An overview of the point of care diagnostics market place in Europe

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Point of Care
Diagnostics Market:
Recent Trends
September 2014

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European market
The European medical technology market
is estimated at €100 billion.

3. In vitro diagnostics
Cardiology
Diagnostic imaging
Orthopaedics
Ophthalmics
Endoscopy
Drug delivery
Wound
management
Dental
General &
plastic surgery
In vitro diagnostics is the largest segment,
followed by cardiology and diagnostic imaging.
Medical technology market estimates by area and sales growth,
World, 2012-2018

4. World medical technology market by region,
based upon manufacturer prices, 2012
European medical technology market by region,
based upon manufacturer prices, 2012
US
39%
Europe
28%
Japan
10%
China 5%
Russia 5%
Canada 5%
Brazil 5%
Other 12%
Germany
27%
France
16%
UK
28%
Netherlands 4%
Spain 5%
Switzerland 4%
Sweden 3%
Belgium 3%
Austria 3%
Other 14%
Italy
10%
The European
medical technology
market represents
around 30% of the
world market. It is the
second largest market
after the US (40%).

5. 10%
8%
6%
4%
2%
2008 2009 2010 2011 2012 2013
European medical technology market growth rates,
based upon manufacturer prices, 2008-2013
Annual growth rate
Trend
The market has been growing on average
by 4% per annum over the past 6 years.

6. Breakdown of total healthcare
expenditure in Europe
Inpatient and outpatient care, other
Pharmaceuticals and other
medical non-durables
Medical devices (incl. imaging)
In vitro diagnostics
Medical technology
0.8%17%
7.5%
75.5%
6.7%
Expenditure on Medical Technology
In Europe, an average of 10.4% of gross domestic
product is spent on healthcare. Of this figure, around
7.5% is attributed to medical technologies.
The spending on medical technology varies
significantly across European countries, ranging from
around 5% to 10% of the total healthcare expenditure.

7. Between 1980 and 2000, medical technology reduced
hospital stays by 56% and dramatically cut costs
56%

8. 3 Major EU markets overview
Within Point of Care Diagnostics, the UK and Spanish
markets are a lot smaller in value than France, Germany
and Italy.
GB
ES
FR
GE
IT

9. Government Role Public System financing
Health System and Public/Private Insurance Role Benefit Design
Private Insurance Role Caps on Out-of
Pocket Spending
Exemptions & Low
Income Protection
Health care
system financing
Statutory health
insurance system,
with SHI insurers
incorporated into
single national union
Employer/employee
earmarked income and
payroll tax; general
tax revenue
90% buy coverage
for cost-sharing;
some extra benefits
No
Exemption for low
income, chronically
ill and disabled,
and children
Statutory health
insurance system,
with competing SHI
insurers (“sickness
funds”); high income
can opt out for private
coverage
Employer/employee
earmarked income and
payroll tax; general
tax revenue
Cost-sharing +
amenities (~20%);
Substitute: 10%
opt-out of SHI
system for private
coverage only
2% income
amenities (~20%);
Substitute: 10% opt-
out of SHI system for
private coverage only
Income-related
insurance
contributions; OOP
max 1% income for
chronic + low income;
children exempt
National health service
Earmarked business
and value-added
tax; regional
tax revenue
~15% buy coverage
for access to
private facilities
and amenities
20% OOP subsidy if
exceeds €129 ($179)
Exemptions for
low-income, elderly/
children, pregnant
women, and some
chronic conditions/
disabilities

10. 5-year Strategy of the
European Medical
Technology Industry
EU Framework
undergoing radical
legislative changes
to ensure future
sustainability
Leader in medical device
innovation Medical device
innovation to reach
market efficiently
Continued
EU economic
crisis
Increased public
spending, decreased
health care expenditure
A decentralised
approval process
Market overview – future challenges

11. 7.7
8.0
7.3
7.6
7.0
7.5
6.5
7.0
6.5
7.1
6.4
6.8
5.8
6.0
5.5
6.4
5.4
5.5
5.0
5.7
4.2
4.7
Providing financing
through a lender
partner or directly
Full solution
partnership
Sales rep
relationship
Ability of the
company to
share risk
Service provided
by the sales
representative
Ease of doing
business
Clinical dataCutting-edge
technology
Cost-benefit
value proposition
ReimbursementProduct quality
Getting clinical data, sharing risk and providing a full solution
will grow in importance for hospitals over the next few years
Current and Future Hospital needs from MedTech Companies
Average Score
2010
2015
Hospital needs when purchasing medical tech
Willing to pay 10-15% premium for disposables that
reduce errors and infection rates.
Due to reduced reimbursement rates, hospitals want
products that will help them track and record quality
improvements and outcomes.
Product quality and reimbursement are the most
important factors when buying from MedTech
companies. However, clinical data, risk sharing,
and full solution partnerships will become
increasingly important

12. C - Suite
Procurement / Payers
HCPs
Lab
Regulators
Lobbyists
Point of Care Diagnostics -
Influence Radar

13. Optimising Outcomes
MAXIMISE POSITIVES
MINIMISE NEGATIVES
Fewer
missed
diagnoses
Fewer errors
Reduced
waste
Saves time
Saves money
Reduced
anxiety Less delay
Less use
of staff,
equipment
and resources
Reduced
morbidity and
mortality
Saves lives
Less
misdiagnosis
Reduced LOS
Reduced
liability
for malpractice
suits
Improved
patient
satisfaction
Early
intervention
Improved TAT
Multi-marker
testing
Increased
workflow
and efficiency
Rapid
decisions
Enhanced
reputation
of hospital
Correct
decisions
More
patients
treated
Improved
performance
for Lab
& ED
Streamlined
patient
pathway
Improved
hospital
income
Reliable
results
Fast
results
Improved
professional
standing of
HCPs
Point of Care Diagnostics -
Market drivers

14. Summary
C-suite is an
important gatekeeper
to the adoption
of MedTech
Health outcomes
driving the rising
use of MedTech
Pressure to increase
efficiencies continues
to drive the need
for new MedTech
Greater integration
of diagnostics and mobile
health will continue
to drive future growth

15. ABOUT

16. ABOUT
To discuss this market analysis,
how it might be relevant to your brand
and the challenges you face
please contact us at:
Matt Leeming
Strategy Director
matt@life-healthcare.com
Juliet La Marque
Chief Executive Officer
juliet@life-healthcare.com
Emily Wiggington
Client Services Director
emily@life-healthcare.com
Or call us at LIFE: +44 1344 899050 www.life-healthcare.com