mri project
TRANSCRIPT
PresentationPresentation
PryMarke, LLC (USA)MRI Project: Gebze
June, 2015
MRI Global MRI Global MarketplaceMarketplace
Global MRI market currently US$5.8 billion (2015), and will grow to Global MRI market currently US$5.8 billion (2015), and will grow to
US$6.8 billion (2020). (Magnetica, 2014; Markets and Markets, 2015)US$6.8 billion (2020). (Magnetica, 2014; Markets and Markets, 2015)
Major manufacturers: GE (USA), Philips (Netherlands), Siemens Major manufacturers: GE (USA), Philips (Netherlands), Siemens
(Germany), Hitatchi (Japan), Toshiba (Japan)(Germany), Hitatchi (Japan), Toshiba (Japan)
Market segmented into the following areas: Brain, Head, Neck (29%); Spine Market segmented into the following areas: Brain, Head, Neck (29%); Spine
(25%); Extremity (24%); Vascular (8%); Pelvic & Abdominal (7%)(25%); Extremity (24%); Vascular (8%); Pelvic & Abdominal (7%)
Categorized into the following field strengths: Low (<0.5T), Mid (0.5-1T), Categorized into the following field strengths: Low (<0.5T), Mid (0.5-1T),
High (1.5T), and Very High (3T)High (1.5T), and Very High (3T)
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MRI Marketplace MRI Marketplace (Continued)(Continued)
Major reasons for growth: Rising aging population, awareness of early Major reasons for growth: Rising aging population, awareness of early
diagnosis, technological advancements (superconducting magnets, open diagnosis, technological advancements (superconducting magnets, open
architecture, software applications)architecture, software applications)
Market restrictions include high costs of systems, declining reimbursement Market restrictions include high costs of systems, declining reimbursement
rates for MRI procedures, shortage of helium gas deposits, and trainingrates for MRI procedures, shortage of helium gas deposits, and training
Emerging markets (BRIC and CIVETS) and Asia/Pacific region of Emerging markets (BRIC and CIVETS) and Asia/Pacific region of
particular interest to investors in the MRI marketplace particular interest to investors in the MRI marketplace
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Special NotesSpecial Notes
Asia expected to be the fastest growing region through 2020Asia expected to be the fastest growing region through 2020
Niche markets for extremity imaging growing quicklyNiche markets for extremity imaging growing quickly
Arms, hands, wrists, knees, ankles (25% of all scans in USA)Arms, hands, wrists, knees, ankles (25% of all scans in USA)
Current total number of systems estimated at 3,500 worldwideCurrent total number of systems estimated at 3,500 worldwide
US, European, and Japanese markets represent 80% of that totalUS, European, and Japanese markets represent 80% of that total
China and India expected to enter marketplace soonChina and India expected to enter marketplace soon
Extremity scans break-even at 4-5 patients per day compared to 20-23 Extremity scans break-even at 4-5 patients per day compared to 20-23
patients per day for very high-field whole body scanspatients per day for very high-field whole body scansPryMarke, LLC
Special Notes Special Notes (Continued)(Continued)
Sales of very high field whole body systems have grown rapidly to almost Sales of very high field whole body systems have grown rapidly to almost
500 units per year500 units per year
Average sales price for “gold standard” high field scanner US$1.1 million Average sales price for “gold standard” high field scanner US$1.1 million
and US$2.3 million for very high field systemand US$2.3 million for very high field system
Superconducting magnet system in MRI scanner is 30% of total system costSuperconducting magnet system in MRI scanner is 30% of total system cost
Strong indication that patients and doctors demand high-field scans and will Strong indication that patients and doctors demand high-field scans and will
travel overseas if necessary, thus forcing clincs to upgrade systemstravel overseas if necessary, thus forcing clincs to upgrade systems
Over 13,000 systems recalled in early 2015 by GE and Siemens due to FDA Over 13,000 systems recalled in early 2015 by GE and Siemens due to FDA
protocol; magnetic interference largest problem followed by trainingprotocol; magnetic interference largest problem followed by training PryMarke, LLC
Superconducting Magnet Superconducting Magnet ProducersProducers
GE, Siemens, and Philips (“Big 3”) have own in-house production but have legacy GE, Siemens, and Philips (“Big 3”) have own in-house production but have legacy
factories that are expensive to run and cannot change set-ups quicklyfactories that are expensive to run and cannot change set-ups quickly
Hitachi does not have capability to design and manufactureHitachi does not have capability to design and manufacture
Toshiba does not have capability to manufacture whole body magnetsToshiba does not have capability to manufacture whole body magnets
““Big 3” have limited capacity to produce turnkey solutionsBig 3” have limited capacity to produce turnkey solutions
Mitsubishi is the only independent major magnet manufacturer but does not produce Mitsubishi is the only independent major magnet manufacturer but does not produce
tailor-made solutions and has current-driven cost fluctuation challengestailor-made solutions and has current-driven cost fluctuation challenges
Other superconducting manufacturers focus on non-MRI magnets (e.g., Magnex in Other superconducting manufacturers focus on non-MRI magnets (e.g., Magnex in
the UK and Bruker in Germanythe UK and Bruker in Germany
No truly independent magnet manufacturersNo truly independent magnet manufacturers PryMarke, LLC
MRI Research MRI Research UniversitiesUniversities
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Stanford University (California, USA)Stanford University (California, USA)
Emory University (Atlanta, Georgia, USA)Emory University (Atlanta, Georgia, USA)
Columbia University (New York, USA)Columbia University (New York, USA)
Yale University (Connecticut, USA)Yale University (Connecticut, USA)
University of Michigan (Michigan, USA)University of Michigan (Michigan, USA)
Cornell University (New York, USA)Cornell University (New York, USA)
Brown University (Rhode Island, USA)Brown University (Rhode Island, USA)
University of British Columbia (Canada)University of British Columbia (Canada)
Major Major SuggestionsSuggestions
Consider Chinese and Indian marketplaces for Consider Chinese and Indian marketplaces for
potential clients as well as partnerspotential clients as well as partners
Investigate MRI and CT scanners for real-time use Investigate MRI and CT scanners for real-time use
during surgeriesduring surgeries
Engage in university-industry collaborationEngage in university-industry collaboration
Target extremity marketplace first followed by Target extremity marketplace first followed by
brain, head, and neck markets as systems are brain, head, and neck markets as systems are
smaller and have faster break-even pointssmaller and have faster break-even points
Conduct further research into financial aspects Conduct further research into financial aspects
such as ROI, sustainability, market frictionssuch as ROI, sustainability, market frictionsPryMarke, LLC
ReferencesReferences
Frost and Sullivan (Texas, USA)Frost and Sullivan (Texas, USA)
Global Industry Analysts (Maryland, USA)Global Industry Analysts (Maryland, USA)
Magnetica (Queensland, Australia)Magnetica (Queensland, Australia)
Markets and Markets, Inc. (Texas, USA)Markets and Markets, Inc. (Texas, USA)
US Consulate General (Istanbul, Turkey)US Consulate General (Istanbul, Turkey)
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Thank You!Thank You!
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