Obama care a new opportunity in us healthcare - finpro

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Presentation material from Finpro Market Opportunity Day, May 17 2013.

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Obama care a new opportunity in us healthcare - finpro

  1. 1. ObamaCare - a new opportunityin US HealthcareMarket Opportunity Day 17.5.2013Eero Toivainen, Finpro
  2. 2. Healthcare and pharmaceuticals market in the US• The US medical and healthcaremarket is the single biggest marketin the world – the healthcareexpenditures comprise 47.5% ofthe global expenditures• The market is growing at almost a10% rate and the share ofimported products andtechnologies is 32% and rising.• The US is also the center forhealthcare innovations as many ofthe most successful healthcaredevices, practices andtechnologies originate in the US5/21/2013 © Finpro 2
  3. 3. The Drivers of the Business Opportunity• Healthcare reform (ObamaCare), a growing elderly populationwith an associated disease burden, changing regulatoryguidelines, new drug launches, and a growing mobile andwellness sector are main drivers– In order for to meet the future demand, the industry needs newideas, technologies, and partners from abroad– Many of the companies in the industry are investing in executiveeducation and preparing new processes to learn how to work withEuropean SMEs and start-ups• The new healthcare mindset stems from healthcare reform(ObamaCare) and the necessity to cut costs and improve thequality of care– Hospitals are now accountable and are being penalized forreadmissions within 30 days.– There is a new need for “hospital at home” and new easy to usehome care solutions – prevention and mobile are growing5/21/2013 3© Finpro
  4. 4. Healthcare Reform (ObamaCare)• ObamaCare is aimed at reforming the American health caresystem• The objective is regulating the health insurance industry whileimproving the quality of care and reducing costs• New technologies, services, and mindset are needed –American companies are looking outside for the solutions• Total Health – the concept of integrating prevention, wellcare,lifestyle and healthcare is creating a new opportunity for newplayers• ObamaCare will expand Medicaid and Medicare enablingapproximately 50 million new people to be insured, therebycreating a need for new products and services• ObamaCare will come into effect on 2014 and now is the timeto become involved in the industry5/21/2013 4© Finpro
  5. 5. Healthcare and pharmaceuticals market in the US5/21/2013 5© FinproHospital care31 %Physician and clinicalservices20 %Dental care4 %Nursing home andhome health8 %Prescription drugs10 %Research, structuresand equipmentinvestments6 %Other Items21 %Breakdown of the healthcare expenditures in the US bycategory, 2011Source: US Gov.
  6. 6. Life Science Opportunities in the US• Healthcare and medical devices• Disease specific pharmaceuticals and biotechnology product• Hospital equipment and operating room solutions• Electronic medical data and HCI• Exercise and wellness hardware, software and interfaces,preventive medicine• Personalized medicine• Food and food additives.5/21/2013 6© Finpro
  7. 7. Pharmaceuticals, medical devices and operatingroom equipment• Pharmaceutical market is aseveral hundred billion dollarbusiness in the US• Generic pharmaceuticals, a $53billion dollar industry, is expectedto be one of the fastest-growingsectors in the country with averageexpected growth of 6.3% until2017• Medical devices, hospital andoperating room solutions andequipment are also lucrative andgrowing market segments• Additional emerging field is theelectronic medical data andelectronic records market5/21/2013 © Finpro 7
  8. 8. Pharmaceuticals, medical devices and operatingroom equipment5/21/2013 8© Finpro98,6123,9164,4220,50501001502002502005 2010 2015 2020Medical Devices Market in the US, $bnSource: GlobalDataCAGR5.5%
  9. 9. Pharmaceutical Market by Segment in the US5/21/2013 9© Finpro24730738047119 22 27 3401002003004005002005 2010 2015 2020Prescription Drugs OTC DrugsPharmaceutical Market by Segment in the US, $bnCAGR4.4%**Prescription + OTC
  10. 10. Biotechnology• The US biotechnology revenues formedca. 70% of global public biotechcompanies’ revenues in 2011• The decline in revenues of US biotechcompanies in 2011 was driven by threelarge acquisitions by non-biotechacquirers – after normalizing for theseacquisitions, the revenues increased by12%• In 2011 the US FDA approved more newdrugs than at any time since 2004• 70% of the approvals were approved inUS before they received approvalanywhere else in the world• As in prior years, cancer continues todominate the US clinical pipeline• Neurology will become increasinglyimportant in the years ahead as agingpopulations increase the number ofneurodegenerative diseases5/21/2013 © Finpro 10
  11. 11. The US Clinical Pipeline by Indication5/21/2013 11© FinproCancer44%Neurology10%Infectious disease9%Metabolic andendocrine6%Autoimmune4%Cardiovascular4%Respiratory4%Other19%The US Clinical Pipeline by Indication, 2011Source: Ernst &Young
  12. 12. Biotechnology revenues in the US5/21/2013 12© Finpro*Publicly traded biotechnology companies in the four established clusters – the United States, Europe,Canada and AustraliaBiotechnology revenues in the US and the rest ofthe world* (Public company data; USD billion)6165,156,261,158,819,3 21,7 22,123 24,60204060802007 2008 2009 2010 2011USROW*Source: Ernst &Young
  13. 13. Hospital Equipment and Medical Devices• US medical device market constitutes 40% of global markets and isestimated to top $200 billion in 2020• The biggest segments are the orthopedic devices,in Vitro Diagnostics (IVD), cardiovascular devices, and ophthalmicdevices• During 2010-2020 the fastest growing segments are expected to bethe orthopedic devices, IVD, and hospital supplies• Especially the patient monitoring device market is expected to growrapidly in the coming years• Major drivers are aging population, high healthcare spending, earlydiagnosis of diseases, high prevalence of chronic diseases, sedentarylifestyle of US population, and health tourism28.3.2013 13Finpro
  14. 14. Medical Device Market in the US by segment5/21/2013 14© FinproOrthopedic Devices16 %In Vitro Diagnostics15 %CardiovascularDevices12 %Ophthalmic Devices10 %Hospital supplies6 %Others41 %Medical Device Market in the US by segment, 2010Source: GlobalData
  15. 15. Medical Device Market in the US28.3.2013 15Finpro98,6123,9164,4220,50501001502002502005 2010 2015 2020Medical Device Market in the US, $bnSource: GlobalDataCAGR5.5%
  16. 16. Healthcare Informatics and Mobile Health28.3.2013 16Finpro• The global mHealth market is expected grow at a CAGR of 41.5% and to reach$10.2bn by 2018• US is the largest market for mHealth solutions with a size of $660m or ca. 50% ofthe global market• The monitoring services is the largest and fastest growing mHealth segmentconstituting 60% of the total market followed by diagnostic services and healthcaresystems• Cardiac rhythm management, sleep therapy and ambulatory ECG are the mainmonitoring device segments – sleep therapy, blood pressure monitoring, glucosemonitoring and medication adherence are predicted gain more momentum• Strong growth forecasted for mHealth applications while an additional emergingfield is the electronic records market• Cloud computing, spread of smartphones, ease of use functionalities, rising health-care spending, and demand for independent aging solutions and post-acute careservice are driving the growth of mHealth
  17. 17. Healthcare Informatics & Mobile health5/21/2013 17© Finpro$1.3bn$10.2 bnGlobal mHealth market size & segments, $billion2012 2018Source: Global Data80%Software &services12%Hardware8%Networks &connectivity
  18. 18. Healthcare Informatics & Mobile health5/21/2013 18© FinproThe metric only accounts for devices that use fixed wireless, cellular, andfixed line connections.Source: Berg InsightConnected home medical monitoring devices, million units(World 2011-2017)
  19. 19. The most important Health & Life Science Clusters in the USBay Area LifeScience Biotech,Informatics, VC, MobileLos AngelesBiotechnology,Pharmaceutical,Medical devicesSeattleR&D, DrugDevelopment, VC, HITNew York/New Jersey/PhiladelphiaPharma, Mobile,Biotech, MedicalDevices, VCBoston Biotech,Pharma, VC, mobile,devices, HITFloridaBioscience, LifeScience,Medical DevicesRaleighDurham, NCPharma & BiotechResearch, JVsSan DiegoBiotechnology ,Mobile Health IT,Devices, VCDC, MDFDA, NIH,I-270 corridor”NA Alley”AtlantaBioscienceHITChicagoLife ScienceDenver:Agriculture, BioscienceHoustonResearchIndianapolisLife science, implantsMinneapolisAgriculture,Medical devices
  20. 20. Finpro Gazelle US for Health Science Companies• A five-stage program, that will take place in Helsinki and US healthcare hubs• The Bootcamp (4-5.6) facilitator and trainer is Christian Haller– A trusted advisor and strategist for business executives in the medical technologyand consumer products industries– Works with executives at start-ups and Fortune 500 companies to conceive, finance,develop, manufacture and market first of a kind products and new technologies– A serial internal entrepreneur at MPR, where he has successfully built numerousnew companies• The program is run by experienced people and gurus from the markets andindustries• In the US, leading medical experts join the team and work with each company21/05/2013 20© Finpro1 2 543SituationAnalysisBootcamp Mentoring&CoachingDiscovery EntryOptions
  21. 21. Testimonials from Gazelle Bootcamp Graduates 2012“Absolute must to attend before any business!”“If thinking of going to the US, do this course!”“Any start-up should go through this, hands down!”“It will make you think”“This session really helps focus your attention on things…”5/21/2013 21© Finpro
  22. 22. Financing options21/05/201322© FinproPreliminary FundingCompany DevelopmentGrantJoint Purchase TrainingTekes R&D Grant Tekes De minimis grantTekes Young InnovativeCompaniesGo Global Plus(ELY/Finpro) value17.5 k€,with approx 75 % supportFinpro Growth MarketProgram (TEM/Finpro) value20 k€ with 50% supportFinnpartnershipFinnveraFinpro’s programs with funding and financing optionsPublic financing and funding options
  23. 23. Your contacts in Finland:Eero ToivainenSenior Consultanteero.toivainen(a)finpro.fiTel +358 40 343 3379Kimmo AuraRegional Sales Manager, Americaskimmo.aura(a)finpro.fiTel +358 40 504 83175/21/2013 © Finpro 23
  24. 24. Your contacts in the US:Val KratzmanHead of Trade centerval.kratzman(a)finpro.fi+358 20 4695 806Maria MäkeläConsultantmaria.makela(a)finpro.fi+358 20 4695 8505/21/2013 © Finpro 24
  25. 25. Follow us on socialmedia and visit ourwebsite www.finpro.fi

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