Your SlideShare is downloading. ×
Health Care - Diagnostics and Life Science Products: How to penetrate the Eastern European and Russian Market
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Health Care - Diagnostics and Life Science Products: How to penetrate the Eastern European and Russian Market

1,441
views

Published on

This is a case study on market expansion in Eastern-Europe and Russia. …

This is a case study on market expansion in Eastern-Europe and Russia.
It is focused on the Biotech / MDx / Life Science market.
It provides the rational for selecting a country as a first entry point in this region for further development.
This presentation gives also some clues on how to proceed for the implementation of such a project.
If interested in collaboration please contact me.

Cheers,

Mila

email: milimont@gmail.com
cell phone: 0049 152 099 750 40

Published in: Business, Health & Medicine

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,441
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Business Development Case Study: Health Care / Life Science Products: How to penetrate the Eastern European & Russian market Milica Popovi ć Géoui
  • 2. Agenda
    • Executive Summary
    • Expansion Strategy Rational
    • Implementation Strategy
    • Conclusion & Perspective
    • References & Raw Data
  • 3. Executive Summary
    • In this report I used a systematic approach using macro- and micro-environment factors to analyse and rank 27 Eastern-European countries in regard to their market potential for a company selling life-science / health-care products and willing to expand in
    • Russia, given its size / population, is a Must Go for Company
    • In Addition to Russia, Slovenia, The Czech Republic , Hungary and Poland are the most attractive locations
    • As members of the EU (except Russia), countries selected present only few minor political / economic risks
    • To refine this analysis and to select THE new location:
      • Further define Company strategy (i.e.: in life science and MDx)
      • Competitors Strategy and Position in the respective markets also need to be further analyzed
      • Evaluate opportunities with local partners
    • The implementation strategy for a commercial network is also presented
  • 4. Agenda
    • Executive Summary
    • Expansion Strategy Rational
    • Implementation Strategy
    • Conclusion & Perspective
    • References & Raw Data
  • 5. Expansion Strategy Rational Ref: Own elaboration.
  • 6. Country Selection Matrix: 1 st Step: Gross Screening Factors type and weight to be discussed / modified Ref: Own elaboration. Data from various UN databases (WHO, WTO, UNICEF, UNESCO …) (-)
  • 7.
    • Central Europe & Baltic States - Czech Republic , Estonia, Hungary , Latvia, Lithuania, Poland , Slovakia
    • Russia & CIS - Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia , Tajikistan, Turkmenistan, Ukraine, Uzbekistan
    • South-East Europe - Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Macedonia, Montenegro, Romania, Serbia, Slovenia
  • 8. Short-Listed Countries: Further Criteria for Analysis Ref: Own elaboration. Economic
    • Czech Republic highest GDP per capita (22k€)
    • All countries (except Russia) EU members
    • Czech Republic will adopt Euro in 2010 (Poland 2012-2014, Hungary 2014)
    • Hungary avoided bancrupcy thanks to a 20 Bi$ IMF loan
    • Poland: Gov incentive for FDI
    Politic / Cultural
    • (+) Poland largest country, strong link with Germany, multilingual workforce, special economic zone / technoparks
    • (-) Poland has slow administrative procedure
    • (-) Hungary  :language barrier, relatively small
    • (-) Czech: very eurosceptic, political tensions in 2009
    Health Consciouscness
    • Poland: National cervical cancer screening program
    • Czech and Russia have a high rate of PAP test (>70%)
    • Czech has the highest per capita health care spending (943€/y)
    • Poland and Czech both have a research budget > 3bi€/y
    Opportunistic Approach
    • E.g.: Serbia high level government contacts
    • National cervical cancer screening program won the Pearl of Wisdom Award in 2009 granted by the ECCA
    • 300Mi€ investment in a science park 2009 / 2014
  • 9. HealthCare Information: Diseases and Financing Czech
    • Key actors in health care financing are insurance funds and professional associations  Joint negociation to define reimbursement
    • Private Insurance funds are the most important actors in health resource allocation (collect and spend 91% of the public health sector)
    • Rapid increase in healthcare expenditure
    • Higher cancer rate (vs. Poland & Hungary), maybe due to better screening?
    Hungary
    • Contribution-based insurance system (formerly tax based)
    • 77% of state health care budget spend on hospitals, 12% on outpatient care and 11% on primary care
    • Link identified between quality of care and reimbursement
    • More investment in health is predicted
    Poland
    • Improvement of health financing system
    • Central National Health Fund with 16 regional branches.
    • Voluntary Health Insurance is available through the National Heath Fund.
    • Additional “health packages” offered by private clinics and insurance companies
    • Progress in developing partnerships between the public health sector and other sectors.
    • Increased out-of-pocket payment
  • 10. Ref: Own elaboration.
  • 11. Next Steps:
    • Acquire market research reports
    • Customer interviews (Lab heads, Directors …)  need more info on Research / MDx practices
    • Street price info (discount level …)
    • Marketing practices (promotion, customer approach, KOL network management)
  • 12. Agenda
    • Executive Summary
    • Expansion Strategy Rational
    • Implementation Strategy
    • Conclusion & Perspective
    • References & Raw Data
  • 13. Ref: Own elaboration.
  • 14. Ref: Own elaboration. Definition of Expectations
    • Company willingness to invest
    • Investment level (€)
    • Expected return-on-investment
    • Time-line
    • Looking forward: diversification? Regional hub?
  • 15. Ref: Own elaboration. Finding the right partner
    • E.g.: Groups in LinkedIn
      • Pharma Recruitment in CEE
      • Life Sciences Jobs in Poland
  • 16. Ref: Own elaboration.
  • 17. Agenda
    • Executive Summary
    • Expansion Strategy Rational
    • Implementation Strategy
    • Conclusion & Perspective
    • References & Raw Data
  • 18. Conclusion & Perspective -I- Country Selection
    • Russia, due to its size is a must go. Bear in mind, it is essential to be aware of official and “behind the scene powers” and decision makers and develop effective communication with Russian partners.
    • Czech Republic has a higher GDP, better organized institutions, health financing and more budget for research. This leads to higher wages and costs than in Poland, but with only 10Mi people it is a relatively small country.
    • Poland is not as organized as the Czech Republic. It has strong economic links with Germany. Efforts are on the way to modernize its structure and improve its administration. Wages and taxes are in the lower end of the scale and specific incentives exist for high tech companies (technology parks & special economic zone). Its size makes it the largest country in the region (38Mi people)
    -II- Competitive Environment
    • All major competitors already present
    • Competitors position and market share needs to be evaluated
    • Key Opinion Leaders / decision makers / health policies makers - links to companies need to be identified
    • Major customers need to be identified and extensive interviews with lab heads / directors should be conducted to gather more information
      • Hospitals / Diagnostics laboratories
      • Research laboratories
    • Information on street price (discount level) and business practices to be gathered
    -III- Implementation Strategy
    • Company strategy should be further defined (i.e.: in life science and MDx)
    • MDx seems more promising than life science (more €)
    • Opportunities with local partners need to be evaluated
    • Company current distributors in the region are most likely the ideal partners(to analyze their performance!)
    • Other life science / MDx distributors could be identified depending on the focus
    • Due diligence shall be conducted with the most promising partners
    • Buying a local distributor or set-up an office appears to be the cheapest / fastest way to access the local market
    -IV- Next Steps
    • Factors used in Country Selection Matrix can be further refined and discussed in the light of Company strategy
    • Company should attend local conferences and organize customer visits with the local distributors to gain more knowledge on local markets
    • Meeting with potential partners to be organized
  • 19. Agenda
    • Executive Summary
    • Expansion Strategy Rational
    • Implementation Strategy
    • Conclusion & Perspective
    • References & Raw Data
  • 20. References & Raw Data
  • 21. Health Expenditure & Taxes
  • 22. HPV in Europe
  • 23. Technological Parks & Special Economic Zones