcommunicate

Customers deserve clarity. Position discontinuations as upgrades, not retreats. Equip reps with talking points, transition bundles, and pricing sweeteners.

Step 5 – Inspect Weekly

Complexity grows in the dark. Run a Friday dashboard:

• SKU count

• % revenue from focus brands

• Gross margin delta

Transparency sustains momentum.

Common Objections—and My Straight Answers

Objection	Reality Check
"But Hospital X loves that SKU!"	Love doesn’t pay if volume is tiny. Offer a better alternative with a loyalty discount.
"We already paid MDR fees."	Those costs recur. Kill it before the next surveillance audit.
"Reps will lose trust with customers."	Only if they delay the conversation. Early, proactive communication builds trust. Silence erodes it.

The Upside of Less

• Sales velocity accelerates – Tighter story, more confidence

• Gross margin climbs – Ops and marketing redeployed to higher-margin SKUs

• Innovation resurfaces – Freed R&D now builds the future

• Valuation multiple expands – Investors reward focus and earnings quality

Simplifying isn’t a haircut. It’s a growth lever.

Ready to Kill Complexity Before It Kills Growth?

Portfolio drift never shouts. It whispers – until your top line stalls and margins vanish.

If any of this feels uncomfortably familiar, let’s talk.

🚀 Growth & Turnaround Sprint

A 4-week, hands-on blitz: diagnose drift, re-prioritise assets, align incentives, and ignite execution rhythm. Perfect for PE-owned, carve-out or regionally fragmented businesses.

🛠️ Portfolio Clean-Up Service

I parachute in, run the war-room, manage discontinuation, and leave you with a focused catalogue and a dashboard that keeps it clean.

Stop letting silent complexity tax your future.

Book a 30-minute scoping call and let’s slash the dead weight—so your real growth engines can roar.

I help MedTech leaders accelerate profitable growth by removing friction, focusing portfolios, and building execution muscle.