A number of slides providing background figures on Australia's growing medical technology sector.

1. MedTec
h in
Australi
a

2. Australia’s med tech
sector
• $10 billion turnover (2012)
• 600 companies employing 19,000 people
• A young, small and growing industry
• 80% small or medium sized
• 40% with less than 20 employees
• 10% with more than 100 employees
• 40% established after 2000
Source: MTAA 2013 Report

3. Australia’s med tech
sector
• More than 41,000 medical devices listed
• Large export market relative to niche sector
• Similar size to Cotton ($2.6b) and Wool ($2.5 billion)
Industry Exports (2012)
Iron Ore & Concentrates $54.4 billion
Coal $41.3 billion
Gold $15.5 billion
Education $14.5 billion
Natural Gas $13.4 billion
Medical Technology $1.9 billion
Source: MTAA 2013 Report

4. Australia’s med tech
sector
Source: Austrade Report

5. Australia’s health care
system
• Compared to the APAC region:
• The highest per capita healthcare
expenditure in at $5,796
• Second highest health spend to GDP ratio
(behind Japan)
• A healthy health system:
• Universal Medicare
• Free inpatient services in public hospitals
• Partially government subsidised private
healthcare
• Approximately 46% of Australians are
Source: MTAA 2013 Report

6. Global positioning
• Medical device expenditure per capita
• Higher than the UK, Italy, Israel, South
Korea and Taiwan
Rank Country 5 year average (to 2011)
1 Switzerland $375
2 USA $318
3 Denmark $266
4 Sweden $247
5 Germany $246
15 Australia $153
Source: Austrade Report

7. Medtech exports
Country Med tech exports Exports as % of GDP
US25 ~$44b 2.8%
Germany1 5 ~$21b 0.61%
Netherlands15 ~$12.5b 1.6%
Japan25 ~$7b 0.11%
Canada35 ~$2b 0.1%
Australia45 ~$2b 0.13%
Sources:
1. Medtech Europe
2. Epsicon (various sources)
3. Industry Canada
4. MTAA
5. Google

8. Employment in
medtech sector
Country Number
employed
% of total population
US 520,000 0.16%
Germany 175,000 0.21%
France 65,000 0.09%
UK 71,000 0.11%
Italy 52,700 0.08%
Australia 19,000 0.083%
Sources:
1. MedTech Europe
2. Google

9. Government policy not
conducive to innovation
• Medical technology market stagnant due
to:
• Global Financial Crisis
• Removal of Commercial Ready in 2008
• High $AUD
• More favorable tax regimes in competing
international markets

10. Still room for
improvement
Source: MTAA 2013 Report

11. Still room for
improvement
Source: MTAA 2013 Report

12. Room for
improvment
• Proposed Australian Innovation and
Manufacturing Incentive (AIMI) patent box
scheme
• Existing government investment in
innovation is not sector specific
• Programs include:
• R&D Tax Incentive
• Innovation Investment Fund
• Commercialisation Australia

13. Medtech or biotech
• Medtech has Easier path to
commercialisation
• Less stringent clinical trial process
• Easier to gain FDA approval
• Lower overall risk profile

14. Top Australian listed
medtech
Market Cap (July 28, 2014) Annual revenue FY2013
Resmed $7.55 billion $1.5 billion
Cochlear $3.64 billion $752 million
Sirtex $1.05 billion $96.8 million
Nanosonics $198 million $16.9 million
Admedus $183 million $7.4 million
Reva $53 million $0
Universal Biosensors $32 million $13.6 million
Source: Bloomberg