diagnostics industry outlook asia 2009

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Diagnostics Market Outlook – ASIA 2009

Frost & Sullivan

Healthcare Practice APAC

May 2009


Prepared by

Frost & Sullivan

Health Care Consulting Practice

May 2009

© 2009 Frost & Sullivan. All rights reserved. This document contains

highly confidential information and is the sole property of Frost & Sullivan.

No part of it may be circulated, quoted, copied or otherwise reproduced

without the written approval of Frost & Sullivan.

Key take away from Diagnostics & Devices Industry: OUTLOOK 2009OUTLOOK 2009OUTLOOK 2009OUTLOOK 2009

11


Industry OverviewContentsContentsContentsContents

2

Diagnostics

Industry Overview

1.

2.

3.

4.

5.

6.

Market & Products Segmentation

Socio-economic Status

Total APAC Diagnostics Market & Outlook

Regional Diagnostics Market & Outlook

Diagnostics Market Age Vs. CAGR

Diagnostics Market Revenue by Segment & CAGR


3

• The In Vitro Diagnostics (IVD) Market includes instruments, reagents and services that

analyze human body fluids in order to evaluate diseases and other medical conditions under

various stages

• IVDs improve patient management and success rates by accurately diagnosing disease,

monitoring treatments, and detecting predispositions to diseases and conditions and helps in

nearly 80 per cent of clinical decisions.

• The importance and clinical relevance of these diagnostic tests are important factors for the

popularity of these tests amongst patients and healthcare providers that are driving the

growth of the IVD market.

In-vitro

Diagnostics

Identification of a

disease, disorder,

or syndrome

through a method

of consistent

analysis.

Classification based on Application:

• Central Lab• Clinical chemistry

• Immunoassay

• Hematology

• Coagulation

• Microbiology

• Molecular Diagnostics

• Point-of-care testing (POCT)

Market & ProductsIndustry OverviewIndustry OverviewIndustry OverviewIndustry Overview


Socio-economic StatusIndustry OverviewIndustry OverviewIndustry OverviewIndustry Overview

4

836.8

889.1

810

820

830

840

850

860

870

880

890

HC E

xpenditure

(USD b

illion)

2007 2008

Total Healthcare Expenditure (APAC),

2007-2008

CAGR : 6.2%

� Global HC Expenditure = US$ 4,981 bil

� APAC = 54% of the world population

� One-third of the world’s GDP

FactsFacts

DemandsDemands

� High population growth

� Increasing affluence

� Ageing population

DiseasesDiseases

� Auto - immune diseases, infectious diseases, neurological disorders

� Chronic diseases, e.g. diabetes, cancers, obesity, cardiovascular diseases.

OutlookOutlook

� Increasing investment in healthcare infrastructure and expenditure

� Strengthening of private sector healthcare.

� Continued growth in outsourcing as the clinical research and manufacturing shift away from U.S. and Europe.

Source: Decision Support Database, Frost & Sullivan.


Socio-economic StatusIndustry OverviewIndustry OverviewIndustry OverviewIndustry Overview

5

Healthcare Spending Growth Rate (APAC),

2007

17.8

15.9

15.1

14.1

12.9

11.9

11.7

10.9

9.4

9

6.5

5.7

1.3

0 5 10 15 20

China

South Korea

India

Philippines

Malaysia

Australia

New Zealand

Thailand

Taiwan

Hong Kong

Singapore

Indonesia

Japan

Percentage (%)

Percentage of Population Over 65 Year Old

0 5 10 15 20 25

Japan

Australia

Hong Kong

Taiwan

South Korea

China

Singapore

Thailand

Indonesia

India

Malaysia

Philippines

Percentage(%)

2010

2006

China, South Korea and India have the highest growth rate in healthcare spending. Together with the large population, these 3 countries are the most attractive market in healthcare industry.

Aging populations correlate to the increase in medical expenditure associated with old age.


5.8

6.36

5

5.2

5.4

5.6

5.8

6

6.2

6.4

6.6

6.8

7

2007 2008

Industry OverviewIndustry OverviewIndustry OverviewIndustry Overview

Laboratory Automation Outlook

Total Laboratory Automation (TLA) is increasingly being favored by large hospital

clusters and pathology chains as a solution to rising diagnostic test costs.

Home Care Monitoring Outlook

Increased usage of home care monitoring devices in Asia Pacific for blood

pressure and blood glucose monitoring as patients volume rises.

Industry Outlook

The fastest growth was recorded by the molecular

biology segment followed by coagulation and point of

care (POC).

Increased adoption of nucleic acid testing-(NAT) based

infectious diseases and viral assays (molecular

diagnostics), blood glucose testing (POC), cardiac

markers and glucose (clinical chemistry), coagulation

self-monitoring and bacteriology culture (microbiology)

supported a compound annual growth rate of almost 9%

for the overall IVD market between 2007 and 2008.

APAC Diagnostics Market & Outlook

CAGR 8.5%

Revenue US$ Billion

Clinical Diagnostics Market Revenue ( APAC) 2007-2008

6


India

~US$ 340 M CAGR of 12.1%

Stromg Performance in POC,DiabetesMolecular, Histopathology & Cytology

China

~US$ 1.4 B CAGR of 14.5%

Highest growth expected in POC, Diabetes, histology, molecular assay & rapid test.

Korea

~US$ 265 m CAGR of 13.5%

Steadily increasing growth rate for Diabetes & Hemostatis. POC gaining market

Taiwan

~US$ 229 M CAGR of 9.8%

Growth dominated by Diabetes

Malaysia

~US$ 45 m CAGR of 10.5%

POC, Immunoassay & Molecular is driving the growth

Indonesia

~US$ 79 M CAGR of 11%

POC, Immunoassay & Molecular is driving the growth


Japan

~US$ 3.8 Bn CAGR of 4.0%

Moderate growth of Hemostasis & POC segment

Others

~US$150 m

Including Thailand, Bangladesh, Cambodia, Pakistan, Sri Lanka, and Vietnam

Philippines

~US$ 45.5 M CAGR of 8%

Focus on Hematology, Clinical Chemistry

Regional Diagnostics Market & Outlook

Singapore

~US$ 24 M CAGR of 5.5%

Focus on Immuno-Assay, Histology, POC, Hematology

7


India

~US$ 340 M CAGR of 12.1%(06-10)

Strong Performance in POC,Diabetes Molecular, Histopathology & CytologyInfluencers are• Govt. focused budget on Disease prevention & care, Access to rural population and Expanding Insurance coverage• Increasing no. of healthcare providers targeting affluent middle class. • Massive growth in private clinical laboratory due to increase in health awareness & demand for quality care. • approx 50% of total 26,000 labs are manual and in the process of replacing it with Semi-fully automated labs. Regulation:NIB/NICD evolving regulatory policies of Critical or Non-critical devices. The critical ones are those used in HIV, HBsAg, HCV, Blood grouping reagents, Malaria tests. Other tests are considered to be non-critical. For critical devices product evaluation from NIB(National institute of biologicals) or NICD ( National institute of communicable diseases) is mandatory For non critical ones central evaluation not required. State drug offices can give the approval for non critical devices.

Outlook:Promising market with an expected CAGR of 16% till 2012. Above 65% of total sales is imported and is expected to remain up to a level of 50% by 2012.

China~US$ 1.4 B ; CAGR of 14.5%(06-10)

Highest growth expected in POC, Diabetes, histology, molecular assay & rapid test. Influencers are • MOH projects in Drug discovery & Infectious diseases prevention. Allocation of US$ 440 m going to 25 activities. 6 of them is to develop advanced IVD. • 1/5th of total ageing population in world requiring more medical care.• More affluent middle class Chinese capable of out-of- pocket expenses. Regulation: • Evolving SFDA regulatory policies. 3 classes of diagnostics devices & reagents. Class II and III products are required to have completed in-China clinical studies and reports prior to registration. In addition, these products must undergo type testing at SFDA authorized laboratoriesOutlook • The fastest growing market in APAC with 20-25% in 2007. Expected CAGR 14.5% by 2012. Around 40% sales comes form other than indigenous IVD companies making it potential import driven market.

Industry OverviewIndustry OverviewIndustry OverviewIndustry OverviewRegional Diagnostics Market & Outlook

Taiwan

~US$ 229 M CAGR of 9.8%

Growth dominated by Diabetes, Point of care and Self testing devices.

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Industry OverviewIndustry OverviewIndustry OverviewIndustry OverviewRegional Diagnostics Market & Outlook

Korea

~US$ 265 m CAGR of 13.5%

Steadily increasing growth rate for Diabetes & Hemostatis. POC gaining market

Influencers are• 100% import driven for instruments & 60% for the reagents • Diabetes a mature market, growing popularity for point of care • focus area would be molecular assays & histologyRegulation:KFDA viewed as pragmatic though faced with limited resources.Three processes required to get a device registered in Korea: 1. Product license (Valid permanently) 2. Korean Good Manufacturing Practice (KGMP) renewable after every 3 yrs and 3. Device Business License (Valid permanently)Devices are divided into four classesClass I being lowest risk - Class IV being highest risk.Agency is evolving though still in phase of improving experience and expertise OutlookGovt would be consolidating the healthcare industry by increasing private & public partnership model giving more focus on preventative tools rather than spending almost a third of total healthcare spending on pharmaceuticals

Japan

~US$ 3.8 Bn CAGR of 4.0%

Moderate growth of Hemostasis & POC segmentInfluencers are• Old age population with highest life expectancy in Asia. Govt increasing Healthcare spending• Growing no. of smaller to mid size Healthcare facilities and private labs. Regulation:April 2005, implemented the Pharmaceutical Affairs Law. Three of the law’s main reforms that apply to IVD products 1. Adopting international standards such as good manufacturing practices (GMPs), 2. Allowing third-party certification instead of requiring direct MHLW (Ministry of health and labour welfare) approval, 3. Developing a market authorization holder (MAH) system – Distributors or a independent 3rd party or the company itself having a office in JapanToday, application forms and certification processes for IVD products differ slightly from other medical devicesMHLW is considered an established agencyOutlookGrowing clinical trials industry will positively impact the growth of diagnostics instruments & reagents.

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Malaysia~US$ 45 m CAGR of 10.5%

POC, Immunoassay & Molecular is driving the growthInfluencers are• A sum of RM13.7 billion (USD 3.86 bil) is allocated for the provision of health facilities and equipments, to increase supply of medicines, develop human resources, intensify research and enforcement activities, as well as build more hospitals, clinics and quarters in 2009• Healthcare sector in Malaysia is growing at 2.7% in Feb 2009 compared to 2.2% in Feb 2008OutlookGrowing market with potential low cost R&D and manufacturing facilities. Halal Certification will bring noticeable advantage.

Indonesia~US$ 79 M CAGR of 11%

POC, Immunoassay & Molecular is driving the growthInfluencers are • A huge population with more than 10 million above 65 years• Lower quality of healthcare & lab services getting notable attention from the ministry of health & private players. OutlookOvercoming barriers to growth would be important for the country. Although self care diagnostics instruments and reagents for clinical diagnostics would have a remarkable growth.


Philippines~US$ 45.5 M CAGR of 8%

Focus on Hematology, Clinical Chemistry, infectious diseases related testInfluencers areHigh clinical test requirement from insurance companies, schools, companies (for the employees), as well as equipment replacements, Increasing number of population 65 and older (current count is 5.5 million)Cause of death : respiratory infection, ischemic heart disease, TB, hypertension heart disease creating demand for POCT Outlook One of the growing regional market with high potential of growth by replacement market & new products introduction

Regional Diagnostics Market & Outlook Singapore~US$ 24 M CAGR of 5.5%

Focus on Immuno-Assay, Histology, POC, HematologyInfluencers are • Need to improve the process automation of most of the labs• Increase in Healthcare budget to SG$ 3.7 b in 2009 • Country focus on strengthening its biomedical niche• Increasing deaths by Heart failure, Heart failure, respiratory infection, cerebrovascular disease, lung cancer and diabetes bringing noticeable demand for preventative diagnostics tools & technologies. Outlook• Mature market but high acceptance of superior technologies. Expected CAGR growth around 4% by 2012.

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Industry OverviewIndustry OverviewIndustry OverviewIndustry OverviewMarket Revenue by Products Segment & CAGR

8.0%

6.0%

9.0%

10.0%

15.0%

10.8%

10.9%

18.0%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Immuno-Chemistry

Clinical Chemistry

Hematology

Microbiology

Hemostasis

POC

SMBG

Molecular Diagnostics

CAGR 2006-2010 (%)

CAGR for IVD Segments (APAC), 2006-2010

• Three of the segments make up to 68% of the total diagnostics market

i.e. Immuno-Chemistry, Clinical Chemistry, and SMBG

• Growing demand of SMBG devices is due to increasing old age

population of most of the Asian countries and prevalence of diabetes.

• The market growth of Molecular diagnostics is driven by the

Majority of population with Sexually transmitted diseases,

growing popularity of Thyroid & other Autoimmune diseases,

Usage of molecular tests in drug discovery clinical trials and

Need for quantitative, real-time monitoring of viral loads.

• Technological advancement in whole blood analyzer would

spur the growth in coagulation/Hemostasis market.

• Most of the segments are expected to grow fairly due to

emerging focus on preventative medicines in Asia.

Clinical

Chemistry

21%

Immuno

Chemistry

23%

Hemostasis

5%

Microbiology

6%

Hematology

6%POC

7%

Molecular

Diagnosis

8%

SMBG

24%

In-Vitro Diagnostics Market Revenue by Segment, 2008

11


Industry OverviewIndustry OverviewIndustry OverviewIndustry OverviewProducts Market Age Vs. CAGR

Clinical Chemistry

Coagulation

HematologyImmunoassay

Microbiology

Molecular

Diagnostics

POCT

SMBG

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

CAGR %

Infancy Early Growth Late Growth Maturity

Bubble size indicates the relative projected revenues of different segments in Yr 2010

Market Age Vs. CAGR of Diagnostics Market (Global), 2006-2010.

• Though the IVD market is reaching maturity stage, the

genomics revolution combined with developments in

automation, integration and miniaturization technology

have definitely set the pace in the market.

• Today with well established segments in the IVD

market moving towards maturity, advancements in the

above two fields along with popularity for point-of-care

testing (POCT) is balancing the growth in the IVD

market.

• Major participants in the IVD market are well adapted to

these changes and are focusing on high growth

potential areas to strengthen their position in the

market.

12


Market Dynamics ContentsContentsContentsContents

13

1.

2.

3.

4.

5.

Current Industry Challenge

Market Dynamics Drivers & Restraints

Competitive Structure

Market Players & Positioning

Mega trends & Paradigm Shift


Mega trends & Paradigm Shift

Rise of the ConsumerRise of the Consumer

New era of proactive medicine and empowerment of the consumer. Patients demand more information from healthcare providers

Increase in evidence-based healthcare or the illustration (providing evidence) of the effectiveness of a test in order to justify its use, e.g. cardiac risk markers.

In particular, advances in genomics, proteomics, pharmacogenetics and theranostics are anticipated to result in the optimization of diagnosis and therapy tailored to the individual

Key role in improving patient outcomes and cost-savings due to earlier and more precise diagnoses and patient monitoring

Evidence based HealthcareEvidence based Healthcare

Personalized MedicinesPersonalized Medicines

Upsurge in IVD TestsUpsurge in IVD Tests

More educated ‘power patients’ seek info, want more control.

Disease management programs

Direct-to-consumer marketing of drugs, clinical diagnostics

Adherence, compliance programs push + reward patients

Employers becoming more aggressive in pushing

preventative care

Wellness movement

Consumer directed health plans force consumers to pay more attention to HC choices

More information resources available to

patients

HealthcareVs.

Sickcare

From bench top instruments with innovative assays to larger systems, which are integrated with different software and automation components

Integrated SolutionIntegrated Solution

By investing in R&D and Collaboration & partnership with smaller companies across the world to overcome the vast gap of different geographical differences

Expanding capabilitiesExpanding capabilities-- Alliances Alliances

Figure below illustrate various dimensions and market trends shaping the direction of Healthcare industry form Therapeutic to Preventative medication era. This paradigm shift highlights equal contribution of patients together with clinicians & suppliers. The outlook based on this shift will bring noticeable changes to the way Healthcare providers deliver

their services.

Source: Frost & Sullivan Growth Consulting Practice Healthcare APAC Copyright @2009

Market Dynamics Market Dynamics Market Dynamics Market Dynamics

14


Current Industry Challenge

15

Market Dynamics Market Dynamics Market Dynamics Market Dynamics


Drivers & Restraints APAC (2008-10)Market Dynamics Market Dynamics Market Dynamics Market Dynamics

Largest pool of Ageing population.

Newer premium-priced assays replacing conventional tests.

Government funded disease prevention programs.

Strengthening IP law in Asia, Harmonizing the regulations across the region (among ASEAN region)

Lack of health care facilities in rural areas.

Low level of R&D from local manufacturers

Lack of proper coverage under health care insurance in most developing countries.

Lack of a universal connectivity standard lead to higher equipment and management costs at POC

Industry consolidation suppress the future of small to medium participants in the value chain

Lack of awareness by health care professionals of range and utility of sophisticated IVD tests.

Public plays a passive role in health care -low expectations from providers.

Fragmented information delivery to patients encumbers patient’s realization of overall importance of IVD testing

Increasing expenditure on health care as total outgo.

Increased private participation of Healthcare providers & Insurance companies

Increasing affluence of the people who demand better medical services.

Changing the profile of diseases – from therapeutic to preventative; from general profile to premium priced lifestyle tests

Source: Frost & Sullivan analysis, mass media, market expert interviews,

Drivers Drivers Drivers Drivers RestraintsRestraintsRestraintsRestraints

16


Competitive StructureMarket Dynamics Market Dynamics Market Dynamics Market Dynamics

INDUSTRY COMPETITORS

Intensive Rivalry among

existing firms

ALTERNATIVETECHNOLOGYPOTENTIAL

ENTRANTS

BUYERS

SUPPLIERSThreat Level: HIGH

Asian market remains competitive with presence of

global companies as well as local giants esp. in Japan,

Korea & Taiwan. The distributors look for high quality

products with reasonable margins. In those regions

where products are supplied / distributed by the

importers, distributors for local companies have a high

margin and hence inclined to supply the products

procured locally.

Threat Level: MEDIUM

Technological advanced companies would

have advantage as trends are moving towards

capital-intensive instruments & facilities.

Strategic Alliances brings added capabilities to

the market players to remain competitive.

Threat Level: HIGH

The recent acquisition activities, especially of

Bayer diagnostics by Siemens indicates the

potential growth & possibilities of Capitalized

companies to have a grand entry to the

diagnostics market. The consolidation by

pharmaceutical companies into this market

would bring the competition to a new height.

Threat Level: Medium

The Vast application of diagnostics products &

frequent usage gives low to medium bargaining

power to the buyers to substitute with. Cost &

quality remains a sensitive issue for the buyers.

17


Local Companies,

45%

Bechman Coulter,

6%

Abbott

Diagnostics, 5%

Bio-Merieux, 4%

Sysmex, 5%

Siemens, 13%Roche, 11%

Others, 7%

Bio-rad, 4%

18

Market Players & Positioning Market Dynamics Market Dynamics Market Dynamics Market Dynamics

LowHigh

Breadth of Current Applications

Degree of

Innovation

Biotechnology Companies developing Diagnostics Tests

Pharmaceutical Companies with Diagnostic Divisions

Diagnostics Companies

High

Roche

Abbott

SiemensMedical Solutions Diagnostics

BectonDickinson

BeckmanCoulter

Bio-Rad

GEHealthcare

Sysmex

Bio-Merieux

Gen-Probe

AffyMetrix

Qiagen

OCD

Medical Equipment Vendors with Diagnostic Divisions

Characterised by many consolidation activities, current market reflects a very strong bonding with Life sciences players. As seen in the diagram, most of the global players believe in integration of Diagnostics products as a vital aspect to sustain their healthy growth.

Market Share of Players –APAC 2008

Peculiar to Asian region only, indigenous market players hold a very substantial market share of close to 45% especially in China, Japan & India.


Market Outlook & Future TrendContentsContentsContentsContents

19

1.

2.

3.

4.

Transformation of Medical Device Industry

Market Outlook &

Future Trend

Translating Technological Advancement

Key Areas of Alliance and Partnership

Key Opportunities Prioritized


Transformation of Medical Device IndustryMarket Outlook & Future TrendMarket Outlook & Future TrendMarket Outlook & Future TrendMarket Outlook & Future Trend

20

Transformation of Medtech Device

Zero Defect Reliability- Device failure � death to patient- Failure Mode and Effects Analysis (FMEA)- Flexible circuits > rigid circuits- Process validatio and control

Miniaturization- Pacemaker: size of pack of cards � size of

stopwatch- Printed circuits � denser and thinner.- Infusion pump: single chip, micro-fluidic

pumps?

Enhanced Performance and Feature- Better specifications- Networking ability: LAN- Wireless solution: Bluetooth, Wifi

Improved Power Sources- Rechargeable battery in neuro-stimulator

extends its lifespan by 10 years.- Biothermal battery – using body heat to

create a low current source of power.- Nuclear microbatteries is in development.

0

10

9

8

7

6

5

4

3

2

1

Established Development Future

Microarray

Chemiluminescence

Miniaturisation

Polymerase Chain

Reaction (PCR)

Genomics/Proteomics

Information Technology

Automation

Non-Invasive Technology

IVD Market: Key Technologies Evolution, 2006-2012

Major areas where the industry is currently focusing upon.

- Identification of new biomarkers, Developing new diagnostic assays and detection technologies, Improvement in instrument capabilities, Analytical performance, Assay sensitivity, Connectivity and Software solutions

Most significant trends in clinical laboratory is workstation integration and consolidation. Most large IVD companies, like Siemens Medical Solutions Diagnostics

and Beckman Coulter, are focusing to consolidate or integrate systems and data.


21

Translating Technological Advancement

Nanotechnology

Molecular and Gene-based Diagnostics

Information Technology

Artificial Organs

Tissue Engineering

Advancement in Advancement in

TechnologyTechnology

Translation into Translation into

Clinical ApplicationsClinical Applications

Diagnosis- Early detection- Reduce false diagnosis

Treatment- Improved treatment: higher

efficacy, target specific.- Non-invasive - Broadening treatment options

�� AffordabilityAffordability

�� AIO device AIO device –– one device, one device,

multiple testsmultiple tests

�� Easy to useEasy to use

�� Long term monitoringLong term monitoring

�� Cater to specialized needsCater to specialized needs

�� Self testingSelf testing

�� More options availableMore options available

Benefits to the Benefits to the

PatientsPatients

Driving the Technology

Advancement

Medtech device is a technologically inclined industry:

•Short product life cycle

•Heavy investment in R&D

•Constant innovation to release new products

Manufacturers must have strong collaborations with different institutes to carry out the R&D:

•Medical institutions, Academic institutions

•Hospitals

Key concerns in R&D would be:

•Leveraging core knowledge of technology

•Lowering the costs

Market Outlook & Future TrendMarket Outlook & Future TrendMarket Outlook & Future TrendMarket Outlook & Future Trend


22

Key Areas of Alliance and Partnership

Partnerships within diagnostic

companies expand menus along

with increasing the sales of systems

while combining expertise will allow

the respective companies to make

significant contributions to

diagnostics and patient care

OncologyCompanies are joining together to move to the forefront of diagnostictechnology and provide a full range of solutions between diagnosticsand therapy.These novel oncology management tools are designated to cross overfrom cancer, screening, diagnosis, prognosis to monitoring Clinical reality, assisting physicians with a more holistic understanding of disease and treatment management

AutomationCompanies are entering into alliances as a step forward to combine quality control

products and data management solutions to ensure reliability and precision to customers.

Providing diagnostic customers with cost effective solutions like the need to generate the best and most reliable data while reducing capital costs

The segment includes 1. Automated Analyzers2. Stand-alone automation of Pre & Post Analytical process3. Total Laboratory Automation

Molecular DiagnosticsDiagnostic companies are able to join their cutting edge, life-saving technologies and superior customer service through alliances while complementing automated diagnostic solutions for hospitals to provide clinicians with quicker and more accurate results.IVD manufacturers are strengthening partnerships between themselves representing their combined dedication to add significant value to labs and becoming market leaders in the industry

Key Areas of Alliances within Diagnostic Companies



Clinical ChemistryImmunoassay

Market Outlook & Future TrendMarket Outlook & Future TrendMarket Outlook & Future TrendMarket Outlook & Future TrendKey Opportunities Prioritized

The positioning of various product lines indicate the potential opportunity in products based on growth in Asian market & its penetration status. Choosing a mixed profile would depend on the company’s objective to grow in specific product line and country of interest as displayed on next slide.

Penetration Rate ( High)

Penetration Rate ( Low)

Growth Rate ( High)

Growth Rate (Low)

Molecular

Diagnostics

SMBGPOCT

Hematology

Coagulation

Microbiology

Penetration rate is defined as the maturity of the product segment and its application. The lower penetration rate means higher untapped market potential for growth.

Growth rate is considered as the future projected CAGR till year 2012. A high growth rate is any rate above 10% vis-à-vis industry average of 8.5%.

23



Strong Med Weak

High

Med

Low

IVD Future Growth Opportunity

Curre

nt M

arket A

ttractiv

eness

The objective of this diagram is for illustrative purpose only which positions various Asian countries on two dimension i.e. Current & Future opportunities available in market.

The notable argument of this diagram could be to highlight the markets depending on its maturity( in terms of current acceptance rate of IVD devices & reagents) and how the country is developing to bring growth for the same.

The Current Attractiveness of Market is defined in terms of overall size, historical growth rates, competitive structure, legal & regulatory requirements and acceptance rate of various IVD technologies.

The Future Growth Opportunity is defined as the overall future IVD market favourability on the same dimensions as explained above.

In addition, factors which decide the growth potential are socio-economic drivers & restrains in that particular country, forecasted market size, and expected technological advancement in diagnostics industry.

Key Opportunities Prioritized

24


Prepared by

Frost & Sullivan

Health Care Consulting Practice

APAC

May 2009

© 2009 Frost & Sullivan. All rights reserved. This document contains

highly confidential information and is the sole property of Frost & Sullivan.

No part of it may be circulated, quoted, copied or otherwise reproduced

without the written approval of Frost & Sullivan.

Diagnostics & Devices Industry: OUTLOOK 2009OUTLOOK 2009OUTLOOK 2009OUTLOOK 2009

1

Siddharth Singh Consultant

Healthcare Asia Pacific,

+60.6204.5685

[email protected]

NameAccount Executive

Healthcare Asia Pacific,

+65.xxxx.xxxx

xxxx @frost.com

25