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Setting the Scene Outlook for Healthcare Industry from 2010-12 Global Healthcare Market : 2009
US and Europe were impacted in a major way by global crisis
Asia also slowed down but not as much as the West
Valuations were low and M&A was high, many smaller Biotech companies struggled
Major organizational restructuring occurred, along with portfolios being reassessed
Global Healthcare Market : 2010-12
Recovery of the markets to a large extent with strong growth in Asia
Start of major patent expiries
M&A activity down in the West but could be important in Asia, restructuring will continue
Asia becoming increasingly important as a market and outsourcing hub
5Ps to drive market: Preventive, Preemptive, Personalized, Predictive, Personal Responsibility
Global vs. APAC: The New Frontier By 2012 APAC expected to be close to 27% of global market 23.9% 27.2% 23.2% 26.4% CAGR 12.2% CAGR 6.47%
By 2015 APAC could represent ~40% of global market!
Rest of the World APAC Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan Global & APAC Healthcare Revenues US$ Bn, 2009-2012
Asia is however transitioning Moving toward a Multi–Polar World Order Asia Pacific Market : 2009
Slowing down of GDP in mature markets – Japan and Australia took a big hit
Global consolidation left a difficult mess for integration on a local level – job losses and portfolio realignment
Price cutting and playing the margins game
The bubble burst for Medical Tourism
Asia started to set up infrastructure for offshoring and outsourcing for US/EU companies
Asia Pacific Market : 2012
A shift in the center of the world economically and strategically to Asia
Asia to move from export led development to consumption led growth
APAC the fastest growing pharma market and API production hub
Increased government attention to primary and community based healthcare .
Increased use of mobile technology in healthcare service delivery
2010 : Malaysia Innovation and Creativity year
In-depth Sectoral Analysis, APAC and South Korea
APAC Pharmaceuticals & Biotechnology Market Earlier diagnosis improves disease management and length of therapy Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan Market Drivers Market Restraints
Long term use of multiple and specialized drugs for the ageing population
Government support for generics and biosimilars
Enhanced diagnosis and management in oncology, cardiovascular, pain etc
S Korea Oncology market in 2010 : ~ US$ 840 mn; CAGR ~ 17-20%
Growth from early diagnosis of cancers and targeted therapy in top 3 types of cancer : lung cancer, gastric cancer and liver cancer
Potential for generic oncology drugs as this currently comprise 20% share in a market dominated by MNCs
Top Growth Opportunities : S. Korea Pharmaceuticals and Biotech Market
2009 : biopharmaceuticals identified as a growth engine for the Korean economy.
Planned government support for generics and super generics : ~US$ 1 bn from 2007 -2017
Local domestic players have already initiated production of next generation protein therapeutics (bio – betters) : targeted at global markets
S Korea generics market 2010 : ~ US$ 4 bn; CAGR ~ 12.1%
APAC Medical Equipment Market Transition to a mindset of monitoring 59.4 65.4 72.0 79.4 Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan Market Drivers
Safety, accuracy, efficiency, cost
Automation and integration with information systems
Emphasis on early detection and monitoring
Silver industry requirements
Regulatory and reimbursement hurdles
Inadequate distribution networks
Inadequate training on and compliance to new technology
Medical Equipment Revenues, US$ Bn, 2009-2012
South Korea Medical Equipment Market Focus on high end and innovative technology Medical Equipment Revenues, US$ Bn, 2009-2012 Market Drivers Market Restraints
Demand for advanced and innovative medical equipment
Increased prevalence of chronic and lifestyle diseases
High financing deficit of NHIC
Strong reliance on imports in relation to domestic manufacture
High currency fluctuations
Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan
Top Growth Opportunities : S Korea Medical Equipment Market Minimal Invasive & Cosmetic Surgery Clinical Diagnostics Medical Imaging
Growth in traditional products like Linear Accelerators, High end CT and MR and SPECT spur as consumers demand personalised treatment and services
Next Generation Broadband services will lead to creation of u-health products wherein consumers can be diagnosed in real time mode
Source: Frost & Sullivan.
Cardiovascular, endoscopy, laparoscopy, ophthalmic and dental devices. This segment will be driven by increased prevalence of chronic and age related diseases .
Other remarkable specialties include plastic surgery, oriental medicine, dental care
Molecular diagnostics and laboratory automation products will prosper as Korean hospitals strive to provide the world's best and aim to achieve the highest cure rates for various lifestyle diseases like cancer (especially stomach- and liver) and complex surgeries like liver transplantations.
Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan *Healthcare IT includes: Software, Hardware, IT services and Lifesciences IT APAC Lifesciences and Health IT Market* Interoperability challenges hinder adoption Market Drivers Market Restraints
Strong and sustained demand for healthcare services
Consumer demand for quality and access to information
Growing demand for patient centered healthcare services and systemized healthcare organization management through the implementation of advanced healthcare systems
Korea market 2010 ( Healthcare Interoperability Platform (HIP) and Master Patient Index, Health Information Exchange and related Standards and Adaptors) : ~US$ 28 mn; CAGR ~7.5%
Various standards for systematic, efficient record system, sharing, management of health information system have been appearing, as there is a growing demand for necessity to adopt health information system interoperability.
Source: Frost & Sullivan.
Korea market 2010 (EHR) : ~US$ 63 mn; CAGR ~ 10%
The Centre for iEHR (CiEHR ) a research and development institute, established in December, 2005 in support of Korean Ministry of Health & Welfare to develop core technologies necessary to implement lifetime EHR
Summary : Best Opportunity Analysis APAC and South Korea
Where to place your bets in APAC: 2010- 2012 Time Growth Molecular Diagnostics Silver Industry Equipment POCT Vaccines/ Biologics Endoscopy EMR/ EHR Wellness Products Oncology Value based Imaging Healthcare Services Source: Frost & Sullivan. INNOVATION TRIGGER SUPER GROWTH NORMALISATION LEADERSHIP India China S.Korea Singapore Malaysia Vietnam
Where to place your bets in South Korea : 2010- 2012 Time Growth Wellness Products Next Gen Broadband Endoscopy EMR/ EHR Molecular Diagnostics Oncology Healthcare Services Source: Frost & Sullivan. Generics Silver Industry Cardiovascular Orthopedics POCT, Self Monitoring Devices INNOVATION TRIGGER SUPER GROWTH NORMALISATION LEADERSHIP
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