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Frost & Sullivan Unveils Future Opportunities for the Tissue Diagnostics Market
Date:10/22/2013

LONDON, Oct. 22, 2013 /PRNewswire/ -- The global market for tissue diagnostic products accounted for $2.4 billion in 2012 and is estimated to reach $3.5 billion by 2017. Together, Europe and the United States contribute to about 79 percent of the market, leaving the remaining share to Asia-Pacific (APAC) and rest of world economies.

A new market insight from Frost & Sullivan, Tissue Diagnostics - Reimbursement Cuts and Hospital Consolidation to Affect Purchasing Trends for 2013 and 2014, explores market opportunities, as well as challenges for 2014 onwards.

For most Tier 1 companies, factors such as reimbursement cuts and heavy hospital consolidation have massively affected the sale of equipment. Advanced technology applications like automatic stainers, microtomes and tissue processors require capital financing, and capital budgets are always a problem.

"Customer consolidation is a key challenge which leaves vendors with very few customers to compete for," notes Frost & Sullivan Healthcare Research Analyst Divyaa Ravishankar. "Both in Europe and the United States, consolidation is affecting the hospital industry, as well as clinical laboratories. Vendors are therefore reworking and redefining their strategies, for instance focusing on acquisition and procurement strategies that will benefit customers. These may include offering competitive monthly payments or tax benefits in connection with the IRS section or providing incentives and deferring payments to help overcome budgetary constraints."

On the positive side, the market is expected to witness growth from 2014 onwards. Major pharmaceutical participants will acquire the molecular and Tissue In Vitro Diagnostics (IVD) business, as drug diagnostic products become more prevalent. All laboratories are now focused o
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