Growth Opportunities in the
European Medical Devices Market and
Entry Modes in Medtech Manufacturing



            18 Mar...
Agenda


 European Medical Device Market-Key Trends & Impact of Recession



 European Medical Device Market-Key Growth Op...
1. Key Trends & Impact of Recession




                                      3
Shift in Focus for European Medical Devices: 2005-2015
                                   Growing collaboration among the ...
European Medical Device Market: Key Trends

                         Acute Care Vs. Planned Care: Fewer patients have been...
Can the Market be Recession Proof in the Long-run?
                                                                       ...
2. Key Growth Opportunities




                              7
Snapshot of Potential Opportunities – Europe, A Rapidly
 Expanding Market

High Revenues
                                 ...
Expanding Cardiovascular and Orthopedics Applications
 Change Market Status-Quo in 2012 (Europe)
                         ...
Cardiovascular Market: Hot Segments and Key Trends
                                                                       ...
Cardiovascular Market: What to expect..

While the cardiovascular devices market
expects to be fairly stable and, for the ...
Orthopedic and Prosthetic Devices Market: Hot Sectors
    and Key Trends
                                                 ...
Orthopedic and Prosthetic Devices Market: What to
  Expect..
The recession has caused many to think
twice about getting me...
Cosmetic Surgery and Lifestyle Products: Hot Sectors
 and Key Trends
                                                     ...
Weakening Economy Take a Swipe at European Vanity

Although recession would have to be
severe before European would forgo
...
Homecare and Non-Hospital Devices: Hot Sectors and
   Key Trends
                            Adult Briefs                 ...
Homecare and Non-Hospital Devices Soar!

Homecare and non-hospital devices market
will continue to grow as patients’ will ...
3. Collaboration Opportunities
for Asian/Singapore Companies




                                 18
The European Market is Changing


                          Current Situation in U.K.




                  • Quality & se...
What do European Medical Device Manufacturers Look For?



                      OEMs are more focus on marketing and dist...
Specific Opportunities in Technology Transfer

                                                      Zero Defect Reliabili...
Long Term Collaboration Opportunities



   Nanotechnology
                               Diagnosis
  Molecular and Gene- ...
Some Success Stories: Products being Jointly Developed

                                                           Micro-a...
Your Contact For More Information



Nitin Naik
Vice President-Healthcare, APAC
Tel :68900978
Email : nnaik@frost.com




...
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Growth Opportunities in the European Medical Devices Market and Entry Modes in Medtech Manufacturing

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Frost & Sullivan analysis of Growth Opportunities in the European Medical Devices Market and Entry Modes in Medtech Manufacturing.

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  • thanks..its a great info..i need to make a career in medical devices..right now doing mba in Marketing from NMIMS,mumbai....please mail me if you have more stuuf on medical devices...which can be good for me in understanding medical devices market
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Growth Opportunities in the European Medical Devices Market and Entry Modes in Medtech Manufacturing

  1. 1. Growth Opportunities in the European Medical Devices Market and Entry Modes in Medtech Manufacturing 18 March 2010
  2. 2. Agenda European Medical Device Market-Key Trends & Impact of Recession European Medical Device Market-Key Growth Opportunities Collaboration Opportunities for Asian/Singapore Companies 2
  3. 3. 1. Key Trends & Impact of Recession 3
  4. 4. Shift in Focus for European Medical Devices: 2005-2015 Growing collaboration among the fields of information technology, medical imaging, pharmaceuticals and medical devices because such synergies could produce therapies with unprecedented clinical benefits Was Is Will be 2005 2010 2015 Reduced Hospital Holistic solutions: Hospital based stay and increase Integrating pharma, diagnostic Intervention in homecare & monitoring elements 4
  5. 5. European Medical Device Market: Key Trends Acute Care Vs. Planned Care: Fewer patients have been scheduling screening and check-ups; less meetings with dentists; preference for over the counter medication compared to prescription medication Lending crisis: There is a significant rise in slowdown in construction and cancelling of Pressure on Third-Party Payers: One of orders that are not critically the key sources of economic efficiency required by hospitals. There is within healthcare is that insurance also a trend of delaying companies control the market pricing replacements of high-end and market access. Severe pressure on equipment due to budgetary firms that provide health insurance and constraints also reduces consumers' discretionary spending for purely elective medical care 5
  6. 6. Can the Market be Recession Proof in the Long-run? People are cutting back on care – doctor’s visits, medications, elective surgeries – amid the recession. 36% Fears over the US slipping further of patients are postponing needed into recession with unpredictable care, while another 36% are skipping currency fluctuations could slow tests, exams and other healthcare down the European medical device services outright market Tendency for capital expenditure Impact of Recession on to be deferred. There is a trend of European Medical delaying replacements due to Devices Market budgetary constraints There has been a 9% decline in the total number of surgical& less invasive cosmetic surgeries performed in Europe compared to 2007 If the recession lasts more than a With the steady rise of unemployment and year, there is the possibility of with it their health insurance. This has and governments, national and supra- will have a direct impact on medical device national, to take short-term cost companies, as non-emergent surgical saving measures which will procedures and services are put off as long actually cost patients and the as possible, thus limiting the usage of their healthcare systems money in the products. long run 6
  7. 7. 2. Key Growth Opportunities 7
  8. 8. Snapshot of Potential Opportunities – Europe, A Rapidly Expanding Market High Revenues Dental Implants Custom Procedure Pain Management Trays Projected Devices Revenues In 2012 Advanced Wound Management Endoscopy Obesity Surgery Low Revenues Image Guided Surgery Low High Growth Rate (2008-2012) 8
  9. 9. Expanding Cardiovascular and Orthopedics Applications Change Market Status-Quo in 2012 (Europe) Per Cent of Revenues by Segment, Europe (2008-2012) 2008 2012 35 30 25 20 15 10 5 0 Cardiovascular Orthopedic Woundcare Surgical Infusion Systems Opthalmic Respiratory and Disinfection and Others Equipment Anaesthesia Sterilisation Others: Neurology, Hearing Aids, Endoscopes, Durable Medical Equipment, Dialysis, Biomaterials & Haemostats, Disposable Surgical Supplies, Fitness Equipment, Cosmetic & Aesthetics and Dental Equipment. The segment also includes some components of imaging and monitoring devices that fall into the grey area between medical devices, medical imaging and patient monitoring. 9
  10. 10. Cardiovascular Market: Hot Segments and Key Trends A majority of the revenues generated in the Pacemakers cardiovascular industry comes from the sale of ICD or pacemakers, and percutanteous Atherectomy and Implantable Cardiovascular Thrombectomy Devices interventional products (angioplasty, stenting) Intravascular Cardiac Resynchronization Manufacturers and venture capital funding have Ultrasound Therapy shifted their research expenditure and market focus to minimally invasive devices, given the higher Vascular Closure Cardiology Cardiac Ablation price point and market potential Devices Price sensitivity to device sales has been more Stents Ventricular Assist Device significant for pacemakers than CRT or ICD devices, but will heighten in impact in other Angioplasty and Intra-aortic Balloon segments as the industry continues to grow Angiography Pump Interventional Cardiology Stent technologies involve an infinite level of complexities; as a result the market is easier to penetrate for companies seeking market entry. Continuing controversy about increased rates of clotting over time with drug-eluting stents (DES) has led to greater regulatory scrutiny and longer post marketing approval parameters. More cardiac surgeons are questioning the high use of DES and are reverting to less-expensive bare-metal stents The other major segment, cardiac rhythm management systems, is growing as a result of positive clinical outcomes, improved data management capabilities, and decreasing product failure rates 10
  11. 11. Cardiovascular Market: What to expect.. While the cardiovascular devices market expects to be fairly stable and, for the most part, unaffected by the recent economic crisis. Ageing populations New technologies, and long-term gradual & higher expansion into under penetrated segments, awareness of heart- such as peripheral vascular disease, should related health With more than half a million provide growth opportunities for product conditions will ensure market new CHF cases developers being detected growth every year, the market is slated Decrease in to grow product sale revenue primarily due to dip in foreign Relatively Recession Proof exchange rate Next-generation of hybrid devices expected to expand device Developments in applicability and imaging treatment technology boost efficiency of angioplasty procedure, 11
  12. 12. Orthopedic and Prosthetic Devices Market: Hot Sectors and Key Trends Technology is capable of significantly altering Joint Reconstruction product acceptance, implant pricing, reimbursement Shoulder Prostheses Spinal Fusion rates, inpatient orthopedic utilization, and several other factors that can directly or indirectly affect the joint reconstruction market. Elbow Prostheses Spinal Fixation Motion preservation technologies are expected to revolutionize the spinal surgery market. Being an Ankle Prostheses Motion Preservation Orthopedics Technology emerging segment, the future of this technology largely depends on the short and long-term clinical efficiency. Knee Replacement Vertebroplasty ■ The market for the uncommon joint such as elbow, wrist, and digit replacement being younger than that Bone Morphogenetic Spinal Orthoses Protiens for hip and knee joint replacements presents Orthopedic Braces significant opportunity for growth within the joint and Supports replacement market. Manufacturers are utilizing a major portion of their resources on developing better and cost-effective materials for implants. Treatment patterns are expected to be skewed toward minimally invasive procedures augmented by the use of enhanced fixation products, growth factor, and image guided surgery, all of which facilitated the treatment of complex fractures. Accelerated convergence between orthopedics and biology leads to advances in bioabsorbable structures. In addition, growth factors routinely coat fixtures to help soft tissue and muscle healing. With advances in computing and data management, devices entering the market can wirelessly transmit data on joint position and optimal functionality. 12
  13. 13. Orthopedic and Prosthetic Devices Market: What to Expect.. The recession has caused many to think twice about getting medical care, including orthopedic surgery. Surgical volumes have Demand for not change yet but the numbers are going to procedures to slow be definitely down by the end of 2009 by about 3% due to the general Sales reports in economic recent quarters downturn show slowed growth in large- joint reconstruction Benefits of hip and knee surgery are indisputable for patients suffering from osteoarthritis Orthopedics feels the pinch Almost 6% of Europeans prefer deferring minor surgery and 5 percent who put World’s top hip off major surgery and knee implant makers feel the squeeze. Zimmer reported a 5% and 9% drop in sales respectively 13
  14. 14. Cosmetic Surgery and Lifestyle Products: Hot Sectors and Key Trends HA-based dermal fillers are promising as they have Chemical Peeling greater longevity of usually six to nine months, and Rhynoplasty Aesthetic Hair Removal sometimes up to a year Lasers The aesthetic laser has increased awareness Obesity Surgery Vascular and Pigmented Devices Lesion Treatment Laser among the people regarding the technology available that can help them improve their appearance by taking Cosmetic care of the unwanted hair, skin blemishes, and acne. Botox Cardiac Ablation Surgery & Lifestyle Products Europe is currently the second largest market for Liposuction and Skin Resurfacing Lasers cosmetic procedures after the United States Body Contouring Breast Enhancement Hyaluronic Acid (HA)-Based Spain leads the field within Europe and is ranked Dermal Filler number five in the world in terms of demand for Collagen-Based Dermal cosmetic procedures. The United Kingdom, though, Fillers does not have many cosmetic procedures done. However, as the cost of each procedure is high, it has become a cash-rich market With increasing market demand, economies of scale have made surgery more affordable in certain parts of Europe, like Spain, Italy, and Germany. Cut price surgeries are more in common in these regions. Most private clinics have also come up with loan and credit facilities which ease out the burden on the patient The development of the advanced visualization system allows practitioners to view the layers beneath the skin and provide effective treatment solutions 14
  15. 15. Weakening Economy Take a Swipe at European Vanity Although recession would have to be severe before European would forgo cosmetic procedures, especially the less expensive ones, there are still some signs Plastic of distress surgery is Major cut down by 9% back breast implants. 6% drop in 2008 2% drop in Rhinoplasty procedures Vanity’s Downturn 3% drop in sales of botox in 2008 Dermal fillers fell 4% compared to 2007 15
  16. 16. Homecare and Non-Hospital Devices: Hot Sectors and Key Trends Adult Briefs Across Europe, there is a move towards centralised Under pads Mechanical Ventilation care, as consolidation of hospitals is seen, reducing Devices the number of hospitals, beds, and facilities. There is also unstable staffing levels and low retention rate for Disposable Pads Oxygen Therapy nurses. These factors combined create the ideal Equipment conditions for driving homecare and non-hospital care Homecare Penile Drip Nebulisers & Patients are more receptive to using homecare and Collectors Non- Non-Hospital Devices non-hospital devices if they have built-in monitoring capabilities. Acceptance is also increased by ensuring Nutrition Therapy Continuous Positive that the devices do no impinge on normal day-to-day Airway Presser life Infusion Pumps Bi-level Positive Airway Pressure With around 18.0 per cent of the population over the IV Therapy age of 65, Europe has the highest elderly population in the world. Widespread introduction of Diagnostic Related Group (DRG) reimbursement system across Europe has resulted in reduced revenues from in-patient treatment. Hospitals are no longer reimbursed, based on length of hospital stay, however, they are paid a flat rate fee depending on the disease. This has encouraged hospitals to seek the most cost-effective, resource-efficient methods for providing continued treatment and care for patients. Homecare and non-hospital managed therapies do not have the same infrastructure and capital costs associated with in-patient treatments. 16
  17. 17. Homecare and Non-Hospital Devices Soar! Homecare and non-hospital devices market will continue to grow as patients’ will opt for homecare over hospital visits Increasing demand for personalized Increased care coupled possible patient with cost base with a rise efficiency in the aging population Smaller companies may have trouble surviving during recession Preference over traditional care DRG Reimbursement across Europe causing reduced revenues Advances in from In-patient technology making treatments monitoring patients remotely much easier 17
  18. 18. 3. Collaboration Opportunities for Asian/Singapore Companies 18
  19. 19. The European Market is Changing Current Situation in U.K. • Quality & service-related press focus • Patient “right to choose” in draft NHS charter • NHS quality charter • Quality accounts need to be published Quality Challenge 19
  20. 20. What do European Medical Device Manufacturers Look For? OEMs are more focus on marketing and distribution functions, whereas Outsourcing R&D and manufacturing activities are gradually outsourced to EMS (Electronic Manufacturer Service) providers. OEMs are looking to forge partnerships with small agile companies/ OEM Expectations manufacturers who offer niche services. Total solution provider is preferred only in cases of large scale green field ventures. Advancement in technology will be surrounding 4 key areas: Technology specifications (better features), miniaturization (size reduction and portability), reliability and power sources (for portable devices). Manufacturers have more collaborations with various institutions to Collaboration leverage on their R&D capabilities and intelligence. Win-win situation can be achieved as the institutions can gain financial supports. 20
  21. 21. Specific Opportunities in Technology Transfer Zero Defect Reliability - Device failure death to patient - Failure Mode and Effects Analysis (FMEA) Enhanced Performance and Feature - Flexible circuits > rigid - Better specifications circuits - Networking ability: LAN - Process validatio and - Wireless solution: Bluetooth, Wifi control Transformation of Medtech Device Improved Power Sources Miniaturization - Rechargeable battery in - Pacemaker: size of pack of neurostimulator extends its cards size of stopwatch lifespan by 10 years. - Printed circuits denser - Biothermal battery – using body and thinner. heat to create a low current - Infusion pump: single chip, source of power. micro-fluidic pumps? - Nuclear microbatteries is in development. 21
  22. 22. Long Term Collaboration Opportunities Nanotechnology Diagnosis Molecular and Gene- - Early detection Affordability - Reduce false diagnosis AIO device – one device, based Diagnostics multiple tests Information Easy to use Technology Treatment Long term monitoring - Improved treatment: Cater to specialized higher efficacy, target needs Artificial Organs Self testing specific. - Non-invasive More options available Tissue Engineering - More treatment options Translation Advancement in Benefits to into Clinical Technology the Patients Applications 22
  23. 23. Some Success Stories: Products being Jointly Developed Micro-array lab-on-a-chip products are improving point-of- care diagnostics. A micro-array Pacemakers today take lab-on-a-chip is an array matrix advantage of sophisticated that lets doctors instantaneously microprocessor technology to analyze fluids, cells, and even monitor, analyze and control DNA structure right in the office. cardiac rhythm. Automatic External Defibrillator is a small, portable device that analyzes the heart's rhythm and prompts the user to deliver a defibrillation shock if it determines one is needed. State-of-the-art hearing aids incorporate the latest in DSP (digital signal processing) technology together with low- power analog amplification. 23
  24. 24. Your Contact For More Information Nitin Naik Vice President-Healthcare, APAC Tel :68900978 Email : nnaik@frost.com www.frost.com 24
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