360 Degree Outlook and Growth Strategies in the APAC In- Vitro Diagnostics Industry

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in- vitro diagnostics industry

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360 Degree Outlook and Growth Strategies in the APAC In- Vitro Diagnostics Industry

  1. 1. 360 Degree Outlook and Growth Strategies in the APAC In- Vitro Diagnostics Industry October 8, 2009 Presented By: Nitin Naik Vice President-Medical Technologies Asia Pacific 1 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  2. 2. Contents 1. 360 Degree Global Perspective Diagnostics 2. APAC Market Outlook Industry Briefing 3. Industry Best Practices 2 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  3. 3. The CEO’s Perspective of the Complex Business Universe 3 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  4. 4. CEO Global Perspective 1. Reference Labs and CROs Expand GLOBAL Services to Developing Countries. Emerging Opportunities Cultural 2. Increased R&D Outsourcing by Pharma & Biotech Companies Political CEO & 3. Earlier Launch of Diagnostic Tests in the Regulatory Asian/European Markets 4. Changing Global Trends Drive Adoption of New Technologies. 5. Funding opportunities, primary customer base and research strengths are differentiated in the APAC region 4 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  5. 5. Reference Labs Expand Services to Developing Countries China Advanced Markets China has a growing aging Reference labs based in the population and increasing U.S.,such as Quest Diagnostics healthcare spending. Inc., are looking for high growth Asian markets REFERENCE LAB TESTING EXPANDING TO DEVELOPING WORLD India India has growing middle class with increasing buying power and demand for better healthcare services. India, China and S. Korea have some of the highest growth rates for healthcare spending in APAC and along with the growing aging population and middle class, represent attractive markets for clinical testing. Additionally, the increased prevalence of lifestyle diseases such as diabetes, cardiovascular diseases, and certain cancers contributes to the increasing need of testing. U.S. based national reference laboratories have already taken the lead to expand into these growing markets. Global expansion of clinical lab testing is likely to be influenced by innovation, cost and readiness of the countries. 5 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  6. 6. Increased R&D Outsourcing by Pharma and Biotech Companies Extended Sample Management Independent Application s Functional Integration O Modules CR Sample le tip Management ul M Competency Quality to Assurance e Management urc so Inventory ut Management O Consolidation and Standardization High Data of LIMS Output 6 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  7. 7. CEO Integrated Industry Perspective 1. Key Areas Spurs Integration of Pharmaceutical and Diagnostic Companies 2. Incorporation of Information Technology is the New Business Model. 3. The vertical alignment trend in the healthcare sector is affecting the clinical diagnostic sector as well, and will strongly impact the healthcare industry as a whole. Secure Capital INTEGRATED Material INDUSTRY Costs CEO Maintain Capital Fluctuating Raw Material Levels Supplier Relationships 7 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  8. 8. Incorporation of Information Technology is the New Business Model Electronic Management of Sample Transport Web Portals Shareable Next Generation to EHR Personal Health 2010 Integrated Systems Systems Records Broader Data Management Essential Part of Tools 2015 Clinical Diagnostics Business Patient Reduced Support Cost of Tools Logistics 8 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  9. 9. The Vertical Alignment in the Healthcare Sector Impacts Clinical Diagnostics Increasing Opportunities for Suppliers and IT Healthcare Insurance Company Healthcare Insurance Vertical Alignment Healthcare Infrastructure Providers Company Insurance Company Interoperability Hospital and Hospital and Clinics Clinics Diagnostic Labs Hospital and Clinics Diagnostic Labs Diagnostic Labs For Example: Alliance Technolgies is an Informational Technology and Healthcare services company that works with payers, providers and patients to improve outcome and better manage costs by enabling secure flow of clinical data between healthcare organizations 9 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  10. 10. CEO Technology Perspective TECHNOLOGY Emerging Technology 1. Clinical Sample Management Will Take Center Stage. 2. Non-invasive Testing and Pre-natal diagnostics Will be High Priority CEO 4. Changing market demands from R&D Sites Disruptive Technologies New Applications 10 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  11. 11. Clinical Sample Management Will Take Center Stage Use of non-invasive Use of non-invasive collection methods Collection methods Collection With degree of Efficient storage sophistication in clinical Use of nanofluidics systems Clinical Volume sample handling, clinical Storage to improve to aid test Sample optimization diagnostics will witness workflow outsourcing growth in developing countries Transportation Use of chemical techniques to store samples 11 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  12. 12. Changing Market Demands from R&D Sites Current Market Scenario Future Market Scenario Manual Handling Automation Immunoassays Multiplex Large Footprints Faster, Easier, Automated Lab-On-Chip High Throughput Fragment Based Screening Stand-alone Integration 12 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  13. 13. CEO Economic Perspective Economic Trends & Issues 1. Impact of Economic Downturn 2. Increase in M&A Activities Economic CEO Trends 3. Growing Middle Class in Developing Nations Economic Threats Country Risk ECONOMIC 13 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  14. 14. Global Economic Downturn Impacts the Industry Negative Exchange Rate Unemployment Fluctuations Global Economic Downturn Operational Savvy Investments Efficiency Positive 14 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  15. 15. Increase in M&A Activities Impacts Market Dynamics Beckman Coulter to Quest Diagnostics Licenses Acquire Lab Based Test Kit Epigenetic Biomarker for Diagnostics Business from Providers Prostate Cancer from Olympus Corporation Epigenomics Inc to Develop and (Diagnostic Market the Diagnostic Test Companies) pm fo t lo lat es en rm No ecu m te pm ve p d t ol st e ve lar de t de and ate l ve r lo ki teg In t nt Molecular Sample Diagnostics Test Service Processing Providers Platform Manufacturers (Laboratories) 15 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  16. 16. CEO Competitive Perspective 1. Diagnostic Potential of New Diseases Increases Competition. 2. Vendors Offer Competitive Workflows ve etiti Comp arking T IV E chm TI Ben CO MPE CEO irec t In-D tition pe Com g rgi n Eme etition p Com tive peti C om t e g y Stra 16 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  17. 17. Diagnostic Potential of New Diseases Increases Competition BENCH BED SIDE Differentiate between Chronic & Life Style Diseases 2005 2020 Increasing Diagnostic Increasing Competition Target miRNAs important in cell differentiation Tests Multiplex Detection Multiplex Detection Panels for Cardiac and Diabetes Panels for Cancer Differentiated Product Development 2012 2011 17 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  18. 18. Workflow Vendors Offer Complete Workflows to Remain Competitive Sample Preparation Detection and Functional Analysis Validation Quantification Analysis Technologies • Sample collection • Microarray • qRT-PCR • RNAi • Nucleic acid • Multiplex assay • ELISA • Antisense purification • Sequencing • Mass spectrometry oligonucleotides • Protein purification • High content screening • Western blotting • Mimics and inhibitors • Automated liquid • Cell based assays • shRNA handling Validation Strategies to Fill Workflow Benefits Challenges Large up-front costs, Quality Mergers & Acquisitions Maintain ‘best-in-class’ rep disparities Alliances Align with top provider Revenues sharing In-house Development Easy integration Large R&D costs 18 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  19. 19. CEO Customer Perspective 1. Bargaining Power of Hospital and Physician Owned Labs 2. R&D Sites Prefer Walk Away Solutions Non Customer CEO Demo- CUSTOMER graphics Behavior Competitor’s Customers 19 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  20. 20. Hospital and Physician-owned Laboratories Lead Routine Testing The current utilization pattern of tests in physician office laboratories illustrates high utilization for glucose handheld meters, fertility test kits, fecal occult blood tests, and urinalysis systems. Utilized Testing by OB/GYN, Pediatricians, FOBT and urinalysis are and Cardiologists are 100% Physician Specialty commonly used in many Percentage of Physicians Utilizing Test leading in adoption for specialties pregnancy, infectious disease, and coagulation 80% tests, respectively Endocrinologists, Family practitioners & Internists are 60% leading adopters of these testing methods in POLs 40% 20% 0% Glucose handheld Urinalysis systems Immunoassay Pregnancy/Fertility Fecal Occult Infectious Disease Hematology Drugs of Abuse Chemistry Blood Tests Hemostasis Cholesterol/Lipid Coagulation analyzers HbA1c Biomarkers rapid test kits analyzers systems Cardiac analyzers rapid test kits rapid test kits meters Test Types Internal Medicine Pediatrics OB/GYN Family Practice/GP Cardiology Endocrinology 20 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  21. 21. R&D Sites Prefer Easy-to-use Walk-away Solutions Ease-of-use features and technology integration are critical for customer satisfaction in the fast-paced and demanding end-user community for drug discovery technologies. Top Reasons for Satisfaction (% of respondents, N=298) Usefulness/ Easy to High Well integrated High relevance to use accuracy with existing specificity/ Genomic Technology research technologies selectivity PCR/Thermal cycling 21 43 5 7 12 Gel Based (Northern/ Southern) 16 28 16 4 11 Multiplex assay 16 6 15 4 3 qPCR/RT-PCR 24 15 20 3 28 CE sequencing 14 14 23 6 8 Next Generation sequencing 20 13 13 13 -- Microarray 28 14 6 10 7 Automated liquid handling 10 6 6 12 4 SMD platforms 20 15 20 10 20 DNA/RNA isolation & purification 19 29 5 6 2 RNA interference 47 15 6 6 16 Transfection 33 38 2 9 3 Primary Reason for Satisfaction Secondary Reason for Satisfaction 21 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  22. 22. Contents 1. 360 Degree Perspective Diagnostics 2. APAC Market Outlook Industry Briefing 3. Industry Best Practices 22 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  23. 23. 10 Key Trends in the Asian Health Care Industry 1) Cost & Quality, & Demographics of Healthcare 1) Cost & Quality, & Demographics of Healthcare 2) Changing Demographics – Aging Population 2) Changing Demographics – Aging Population “Globalization has radically altered 3) Changing Business Models 3) Changing Business Models the business model for service and manufacturing industries. 4) Evolving and Unique Disease Profiles 4) Evolving and Unique Disease Profiles Health, traditionally regarded as a local industry, is becoming 5) Medical Tourism & Wellness 5) Medical Tourism & Wellness global as well. It’s changing the way the Chinese think about 6) Insurance :: Increasing Accessibility 6) Insurance Increasing Accessibility financing hospitals, Americans recruit physicians, Australians 7) Technology as a Driver 7) Technology as a Driver reimburse providers for care, Europeans embrace competition, 8) Human Resources :: The Reverse Brain Drain 8) Human Resources The Reverse Brain Drain and Middle Eastern governments build for future generations”. 9) Private Public Partnerships 9) Private Public Partnerships 10) Increasing M&A/ Private Equity Activity 10) Increasing M&A/ Private Equity Activity 23 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  24. 24. Spending on Diagnostics Set to Increase Asia Healthcare Spend by Area, 2009-2020 • Major opportunities within diagnostics and monitoring • Products and services will not be standalone but will be “packaged” to target specific diseases. • Example : predict avian flu, diagnose, treat, monitor 24 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  25. 25. Focus by Disease Areas 25 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  26. 26. Contents 1. 360 Degree Perspective Diagnostics 2. APAC Market Outlook Industry Briefing 3. Industry Best Practices 26 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  27. 27. Best Practice (1) Durable Competitive Advantage Drives Growth New Technology meets a market need and value Provide educational Reduction in death awareness to promote novel Reduction in disease burden predictive tests Reduction in disease management cost Integrate novel tests with existing platforms to provide Develop innovative comprehensive test esoteric tests with menu Invest in technology high clinical to develop cost relevance for effective scalable existing diseases solutions with high robustness Educate Integrate Innovate Invest To provide To gain To frame To create cost competitive winning brand effective edge strategies loyalty solution Value system 27 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  28. 28. Best Practice (2) Durable competitive advantage through integrated approach Proteomics Genomics Integrative Systems Biology Patient Focused Transcriptomics Metabolomics Productivity Improvement Strategies Productivity Improvement Strategies InfoTech Molecular Biology Integrative Enhance Customer Workflow Base Technologies Bio Statistics Clinical Research 28 ©2009 Frost & Sullivan, All rights reserved www.frost.com
  29. 29. Thank You! 29 ©2009 Frost & Sullivan, All rights reserved www.frost.com

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