SOURCE: Kalorama Information

Kalorama Information

June 21, 2011 15:01 ET

IVD Sales in BRIC Nations Growing Fast, But Not Without Challenges

NEW YORK, NY--(Marketwire - Jun 21, 2011) - The growing economies of the so-called 'BRIC Nations' -- Brazil, Russia, India and China -- will see increased demand for healthcare services led by testing. Healthcare market research publisher Kalorama Information notes that this is good news for diagnostic companies. According to its report, Emerging Markets for In Vitro Diagnostics (IVD in Brazil, Russia, India, China and Other Nations), IVD sales in BRIC nations are expected to grow from $2.9 billion in 2009 to $5 billion in 2014, which represents a CAGR of 12%.

This rate of growth for diagnostic instrumentation, product and reagent sales is double the six percent growth rate projected for worldwide IVD sales. Kalorama suggests that this growth is partially occurring because as the economies of these nations grow, they can treat a broader set of diseases than the infectious disease treatments often provided by large donor organizations, and treat patients that are not properly serviced now.

"It is now recognized that it's the low- and middle-income countries that face the greatest burden of chronic diseases such as diabetes, heart disease and cancer," said Shara Rosen, R.T. MBA, author of the report. "As markets in industrialized countries begin to mature, IVD companies are casting their nets in developing countries, where rising incomes and standards of living have sparked a new health consciousness and a growing demand for quality medical care."

According to Kalorama, the IVD market in BRIC countries is dominated by established players such as Roche, Abbott, Siemens, Beckman Coulter, and Becton Dickinson. However, domestic players such as Transasia, JMitra, Horiba, Kehua, Mindray and others have taken the distribution of IVD products from urban areas to the rural areas in their respective markets. Incumbent companies -- international and local alike -- tend to provide a host of routine tests. It is expected that as IVD demand in developing countries increases, there will be opportunities for rapid tests and advanced tests that are now emerging as healthcare systems become more sophisticated.

Despite the strong growth rate, the report stresses that opportunities for diagnostic companies in BRIC nations will take some time to develop. The report also takes note of financial and infrastructure challenges that will present obstacles to companies marketing in the BRIC nations and other emerging markets. Economic growth for instance, would not make every citizen of the BRIC countries a customer.

"Economic growth does not always mean that the new found resources will be shared by all socioeconomic groups in the country. The reality is that although there are many wealthy people who can afford the type of healthcare services that are available in the U.S. and in Europe, there are many more people who barely earn enough to feed themselves and their families."

More Information on Emerging Markets for In Vitro Diagnostics (IVD in Brazil, Russia, India, China and Other Nations) can be obtained on Kalorama Information's website.

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Kalorama Information supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter and LinkedIn.

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