Roche Diagnostics' Asia Pacific Head Roland Diggelmann On The Growth Of Diagnostics In China With Healthcare Reforms: An Interview With PharmAsia News

Full story reprinted from PharmAsia News - August 03, 2009

The head of Roche Diagnostics' operations in Asia Pacific said the region, and especially China, is primed for high-speed growth in terms of diagnostics. Roland Diggelmann, Managing Director of Roche Diagnostics Asia Pacific, told PharmAsia News that diagnostics products can play a strengthening role in providing more efficient healthcare across Asia Pacific (PharmAsia News, Feb. 12, 2009). Roche Diagnostics, in turn, is focused on leveraging its research and development to become a top provider of diagnostics products in the region. Read more...

Roche Diagnostics' Asia Pacific Head Roland Diggelmann On The Growth Of Diagnostics In China With Healthcare Reforms: An Interview With PharmAsia News
Full story reprinted from PharmAsia News - August 03, 2009

PharmAsia News: The market for generic and branded pharmaceuticals in China is growing quite rapidly. Is this also the case for diagnostic products?

Roland Diggelman: Although pharmaceuticals and diagnostic tools are different, in the diagnostics field, there is what we call validated versus homebrew diagnostic tests, which are similar to generics. A validated test has gone through a stringent performance evaluation to ensure the health and safety of patients and users, and is approved by regulatory authorities such as FDA in the U.S. or, in the case of China, the SFDA. Homebrew tests, on the other hand, do not go through performance evaluation and lack compliance with safety regulations. As such, quality is often a key area of concern when it comes to homebrew testing, especially in the in vitro clinical setting with medical objectives.

Many homebrew tests exist in China. We believe this will change as the importance and awareness of the value of diagnostics increases and the regulatory environment tightens.

PharmAsia News: According to the company's 2008 annual earnings report, Roche Diagnostics sales in Asia Pacific, excluding Japan, accounted for 9 percent of global sales last year, with growth of 18 percent. Do you envision similar rates of growth for the years ahead?

Diggelman: Not only do we see continued growth, but strong, incremental growth in this region. In Asia Pacific, China represents our biggest market, followed by Korea, Australia and then India (excluding Japan). We have been performing consistently well in our key markets. In China, Roche Diagnostics is the number one in vitro diagnostic systems and tools provider. In 2008, China achieved total sales of RMB 1.4 billion ($204 million), with over 30 percent growth year-on-year. India is also recognized as a key market for growth for us; it has grown in excess of 30 percent, and we believe that we can sustain this growth with our continued investment into further expansion and penetration into the markets.

PharmAsia News: What is driving this growth? Do you expect it to continue?

Diggelman: One common challenge that governments have to deal with, which comes with both growing and aging populations, is to address the escalating cost of healthcare, and be able to provide the public with cost-effective healthcare solutions.

According to the World Health Organization, while diagnostic tests provide the basis for roughly two-thirds of all medical decisions, only 1 percent of the global healthcare expenditure of $2,500 billion is spent on diagnostic services.

Increasing the use of diagnostic testing provides one of the greatest healthcare cost-savings opportunities around the world. Appropriate use of diagnostics can not only improve patient outcomes, but also provide significant cost savings associated with direct hospital and outpatient charges through correct and early diagnosis, prescription of appropriate treatment, accurate monitoring and management of the treatment. As the awareness of the value of diagnostics increases, the demand will also surge.

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