Where the Market Stands Today The top 10 Medical Device Manufacturers in the world account for over $127 billion in annual revenue. Of those manufacturers.

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Presentation transcript:

Where the Market Stands Today The top 10 Medical Device Manufacturers in the world account for over $127 billion in annual revenue. Of those manufacturers only ONE saw a net loss between FY06 and FY08. The rest saw healthy growth, most in the double digits. From the US economy saw 7 periods of negative growth in GDP. In EVERY one of those periods healthcare expenditures increased.

Where the Market Stands Today Sector: IT and Connectivity This sector of the market will continue to see growth because it promotes safety and efficiency and helps dramatically reduce hospital costs. EMR (Electronic Medical Records) have lead to a high-level of growth in recent years. Until all hospitals are synched and standardized there will be a push for further development and use of EMRs. Connectivity essentially refers to ensuring that one manufacturers product connects to another. What’s the point of having a patients EMR if you have to manually input the information into the MRI machine? Growth equals cost savings. The standardized use of EMRs and reliable connectivity will lead to quicker diagnosis, improved patient safety, reduced human error, and less manual labor. Add all of these up and you get massive savings. As much as $80 billion annually by some estimates. That is a lot of money to spend on new products. New products that need supplier and service provider contracts. Expected Sector Growth in 2009 – 10-12%

Where the Market Stands Today Sector: In Vitro Diagnostics The global IVD market is valued at $42 billion and is expected to grow to $56 billion by Despite heavy consolidation recently overall growth is expect to remain stable. Chronic Diseases are costly. In fact they cost the US economy over $1billion a year in lost productivity. IVD products and development will play a big part in reducing that number. Medical Tourism. Savvy patients know where to find the best care state to state. As a result hospitals are spending more in Diagnostics to compete. Areas of growth include: In Vitro – In Vivo market mix Personalized Medicine. IVD Technology will have a comprehensive report on this sector in May. Expected Sector Growth in 2009 – 6%

Where the Market Stands Today Sector: Advanced Imaging Advanced imaging refers to Devices that look beneath the surface, mammography units, CT Scans, MRI machines, etc. A competitive market. Advanced imaging products are consistently improving and upgrading. Added to which, because they can serve similar functions (CT and MRI especially) there is a lot of debate over which is superior. That competition means a hefty expense for hospitals and profits for OEMs and suppliers. Genetic level drug discovery and nano-technology are two areas expected to fuel growth in this sector. Expected Sector Growth in 2009 – 7-10%

Where the Market Stands Today Sector: Ultra Sound This is a healthy sector of the market, with a future rooted in making Ultra Sound devices smaller and more portable. The Ultra Sound market is growing despite economic downturn The value of this sector is expected to reach $20 billion by 2010, with the heaviest interest in hand held devices. Growth deterrents include centralization of purchasing, the promotion of hospital privatization, and an increase in equipment life-cycles. Expected Sector Growth in 2009 – 4% with handheld devices as high as 15-18%

Where the Market Stands Today Sector: Neurotechnology Neurotechnology is a relatively young sector of the industry. Competition will cut some companies out of the equation, but the potential for growth in this sector is extremely high. A possible hindrance will be slow approval for new products. Expected Growth in %

Where the Market Stands Today Sector: Cardiovascular Devices Cardiovascular devices remains one of the largest sectors in the medical device market. A major reason is that cardiovascular devices are life saving devices. They come into play when drug treatments are no longer an option. Knowing that physicians are always looking for the most effective technologies and designs available. The main concern with economic downturn is that small companies that would have brought exciting new products to market 5-10 years from now won’t survive the recession. Expected Sector Growth in %

Where the Market Stands Today Sector: Orthopedic Devices The bad news? The human body isn’t built to last as long as we are currently living. The good news? Orthopedic devices will help keep us upright, mobile, and pain free. $39 Billion global market. 100% of the population living an average lifespan will suffer from an orthopedic injury or musculoskeletal disorder. Orthopedic products maintain price points even in times of downturn. The number of elective procedures increase in times of downturn. Orthopedic surgeries are at an all-time high. Expected Sector Growth in 2009 – Not Given

Where the Market Stands Today Poll Question Medical Device sectors are growing, and participant companies are growing. With the proper advertising our clients will be growing too.

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