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Themedica tag:www.themedica.com,2007-10-01:/articles//1 2009-06-15T10:58:52Z Movable Type Publishing Platform 4.01 Europe Medical Equipment Industry Overview tag:www.themedica.com,2009:/articles//1.68 2009-06-06T11:24:30Z 2009-06-15T10:58:52Z

The medical technology and devices market of Europe is wide and varied, it accounted for a total sales of over US$ 84.66432 billion in 2006. Being one of the highest production growth rates sector, the medical technology and devices industry...

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The European Union (EU)

The European Union (EU) is a political and economic community of 27 member states, with the purpose of developing one market to enable freedom of movement of people, services, goods, and capital between member countries. Economically significant and home to 492 million people, the European Union (EU) generated about $15.7 trillion as GDP in 2007.

There are great differences among EU member vis-a-vis economic development that are expected to continue. At the same time while this diversity poses challenges for the medical instrument/devices industry, it also presents it with ample opportunities of growth.

EU Medical Device Industry Overview

The annual growth rate of the medical devices market in France, Germany, Italy, Spain, and the UK is close to 9 percent, whereas the market value is estimated at $51 billion.

The most promising medical device market segments within the region pertain to neurology, cardiovascular devices, imaging, in vitro diagnostics, general surgery, orthopedics, ophthalmic equipment, urology, and respiratory devices.

Europe's medical technology industry is vibrant with a lot of investment going into R&D services. In 2006 about $5.05 billion were spent on R&D. The major European exporting countries of medical technology, and their contributions are Germany ($18.6 billion), Ireland ($8.76 billion), France ($8.1 billion), and the UK ($7.4 billion). In addition Germany, Ireland, the UK, Denmark, Sweden and Finland are said to have medical technology trade surpluses.

Medical Device Regulation

Medical devices within Europe are regulated under the following directives

In Vitro Diagnostic Devices (IVDD) – This regulates all diagnostic devices and supplies that are used away from the patient.

Active Implantable Medical Devices (AIMD) – This directive covers all active devices and accessories meant to be permanently implanted in patients.

The Medical Devices Directive (MDD) – This directive controls all other general medical devices not covered by the above directives.

The directives have been subjected to amendments overtime and some recently proposed amendments pertain to conformity assessment (viz. design documentation, etc.), post market surveillance, requirements, compliance of custom-made device manufacturers and original medical device directives.

Medical Technology Growth Drivers

The following factors are expected to drive the growth within the European medical device markets

Europe has a large population and an aging population. In addition the population in the region has also increased due to an influx of migrant workers. According to projections the percentage of seniors 65 and over will rise from 15.4 percent in 1995 to 22.4 percent by 2025, within the EU.

The region comprises several vibrant economies with high levels of health care spending as a proportion of GDP.

Due to the high standards of health care there are good prospects for the latest health care technology products and devices. Increasing health care standards have led to an overall death rate to decrease by 25 percent, and and increase of 4.3 percent in life expectancy from birth.

The fact that Western Europe alone made up for market of over 403 million people and a GDP of $18.1 trillion in 2008, trade opportunities within the continent are encouraging.

]]> US Medical Equipment and Supplies Industry Profile tag:www.themedica.com,2009:/articles//1.67 2009-05-04T11:47:59Z 2009-05-06T11:56:57Z

The world's medical equipment and supplies industry was worth $80 billion in 2005, with the United States being the the largest consumer country of medical and dental equipment.Although the 2009 financial crisis has been and will be tough on the...

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Although the 2009 financial crisis has been and will be tough on the medical industry, a number of factors

including growing and aging population, higher consumer expectations for better healthcare in both developed and developing nations, surfacing of newer therapies owing to technological advancements, growing medical tourism, increasing direct to consumer advertising, will influence the demand for medical equipment and supplies.

Medical Equipment and Supplies Industry

According to the North America Industry Classification System, the medical equipment and supplies manufacturing industry comprises “establishments primarily engaged in manufacturing medical equipment and supplies. Examples of products made by these establishments are laboratory apparatus and furniture, surgical and medical instrument, surgical appliances and supplies, dental equipment and supplies, orthodontic goods, dentures, and orthodontic appliances.”

Medical Equipment and Supplies Industry Overview

There were about 8,000 medical device companies in the United States around 2004. While the number of large and mid-sized medical device companies was less, over 80 percent of firms employed no more than 50 people.

One reason for so few mid-size companies is that from the mid to late nineties the industry has witnessed a number of mergers and acquisitions. The consolidation in the industry is fueled by a the fact that many smaller players find it hard to devote the financial resources needed to eventually bring out products in the market. This is also a trend that is expected to continue in 2009, albeit the deals in the current economic scenario will be characterized by high volume and low value. At the same time cash rich companies that focus on innovation will benefit during the current economic state of affairs.

The US medical/hospital equipment and supplies industry is the leader in the world market. After 2002, production within the sector increased at an annual rate of 6 percent reaching $82.4 billion in 2004. The country derives its competitive edge on the basis of advancements in related industries including biotechnology, instrumentation, telecommunications, software development, microelectronics, etc.

A highly degree of regulation is the characteristic of the industry affecting its performance. As a result medical device companies need to infuse a lot of resources toward product approval processes, user fees, clinical trials, and plant audits. Related to this is the issue of reimbursement rates, which often determine whether medical device products will be viable of being introduced in the market or not.

Further, despite a high requirement of venture capital in creating opportunities for small and medium-sized companies, it is hard to get due to the regulatory and policy risk investors must face. This may at times discourage innovation.

Factors Affecting the Medical Equipment Industry

Demographic Influences

The number of senior adults in the US is increasing, with the percentage of people 65 and older is expected to rise

from 12.4 percent in 2000 to 20.7 percent by 2050. The scenario becomes clearer when the percentages are translated into numbers, with the number of people 65 and older being 35 million in 2000, expected to be 54 million by 2020, and 86 million by 2050.

The changing demographics have several implications such as changing health needs, increasing life expectancy giving rise to sophisticated and longer-term healthcare, and increase in home healthcare services due to increasing pressure to keep health care costs down. All of which is not conceivable without introducing a variety of next-generation and innovative medical equipment and devices.

Further, the young and middle aged patients are expected to propel the US market for hip replacement in 2009, while medical equipment associated with women’s health too will be a part of the medical device industry outlook for 2009.

Technological Changes

The pace of research and development within the industry is leading to the development of medical technologies

that enable early detection and aid more effective treatment options for diseases e.g. integration of radiology and information systems.

Widespread use of electronic health records by health care providers and patients will translate into workplace efficiencies and improved health care delivery for patients.

Higher investments in research and development of medical devices will have a significant impact on medical equipment and supplies industry. Investments in R&D by US manufacturers grew by over 100 percent during the 1990s. By 2004 these investments reached $95 billion on an annual basis.

Availability of next-generation of materials and formulation of better manufacturing processes will also benefit the medical devices industry. Medicines and therapies developed out of biotechnology, and genetic engineering research may require drug delivery via medical devices rather than in the form of pills, leading to a convergence between the disciplines.

International Regulation

International trade of medical devices sometimes faces obstacles from the existence of non-uniform regulations

for medical devices around the world. As a result, even though a device may have gained approval within the home country, the manufacturer may have to initiate an approval process afresh, to be able to export her products. To address the issue the Global Harmonization Task Force (GHTF) was conceived in 1992 and it works to encourage convergence in regulatory practices surrounding the safety, effectiveness/performance and quality of medical devices, thus encouraging technological innovation and international trade.

Increasing Competition

The competitive landscape of the industry is becoming increasingly challenging as a number of multinational companies aggressively attempt to seize global opportunities. Companies are focusing more and more on their international sales and revenue, joint ventures, and mergers and acquisitions.

Opportunities abound in the world market due to the rising demand for medical and dental equipment and supplies. This demand is driven be a greater stress being laid on building hospitals, establishing public health insurance, increases in care by countries for the health of citizens. The demand, as a result, has already surged witnessing double-digit growth rates in most regions of the world. Developing economies, in particular, offer promising opportunities for future growth.

]]> UK Alternative Medicine Industry Overview tag:www.themedica.com,2009:/articles//1.66 2009-04-30T09:03:18Z 2009-04-30T09:23:42Z

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Complementary and alternative medicine is becoming popular by the day in many developed countries including the UK. The UK market value estimates for complementary therapies in 1996 stood at $106.4 million, while the sales of herbal remedies totaled $56 million, accounting for half of the total retail sales of alternative medicines. The article 'Alternative Medicine Industry Overview' has more information on the industry in general.

Data from surveys conducted in 2000 suggest that there were about 50,000 complementary and alternative medicine practitioners in the UK. Even though operating in a regulatory environment that is considered somewhat weak, the market for alternative and complementary medicine continues to expand. More recent market data suggests that the UK population spends about $192 million annually, and that within the next four years this figure will expand to go over $295.54 million.

What is Complementary and Alternative Medicine (CAM)?

The House of Lords Science and Technology Committee released a report on CAM in 2000, which referred to CAM as “a diverse group of health-related therapies and disciplines which are not considered to be a part of mainstream medical care. Other terms sometimes used to describe them include 'natural medicine', 'non-conventional medicine' and 'holistic medicine'.”

Complementary and Alternative Medicine Use in the UK

The increasing use of CAM came into limelight and surveys were conducted to assess its impact as early as the mid-nineties. A 1995 study by the Alternative Health Information Bureau and the Nursing Times, which surveyed 393 nurses, found that about 58% of the nurses reported to use complementary therapies in their work, with as many as 89% agreeing to using alternative therapies at home.

A separate 1999 study found that not only were there about 50,000 CAM practitioners in the UK, but close to 10,000 statutory registered health professionals practiced some form of CAM around the country. Also, About 5 million patients agreed to having consulted an alternative medicine practitioner in the last year.

A large variety of CAM practices exist in the UK, from Homeopathy to Acupuncture and Naturopathy to Reflexology, and more. With some being more popular than the rest.

A survey of CAM use conducted in just England assessed 2668 responses and found that 13.6% of respondents had consulted the practitioners of the therapies homeopathy, chiropractic, acupuncture, medical herbalism, osteopathy, hypnotherapy, aromatherapy and reflexology. The most commonly consulted therapists included osteopaths (4.3%), chiropractors (3.6%), aromatherapists (3.5%), reflexologists (2.4%), and acupuncturists (1.6%).

Aside from the reasons cited by survey respondents for using CAM, some other explanations have been suggested. These reasons include that use of CAM is dictated by fashion, there has been a revival of interest in the paranormal phenomenon such as astrology, an increasing number of people today are worried about their health, and that the growing use of CAM reflects a general attitude of society towards science.

Complementary and Alternative Medicine Regulation in the UK

The CAM industry functions under a weak federal system of regulation. While setting up a CAM business doesn't require a license, some forms of CAM practices have consolidated training standards and professional codes of conduct. Practices such as homeopathy, herbalism, acupuncture, massage therapies, naturopathy and nutritional therapy, as a result, can be considered as well-regulated, albeit voluntarily.

The House of Lords Select Committee on Science and Technology report on CAM, generally considered most of the CAM therapies as safe. However, it adjudged that acupuncture, chiropractic and herbal medicine could be harmful if they were not practiced properly. The report also came up with a classification of CAM treatments and divided them into three groups as follows.

Group One - Osteopathy, herbal medicine, acupuncture, chiropractic, and homeopathy. These practices have the best established professional organizations and training standards.

Group Two - Therapies such as aromatherapy, Alexander techniques, Bach flower remedies, hypnotherapy, massage therapy, reflexology, meditation, shiatsu, nutritional medicine, healing, and yoga are generally considered as harmless when used in conjunction with conventional medicine.

Group Three - Ayurvedic medicine, naturopathy, traditional Chinese medicine, iridology, crystal therapy, and kinesiology, were considered by the committee as therapies that are unregulated and lack scientific evidence.

Some existing statutes that may apply on CAM practices in general include, "The Health and Safety at Work etc. Act 1974," "The Food Safety Act 1990," "Trade Descriptions Act 1968," "Consumer Protection Act 1987," "The London Local Authorities Act 1991," legislation regulating to specific illnesses e.g. cancer, the common law requiring all practitioners to care for their patients, and contractual relationship between therapist and client, which is legally enforceable.

Despite the fact that CAM is not yet well-researched and lacks both funding and infrastructure, its growing popularity presents the industry with an opportunity to be made use of.

]]> Alternative Medicine Industry Overview tag:www.themedica.com,2009:/articles//1.65 2009-04-27T10:49:05Z 2009-04-27T11:23:59Z

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The range of alternatives medicine therapies is huge and they are used by a large number of people around the world, either as part of primary health care or in combination with conventional medicine. Some popular alternative medicine therapies include naturopathy, hypnosis, homeopathy, traditional Chinese medicine, chiropractic, acupuncture, Ayurvedic medicines, meditation, yoga, Unani, biofeedback, and therapies based on diet.

Also referred to as Traditional Medicine or Complementary and Alternative Medicine (CAM), the World Health Organization defines traditional medicine as “the sum total of knowledge, skills and practices based on the theories, beliefs and experiences indigenous to different cultures that are used to maintain health, as well as to prevent, diagnose, improve or treat physical and mental illnesses.”

The practice and use of Alternative Medicine is more prevalent in Asian and African countries than in the western world. For instance, in some African and Asian nations about 80 percent of the population gets its primary health care via Alternative medicines. Nonetheless, people in more developed nations have been increasingly making use of complementary and alternative medicines, in conjunction with conventional health care treatments. Estimates reveal that in some developed nations, close to 70 – 80 percent of the populace has received some form of alternative medicine therapy.

Growing popularity of CAM has led to a number of federal governments enacting laws regulating their use, an estimated 100 countries today have statutes to regulate herbal medicines. Further, promising reports of the efficacy of some therapies have sparked a flurry of research assessing different treatments, especially for chronic ailments and infections. An example is the development of

the anti-malarial drugs from the discovery of artemisinin extracted from Artemisia annua L. - a plant that has been in used in China for over 2000 years.

The market potential for alternative medicines is high as is evident from the revenues generated in different parts of the world. In Western Europe the annual revenues for the period 2003-04 was to the tune of US$ 5 billion. The Chinese market registered annual sales US$ 14 billion in 2005. In Brazil revenue from use of herbal medicines touched US$ 160 million in 2007.

Owing to counterfeit, poor quality, and adulterated herbal ingredients, concerns for patient safety are high. Also, important is the fact that many people assume that since alternative medicines are derived from natural sources, they are safe.

The US Alternative Medicine Industry Overview

The use of alternative medicines in the USA is widespread and growing. Based on a national governmental survey

released in December 2008, about 38 percent of U.S. adults (18 and over) and close to 12 percent of children use some type of complementary and alternative medicine (CAM). Moreover, the use of alternative medicinetreatments varies with the annual income. The use of CAM increases with an annual income of $100,000 and over, and is also common among those who have a post graduate education .

Many insurance companies also provide a partial cover for alternative treatments. Also, the physicians of about 66 percent patients are aware of their patients' use of alternative therapies.

In general, the most common reason cited for using alternative medicines is to promote general health. Musculoskeletal problems such as back, neck, or joint pain are among the commonest of medical problems for which these therapies are used. At the same time CAM usage has decreased for head or chest colds from 2002 to 2007.

About 12 percent children use CAM in the US such as homeopathic medicines, herbs and yoga for addressing a number ailments. Further, the children whose parents use CAM therapies are five times more likely to use them. Some experts also believe, that in part, higher costs associated with mainstream medication are a reason for people choosing alternative treatments.

Back in 1990, just one-third of the U.S. population made use of them, today just the adults account for about 40 percent use. Complementary and alternative medicine and therapies are indeed one of the fastest growing sectors within health care.

]]> Clinical Diagnostics Industry Overview tag:www.themedica.com,2009:/articles//1.63 2009-04-21T04:31:11Z 2009-04-23T10:38:23Z

The medical and clinical diagnostic industry comprises businesses and laboratories that offer analytic or diagnostic services including body fluid analysis and diagnostic imaging that aid the medical profession, and patients following a referral from health care professionals.Medical laboratories are classified...

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Medical laboratories are classified based on the type of services they render such as bacteriological laboratories, blood analysis laboratories, medical pathology laboratories, mycology health laboratories, parasitology health laboratories, etc.

The diagnostic imaging industry, on the other hand, is a huge segment by itself and provides services for producing images, via diagnostic equipment, of the patient on referral from health professionals to help with disease diagnoses. Imaging laboratory set-ups include CAT (computerized axial tomography) scanner centers, dental X-ray laboratories, mammogram or breast imaging centers, radiological laboratories, etc.

The world market for diagnostics was valued at $22.47 billion in 2000 and was expected grew at an annual rate of about 6 percent to $28.63 billion by 2005. Around the year 2002, Japan, Western Europe and North America, made up for 85% of the world's in-vitro diagnostics (IVD) market. However, this figure was expected condense to about 75 percent by 2005, due to higher market growth rates within emerging economies such as China, India, Indonesia, and Japan.

The US Diagnostic Equipment Industry Overview

The US diagnostic equipment market is the world's largest, and was valued at $13.5 billion in 2002. Over the years, emergence and growth of managed health care has led to reduced costs in addition to raising the demand for efficient operation within clinical laboratories. Managed care penetration by enrollment for the year 2009 stand at 10.4 million for Medicare, 28.5 million for Medicaid, and 115 million for commercial managed care plans.

As of now, the clinical diagnostic laboratory testing market has a projected value of $98.4 billion in revenue by 2017. The drivers for this growth are expected to be the expanding markets for genetic testing, esoteric testing, in addition to increases in consumer driven health care, and an aging population with an greater access to health care services. Although, the clinical laboratory industry has been affected due to the economic slowdown via declining drugs-of-abuse testing, the effect has been offset to some extent by a modest increase in volumes, a steady pricing environment, and a move towards high-value esoteric testing.

The point-of-care instrument and the medical diagnostic kit (MDK) markets too have emerged as growing segments of the diagnostic laboratory industry.

The US In-vitro Diagnostic (IVD) Tests Market

The in vitro diagnostic (IVD) tests market, in particular, is being seen a highly promising. The national demand for in vitro diagnostic (IVD) products is expected to grow at an annual rate of 5.4 percent to reach $23 billion by 2013. A number of trends forecast to accompany the progression of this segment, some of them are -

The star performers of the IVD industry segment are likely to be the clinical chemistry and immuno-assay systems. While clinical chemistry products will benefit from the sales of personal blood glucose monitoring systems and testing-strips, the growth of immunoassay will be driven by an increased use of value-added chemiluminescent systems into the pharmaceutical drug and infectious disease testing. With the rising volumes of blood glucose monitoring among diabetic patients, endocrine condition testing is expected to be one of the most popular IVD application till 2013 and later.

The IVD products including clinical chemistry reagents and medical instruments, will be in high demand and present ample growth opportunities because of epidemiological trends such as the estimated diabetes burden in the US. The total diabetes burden is forecast to be 11.5% (25.4 million) in 2011, 13.5% (32.6 million) in 2021, and 14.5% (37.7 million) in 2031. The demand will increase on account of the sale of both self-monitoring systems as well as diabetes testing becoming essential to general health screening routines.

Hemostasis tests for D-dimer and other cardiac parameters offer bright opportunities among IVD blood testing systems. The reason for this is their ability to quantify heart attack and embolism risk prior to a cardiac emergency.

DNA-based forensic, genetic and identity testing through IVD applications is yet another profitable segment as markets of law enforcement and genetic screening begin to generate revenues.

Other IVD products with a good potential in the coming years include cellular analysis and anatomical pathology reagents and instruments. The post on the medical instruments industry has more information on clinical instruments.

The global scenario for in-vitro diagnostics presents similar opportunities -

Presently the global IVD market is quite consolidated with the top ten market players owning about 80 percent market share.

Roche is the largest market share holder with 20 percent, followed by Siemens and Abbott holding 12 percent share each.

The global growth drivers for the IVD industry are advancements in molecular diagnostics, health care for diabetes, and emerging markets. In addition Theranostics is also a promising discipline and a number of players are trying to make a headway in the field.

]]> Medical Instruments Industry Overview tag:www.themedica.com,2009:/articles//1.62 2009-04-13T11:45:21Z 2009-04-13T12:36:31Z

The history of precision medical instruments can be traced back to the seventeenth century when they were used for the first time. Medical instruments are recognized as objects and tools with many different medical purposes including prevention, monitoring, diagnosis, therapy,...

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Some common categories of medical instruments include anesthesia instruments, arthroscopy instruments, cardiovascular instruments, dermal instrument, dental instruments, surgical instruments, knives, scissors, scalpels, forceps, etc.

Regulatory authorities around the world recognize different classes of instruments based on a number of characteristics such as design complexity, usage, their potential for harm if misused. The global market value for medical devices including medical instruments is forecast to touch $201.6 billion in 2010.

The USA Medical Instruments Industry Overview

The USA enjoys leadership position in the world industry for medical devices and instruments. Much of this success is attributed the rapid technological advances in the country during the last century. As a results the surgical devices industry of the US is the most advanced in the world.

By 1990, the medical instrument and apparatus industry was producing goods worth over $10 billion annually. In 1999 the U.S. manufacturers exported 23 percent of their surgical instruments produce. Further, during the close of the last millennium, the medical and surgical equipment sector became one of the major export industries, with more than $4.5 billion in export sales. If sales from ophthalmological devices are added to the figure, it yields a sales volume of about $14.4 billion.

The US is also a major player in the closely related minimally invasive medical devices industry. According to forecasts, the industry worldwide is growing at an annual rate of 7.8%, its market value was $14.8 billion in 2008, and is projected to be $15.8 billion in 2009, and further be worth $23.0 billion by 2014. Based on 2007 data, the USA accounted for 60% of the industry's world market at $8.3 billion.

Additionally, with increasing awareness about dental health, the number of dentists have grown in the US. The trend has had a direct impact on dental instruments' value of shipments, which reached $3.1 billion in 2000 witnessing an increase of 5.1 percent over 1999. Historically, the US has accounted for about 50 percent of the global market for dental supplies.

China Medical Instruments Industry Overview

The Chinese medical instruments industry finds itself amongst the top ten emerging markets in the medical instruments industry worldwide. Its market capacity had surpassed $8.7 billion in 2006. Further, this capacity is

expected to touch $22 billion by 2010, amounting to 5% of the world's market. Still ahead in the future China's share will reach 25% by 2050.

China's medical system reform, which began in 2007, involves increased capital expenditure in the infrastructure network of public health. This automatically spells a big opportunity of medical instrument manufacturers and suppliers. Since the turn of the century China's trade volumes for medical apparatus and instruments have been on the rise. The trade volume has risen from about $3 billion in 2000 to about $12.7 billion in 2007.

However, about 70% of China's high-end medical instruments market is led by multinational corporations including GE, Siemens and Philips.

Pakistan Medical Instruments Industry Overview

Over a 100 years old, Pakistan's surgical instruments industry, with its hot spot in the city of Sialkot, prides itself in producing one of the world's most economical surgical tools.

The Surgical Instrument Manufacturers Association of Pakistan has over 2300 members engaged in manufacturing a range of surgical instrument supplies. Some popular items of export that find many buyers around the world include surgical instruments, electro medical instruments, cardiovascular instruments, gynecological Instruments, ENT instruments, orthopedic instruments, dental instruments, and more. In 2008, the total value of exports for surgical instruments was recorded at $255 million, growing at an annual rate of 34% from $191 million in 2007. Of the total number of instruments exported 60 percent are disposable products, while reusables constitute the remaining 40 percent. The top 3 importers of Pakistan's surgical instruments are USA (23%), Germany (20%), and the UK (9%).

The total capital investments in Pakistan's surgical instruments Industry are estimated at $223 million. The industry comprising about a 1000 active units manufactures a 100 million instruments each year.

Though wading its way through the 2009 financial crisis, the growth of health care industry is imminent as the markets ease. Medical instruments being invaluable to the delivery of health care will be an essential component driving this growth.

]]> The US Generic Drugs Industry Overview tag:www.themedica.com,2009:/articles//1.61 2009-04-06T09:50:31Z 2009-04-06T11:50:28Z

Generic drugs or simply generics are pharmaceutical drugs that are produced and distributed minus the patent protection. While these drugs may still hold the patent on the formulation, the active ingredients are not protected. The history of generic drugs in...

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The history of generic drugs in the United States dates back to the 1960s, however it was only after the passage of the legislation 'Drug Price Competition and Patent Term Restoration Act of 1984' also known as 'Hatch-Waxman' that the drug industry flourished. As a consequence, the size of the industry grew from a meager $1 billion in annual revenues to $63 billion at present. Today, close to 69% of all prescriptions in the US include generics.

The US Generic Drugs Industry

The total US generic pharmaceutical manufacturer sales for the year 2007 was$58.5 billion, whereas the sales of branded pharmaceuticals during the same year amounted to $228 billion.

The FDA's Orange Book, which is a compendium of approved drug products lists over 12,751 drugs, of which more than 10,072 or 79 percent of the products have a generic version available.

About 2.6 generic pharmaceutical drug prescriptions are dispensed on an annual basis. Generics drugs account for 69% of all prescriptions dispensed. According to IMS Health's National Prescription Audit the top 10 generic drugs, by prescriptions for the year 2008 were HYCD/APAP, Levothyroxine, Amoxicillin, Lisinopril, Simvastatin, hydrochlorothiazid, amlodipine besy, azithromycin, warfarin sodium, and furosemide.

The key reason behind the popularity of generic drugs is that they can save both the patients and insurance companies substantial costs. Once a drug loses patent, competition among producers becomes tough. Despite the competition, since companies do not develop these drugs from scratch they are able to make and sell them at lower cost to consumers and yet maintain profitability. For example, according to the National Association of Chain Drug Stores, the average retail price of a generic drug prescription was $34.34 in 2007, while for a brand name prescription drug the average price stood at $119.51, which is three and half times higher. On similar lines a Congressional Budget Office study in 1998 found that generics can save consumers between $8 billion and $10 billion annually.

According to IMS Health, the generic drugs industry is expanding at a growth rate of 7.8%, which faster than the world's market for pharmaceuticals.

Generic Drugs Industry Facts & Trends

The market share of the generic drug industry will capture a larger share of the drugs market worldwide. Estimates reveal that the brand name drug sales of $70 billion will face increasing competition from generics through 2012.

Efforts to increase the generic substitution rates from 65% to over 70% for all prescriptions in order to save money for consumers and the government is favorable to the generics industry.

Consolidation of of small and mid sized companies by industry leaders will continue.

In 2009, a number of blockbuster drugs are losing patent protections, some of them include Prevacid, Imigran, Arimidex, Keppra, Cellcept, Flomox, AmbienCR, Valtrex, and Topamax.

There is also a possibility of bio-generic drugs to surface. These drugs will be the generic versions of costly medicinal biotechnology products.

An aging population and growth in the U.S. prescription sales indicate brighter prospects the industry. For example U.S. prescription sales achieved a growth of 1.3 percent in 2008, to $291 billion. Further, the dispensed prescriptions by volume grew at a 0.9 percent pace.

Generics industry's double digit growth rates will continue through 2011 to $69, and will make up 20% of the total pharmaceuticals market .

Major growth in the market will come from respiratory, central nervous system, gastrointestinal and anticancer therapeutic agents. Further, cardiovascular drugs alone constituted a major chunk of generic prescription market of about 21 percent in 2002. Other popular categories of drugs included anti-infective drugs (14.4%), and antiarthritics/analgesics (14.0%).

Amongst the emerging economies, while India is able to supply a low-cost, high quality finished dose products, whereas, China is able to provide low-cost, high quality API and drug intermediates.

The top eight global markets are the U.S., Germany, France, the U.K., Canada, Italy, Spain and Japan, which account for 84 percent of total generics sales. The US market, currently valued at $33 billion, is the larges market in the world accounting for 42 percent of global sales.

The 2009 financial crisis has presented the healthcare industry with many challenges, however, its not been hit as bad as some other industries such as the automotive sector. It seems that as the economy recovers, there will be many opportunites for business to profit from, such as the generic drugs industry.

]]> Green tea and Hoodia - The Magic Weight Loss Combination tag:www.themedica.com,2009:/articles//1.60 2009-04-03T06:21:16Z 2009-04-03T06:41:17Z

Green tea and Hoodia is the magic weight loss combination, imagine the one that pushes the fats away, and one that keeps it away. The combination is perfect for easy weight loss. The combined benefit of the two is similar...

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Green tea boast of burning fats, increase Thermogenesis, insulin and blood sugar regulation and lowering cholesterol. Hoodia, on the other hand, suppress the appetite, boosts energy and normalizes blood sugar levels. And with the fusion of the two, it is like a magic potion for weight loss.

Green tea burn fats efficiently because of catechin polyphenols which works well by oxidizing fats, this in turn increases thermogenesis. Thermogenesis is the rate in which the body burns calories. An increase in such means that the calorie that is consumed by the body is ‘burned off’ more easily. The increase is aid to last for almost 24 hours, thus even if green tea is only consumed once a day, its ‘caffeine effect’ would last longer. Insulin and blood is also found to be normalized by green tea. Cholesterol level is also lowered with green tea’s catechins, moreover, only the LDL or the bad cholesterol is affected.

Green tea is like exercise in food. This burns the fats just like exercise routines do, it also increases metabolic rate. Most of the effects of consuming green tea are comparable with exercise. This also helps in increasing energy expenses. This helps by using the consumed calories.

Hoodia, in turn, is like a successful diet that maintains food intake to its minimum. This creates the gap between the required calorie intake and the actual calorie consumed by the users. With it, the body automatically points to the stored energy to be burned off for energy expenditure. Thus, the body fats will be burned off more easily. A natural component of Hoodia also boosts energy level of the users which extends its capability from everyday activities up to a more active lifestyle. Hoodia also contains a blood sugar regulating component that also keeps sugar cravings away.

Hoodia is like a diet that is when combined with green tea ensures weight loss. Simply put, the fat burning ability of the green tea and the appetite suppressing ability of Hoodia is a weight loss miracle. This is a dual action that expels fats and keeps them away. And the best feature of both is that they are natural. ]]> The UK Dietary Supplements Industry Overview tag:www.themedica.com,2009:/articles//1.59 2009-03-30T10:54:57Z 2009-03-30T11:31:08Z

As people in the UK have increasingly become aware of the benefits of a healthy diet, the demand for health foods, vitamins and dietary supplements has risen for the last two decades. In addition to a better informed populace, an...

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As people in the UK have increasingly become aware of the benefits of a healthy diet, the demand for health foods, vitamins and dietary supplements has risen for the last two decades.

In addition to a better informed populace, an aging population, increasing income levels has also contributed to an expanding consumer base for vitamins, minerals, and supplements (VMS). By the year 2006, the UK VMS market was valued at $827 million.

The UK Dietary Supplements Industry Overview

VMS or dietary supplements are generally sold by retail at drugstores, grocery chains, and health-food stores. But today, an increasing number of buyers preferring purchases through the Internet and direct mail.

To begin with, drugstores were the primary outlets for VMS products sales, however, with time a lot of general grocery stores have taken away the market share from drugstores. The reason for this transition is attributed to a legislation passed in 2001, following which grocery stores were able to decrease their costs and pass on the benefits to consumers through discounts.

The UK VMS Market Size

Growing at an annual rate of 2 percent, the VMS market in the UK amounted to a total value of $827 million in 2006. Within the sector, the largest market shares were held by multivitamins and fish oils that were 21 percent and 20 percent respectively. Following the top performers were vitamins, glucosamine, plant oils and minerals.

At the same time the UK VMS market is expected to grow slowly in value terms over the next few years, with a growth rate of about 1 percent. By 2011, its expected to be worth $868 million.

Opportunities within the VMS Market

There are ample opportunities for vitamins, minerals, and supplement products that are meant to be consumed for particular ailments, life stages, and lifestyles. At the same time, due to the market being highly competitive, products with heavy discounts and novel offerings stand a better chance to perform.

Some factors influencing VMS demand include:

The UK population being close 60 million people, of which 15% are 65 years of age or older. And as the aging trend progresses, more and more seniors will consume VMS products for ailments, often linked with age such as those affecting the eyes, the brain, the heart, and joints e.g. arthritis and rheumatism.

Other special groups that contribute to the demand include those suffering from chronic medical conditions, pregnant women, vegetarians, and the health conscious.

Also, a general sentiment to maintain health, protect against illness , tackle specific health problems, up vitality levels and live healthier are driving up the demand.

Other UK Dietary Supplement Market Facts & Issues

Market data suggests that prospects are especially bright for multivitamins, fish oils, glucosamine supplements within the UK market.

The six major players who hold a major share (approx. 78 percent) within the vitamins, minerals, and supplements (VMS) market in the UK are Holland & Barrett, Bayer, Seven Seas, Boots Healthcare, SuperDrug, and Tesco.

In the UK, VMS products making a medical claim will be classified as medical products or a drug and thus require a medicines license.

Periodic publications of research studies concluding that consuming VMS products is unnecessary has held back the market. However, there's agreement that certain groups of people benefit from VMS consumption. At the same time there a lack of scientific evidence that consuming extra vitamins or minerals is beneficial, and that the risk of overconsumption is always there.

Some directives affecting the VMS market include "The EU Food Supplements Directive (FSD)," as also those pertaining to alternative medicines viz. "Tradition Herbal Medicinal Products Directive," and "Restricted or Prohibited Herbal Ingredients."

To achieve competitiveness and survivability within the VMS market, companies will need to protect their products via intellectual property regulations. Intellectual property protection is more likely to attract more venture capital.

The global nutraceuticals industry sales are forecast to touch $187 billion by 2010, owing to increasing sales in the U.S. and the European Union (EU), as also within the emerging markets like China and India.

Though still reeling under the burden of the 2009 financial crisis, the market prospects would lighten up with more opportunities within the dietary supplements market as the recession eases.

]]> The US Home Healthcare Industry Overview and Trends tag:www.themedica.com,2009:/articles//1.58 2009-03-23T07:21:36Z 2009-03-23T07:59:19Z

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In-home health and medical services in the U.S. are now an important part of the healthcare system. As the costs of hospital and nursing home delivered healthcare has skyrocketed, the consumption of a low-cost alternative in the form of home care for the elderly, sick, and disabled has also increased. Given the progression the market for the home healthcare industry is expected to grow large.

The US Home Healthcare Market

At present home health agencies, hospices, and home care aid organizations make up most of the industry. About 20,000 organizations across the nation deliver healthcare to 8 million individuals with an acute illness, a long-term medical condition, a permanent disability, or a terminal illness.

The Medicare and Medicaid programs are the biggest sources paying for home healthcare agencies. During the period from 1967 to 1985, the number of agencies participating in the Medicare program grew from 1,753 to 5,983. However, this number declined from 1985 to 1990, as a result of Medicare paperwork and not so reliable payment policies.

Later, however, a lawsuit favored the National Association for Home Care, allowing it participation in framing of Medicare’s payment policies for home healthcare. As a consequence, and once again the number of Medicare participants swell from 5,793 in 1990 to a figure of 9,886 in 1996.

Amongst the different sources of funding, Medicare and Medicaid programs are the largest. For example, in 1996, while Medicare paid 38.7 percent, Medicaid paid 27.2 percent of the total home healthcare costs. The remaining sources included out-of-pocket expenses (20.5%), private insurance (12.2%), and nonprofit organizations (1.4%).

Further, between the years 1992–1996, Medicare payments for home health services jumped up from $8 billion to $18 billion and the number of visits more than doubled reaching 284 million from 132 million. The annual visits per user increased about 50 percent from 53 to 79, and the payments per user increased at a rate of 12 percent annually during the same period.

The US home healthcare industry comprising about 20,000 companies and agencies, generates a total annual revenue of $55 billion. The industry is characterized by fragmentation, consequently, the top 50 companies by size hold less than 25 percent market share.

Other Home Healthcare Industry Facts & Trends

The different kinds of services provided by home healthcare service companies include in-home skilled nursing services, counseling; personal care services; physical therapy; occupation & vocational therapy; homemaker & companion services; medical/hospital equipment & supplies; medical social services; drugs & medications; 24-hour home care; dietary & nutritional services; speech therapy; audiology; high-tech care viz. intravenous therapy, etc.

A majority of in-home patients avail skilled nursing services (75 percent), followed by personal care ranked second (44 percent), while therapeutic services rank last (37 percent).

Services offered include those short-term care (e.g. post hospital stay), as well as long-term care e.g. chronic obstructive pulmonary disease (COPD).

The industry is labor-intensive, competitive and affected by advances in portable medical technologies, in addition the patients' requirements and likes for in-home care also affect it.

Marketing and efficient operations have a direct impact on profitability of companies rendering home healthcare services.

While bigger players benefit from economies of scale in sales and marketing, smaller ones do better by serving local markets.

About 70 percent of those availing home healthcare services are age 65 and older, with the most common medical conditions requiring home care are heart diabetes, disease, and cerebral vascular diseases.

Over one-third of the persons requiring in-home care are under age 60, availing assistance for rehabilitation, are disabled, or have chronic health conditions, often requiring patient aids for assistance.

A majority, 80 percent, of those over age 60 choose to live independently, in comfort and with an enhanced quality of life.

For the top performing companies (top 10%), the average revenue in 2007 was $17,340,702, a 30.1% change from 2004. These companies' average years in business was 16.4 years, and the average number of employees equaled 219, which was a 13.2% change from 2004.

The life expectancy in the U.S. is continuously rising. For women it is 80 years, and for men, it is 74 years.

In the coming thirty years, the American population over 65 years of age will double to 70 million.

During the next decade a majority (about 75%) of baby boomers will retire.

The costs to businesses due to lost productivity, absenteeism, work interruptions, and employee replacement has increased to about $11 billion on an annual basis.

The rise in sport injuries, home, and vehicle accidents has increased the need for in-home care about 10 times.

Over the past decade, people have come to spend about half the time less in hospitals following surgery, a lot of it has to do with increasing healthcare and insurance costs.

About 8 million of the elderly population have some form of disability requiring assistance, and often some hospital furniture at home to help them. This number is projected to be 15 million by 2020.

Though the market for home healthcare services is competitive, it is growing, indicating an increasing market potential. As a result, the consumers in future, will demand a number of quality services from the US home healthcare service providers. At the same time, the 2009 financial crisis poses its own challenges to the healthcare industry in general.

]]> Vaccine Industry Overview and Trends tag:www.themedica.com,2009:/articles//1.57 2009-03-09T08:59:25Z 2009-04-04T11:39:55Z

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Vaccines are invaluable because they establish or improve immunity to a particular disease, preventing its onset and saving lives. For instance, In 1958 763,094 cases of measles were registered leading to 552 deaths in the United States. However, as new vaccines were developed and used, the number of cases dropped to less than 150 per year, informs a Center for Disease Control (CDC) report.

Over the years a number of trends put together have rejuvenated the market for vaccines. New vaccines have taken over older vaccines targeting new diseases and therapeutic segments. As a result, the prices of vaccines have moved north. In addition, Governments are going in favor of long-term purchasing contracts for vaccines.

Vaccines Industry Overview

The Vaccine Market

The vaccine market is segmented based on their usage as:

Prophylactic and therapeutic vaccines
Pediatric and Adult vaccines
Special needs vaccines viz. seasonal, travel, etc.
Animal vaccines

At present there are just a few major players present in the vaccine market, as a result the competition is small. However, with time as the competition increases, the vaccine market will resemble the conventional market for pharmaceutical drug products, some of which are also used in the preparation of medicated skin care products. As a result, companies would need a fast market entry so as to cash in on the growing market and minimize the threat of competition. Further, an increased manufacturing capacity will be needed to compete effectively. Another challenge will be to bring new products to the market, as these being pharmaceutical products, would require a rigorous review of laboratory and clinical data to ensure their efficacy, purity, safety, and potency.

Vaccine Market Size & Growth

The global vaccine market stood at US$ 11.42 billion in 2006, growing at a rate of 16.52%, it is said to touch US$ 21.05 billion by 2010, and up to $23.8 billion by 2012.

The driver of this growth is new product development. While pediatric vaccines have dominated the markets till now, the rise in the use of adult vaccines has increased due to the uptake of hepatitis and influenza vaccines.

Adult vaccines market is expected to rise to $7.5 billion in 2012. When combined with the pediatric vaccine markets, the total market for vaccines is projected to grow to $15 billion by 2012.

Influenza vaccines and Hepatitis vaccines, with an estimated growth rate of over 8 percent, are the fastest growing segments within the adult's vaccine market. The flu vaccines growing at 13.2 percent, will top $4 billion by 2012. The Hepatitis vaccines on the other hand are slated to make it to $1.5 billion by 2012.

The prophylactic vaccine market is forecasted to grow at an annual rate of 9-11 percent. Within the therapeutic vaccines segment, the cancer vaccines market is expected to rise to over $8 billion by 2012.

The infectious disease vaccine segment, with a growth of about 26%, is growing the fastest. Of all, the influenza, HIV and cancer is expected to witness the maximum growth within market.

Vaccine Industry Trends

Increasingly, vaccines are being aimed at adolescents and adults, in addition to infants and kids.

Vaccines to stimulate innate immune responses as well as adaptive are being developed.

The use of a combination of vaccines is becoming more common. Vaccines comprising 5 or more ingredients are being used in different parts of the world.

New ways of administering vaccines are under development including skin patches, aerosols via inhalation devices, and consuming biotechnology products such as genetically engineered plants.

Vaccines aimed at anthrax, plague, and smallpox, are being designed to defend against bioterrorist attacks.

Curative vaccines targeting chronic infections, which at present require treatment with anti-infective drugs, in addition to preventive vaccines are being designed.

The growth of the industry will depend on innovations in therapeutic vaccines.

An increasing number of traditional companies are expected to enter the vaccine market.

Vaccines for infectious diseases are being recognized as a critical unmet need.

While many life sciences fields have felt the impact of the recessionary economic scene, vaccines market has experienced growth, and is pretty much forecasted to keep up with the trend. At the same time the challenges posed by the 2009 financial crisis will continue to loom large.

]]> The US Biotechnology Industry Overview tag:www.themedica.com,2009:/articles//1.56 2009-03-02T10:37:50Z 2009-04-04T12:03:04Z

Themedica pharmaceutical drugs , marine and aquatic life, industrial processes, etc that it's difficult to imagine a world without it.

Biotechnology products such as antibody products, assay systems, and proteins are the driving forces behind many novel medical diagnostic tests, decreased use of chemical pesticides, efficient and clean processes that curtail waste generation and use up less energy and water. Further, over 370 biotechnology drug products and vaccines for more than 200 diseases are undergoing clinical trials. Some of these diseases include diabetes, Alzheimer’s disease, heart disease, cancers, AIDS, multiple sclerosis, and arthritis.

Biotechnology Industry Overview

As defined by the U.S. Department of Commerce and the Biotechnology Industry Association (BIO), biotechnology is the application of molecular and cellular processes to solve problems, conduct research, and create goods and services.

The biotechnology industry has registered a fast growth since the early 1990s. For instance, the revenues increased from $8 billion in 1992 to $39.2 billion in 2003. Considering the growth it was projected that the industry would employ 814,900 people in the US by 2007. Also, given the specialized nature of the field, quality workers right from the technician level to doctoral‐level scientists are needed by it. The job market forecast of biological technicians, is expected to grow by 28.2 percent between 2004 and 2014, and that of biological scientists is projected to grow by 17.0 percent.

The Nature of the Industry

The biotechnology and biotechnology products industry of the US can be thought of as comprising many different layers of vendors and suppliers. It is large and complex and is engaged in about 38 areas of sub‐sector elements, from plant and animal life sciences to drug discovery and information technology. Further, each sector of the industry has its own science, processes, competency & skills requirements, and outcomes.

The life cycle of biotechnology products entailing research, review, and approval is different based on the products viz. medical devices, pharmaceutical drugs, etc. By-and-large before a biotechnology product reaches the markets, millions of dollars would have been spent on it.

Despite the wide ranging applications of biotechnology, innovations and developments pertaining to new drugs for cancer, heart disease, etc, are highlighted more in the media as compared to chemicals, agriculture, medical instruments, devices and equipment, nanotechnology, information technology, infrastructure, etc.

Industry Size and Economic Impact

The U.S. Biotechnology industry by 2001 was composed of 339 public companies. The total number of companies was close to 1,379, with their total sales amounting to $18.1 billion, and a total market capitalization of about $330 billion.

According to more recent estimates the U.S. biotechnology industry comprises about 1,500 companies, and these companies spent about $17.9 billion on research and development in 2003.

Based on the data collected around mid‐March 2004, the biotechnology Industry Association (BIO) put the the market capitalization, or the total value of
publicly traded biotechnology companies (U.S) at market prices, at $311 billion.

By 2005, 329 companies were publicly held that earned $47.8 billion in combined revenue, with market capitalizations of $410 billion.

However, it's the small companies that dominate the U.S. biotech industry. About two thirds of the biotech companies employ 50 workers or less. In 2005, the 1,086 private U.S. biotech firms earned revenues of to the tune of $2.9 billion.

Furthermore, given the rate of biotechnological discoveries, development and applications, the US is considered the global leader in biotechnology. At the same time it faces stiff competition from other countries, which are infusing billions of dollars in research and development and in creating workforce programs.

Trends & Current State

Since biotech companies have realized that size and expertise in many fields is critical to succeed, the biotech-to-biotech mergers and strategic alliances are on the rise.

The earlier deals between biotech and pharmaceutical companies were late stage agreements, whereby the biotech companies took on the R&D costs. The more recent tie-ups, however, are more equitable in terms of risk taking, development costs, and profit sharing.

By the year 2000, financing of biotech companies attained record levels. During the same year many biotech companies had about over $1 billion in cash in the bank.

However, the 2009 global financial crisis and economic downturn has made things difficult for all industries including the biotechnology industry. Many companies across industries are seeking government intervention to bail them out.

Though hit hard, the U.S. biotech and small pharmaceutical companies haven't got under the government's umbrella yet.

Further, the capital to fund biotech companies has either already dried up or is disappearing fast, with estimates revealing that about one-third of publicly traded companies have less than 6 months of cash on hand.

Nonetheless, when properly funded the biotech industry of the United States has all the potential to promote long-term economic growth and improve living standards, contributing in a big way towards the sustainable growth of the country.

]]> US Waste Management Industry Overview tag:www.themedica.com,2009:/articles//1.55 2009-02-23T10:15:49Z 2009-04-04T11:09:45Z

A majority of the waste management industry in the US is engaged in the collection, transport, and disposal of solid and non-hazardous waste products in landfills. However, some companies are also equipped to manage hazardous wastes including liquid and low-grade...

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Overview

Each year a large quantity of waste is produced by households and as a result of industrial activities in the US. Statistics reveal that annual waste products amount to over 200 million tons of solid waste, that translates into generation of about 4.4 pounds of waste per person per day.

Traditionally, the process of waste management involved just collection, transfer and disposal of waste in landfills. However, with time, and increased public knowledge and concern over environmental protection, waste management companies are required to take on a more technologically demanding approach to managing wastes. For instance, requiring ever more sophisticated medical waste treatment equipment.

US Waste Management Industry Highlights

Waste Quantities

Around the year 2000, an estimated 544 million tons of waste were processed throughout the country. Of the total waste processed, 370 million (68 percent) tons were disposed of in landfills, while 146 million tons (27 percent) were recycled, and 29 million tons (5 percent) were subjected to incinerators.

Number of Organizations

About 27,000 organizations were engaged in waste management nationwide. The number includes private sector companies, public sector and quasi-governmental organizations. Of the total organization, there are about 10,000 private sector firms operating waste management businesses.

There are three major waste management companies in the US, namely Allied Waste Industries, Waste Management, and Republic Services, they manage over 50 percent of the total waste. The remaining market is highly fragmented, made up of small and mid-sized companies with annual revenues of about $10 million. On the other hand the combined annual revenue of private sector firms is $50 billion.

Demand & Profits

The demand within the waste management market varies with the levels of economic activity and consumer spending. While the GDP growth rates of the US hovered around 3 percent in 2006, GDP growth rates at the beginning of 2009 were close to zero percent.

The more efficient the operations of the waste management companies, better the profits they can expect. Large companies benefit from economies of scale. For large firms the annual revenue per employee stands at $200,000 on an average, while smaller companies make about $125,000.

Equipment & Machinery

In 2001, the solid waste industry made use of about 206,000 units motorized equipment in the U.S., of which, about 148,000 vehicles were used in the collection and transfer of solid waste. Rest of the waste treatment equipment comprised stationary, mobile compaction equipment, and mobile equipment, and processing equipment.

Waste Management Plants & Facilities

Close to 11,500 organizations owned an estimated 15,700 facilities that dispose, recycle, incinerate, or processed waste around 2001. More than half (53 percent) of these facilities had private ownership.

In addition to the traditional waste management operations including wastes requiring waste water treatment equipment, the need for remediation services has grown over the years. These services entail processes such as crude oil spill clean ups, asbestos or lead paint removal, or cleaning up of strip-mined areas. Even though the 2009 financial crises may have affected the waste arrangement industry too, the demand for remediation services has opened up new vistas for even smaller enterprises to venture in to.]]> Medical Device Industry Outlook and Trends tag:www.themedica.com,2009:/articles//1.54 2009-02-16T13:19:47Z 2009-05-02T11:31:42Z

All industries across the board have been hit by the global economic recession. The medical device and equipment industry is no exception, but being a part of the healthcare industry it's not hit as hard as the automotive or the...

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retail sector. At the same time the 2009 financial crisis does pose challenges for the industry as a whole.

The medical device industry outlook and trends follows:

The U.S. Medical and Dental Equipment Industry Overview

The US industry with its high investments in Research and Development is regarded worldwide for making sophisticated and high quality devices incorporating advanced technologies. The medical device and equipment manufacturers run about 15,000 companies employing about 423,000 employees around the country. Of which relatively few are mid-sized medical device companies, while a majority is that of small start-up firms. A large share of firms, over 80 percent, employ less than 50 people. Also, the innovative start-ups experience weak or no sales revenue.

According 2006 data, the average annual earnings for workers in medical devices were $59,441, this rate of wages exceeds that of many major industries.

US Medical Devices 2009 Outlook

The Upside

As people in the US and Europe age the inherent demand for healthcare continues will continue to grow. In the US about 13,000 individuals are expected to turn 60 each day over the next 20 years.

Since most of healthcare in the US is linked to Medicare, it turns out that the funding for healthcare will be rather stable.

A major portion of the demand for healthcare doesn't fall under discretionary expenditure, so it won't be hit as hard.

Lower tech products that aren't affected much by state of the economy, such as surgical instruments, as syringes, catheters, sutures, blood products, etc will continue to be in demand.

The Downside

Considering the overall demand for healthcare, employment and medical insurance will take a hit.

Since the credit markets are tight, hospitals are likely to regulate and shrink their operations, and spend less on hospital equipment and supplies.

Medical devices and medical instruments such as cast instruments, dermal instruments, scalpels or scissors associated with elective cosmetic procedures may shrink in demand as people postpone such treatments.

In General

Several high technology medical devices e.g. pacemakers may experience a modest growth owing to the fact that these are often used on senior adults funded mostly by Medicare, which is a stable source.

Smaller companies unable to finance their growth will become takeover targets for larger medical device companies with a better cash position.

The World Medical Device Market and Trends

The USA is the largest consumer of medical and dental instruments, equipment and supplies. The country's market was valued at nearly $80 billion in 2005. In addition the U.S. medical technology companies are leaders in the world's medical device production.

Over the past couple of years many countries have faced skyrocketing costs of health care just as the U.S., causing some of them to trim costs by cutting back on reimbursement rates, or by introducing price caps.

The competition within the medical device industry has risen and an increasing number of multinational companies are trying to make their mark in the global market. As a consequence, international sales, joint ventures, mergers and acquisitions are a commonplace. Further, in order to facilitate expansion, medical device companies are increasingly looking at developing economies as an opportunity to drive future growth. Aside from being growing markets, due to the availability of cheap labor manufacturing costs of medical instruments such as curette, knives, forceps, scissors, etc can be very low.

Increasing expenditures on healthcare viz. hospitals, clinics, public health insurance, etc by governments around the world is driving the global demand for medical devices.

As a result of so much activity happening within the industry and around the world, the medical devices industry has been transformed into a truly global industry.
]]> Medical Trade Shows - Tips to Promote Your Business tag:www.themedica.com,2009:/articles//1.53 2009-02-09T09:37:25Z 2009-05-08T07:04:06Z

Aside from offering you an opportunity to study the activities of rivals, examine recent trends and opportunities, medical trade shows can help you grow your business by letting you showcase latest products, and establish profitable relationships. However, in order to...

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However, in order to make your participation at trade shows a success, you'd need to thoughtfully plan and execute your attendance so that every penny that you spend, turns out a good return. This becomes all the more important considering that the 2009 financial crisis is in no mood to spare any industry, including the medical industry from its onslaught.

The following tips will help you participate better at medical trade shows. The first set of tips will help you plan your participation, while the second is meant to help you seize opportunities by shining at the show.

Plan Your Participation

Identify your objectives/goals

Ask yourself, what all do you want from your participation at a trade event. Of course earning new clients is one goal, but participation at trade shows can yield a number of them. For instance, do you want to become more popular among a group of wholesalers, suppliers, etc? Or do you want to create a buzz just before your upcoming product launch?

Some common objectives that trade show participation helps accomplish include, generation of sales leads, educating your target audience, enhancing your image and visibility, establishing your presence in the medical marketplace, recruiting distributors or dealers, introducing new products and services, personally meeting your competitors, customers, and suppliers, etc.

Be a detective and research well

The last thing you'd want to experience is to end up spending your hard earned money on something that didn't quite get you the return on investment you desired. To prevent that you need to research and find out what the objectives of a particular trade show are, who're the target audience, etc and match them to your own objectives. For example if your objective is to establish relationships with wholesalers and suppliers, you may not choose to exhibit at a show that has end-users or consumers flocking it, no matter how popular or glitzy it is.

Plan your budget & space

Based on your requirements, locate the space where you'd want to have your booth set up. You'd need to consider it in the light of your objectives factors such as which floor, high traffic/low traffic area, lighting, other exhibits and exhibitors, etc. Once you're satisfied proceed with booking your space.

Plan the exhibits to display

You display exhibit mix will naturally follow from who all are going to be your target audience viz. retail customers, wholesale buyers, other businesses, etc. For example if you are dealing in dietary supplements then you could elegantly display an ensemble of herbal supplement, mineral supplement, nutraceuticals, whole food supplement, etc.

Get the word out early

Informing and alerting your contacts including clients, customers, suppliers, other guests in advance will make it easy for them to plan their visit, and ensure a greater participation. However, do take care to include all the details such as your floor, the boot no, etc, in your advertisements, on your website, mailers, etc, so that they've no trouble in reaching your booth.

Shine At The Show

Orderly and systematic display of products and services makes them look appealing, and they're easy to locate too. A messy and all cluttered-up set-up can put off your clientèle. Properly marked sections, tags, e.g. "Hospital Furniture," "Medical Instrument," "Dietary Supplement," etc. are quite helpful.

Make your products look like hot-cakes by placing “sold sign” on some items, leading to the impression that your products are an absolute hit.

The more people you attract to your trade show booth the better your chances of meeting your objectives. Simple events and activities such as interactive displays, quizzes, lucky draws, contests, computer games, scheduled demonstrations, etc can all serve the purpose well.

Stocking take-away promotional items can help all those who will take them to better remember your business. Keep small promotional stuff handy and well-stocked.

Essential and frequently sought information about products such as prices, shipping costs, minimum orders, etc. if made easily accessible to visitors can save a lot of their time and your's too, because they wouldn't have to wait for a rep to ask that information from. Further, it makes the process smooth and also enables you to service a large number of visitors with less staff. For example if you are selling refurbished hospital bed, hospital stools, hospital chair, etc, tagging them with essential information can work wonders.

Always be prepared to take orders and do business. This means to ensure that you've a good supply of order forms, credit card slips, pens, to conduct sales and track orders.

Schedule breaks for the staff in such a manner that at no point in time your booth should be vacant. Always have someone to engage clients and visitors in a conversation, and provide them the information they need.

Your approach towards the visitors to your booth should be friendly, and that your body language should reflect that. Try to find out what aspects of you business the visitors are interested in, and that if you can offer them specific solutions and information. The idea is to attract, yet not intimidate or overwhelm them.

Quickly following up the contacts you've made during the show allows you to build the relationship further, and get an edge over other businesses who haven't been as prompt in following up as you. Send emails, call up, or provide the information your contacts asked for as soon as possible.

Trade shows can be an excellent source of making new contacts and striking new business deals, both invaluable for your business growth. Consequently, if you've done your homework well and have participated at the right medical trade shows and in the right manner, the returns are pretty much assured.]]>