Asia Pacific Overall Healthcare Outlook 2010


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Asia Pacific Overall Healthcare Outlook 2010

  1. 1. 2010 Asia Pacific Healthcare Outlook Analysis of Best Opportunities P3B5-54 April 2010
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  4. 4. TABLE OF CONTENT <ul><li>Overview of Healthcare Market : Key Takeaways </li></ul><ul><ul><li>Setting the Scene: Outlook for Healthcare Industry from 2010-12 </li></ul></ul><ul><ul><li>Global vs. APAC: The New Frontier </li></ul></ul><ul><li>In-depth Sectoral Analysis, APAC and S Korea </li></ul><ul><ul><li>APAC Pharmaceuticals & Biotechnology Market </li></ul></ul><ul><ul><li>APAC Medical Devices Market </li></ul></ul><ul><ul><li>APAC Clinical Diagnostics Market </li></ul></ul><ul><ul><li>APAC Lifesciences and Health IT Market </li></ul></ul><ul><ul><li>APAC Medical Imaging Market </li></ul></ul><ul><li>Summary : Best Opportunity Analysis, APAC </li></ul><ul><ul><li>Where to place your bets in APAC: 2010- 2012 </li></ul></ul><ul><li>Decision Support Database </li></ul><ul><ul><li>Total Health Expenditure </li></ul></ul><ul><ul><li>Private Health Expenditure </li></ul></ul><ul><ul><li>Government Health Expenditure </li></ul></ul><ul><ul><li>Percent Healthcare Expenditure in GDP </li></ul></ul><ul><ul><li>Population Aged Above 65 </li></ul></ul><ul><li>About Frost & Sullivan </li></ul>
  5. 5. Overview of Healthcare Market : Key Takeaways
  6. 6. Setting the Scene Outlook for Healthcare Industry from 2010-12 Source: Frost & Sullivan Global Healthcare Market : 2009 <ul><li>US and Europe were impacted in a major way by global crisis </li></ul><ul><li>Asia also slowed down but not as much as the West </li></ul><ul><li>Valuations were low and M&A was high, many smaller Biotech companies struggled </li></ul><ul><li>Major organizational restructuring occurred, along with portfolios being reassessed </li></ul>Global Healthcare Market : 2010-12 <ul><li>Recovery of the markets to a large extent with strong growth in Asia </li></ul><ul><li>Start of major patent expiries </li></ul><ul><li>M&A activity down in the West but could be important in Asia, restructuring will continue </li></ul><ul><li>Asia becoming increasingly important as a market and outsourcing hub </li></ul><ul><li>5Ps to drive market: Preventive, Preemptive, Personalized, Predictive, Personal Responsibility </li></ul>
  7. 7. 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% <ul><li>By 2015 APAC could represent ~40% of global market! </li></ul>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
  8. 8. Asia is however transitioning Moving toward a Multi–Polar World Order Asia Pacific Market : 2009 <ul><li>Slowing down of GDP in mature markets – Japan and Australia took a big hit </li></ul><ul><li>Global consolidation left a difficult mess for integration on a local level – job losses and portfolio realignment </li></ul><ul><li>Price cutting and playing the margins game </li></ul><ul><li>The bubble burst for Medical Tourism </li></ul><ul><li>Asia started to set up infrastructure for offshoring and outsourcing for US/EU companies </li></ul>Asia Pacific Market : 2012 <ul><li>A shift in the center of the world economically and strategically to Asia </li></ul><ul><li>Asia to move from export led development to consumption led growth </li></ul><ul><li>APAC the fastest growing pharma market and API production hub </li></ul><ul><li>Increased government attention to primary and community based healthcare . </li></ul><ul><li>Focus on building infrastructure and education: government role will be higher </li></ul><ul><li>Increased use of mobile technology in healthcare service delivery </li></ul>Source: Frost & Sullivan
  9. 9. In-depth Sectoral Analysis, APAC
  10. 10. 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 <ul><li>Long term use of multiple and specialized drugs for the ageing population </li></ul><ul><li>Government support for generics and biosimilars </li></ul><ul><li>Enhanced diagnosis and management in oncology, cardiovascular, pain etc </li></ul><ul><li>Unresolved political and regulations issues </li></ul><ul><li>Quality concern of generics & counterfeits </li></ul><ul><li>Government tenders favour local manufacturers </li></ul>CAGR 6.6 % CAGR 12.9 % APAC Share 750 825 866 909 24.6 % 28.5% Pharma & Biotech Revenues, US$ Bn, 2009-2012
  11. 11. APAC Medical Devices Market Transition to a mindset of monitoring Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan Market Drivers Market Restraints <ul><li>Safety, accuracy, efficiency, cost </li></ul><ul><li>Silver industry devices </li></ul><ul><li>Convergence of devices and pharma products </li></ul><ul><li>Regulatory and reimbursement hurdles </li></ul><ul><li>Lack of sufficient distribution networks </li></ul><ul><li>Inadequate training/certification for allied staff </li></ul>APAC Share CAGR 5.8% CAGR 10.2% 23.8 % 25.8% Medical Devices Revenues, US$ Bn, 2009-2012
  12. 12. APAC Clinical Diagnostics Market Shift in business model from instrumentation to service revenues Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan Market Drivers Market Restraints <ul><li>Lab automation </li></ul><ul><li>Home care monitoring </li></ul><ul><li>Emphasis on early detection </li></ul><ul><li>High cost of genomics and proteomics tests </li></ul><ul><li>Mutually exclusive target customers </li></ul><ul><li>Reimbursement issues </li></ul>APAC Share CAGR 7.3% CAGR 6% 17.8% 18.5% Clinical Diagnostics Revenues, US$ Bn, 2009-2012
  13. 13. 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 <ul><li>Operational efficiency </li></ul><ul><li>Strong and sustained demand for healthcare services </li></ul><ul><li>Consumer demand for quality and access to information </li></ul><ul><li>Interoperability </li></ul><ul><li>Integration </li></ul><ul><li>Lack of skilled resources </li></ul>CAGR 7% CAGR 11.3% APAC Share 50.6 54.6 58.4 62.5 14.5% 15.7% Lifesciences & Healthcare IT, US$ Bn, 2009-2012
  14. 14. APAC Medical Imaging Market Turnkey projects drive double digit growth in Asia Note: All figures are rounded; the base year is 2009. Source: Frost and Sullivan Market Drivers Market Restraints <ul><li>Rise in turnkey projects </li></ul><ul><li>Increasing corporate wellness programs </li></ul><ul><li>Integration of Imaging with information systems </li></ul><ul><li>New customer sets to be addressed </li></ul><ul><li>Price erosion </li></ul>CAGR 6% CAGR 12.7% APAC Share 32.4% 36.4% Imaging Market Revenues, US$ Bn, 2009-2012
  15. 15. Summary : Best Opportunity Analysis APAC
  16. 16. 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
  17. 17. Decision Support Database <ul><li>Total Health Expenditure </li></ul><ul><li>Private Health Expenditure </li></ul><ul><li>Government Health Expenditure </li></ul><ul><li>Percent Healthcare Expenditure in GDP </li></ul><ul><li>Population Aged Above 65 </li></ul>
  18. 18. Decision Support Databases
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  20. 20. Decision Support Databases (Contd…) Source: Frost & Sullivan
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  23. 23. Decision Support Databases (Contd…) Source: Frost & Sullivan
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  26. 26. Decision Support Databases (Contd…) Source: Frost & Sullivan
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  29. 29. Decision Support Databases (Contd…) Source: Frost & Sullivan
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  32. 32. Decision Support Databases (Contd…) Source: Frost & Sullivan
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