global market opportunities for medical devices boston, ma 9-17-13
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Global Trade in Medical Devices: Exploring Markets Outside the U.S.
Michael D. Taylor
Senior Director, International Affairs and Trade
September 17, 2013 Boston, MA
A Workshop Hosted by the Pharmaceutical and Medical Device Applications
Committee of SPI
Agenda
• Drivers of the Global Trade in Medical Devices • U.S. Medical Devices Exports • Growth Export Markets for Medical Devices • Predicting Medical Device Export Growth
Key Factors for Global Trade in Medical Devices
Growth of Middle Class
Aging Population
Life Expectancy
Public Health Expenditures
Regulatory Environment
New Disease Patterns
Global Growth of the Middle Class
Between 2000 and 2009, 50 million individuals were added to the middle class in Latin America and the Caribbean—bringing the total from around 115 million people to over 165 million. Around 2009, the middle class consisted of 61 million people in Brazil (up from 39 million a decade earlier), 75 million in Russia (up from 31 million), and 83 million individuals in China (a jump from just 10 million). In Brazil, the middle class makes up almost one-third. In Russia, the middle class grew from being one-fifth to more than one-half of the population. In contrast, in China, the 83 million people defined as middle class only represent less than 10 percent of the population. In 2010, only 9 million Indians had reached middle-class status, which is less than 1 percent of the population. These low estimates reflect that, despite a good growth performance in the 2000s, India’s GDP per capita remains below the levels of the other BRIC countries.
The Impact of the Middle Class
Thanks to more sophisticated consumption habits, the middle classes in emerging countries will influence global trade patterns. The size of the middle class can determine the pace of reform. Everything else being equal, when the proportion of the middle class in a society increases, social policy on health and education becomes more active and the quality of governance regarding democratic participation and official corruption improves. Domestically, the middle classes will have a growing voice by means of higher purchasing power—moving up the consumption chain to high-end, more technical goods—and by demanding better education. And with a growing critical mass, they will push for institutional reforms and improved service delivery in areas that are beneficial to them.
The Expanding World Middle Class
Middle Class Growth in the BRIC Countries
Time for 65+ Percentage of Population to Double
Growth of Population 65+ in India and China
Percentage Change in World’s Population by Age: 2010-2050
Global Life Expectancies
Total Health Expenditures Per Capita 2000-2011
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South Korea Brazil Russian FederationTurkey South Africa MexicoIran Malaysia ChinaThailand
Economies Ranked on their Ease of Doing Business 2012
Economy Ease of Doing Business Rank South Korea 8
Malaysia 12 Thailand 18
South Africa 39 Mexico 48 Turkey 71
China 91 Vietnam 99
Pakistan 107
Egypt 109
Russian Federation 112 Indonesia 128
Bangladesh 129 Brazil 130
Nigeria 131 India 132 Philippines 138
Iran 145
Mortality Rates by Income Group* and Cause-of-Death Group,
2000 and 2011
Group I: Communicable, maternal, perinatal and nutritional conditions Group II: Noncommunicable diseases Group III: Injuries
* Countries are classified according to the World Bank income group for the year 2011 (World Bank list of economies, July 2012).
The 10 Leading Causes of Death, World, 2000 and 2011
No Causes of death, 2000 Deaths (million)
% of deaths
No Causes of death, 2011 Deaths (million)
% of deaths
1 Ischaemic heart disease 5.9 11.2 1 Ischaemic heart disease 7.0 12.9
2 Stroke 5.6 10.6 2 Stroke 6.2 11.4
3 Lower respiratory infections 3.5 6.7 3 Lower respiratory infections
3.2 5.9
4 Chronic obstructive pulmonary disease
3.0 5.8 4 Chronic obstructive pulmonary disease
3.0 5.4
5 Diarrhoeal diseases 2.5 4.7 5 Diarrhoeal diseases 1.9 3.5
6 HIV/AIDS 1.6 3.0 6 HIV/AIDS 1.6 2.9
7 Preterm birth complications 1.4 2.7 7 Trachea, bronchus, lung cancers
1.5 2.7
8 Tuberculosis 1.3 2.6 8 Diabetes mellitus 1.4 2.6
9 Trachea, bronchus, lung cancers
1.2 2.2 9 Road injury 1.3 2.3
10 Diabetes mellitus 1.0 1.9 10 Preterm birth complications
1.2 2.2
11 Road injury 1.0 1.9
13 Tuberculosis 1.0 1.8
Medical Devices by NAICS Codes
A medical device is an instrument, apparatus, implant, in vitro reagent, or similar or related article that is used to diagnose, prevent, or treat disease or other conditions, and does not achieve its purposes through chemical action within or on the body (which would make it a drug).
NAICS Code Medical Device Industry Sub-Sectors
334510 Electromedical Apparatus
334517 Irradiation Apparatus
339112 Surgical & Medical Instruments
339113 Surgical Appliances & Supplies
339114 Dental Equipment & Supplies
339115 Ophthalmic Goods
U.S. Medical Devices Exports 2000-2012
0
200
400
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1,000
1,200200
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200
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201
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U.S
. $ M
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Japan Netherlands China Germany Canada
Australia Sweden Belgium France Mexico
U.S. Electromedical Apparatus Exports 2000-2012
0
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800
1,000
1,200200
0
200
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U.S
. $ M
illio
ns
Japan Netherlands China Germany Canada
Australia Sweden Belgium France Mexico
U.S. Irradiation Apparatus Exports 2000-2012
0
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400
500
600
700200
0
200
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200
2
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201
0
201
1
201
2
U.S
. $ M
illio
ns
Japan China Germany France
Canada United Kingdom Mexico Brazil
Australia Belgium
U.S. Surgical & Medical Instruments Exports 2000-2012
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200
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600
800
1,000
1,200
1,400
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1,800200
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U.S
. $ M
illio
ns
Japan Netherlands Belgium Canada Mexico
Germany China Australia France Switzerland
U.S. Surgical Appliances & Supplies Exports 2000-2012
0
200
400
600
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1,000
1,200
1,400200
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200
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201
1
201
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U.S
. $ M
illio
ns
Netherlands Japan Canada Germany
Belgium China Australia Mexico
Switzerland United Kingdom
U.S. Dental Equipment and Supplies Exports 2000-2012
0
50
100
150
200
250
300200
0
200
1
200
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3
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4
20
05
200
6
200
7
200
8
200
9
201
0
201
1
201
2
U.S
. $ M
illio
ns
Canada Germany Japan Mexico Italy
France Netherlands Switzerland South Korea Australia
U.S. Ophthalmic Goods Exports 2000-2012
0
50
100
150
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250
300
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400
450200
0
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. $ M
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Japan Canada United Kingdom Hong Kong
Germany South Korea Singapore Mexico
Netherlands Italy
24%
31%
7%
24%
Total Health Expenditures
Per Capita
Percentage Population
65 and Over Life
Expectancy at Birth
Total U.S. Medical Device Exports
GDP Annual Growth
Rate Malaysia South Africa Thailand
Brazil Russia India China Bangladesh Egypt Indonesia Iran Mexico Nigeria* Pakistan Philippines South Korea Turkey Vietnam
Predicting Medical Device Export Growth
Political stability
Thank You!
谢谢 Merci Vielen Dank Grazie ありがとうございました
감사합니다 Obrigado Спасибо Gracias teşekkürler