SERVING IVD NETWORKS IN DEVELOPING MARKETS

Emerging/Other Markets will comprise 30% of the $60 Billion IVD Market by 2016: (Boston Biomedical Consultants) Organized by

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What is a MEDLAB event? The medical laboratory is a crucial component of healthcare. Laboratory medicine provides all those involved in the healthcare system with vital information that can make a difference in the quality, safety and efficiency of care given to patients. Doctors across all specialties depend on laboratory results to make critical decisions about the prevention, diagnosis and treatment of disease. In line with Informa Life Sciences’s philosophy of ‘Exhibition with Education’ MEDLAB Series caters to the growing demand for laboratory products, services globally and to learn about the latest advances in science and their application in laboratory medicine. The Medlab Series has two levels: The Conference and The Exhibition. The Conference handpicks the best medical talents and academics from around the globe to share the latest developments in the field of laboratory medicine. This enables doctors and scientific professionals from the region to stay abreast with the latest guidelines and technologies in their respective fields. The exhibition provides a platform to leading regional and global companies in the medical laboratory field to showcase their products and services.

Why are the Medlab series so successful? Medlab Series covers all disciplines in the laboratory department and provides a unique platform for the industry’s multi-level professionals to meet under one roof. After successful Medlab events in South Africa and the Middle East, the natural development for The Medlab Series is to expand in to the emerging markets in Asia and the rest of Africa. Buoyant economies, growing populations and the rise in the number of diseases in the emerging markets has led to government funding and improved healthcare facilities. The Medlab series focus on addressing regional challenges which makes each event valuable and a necessity for all dedicated regions.

The continued growth of the healthcare industry coupled with the importance of achieving certification in the management of medical laboratories in the emerging markets, have attracted the attention of medical specialist world. Poised to attract even more direct foreign investments in the years to come, growth in the emerging markets will be driven by the favourable regulatory environment along with the completion of major healthcare building projects across these regions. Medlab is a strong brand and is backed up by Informa Life Science’s, the organisers of Arab Health and Africa Health, unique healthcare database.

GCC healthcare market is projected to $43.9 billion by 2015 from 25.6 billion in 2010, an annual growth of 11% (Alpen Capital)

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Why Exhibit? Exhibitions are one of the most powerful marketing tools today? Exhibitions are one of the most cost-effective ways to reach target markets and decision makers, it’s a marketing medium where you can target your audience, create awareness of your brand and directly do business with customers. Exhibiting at the MEDLAB Series provides an exceptional combination of networking and corporate branding opportunities and is a perfect opportunity to boost your company’s profile among the influential and decision-makers in the medical laboratory industry. Your company’s participation in MEDLAB Series not only strengthens global awareness of your products and services to an audience of

important decision-makers but, more importantly, confirms your position as an industry leader. MEDLAB Series bring together the leaders in the medical laboratory industry at an event designed to create maximum interaction and meeting opportunities where manufactures, dealers, distributors can promote their brands, meet potential customers and entertain existing clients. Aligning your brand with such an exceptional and exclusive global event where you can present your products and services in a dynamic and interactive environment sends a clear message to all of your stakeholders.

The main reasons for exhibiting at MEDLAB show were: » » » » »

Access to Developing Markets Seek contacts for future business Meet existing clients or partners Raise profile of company/organisation Seek immediate business

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Look for a local agent Support local existing agent Monitor activity of competitors Test the region’s market for first time

Why Sponsor? We understand that a customer’s decision to work with you and your company is based on the strength of your brand. MEDLAB Series presents a unique opportunity to boost your company profile among medical laboratory industry professionals, business partners and government representatives. Our purpose, quite simply, is to create the perfect environment for you to solidify your brand and interact with new buyers and key industry partners. We will introduce you to the people who matter most to your business. To match this special opportunity with your specific needs, you are invited to take advantage of any of our unique sponsorship and exhibitor packages or simply ask us to create a bespoke package aligned with your company’s culture and objectives. This will ensure that your specific goals are achieved while maximising return on investment.

Stand out from the crowd! Whatever option you choose, to maximise the benefits you realise from the MEDLAB Series, your sponsorship package should be integrated into your marketing and communication strategy, both before the event and after. It goes without saying that our team will be delighted to work with you to help you achieve this.

We are pleased to help you design your own bespoke exhibition stand or sponsorship package that is aligned with your company’s culture.

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MIDDLE EAST

The largest medical laboratory and technology event in the Middle East “MEDLAB is unique because it is the only opportunity in the Middle East for professionals to come together, discuss and find out about the findings occurring in labs.” Dr. Mansour Al-Zarouni, Consultant Medical & Molecular Microbiologist, Head of Department of Pathology and Laboratory Medicine, Sharjah Medical District-Ministry of Health, Sharjah, UAE

The MEDLAB Middle East exhibition was first launched in 2005 as part of the Arab Health Exhibition and Congress, and has since become the largest laboratory and technology event in the Middle East. Medlab is the regions’ most innovative laboratory meeting and provides delegates with an opportunity to learn about advances in science and their applications in laboratory medicine that will improve their practice through improving patient outcomes. MEDLAB philosophy ‘Exhibition with Education’ offers a comprehensive multi-tracked congress including a diverse range of subjects and a unique insight into the latest applications and techniques used in laboratories and their management.

MEDLAB 2012 visitors Geographic Breakdown

GCC

Medlab Middle East attracts more than 20,000 unique visitors and the exhibition area has considerably increased in floor space over the past five years, allowing existing exhibitors to expand their presence and new companies to join. Attendance has increased by 256% in the past five years. MEDLAB 2012 sold out pre-event. An impressive panel of regional and international experts presented new ideas, updates and insights on diagnostics tests to the 2,700 delegates attending the conference.

MEDLAB 2012 Visitors area of specialisation

53%

AFRICA

10%

ASIA

15%

MIDDLE EAST

11%

EUROPE

11%

Molecular Diagnostics

16%

Haematology/Haemostasis

25%

Microbiology/Parasitology

24%

Histopathology/Cytology

16%

Oncology

9%

Toxicology/Drug Testing

10%

MEDLAB Middle East Magazine The only publication in the Middle East dedicated solely towards medical laboratories and their staff Launched in November 2004, Medlab Middle East magazine has quickly established itself as the leading magazine for the medical Laboratory market in the Middle East. As the only publication in the region directed solely towards the region’s laboratories, it enables laboratory professionals to keep up to date with the latest products, medical findings and the latest techniques for treatment and diagnosis. Distribution by Profession 24% Heads of hospital labs 21% Heads of independent labs 19 Manufacturers of lab equipment 13% Government and ministry officials

11% Laboratory consultants 5% Microbiologists 4% Pathologists 3% Haematologists Distribution by region: 35% UAE 35% KSA 15% Egypt 5% Qatar 5% Other MENA 4% Bahrain 2% Kuwait 2% Oman

Country snapshot The rise in the number of diseases in the emerging markets has led to government funding and improved healthcare facilities. The laboratory accounts for 10% of hospital expenditure.

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Overview of the medical laboratory market in Nigeria Clinical pathology laboratories in Nigeria currently operate with little effective regulatory oversight. Patients are complaining about the problems caused by both misdiagnosis and faulty medical laboratory test results. In addition, many physicians and patients do not have access to clinical medical laboratories at all. Because of this, government officials have been forced to acknowledge the poor state of the country’s clinical laboratory testing services, which has, in turn, led to great scrutiny of the medical laboratory industry in Nigeria.

NIGERIA

The delivery of medical laboratory services in Nigeria has witnessed a lot of activity recently. For example, the Nigerian Institute of Medical Research (NIMR)’s HIV testing and Tuberculosis reference laboratory recently received ISO certification for quality management and services. However, despite positive reports such as this, inaccurate medical laboratory test results and misdiagnoses in Nigeria continue to be widely reported by the media.

Current situation in Nigeria It has been estimated that there are around 300 pathologists serving 140 million people in Nigeria. This places a major risk on the laboratory industry since overworked personnel are more likely to make wrong diagnoses. Pathology is a critical part of the medical process, as without high quality pathology services, healthcare would degenerate and services grind to a halt. Despite the critical role they play in medicine, it seems very few in Nigeria understand what pathology is all about. Laboratories play an integral role in blood transfusion services and are at the cutting edge of using genetics to diagnose disease. More than 70% of all diagnoses in medicine involve pathology testing. Add to this the importance pathology plays in monitoring disease and it becomes obvious why the profession is so critical.

Market opportunities in Nigeria Perception has been identified as one of the leading factors fueling poor laboratory results in Nigeria. Most Nigerian patients see laboratory testing as a last resort, after self-medication. There is a need for Nigerians to change their perceptions and unfortunately, governments at all levels do not see laboratory medicine as a priority.

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90% of medical laboratories in Nigeria have no internal quality control measures in place, which has become the bane of accurate laboratory results in Nigeria.

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Most laboratories in Nigeria have inadequate trained personnel and poor reagent equipment making laboratory results from Nigeria unacceptable abroad

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There is an urgent need for laboratories in Nigeria to be accredited by recognised bodies to ensure that they meet minimum quality standards

In the last two decades, laboratories in Nigeria have been allowed to degenerate. Currently, there is poor infrastructure both in the private and public sector health establishments, and no clear definition of job description for the different professions within the facilities. This leaves a huge market opportunity for western companies to make their mark, providing clear policy and guidelines on the management and leadership of facilities. The introduction of internationally adopted standards is desperately needed in Nigeria along with an international accreditation and monitoring system.

Sources: http://mlscn.gov.ng/ | www.darkdaily.com | www.businessdayonline.com | http://www.pathcarenigeria.com/

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SOUTH AFRICA

2012 Africa Health Show Profile 368 exhibitors 8,760 exhibition floor space 12 country pavilions 3,956 attendees 3,145 visitors 811 delegates 164 speakers 51 countries represented 37% growth from last year 1.8 days attended on average per visitor

IVD companies exporting to Sub-Saharan Africa have increased from 14% to 37% between 2011-12 (2012 International Market Briefing)

The Africa Health Exhibition and Congress 2012, was hailed as a catalyst for much-needed healthcare changes in the region by conference delegates, exhibitors and visitors alike. The event, that takes place in May every year, featured over 12 CPD accredited clinical and non-clinical conferences ranging from medical and imaging laboratory, through to mobile health, quality standards and infectious diseases, all presented by local and international speakers. The event focused on updating the skills of regional healthcare professionals and specialists, with more than 164 international speakers discussing the latest developments, techniques and solutions.

Africa Health exhibition hosted 368 international exhibiting companies, with a dedicated area for medical laboratory to showcase their products and services. More than 50% of exhibitors have already signed up for next year’s event and with a total of 3,956 attendees, a growth of 37% from last year; this is a good indication of the stellar reputation that Africa Health holds within the healthcare market. The Africa Health Exhibition continues to be the leading platform for medical practitioners, healthcare workers, government authorities and business leaders to come together to share information, exchange ideas and devise solutions to healthcare problems that continue to plague the African continent.

About the medical Laboratories in sub-Saharan African region The rising incidence of diseases in the sub-Saharan African region is creating huge growth opportunities for in-vitro diagnostics (IVD) manufacturers. The high disease burden, combined with clinical misdiagnosis has worsened healthcare delivery in this region. However, disease prevention and treatment programmes are increasingly focusing on developing diagnostic facilities to effectively reach patients. In addition to mere commercialisation of existing products, the markets provide scope for the identification of new biomarkers for diseases that are inherent to this region. These opportunities, combined with monetary support from global agencies and the local government, make the markets in sub-Sahara Africa lucrative for IVD business. The alarming increase in the incidence of diseases in sub-Saharan Africa has forced the regional governments to roll out the anti-retroviral programme, which has helped in popularising diagnostic tests in the region. Moreover, people are increasingly becoming aware of infectious diseases and are therefore seeking health assistance, which is another factor contributing to growth in the diagnostic market for these diseases.

Sources: Africa Health | African Business Journal | www.marketresearch.com

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China and India: Comparing Two Fast-Growing IVD Markets

Both China and India are inspiring success stories, lifting millions of their citizens out of poverty, providing better healthcare, and

positioning themselves to play major roles in the global IVD market in the future. The growth rates of the IVD markets in each country have been very impressive during the last 15 years. It is sometimes asked if this growth will slow down in the future. As long as the two main market drivers—increasing prosperity and urbanization—continue, strong growth in the Chinese and Indian IVD markets is expected for many years. Even after 15 years of growth, the two countries combined are spending only about one dollar per person per year on diagnostics. Compared to the $25-30 per person per year spent on diagnostics in developed countries, it is clear that the IVD markets in Chindia are nowhere near market saturation.

ASIAN

The IVD markets of China and India, two countries that account for approximately one-third of the world’s population, have demonstrated remarkable growth during the past 15 years. The IVD markets in what is coming to be known as “Chindia” have seen steady growth rates of 10-20% per year during most of that time, although the growth in India is starting from a substantially lower point. Recently, the pace of growth for both countries has increased, with China at around 25% and India at about 18%.

China According to official figures, China’s economy has grown at an average rate of 9.1% during the last decade, but the real growth could be even greater. The Chinese economy has also been remarkably steady, and the increasing prosperity is one of the main drivers of IVD market growth in China. The other main driver is urbanization. Factory workers and office employees are more likely to be customers for diagnostic products than farmers in the countryside. China’s IVD market estimates the size of the market to be $2.1 billion with a growth rate of about 25%. While both countries, India and China, are buying and using large numbers of automated IVD systems, China is a better market for instrumentation, particularly automated chemistry systems. While the total IVD market in China is roughly four times as large as India’s, its total number of automated chemistry systems is more than six times as high. At $112 million, China’s molecular market is more than ten times the size of India’s. This is due to the large volume of PCR testing for infectious diseases done in China using domestically produced kits. These tests account for about three-fourths of China’s molecular market.

emerging disease areas such as oncology will start to give international firms a greater presence in the molecular reagent market since there is no significant local competition. The total number of clinical laboratories in China is estimated to be around 20,000, which corresponds to the number of hospitals in the country. Almost all of these labs have automated chemistry systems. Many other healthcare facilities in the country, including clinics in small towns and the Chinese Center for Disease Control labs, also do some IVD testing. China continues to build new hospitals, adding about 500 per year. Private labs also now exist in China, and they are becoming more important in the market. While private laboratories have been slow to enter the marketplace and they still do only a modest proportion of China’s IVD testing, they will grow in importance in the coming years. The State Food and Drug Administration (SFDA) is responsible for regulating drugs and medical devices. Both IVD instruments and reagents must be registered, and all products must be re-registered every four years.

“If you are a medical laboratory professional, you cannot afford to miss the MEDLAB Conference. The body of knowledge required for medical laboratory management is vast and this conference will address many of the current challenges facing laboratory professionals.” Carlo Kaabar, Director, Department of Pathology and Laboratory Medicine, American Hospital Dubai

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ASIAN

India India’s economy has grown at an average annual rate of 6.1% during the last decade.

one-tenth the size of China’s, the international portion is only about one-third the size.

During the last 15 years, India’s IVD market has, like China’s, grown continuously. While the annual growth rate was around 10% a decade ago, it has increased and is currently at approximately 18%. The same two key drivers (increasing prosperity and urbanization) that are propelling China’s market have also contributed to India’s impressive growth in IVD spending.

India is estimated to have more than 30,000 active clinical laboratories (other sources estimate as high as 40,000). The number of laboratories continues to grow, which is true for not only automated labs but all types of labs as new laboratories of all sizes continue to open.

India’s IVD market estimates the market size to be $531 million and growing at approximately 18%. India’s molecular market is the opposite of China’s with foreign products accounting for approximately 80% of the market, including both instruments and reagents, and about 20% coming from domestic production and homebrews. While India’s total molecular market is

India’s government is making changes in the regulations for medical devices and IVD products. According to industry contacts and Ministry of Health officials, a notification is expected that would bring a group of medical devices and IVDs under the regulatory framework. The authority regulating medical devices and IVDs will be the Central Drug Standard Control Organization (CDSCO) in the Ministry of Health

Successful Singapore Singapore continues to grow as a regional hub for medical manufacturing. According to Singapore’s Economic Development Board (EDB), as part of Singapore’s biomedical sciences sector, the medical technology industry doubled its manufacturing output from S$1.5 billion in 2000 to about S$3 billion in 2008. Over the same period, its manpower base also doubled from about 4000 to more than 8200 last year. By the year 2015, medtech manufacturing output is forecast to reach S$5 billion. A global leader in medical technology manufacturing, Singapore accounts for 10% of the world’s contact lens production, half of the world’s thermal cyclers and more than 50% of the world’s microarray production. Singapore’s medical device market is worth more than $200 million, and many economists have predicted strong economic growth in Singapore. The latest estimates indicate that Singapore will have the fastest growing economy in Asia with a 12% growth rate for the year 2010. In contrast, China’s growth during the same time is only expected to reach about 9%.

“The MEDLAB conference and exhibition is solely aimed towards improvement in the quality of Laboratory Medicine in each region.” Dr. Mansour Al-Zarouni, Consultant Medical & Molecular Microbiologist, Head of Department of Pathology and Laboratory Medicine, Sharjah Medical District-Ministry of Health, Sharjah, UAE

Is Penang the Next Device Paradise? Medical device companies are setting up shop in Penang, Malaysia. This is an area that is steadily increasing its medical device pedigree—B. Braun, Symmetry Medical, and St. Jude Medical already have facilities in the state.

Science Park. The company, which provides precision manufacturing and engineering services for devices used in drug delivery, neurology, endoscopy, orthopedics, and cardiology, plans to offer these services to customers in the region.

One report says that contract manufacturer Accellent is looking to invest about $82 million in a manufacturing facility at the Bukit Minyak

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Malaysia Seeks Stricter Medical Device Regulation ASIAN

Malaysia’s parliament is introducing a medical device bill aimed at preventing substandard medical devices from reaching the country’s market. Malaysian health minister Liow Tiong Lai offered a sobering account of the Southeast Asian nation’s current regulatory standards. “Any company can bring its product into the country and claim it can cure anything without clinical trials,” he said.

Thailand Once counted among the world’s poorest nations, Thailand has recently developed one of the world’s fastest-growing economies, and is following closely in the footsteps of the other Asian Tigers. In 1996, the growth rate of Thailand’s economy was estimated at 8.5%. The International Monetary Fund projects that from 1998 to 2002 it will grow at a solid 7.5% per year, ranking it as the eighth-fastestgrowing economy in the world. In 1995, Thailand’s per-capita GNP was $2310; in Bangkok the figure was nearly twice this amount. At this rate of development, Thailand is on track to become the largest economy in Southeast Asia by the turn of the century, and the eighth-largest economy in the world by 2020. The Thai medical market has also flourished over the last 10 years and will continue to expand as its large population ages. Moreover, as the rest of Thailand catches up with Bangkok’s development, a number of opportunities will open for foreign medical device exporters.

Such growth, along with increased government spending on health care, expanding health-care needs, and several other factors discussed below, makes Thailand an attractive market for international medical device manufacturers. Government-run hospitals account for 70% of all hospital beds in Thailand. The public sector includes 148 major general hospitals, 7 medical schools, 266 small general hospitals, and 369 community hospitals. Because of a great demand for medical services in Thailand, public hospital occupancy rates have been as high as 90% of capacity. The IVD market in APAC is forecasted to continue growing strongly at a CAGR of 12.8% from the period 2010-2014. Developing economies and increasingly affluent populations will fuel strong organic growth moving forward. While China and Indian will be the main driver for CD, while the other developed markets are rather mature and stable.

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APAC IVD market reached almost USD 3.4 bil in 2009, with Centralised Diagnostics (CD) taking up to 80% of market value. Clinic Chemistry (CC) and Immunoassay (IM) accounted for more than 60% of the market size.

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The CD market is expected to grow slightly stronger than the DxD and MDx segment, at a CAGR of 13.4% from the period 2010-2014. Nonetheless, forecasted growth across the 3 business areas are strong at double digit or almost double digit growth.

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A forecasted CAGR of 12.8% growth will be driven largely by the Asian powerhouses, China and India, with China accounting for more than half of the share of business in the region by 2014.

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The major markets in APAC have a healthcare reimbursement system (China, Korea, Australia, and Taiwan) that provides comprehensive coverage for the IVD market. As such, healthcare test consumption is unlikely to be significantly impacted by the slightly volatile recovery phase of the regional economy, or any potential sporadic political turmoil in the region.

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Strong organic growth from increasingly affluent population will drive demand for healthcare services and pathology testing in the developing economies of China, India, and Thailand.

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The pace of growth for India and China has increased, with China at around 25% and India at about 18% China and India combined are spending only about one dollar per person per year on diagnostics. Compared to the $25-30 per person per year spent on diagnostics in developed countries

Sources: www.emdt.co.uk | www.qmed.com | www.mddionline.com | Clearstate – Market opportunity sizing for IVD in Asia Pacific | The Star Online | McEvoy & Farmer’s

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BRAZIL

Overview of the medical laboratory market in Brazil Brazil and Mexico are the two largest IVD markets in Latin America currently. Brazil alone currently generates $880 million in annual revenues, making it the ninth largest IVD market in the world, growing at approximately 10% per year. With its large population and low per-capita spending on IVDs, the potential for growth in Brazil is significant.

IVD revenue from emerging/ other markets will increase from US $11 billion in 2010 to a projected $20 billion in 2016 (Boston Biomedical Consultants)

Current situation in Brazil The IVD market in Brazil is divided between 60-65% in the public sector and 35-40% in the private sector. Almost 40% of the total IVD market comes from the Sao Paulo area with the Rio de Janeiro area making up nearly 20% of the market. The number three market is Minas Gerais, home of Belo Horizonte, followed by Parana and Rio Grande do Sul, the southernmost state of Brazil. The total number of labs in Brazil is estimated to be 21,000 but this number includes about 5000 labs that are just collection sites. The

number of laboratories that represent potential customers is closer to 7000. The largest private laboratory in Brazil is Diagnosticos da America (DASA), which was created in 1999 by combining Delbony and Lavorisier of Sao Paulo with Brownstein and Lamina of Rio de Janeiro. They later bought Frishman Einsengarten in Curitiba and now have a total of about 20 branches.

Market opportunities in Brazil The IVD market in Brazil is estimated to increase by 4-6% during the next two years, while the reagent portion of the market will grow 6-8% per year. The reason the instrument growth will lag behind reagents is that the consolidation of testing among major private labs means a smaller number of sites that need instruments. The public sector is growing faster than the private sector and government finances are in reasonably good shape with more money being made available for healthcare.

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The total number of medical laboratories in Brazil is estimated to be 12,000

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The IVD market in Brazil is divided between 60-65% in the public sector and 35-40% in the private sector

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The total spend on health in Brazil is roughly 8% of GDP developed countries

In the separate IVD sectors, the highest growth rates are in coagulation at approximately 10% and immunochemistry at about 9%. While Brazil’s molecular diagnostic market has been growing in the 14-16% range, it is difficult to predict this area because prices have recently declined substantially and government decisions could alter the future of this market. The first decision is whether to require molecular blood screening, and if so, whether to source the tests in the private sector or through the semipublic local organization Bio-Manguinhos. The second is the possible transition from end-point to real-time testing in the public sector.

Sources: www.ivdtechnology.com | www.marketsandmarkets.com

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About Informa Life Sciences Exhibitions The Life Sciences division of Informa Exhibitions runs the healthcare portfolio of products including exhibitions, magazines, conferences and event management. The division prides itself on offering a range of marketing solutions for companies involved with the healthcare sector, particularly in the Middle East, Africa and Asia region. The Life Sciences division consists of 20 exhibitions yearly covering the European, African, Middle Eastern and Asian markets. Over the course of the year, our events attract over 4,000 exhibitors, 90,000 visitors and 13,000 delegates. Informa Life Sciences also offers a specialist “Events Management Service” concentrating on delivering, high-quality bespoke events to clients within the Healthcare Industry. In addition, the division also publishes 4 international healthcare magazines, the flagship one being the Arab Health Magazine, and also offers dothealth, an on-line healthcare portal showcasing over 40,000 healthcare companies. Informa Exhibitions’s Life Sciences division helps all those involved in the healthcare sector to reach their global audiences through a trusted partner. For further information about Life Sciences or any of our events please visit www.LifeSciences-exhibitions.com

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