Are healthcare companies going to suffer their losses as the consumer discretionary spending decline?
According to Dr. Payet, the healthcare industry is perceived more as a defensive in comparison to other industries. More often products are viewed as essential goods that should be less affected by cyclical economic events.
Mr Simranjit Singh, Associate Director of the Healthcare Practice, Asia Pacific at Frost & Sullivan estimates the Asian Healthcare market in 2008 to be valued at about US $240 billion with the largest contributor being the Pharmaceuticals at 66.2 percent followed by the Medical Devices at 21.2 percent, Biotechnology at 6.7 percent, Clinical Diagnostics & Healthcare IT at 2.1 percent & Medical Imaging at 1.5 percent. In 2009, the Asian Healthcare Market is expected to grow by 5 to 10 percent.
"Due to the greater healthcare costs pressures, 2009 will also see the paradigm shift in healthcare spend in Asia from being treatment centric to move towards the 3 P's of healthcare - Predictive, Personalised & Preventative healthcare," comments Mr Singh.
Mr Singh further elaborates that the financial crisis presents an array of opportunities to key players in the healthcare industry especially Pharma & Medical technology companies. In a recent interview the CEO of Merck, Mr Richard Clark, highlighted that one of the key goals of Merck in 2009 was to look at distressed biotech companies that would be able boost Merck's revenue and beef up its pipeline.
Several Medtech companies like Philips Medical & GE Healthcare are looking for growth opportunities in emerging markets and they have taken bold steps with acquisitions or JVs with niche Medtech players in China & India such as Meditronics, Alpha X-ray & Shinva.
2009 represents an opportunity for Asia to takeover the m
|SOURCE Frost & Sullivan|
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