Article preview from IN VIVO - January, 2011
The quest for market growth in the in vitro diagnostics (IVD) space is taking manufacturers down a number of avenues, as they seek to counter the effects of the economic downturn that has hit particularly hard in the US and Western European markets over the past couple of years.
Article preview from IN VIVO - January, 2011
The quest for market growth in the in vitro diagnostics (IVD) space is taking manufacturers down a number of avenues, as they seek to counter the effects of the economic downturn that has hit particularly hard in the US and Western European markets over the past couple of years. Since 2008, economic woes in these regions have put pressure on large, consumer-based market segments, such as the diabetes glucose-testing market, driving down sales, pricing, and profits. As a result, the IVD industry is actively seeking out higher growth opportunities to offset this impact—and it is finding solutions in several areas, branching into underserved emerging markets like China and India and targeting higher-growth clinical segments such as cancer, women's health, and infectious disease. But perhaps the biggest opportunity for future growth lies in the field of molecular diagnostics, particularly products that address the move toward more personalized care. Suppliers well positioned to take advantage of this opportunity are likely to experience strong growth ahead.
The IVD industry is also expected to fare better than some other device markets in the post–health care reform world, perhaps even experiencing some upside. Although reimbursement and pricing pressures will continue (in fact, the US Clinical Laboratory Fee Schedule fell 1.9% this year, the first negative adjustment in more than 20 years), as will the push to reduce unnecessary testing, payors are already beginning to take notice of the fact that diagnostic testing can offer a compelling value proposition when it comes to finding ways to better ration expensive therapies. According to Daniel O'Day, COO of Roche Diagnostics, one of the largest players in this field, diagnostics are currently used in 60% to 70% of clinical health care decisions in the US, but they represent only 2% of the gross domestic product (GDP). With statistics like these, the ongoing shift toward cost-effectiveness and preventive care could actually benefit the diagnostics industry, which may receive a bigger share of the health care pie in the future.
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