ANALYSIS OF THE BIOMEDICAL INDUSTRY: THE MIRANDOLA DISTRICT CASE
Definition of biomedical   <ul><li>three different business units: </li></ul><ul><li>pharmaceutical   </li></ul><ul><li>bi...
MDTI – Industry Structure <ul><li>9000 companies in EU  </li></ul><ul><li>6000 in USA  </li></ul><ul><li>400 in Canada </l...
MDTI – Products Areas  <ul><li>Complex technological products: the most profitable (x-rays, dental care, hortopedics, elec...
MDTI – Market <ul><li>Value: about 190 bln$ </li></ul><ul><li>100 bln$ in USA </li></ul><ul><li>66 bln$ in EU </li></ul><u...
HEALTH AREAS <ul><li>RENAL area: </li></ul><ul><ul><li>Renal healthcare: (45 bln$) major deamand source, especially USA </...
HEALTH AREAS – 2 <ul><li>CARDIOVASCULAR area: </li></ul><ul><ul><li>About 14 bln$, high concentration in cardiovascular pr...
MIRANDOLA: FIGURES <ul><li>35 direct-to-consumer companies and 35 intermediate product companies (6% revenues on final sal...
MIRANDOLA: COMPANIES <ul><li>5 multinational groups control 5 major companies, which earn alone about the 80% of total sec...
MIRANDOLA: COMPANIES - 2 <ul><li>B BRAUN: (29253 employees, german). 4 core divisions: anestetic products and services, ri...
MIRANDOLA: COMPANIES - 3 <ul><li>FRESENIUS: (66000 employees, German), mostly in USA. Fresenius Medical Care, 43445 employ...
DISTRICT STRUCTURE <ul><li>577 mln Euros revenues within the district </li></ul><ul><li>Percentage on total group revenues...
DISTRICT STRUCTURE - 2 <ul><li>Among control groups, just Tyco diversifies its activities in  sectors different from the b...
DISTRICT STRUCTURE - 3 <ul><li>EBITDA: </li></ul><ul><ul><li>GAMBRO DASCO: 9.41% </li></ul></ul><ul><ul><li>DIDECO: 18.93%...
STRATEGIES <ul><li>Relatively few competitors on global market </li></ul><ul><li>Necessity of continous innovation, cost r...
STRATEGIES - 2 <ul><li>Defending strategies: </li></ul><ul><li>Protect technologic leadership not in a passive way (positi...
GLOBAL SCENARIO FOR MIRANDOLA <ul><li>Increasing demand in sanitary specialistic areas </li></ul><ul><li>Cost-efficiency a...
MIRANDOLA: OVERVIEW <ul><li>Mario Veronesi: founder and designer (Modena) </li></ul><ul><li>Pattern of development known a...
MIRANDOLA: OVERVIEW - 2 <ul><li>Strategic relevance of European market, but USA stand as the most profitative and attracti...
DANGERS AND THREATS <ul><li>Lack of physical infrastructures (viability) and economical structures (public and private) </...
FUTURE AND HOPES <ul><li>Even if never solved, logistic issues have never prevented Mirandola from being competitive  </li...
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A N A L Y S I S O F T H E B I O M E D I C A L I N D U S T R Y

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A N A L Y S I S O F T H E B I O M E D I C A L I N D U S T R Y

  1. 1. ANALYSIS OF THE BIOMEDICAL INDUSTRY: THE MIRANDOLA DISTRICT CASE
  2. 2. Definition of biomedical <ul><li>three different business units: </li></ul><ul><li>pharmaceutical </li></ul><ul><li>biotechnologies </li></ul><ul><li>medical device technology industry (MDTI) (Mirandola) </li></ul>
  3. 3. MDTI – Industry Structure <ul><li>9000 companies in EU </li></ul><ul><li>6000 in USA </li></ul><ul><li>400 in Canada </li></ul><ul><li>In all areas companies are for 80% small-medium sized </li></ul>
  4. 4. MDTI – Products Areas <ul><li>Complex technological products: the most profitable (x-rays, dental care, hortopedics, electromedical devices, etc) </li></ul><ul><li>Disposable: accessories, contact lens, canulas, DNA tests </li></ul>
  5. 5. MDTI – Market <ul><li>Value: about 190 bln$ </li></ul><ul><li>100 bln$ in USA </li></ul><ul><li>66 bln$ in EU </li></ul><ul><li>24 bln$ in JAPAN </li></ul>
  6. 6. HEALTH AREAS <ul><li>RENAL area: </li></ul><ul><ul><li>Renal healthcare: (45 bln$) major deamand source, especially USA </li></ul></ul><ul><ul><li>Dialisys products: (8.3 bln$) sub-sector, involves directly Mirandola. 3 competitors (Gambro, SWE; Fresenius, GER; Baxter, USA) </li></ul></ul>
  7. 7. HEALTH AREAS – 2 <ul><li>CARDIOVASCULAR area: </li></ul><ul><ul><li>About 14 bln$, high concentration in cardiovascular products market </li></ul></ul><ul><li>TRANSFUSIONAL area: </li></ul><ul><ul><li>1.4 bln$, growth rate 5% </li></ul></ul>
  8. 8. MIRANDOLA: FIGURES <ul><li>35 direct-to-consumer companies and 35 intermediate product companies (6% revenues on final sales </li></ul><ul><li>16% biomedical devices, 84% disposable </li></ul><ul><li>2001: </li></ul><ul><ul><li>560 mln euros revenues </li></ul></ul><ul><ul><li>3941 employees </li></ul></ul>
  9. 9. MIRANDOLA: COMPANIES <ul><li>5 multinational groups control 5 major companies, which earn alone about the 80% of total sector revenues. Multinationals compete in both renal, transfusional and cardiovascular areas, hence the demand of biomedical devices and disposables produced in Mirandola district. The groups are: </li></ul><ul><li>GAMBRO: (21000 employees, swedish, 40 countries) leader in renal products and healthcare. Owns all over the world about 700 clinics where about 55000 patients are given treatments. Total revenues: 3.2 bln$ </li></ul><ul><li>GAMBRO DASCO, Medolla, 710 employees </li></ul>
  10. 10. MIRANDOLA: COMPANIES - 2 <ul><li>B BRAUN: (29253 employees, german). 4 core divisions: anestetic products and services, rianimation and infusions (Hospital Care), surgical products (Aesculap), in-house patient care products (Outpatient Market), dialisys systems and products (MedTech). Tot rev: 2.7 bln$ </li></ul><ul><li> B BRAUN Carex, Mirandola, 111 employees </li></ul><ul><li>TYCO: (260000 employees). American multidivisional company, healthcare sector counts for 6.7 bln$ in revenues </li></ul><ul><li> MALLINCKRODT DAR, Mirandola, 331 employees </li></ul>
  11. 11. MIRANDOLA: COMPANIES - 3 <ul><li>FRESENIUS: (66000 employees, German), mostly in USA. Fresenius Medical Care, 43445 employees, treats about 120000 patients. Tot rev: 5.5 bln$ </li></ul><ul><li> FRESENIUS Hemocare Italia, Cavezzo, 143 employees </li></ul><ul><li>SORIN GROUP: (4841 employees, Italian) cardiac rhythm control, cardiac surgery and vascular care. Tot rev: 671 bln$ </li></ul><ul><li> BELLCO, Mirandola, 404 employees </li></ul><ul><li> DIDECO, Mirandola, 654 employees </li></ul>
  12. 12. DISTRICT STRUCTURE <ul><li>577 mln Euros revenues within the district </li></ul><ul><li>Percentage on total group revenues: </li></ul><ul><ul><li>GAMBRO DASCO: 6.86% </li></ul></ul><ul><ul><li>DIDECO: 20.79% </li></ul></ul><ul><ul><li>BELLCO: 12.32% </li></ul></ul><ul><ul><li>MALLINCKRODT DAR: 0.58% </li></ul></ul><ul><ul><li>FRESENIUS HEMOCARE: 2.16% </li></ul></ul><ul><ul><li>B BRAUN CAREX: 0.96% </li></ul></ul>
  13. 13. DISTRICT STRUCTURE - 2 <ul><li>Among control groups, just Tyco diversifies its activities in sectors different from the biomedical one. </li></ul><ul><li>The most important productions are biomedical devices and disposables, filter machines for dialisys, apparats and cases in atossic plastic, selftransfusion systems, etc. </li></ul><ul><li>GAMBRO and FRESENIUS main income area is USA (about 50-60% of total), while SORIN, TYCO and B BRAUN sell more in Europe </li></ul><ul><li>Controlled Mirandola companies direct sales mostly to controllants, followed by sanitary systems (public/private) and commercial third parts </li></ul>
  14. 14. DISTRICT STRUCTURE - 3 <ul><li>EBITDA: </li></ul><ul><ul><li>GAMBRO DASCO: 9.41% </li></ul></ul><ul><ul><li>DIDECO: 18.93% </li></ul></ul><ul><ul><li>BELLCO: 14.00% </li></ul></ul><ul><ul><li>MALLINCKRODT DAR: 20.11% </li></ul></ul><ul><ul><li>FRESENIUS HEMOCARE ITALIA: 18.64% </li></ul></ul><ul><ul><li>B BRAUN CAREX: 1.91% </li></ul></ul>
  15. 15. STRATEGIES <ul><li>Relatively few competitors on global market </li></ul><ul><li>Necessity of continous innovation, cost reduction and organizational flexibility </li></ul><ul><li>Central factor: right allocation and management of networks hubs </li></ul><ul><li>Challenge: increasing capitalistic mentality in far-east could lead to the creation of large-dimensioned asiatic competitors (especially China) </li></ul>
  16. 16. STRATEGIES - 2 <ul><li>Defending strategies: </li></ul><ul><li>Protect technologic leadership not in a passive way (positional advantage) but active (overwhelming technologic improvement skills and better human resources </li></ul><ul><li>Exploit potential advantages resulting from chinese competitive opening </li></ul><ul><li> Joint ventures in China aimed at producing disposable (low added-value products) </li></ul>
  17. 17. GLOBAL SCENARIO FOR MIRANDOLA <ul><li>Increasing demand in sanitary specialistic areas </li></ul><ul><li>Cost-efficiency and and technologic superiority </li></ul><ul><li>Exploitation of the network potentiality, especially for R&D centers </li></ul>
  18. 18. MIRANDOLA: OVERVIEW <ul><li>Mario Veronesi: founder and designer (Modena) </li></ul><ul><li>Pattern of development known as biomedical pyramid: small firms earn and develop thanks to research and innovations sold to larger organizations which exploit them </li></ul><ul><li>Mirandola  80% comes from disposable (differs from other districts because it is linked to more specific healthcare applications </li></ul><ul><li>  just a few portion involves complex technologic applications, which require huge investments and continous research, but grants better incomes </li></ul>
  19. 19. MIRANDOLA: OVERVIEW - 2 <ul><li>Strategic relevance of European market, but USA stand as the most profitative and attractive market, even if it is difficult to reach and serve </li></ul><ul><li>Asia acquires importance over years, growing in quantity and quality </li></ul><ul><li>Good management and satisfying operative results within the district, but dynamically less attractive than former periods </li></ul>
  20. 20. DANGERS AND THREATS <ul><li>Lack of physical infrastructures (viability) and economical structures (public and private) </li></ul><ul><li>Collaboration and presence of laboratories and R&D structures is still too weak if compared to other districts </li></ul><ul><ul><li>Joined to italian cronic lack of capital and resources, led firms to focus on disposable, the less technologic area (despite it is quite specialised) </li></ul></ul><ul><ul><li>This entails a future direct competition with China and Far East </li></ul></ul>
  21. 21. FUTURE AND HOPES <ul><li>Even if never solved, logistic issues have never prevented Mirandola from being competitive </li></ul><ul><li>Focus on quality of technics, still required by multinational controlling groups </li></ul><ul><li>New market opportunities (Asia) </li></ul>

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