OUTLOOK ON THE MOROCCAN MEDICALDEVICE MARKET AND ERAMEDIC VISION Rachid BELKAHIA Chairman & CEO ERAMEDIC COFIMAG Group MAGHREB LIFE SCIENCE SECTOR FINPRO SEMINAR Helsinki, October 27th 2011
SummaryI- Key facts and trends of the Moroccan medical device marketII- Eramedic vision
Key facts and trends of the Moroccan medical device market Morocco : Macro environment― Area 710.850 square km― Population 32.7 million― Population growth rate 1.5 % (4th in the Middle East and Africa Region)― Life expectancy 71 / 73,50― Population density 46 inhabitants per km2― Working population 48 %― Currency Dirham― Inflation rate 3%― GDP 98.9 billion US Dollars― GDP per capita 3.020 US Dollars― GDP growth 5.2%
Key facts and trends of the Moroccan medical device market Health expenditureTotal (US $ billion) 5.8% public 36.9% private 63.10% GDP 5.8Per capita (US Dollars) 177
Key facts and trends of the Moroccan medical device market Morocco : Medical device market― Medical device market 178.1 million US Dollars • per capita 5.4 US Dollars • in % GDP 0.2 % • in % of world market 0.10 %
Key facts and trends of the Moroccan medical device market― National health system • Ministry of health (MOH) • Social Security System (CNSS) • Army hospitals • Private clinics & centers
Key facts and trends of the Moroccan medical device market Morocco : Key facts OPERATING HOSPITAL QUANTITY BEDS THEATERSPublic Health 133 27.540 300CNSS 13 1.360 40Military 06 1.500 53Private 270 7.600 180 422 38.000 573― Hospital beds per 1000 inhabitants 1,20― Doctors per 1000 inhabitants 0,8
Key facts and trends of the Moroccan medical device market― Number of physicians 27.200 % public 58.7 % private 41.30 Rate/1000 population 0.80
Key facts and trends of the Moroccan medical device market Sources of financing of health― Households 59 %― Government 26 %― Public administrations and companies 5%― Private companies 5%― Local authorities 1%― International cooperation 1%― Caritatism and other sources of financing 3 %
Key facts and trends of the Moroccan medical device marketMedical devices market by major sector― Diagnostic imaging 21.8 %― Consumables 24.2 %― Dental products 5.5%― Orthopaedic implantable 17.2 %― Others 31.3 %
Key facts and trends of the Moroccan medical device market Imports of medical devices by leading suppliers― FRANCE 19 %― GERMANY 16,3 %― USA 15,4 %― OTHER EUROPE 11,5 %― OTHER 10,4 %― CHINA 8,5 %― ITALY 6,5 %― AUSTRIA 5%― JAPAN 4,9 %― SPAIN 2,5 %
Key facts and trends of the Moroccan medical device market Entry of new suppliers in our market (FarEast, Turkey, Brazil, Argentina,...) which fullfilquality standards.
Key facts and trends of the Moroccan medical device market The demand― Strong tradition of public expenditure― Growing demand from the private sector, but particular interest for refurbished equipment― Compulsory health insurance scheme since 2005 (AMO:Assurance Maladie Obligatoire) which covers: . Hospital treatment . Ambulatory care― Ramed scheme ( Régime d’assurance médicale auxéconomiquement démunis) for those low or noincomes.
Key facts and trends of the Moroccan medical device market The offer― Keen competition (more than 250 distributors andretailers) due to the absence of entry barriers― The key factors of success depend mostly on the “relational strategies” and price oriented policies― Weak appraisal by the market of differentiation strategies (quality, technology, innovation, service, ...), but qualitative change of purchasing behavior from part of high range customers such as teaching hospitals and army hospitals.
Key facts and trends of the Moroccan medical device market Moroccan market trends― The new health insurance scheme will impactpositively the request of health care― Qualitative regulation efforts consisting in : • Procedure of recording for single use devices and reagents • Adoption of CE requirements and other standards for électromedical equipment and consumables
Key facts and trends of the Moroccan medical device market Moroccan market trends― Present negotiations between the Health Ministry and the APMB (Association of the professionals of the biomedical equipment) to regulate the importation of refurbished and second hand equipment― Particular attention is paid for the development of biomedical competences (EST Salé, FST Settat, Etude TELECART...)― Deconcentration of the purchases (process within the tenders) to the 16 regions within the country.
Key facts and trends of the Moroccan medical device market Opportunities― Growing potential of demand and more professionalism required from medical device suppliers Threats― Weak speed of reforms― Some lack of transparency― Expansion of second-hand equipment market in private sector
Eramedic vision Who are we ?― Year establishment : 1974― Employees : 43― Turnover: 9 million Euro (2010)― Activities portfolio : • X-ray • Operating theatres • Hospital waste treatment systems • Laboratory equipment • Maintenance • Infections control systems • Consumables
Eramedic vision― Registrations / Best practice: • ISO 9001 • Global compact (corporate citizenship): since 2006 • CGEM Label (corporate citizenship): since 2007― Business association membership: • CGEM (General Confederation of Moroccan employers) • International Chamber of Commerce (ICC)
Eramedic vision Main customers of Eramedic― Health Ministry― Teaching Hospitals― Army hospitals― Social security clinics― Private clinics― Universities, …
Eramedic vision Strengths― Global offer with world class partners (GETINGE, MAQUET, AESCULAP, KARL STORZ, AGFA…)― Strong internal customers oriented culture― Decentralized management with a very flexible and reactive organization― Good reputation on our market
Eramedic vision Main future focus― Promotion and diffusion of new concepts : • “Operating theatre” • “Central sterilization” • “Turnkey” projects • “Mobile hospitals ”― Competitive products― Innovating offers
Eramedic vision Main future focus― Business Culture (Listening, trust, exemplarity...)― Strengthening business partnership with the suppliers (Innovative concepts, training support, ...)― Development of the domestic distribution agent network to intensify the penetration of the 16 regions― Diversification of our markets (Mena, subsaharian markets).