BRIC Countries Outperform Rest of the World in IVD Sales Growth

The rate of growth for diagnostic instrumentation, product, and reagent sales for Brazil, Russia, India, and China (dubbed the BRIC nations) is double the six percent growth rate projected for worldwide in vitro diagnostics (IVD) sales.

In BRIC nations IVD sales are expected to grow from US $2.9 billion in 2009 to $5 billion in 2014, which represents a compound annual growth rate (CAGR) of 12%. The market in these countries is dominated by companies such as Roche (Basel, Switzerland), Abbott (Des Plaines, IL, USA), Siemens (Munich, Germany), and Beckman Coulter (Fullerton, CA, USA). Domestic companies such as Transasia (Mumbai, India), Horiba (Kyoto, Japan), and Mindray (Shenzhen, China) have taken the distribution of IVD products from urban areas to the rural areas in their respective markets. Incumbent companies tend to provide a host of routine tests.

It is expected that as the IVD demand in developing countries increases, there will be opportunities for rapid tests and advanced tests that are now emerging as local healthcare systems become more sophisticated.

A report from Kalorama Information (Rockville, MD, USA), publisher of research in medical markets, presents the challenges that BRIC countries face entering the IVD market. The report also explores the opportunities that specific developing countries offer to IVD companies. Kalorama attempts to add some realistic aspects of working in a foreign country that are more qualitative in nature.

A number of reports on the BRIC and emerging markets have been published. Most of these focus on quantitative data such as number of labs, hospitals, product registration regulations, and import taxes and conditions. Too many of them tend to present only a growth scenario without presenting the challenges the nations face.

Some of the same trends–growing middle class, mix of infectious and noncommunicable diseases, and government supported healthcare–are prevalent in many countries in Eastern Europe and Africa. Kalorama provides three non-BRIC nations: Turkey, Poland, and Nigeria as examples of where IVD may flourish in the future.

Author of the report, Shara Rosen, RT, MBA, commented, "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. 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."

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.

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